FreightCar America (RAIL, Financial) has announced that it secured significant new orders this past quarter, amounting to roughly $141 million. This equates to a total of 1,250 railcars ordered by the end of March.
These recent orders highlight a robust demand for FreightCar America's railcar products and demonstrate the company’s growing foothold in the market. Impressively, the new orders account for about 25% of all railcars ordered during the quarter. Furthermore, in the specific market segments the company targets, these orders represent a substantial 36%.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for FreightCar America Inc (RAIL, Financial) is $14.25 with a high estimate of $15.00 and a low estimate of $13.50. The average target implies an upside of 120.93% from the current price of $6.45. More detailed estimate data can be found on the FreightCar America Inc (RAIL) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, FreightCar America Inc's (RAIL, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for FreightCar America Inc (RAIL, Financial) in one year is $5.10, suggesting a downside of 20.93% from the current price of $6.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the FreightCar America Inc (RAIL) Summary page.
RAIL Key Business Developments
Release Date: March 13, 2025
- Revenue: $559.4 million for the full year 2024, representing a 56% growth over the prior year.
- Adjusted EBITDA: $43 million for the full year 2024, a 114% increase from 2023.
- Adjusted Net Income: $24.5 million or $0.15 per diluted share for the full year 2024.
- Operating Cash Flow: $44.9 million generated in 2024.
- Adjusted Free Cash Flow: $21.7 million for the full year 2024.
- Gross Margin: 15.3% in Q4 2024, compared to 9.6% in Q4 2023.
- SG&A Expenses: $9.4 million in Q4 2024, up from $7.7 million in Q4 2023.
- Railcar Deliveries: 1,019 railcars in Q4 2024.
- Backlog: 2,797 units valued at approximately $267 million at year-end 2024.
- Market Share: 21% within addressable market segments and 12% of the total railcar market in 2024.
- Capital Expenditures: $5 million in 2024, with a projected range of $5 million to $6 million for 2025.
- Cash Position: $44.5 million in cash at the end of 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FreightCar America Inc (RAIL, Financial) achieved a 57% increase in market share on orders won across its addressable market, despite a 45% year-on-year decline in the market.
- The company delivered 56% revenue growth for the year and exceeded its adjusted EBITDA guidance, achieving $43 million, a 114% increase over the prior year.
- FreightCar America Inc (RAIL) generated $45 million in operating cash flow and $22 million in adjusted free cash flow for the full year.
- The company successfully launched into the tank car segment, expanding its reach and competitive advantage in a higher-margin space.
- FreightCar America Inc (RAIL) redeemed all outstanding preferred shares, resulting in approximately $9.2 million in cost savings, and expanded its ABL credit facility to enhance financial flexibility.
Negative Points
- The addressable market for FreightCar America Inc (RAIL) was down 45% year-on-year, indicating broader industry challenges.
- There were minor timing delays in the fourth quarter, resulting in some delivery fulfillment being pushed into early Q1.
- The company faces uncertainty due to tariffs, which could impact future operations and market conditions.
- Despite strong inquiry levels, the overall order activity for the trailing 12 months was below typical replacement demand.
- FreightCar America Inc (RAIL) anticipates lower deliveries and revenue in the first quarter of 2025 due to production line changes.
