Greenbrier (GBX) Q4 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, April 8, 2026 astatine 8:57 AM CDT 16 min read

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Oct. 23, 2024 astatine 5 p.m. ET

• Chief Executive Officer — Lorie Tekorius

• Chief Commercial and Leasing Officer — Brian Comstock

• Chief Financial Officer — Michael Donfris

• Vice President, Corporate Finance and Treasurer — Justin Roberts

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Lorie Tekorius: Thank you, Justin, and bully afternoon, everyone. Greenbrier’s affirmative momentum successful 2024 expanded during our 4th quarter. We’re advancing our multiyear Better Together strategy focused connected 3 cardinal areas, maintaining our Manufacturing enactment presumption successful each our geographies, improving our Manufacturing gross margins and doubling recurring gross successful our leasing business. I’m pleased with the results and achievements since we launched this three-part strategy conscionable 2 years ago. In Q4, Greenbrier generated our 2nd highest quarterly EBITDA of $159 cardinal and aggregate gross borderline expanded to 18.2%. This is 310 ground points of sequential borderline growth. Full twelvemonth aggregate gross borderline of 15.8% is 460 ground points higher than fiscal 2023.

Q4 was our 4th consecutive 4th successful gross borderline successful the mid-teens oregon higher, driven by beardown manufacturing and syndication execution, arsenic good arsenic recurring gross growth. In little than six quarters, we achieved the semipermanent people we provided during our Investor Day successful April 2023. And I privation to admit everyone astatine Greenbrier from the store level to the boardroom for their actions successful executing our ambitious strategy and helping america scope this important milestone good up of schedule. Operating efficiencies proceed to improve, and we’re advancing cardinal initiatives crossed the organization, specified arsenic insourcing and lease fleet expansion.

And since we announced plans to grow our ain obstruction car lease fleet, we’ve accrued recurring revenues from leasing activities by 25% and are connected way to treble them wrong the adjacent 4 years. We’re besides nearing our targeted scope for instrumentality connected invested capital, which we primitively expected would instrumentality until 2026 to reach. And portion these cardinal show indicators are favorable, hard enactment remains. Another item successful the 4th was commemorating Greenbrier’s 30th day arsenic a nationalist institution by ringing the opening doorbell astatine the New York Stock Exchange with my colleagues. This celebration, and our robust operating and fiscal show successful Q4 ended the twelvemonth connected a precocious note.

As you whitethorn person seen successful our net merchandise earlier today, we issued guidance for fiscal 2025. Michael volition supply much colour shortly, but you tin expect enhanced aggregate gross borderline from fiscal 2024 levels and beardown bottomline results by leveraging the operational efficiencies we’ve achieved and remaining highly focused connected execution. This is accordant with our superior strategical imperative to guarantee that Greenbrier tin present sustained higher show crossed a scope of marketplace conditions. Greenbrier volition besides proceed to heighten our market-leading presumption by executing connected innovation. For example, our engineering squad precocious designed a high-sided gondola utilizing ultra-high spot alloy and a caller anhydrous ammonia vessel car.