FreightCar America, Inc. Reports Third Quarter 2025 Results

Delivered 42% revenue growth year-over-year

Strong grossmargins of 15.1%, expansion of 80basis points

Reaffirming Adjusted EBITDA guidance for full year

CHICAGO, Nov. 10, 2025 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the third quarter ended September 30, 2025.

ThirdQuarter 2025Highlights

Revenues of $160.5 million, compared to $113.3 million in the third quarter of 2024, with railcar deliveries of 1,304 units compared to 961 units in the prior year periodGross margin of 15.1% with gross profit of $24.2 million, compared to gross margin of 14.3% with gross profit of $16.2 million in the third quarter of 2024Recorded a $17.6 million non-cash adjustment due to share price appreciation resulting in a Net loss of $(7.4) million, or $(0.23) per share, and Adjusted net income of $7.8 million, or $0.24 per shareAdjusted EBITDA was $17.0 million, representing a margin of 10.6%, compared to $10.9 million and a margin of 9.6% in the third quarter of 2024Ended the quarter with a backlog of 2,750 units valued at $222.0 million, reflecting a diversified mix of railcar conversion programs and new railcar buildsWell-positioned to deploy capital for growth, with $62.7 million in cash and equivalents and no borrowings under the company’s revolving credit facility

“Our third quarter results highlight the strength of our operating platform and the continued execution of our commercial strategy,” said Nick Randall, President and Chief Executive Officer of FreightCar America. “We delivered record third quarter Adjusted EBITDA at our new facility, reflecting the benefits of improved production efficiency and favorable product mix. Our team continues to demonstrate manufacturing flexibility which, coupled with our customer-centric approach, differentiates FreightCar America in the market. While overall industry demand remains subdued, we continue to support customers by leveraging our expertise in conversions and customized solutions to create value for our customers.”

Randall continued, “This quarter’s strong bottom line performance reflects our manufacturing discipline and commercial excellence. By building for value and meeting complex customer requirements instead of commoditized throughput, we delivered exceptional Adjusted EBITDA performance and strengthened the Company’s financial position. With this momentum, we enter the final quarter well-positioned to deliver profitable growth, generate positive free cash flow and advance our long-term growth initiatives.”

FiscalYear2025 Outlook

The Company has updated its outlook for fiscal year 2025 as follows:

Fiscal2025 OutlookYear-over-Year ChangeatMidpoint of RangeRailcar Deliveries4,500 – 4,900 Railcars7.7%Revenue$500 - $530 million(7.9)%AdjustedEBITDA1$43 - $49 million7.0%

1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.

Mike Riordan, Chief Financial Officer of FreightCar America, added, “We delivered another quarter of solid financial results, including strong deliveries, margin performance and operating cash flow. Looking ahead, while our change in revenue guidance reflects product mix as we saw a larger number of conversion railcars compared to new railcars in the second half of 2025, our profitability and positive cash performance remain on track, underscoring the resilience of our business model, which fuels our capital strength and positions us to drive long-term sustainable growth.”

ThirdQuarter 2025 ConferenceCall&Webcast Information

The Company will host a conference call and live webcast on Monday, November 10, at 11:00 a.m. (Eastern Time) to discuss its third quarter 2025 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call. Teleconference details are as follows:

November 10, 202511:00 a.m. Eastern TimePhone: 1-877-407-0789 or 1-201-689-8562Webcast access: https://viavid.webcasts.com/starthere.jsp?ei=1738819&tp_key=ac6dd57ff0

An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Monday, November 10, 2025, until 11:59 p.m. (Eastern Time) on Monday, November 24, 2025. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13756539. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.

AboutFreightCarAmerica

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Forward-LookingStatements

This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); the scope and duration of the government shutdown; and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

Non-GAAPFinancialMeasures

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

Investor Contact:[email protected]

FreightCar America, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except for share data)
(Unaudited) September 30,
2025 December 31,
2024 Assets Current assets Cash, cash equivalents and restricted cash equivalents $62,743 $44,450 Accounts receivable 32,514 12,506 VAT receivable 5,677 3,851 Inventories, net 104,243 75,281 Assets held for sale — 629 Prepaid expenses and other current assets 15,948 8,314 Total current assets 221,125 145,031 Property, plant and equipment, net 28,147 30,107 Right of use asset operating lease 2,086 2,423 Right of use asset finance lease 38,650 45,081 Deferred income taxes 49,520 1,024 Other long-term assets 1,229 550 Total assets $340,757 $224,216 Liabilities and Stockholders’ Deficit Current liabilities Accounts and contractual payables $98,579 $49,574 Accrued payroll and other employee costs 9,633 6,286 Accrued warranty 1,997 2,389 Customer deposits 8,176 — Deferred revenue 506 8,556 Current portion of long-term debt 2,875 2,875 Lease liability finance lease, current 1,277 1,256 Other current liabilities 9,804 9,889 Total current liabilities 132,847 80,825 Long-term debt, net of current portion 104,679 105,540 Warrant liability 148,650 136,319 Accrued pension costs 1,268 1,073 Lease liability operating lease, long-term 2,220 2,645 Lease liability finance lease, long-term 41,259 46,678 Other long-term liabilities 708 1,409 Total liabilities 431,631 374,489 Stockholders’ deficit Preferred stock — — Common stock 221 221 Additional paid-in capital 72,006 69,404 Accumulated other comprehensive income 2,836 721 Accumulated deficit (165,937) (220,619)Total stockholders’ deficit (90,874) (150,273)Total liabilities and stockholders’ deficit $340,757 $224,216

FreightCar America, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except for share and per share data)
(Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Revenues $160,511 $113,255 $375,424 $421,729 Cost of sales 136,306 97,059 319,004 375,700 Gross profit 24,205 16,196 56,420 46,029 Selling, general and administrative expenses 9,647 7,538 30,284 23,541 Litigation settlement — — — (3,214)Operating income 14,558 8,658 26,136 25,702 Interest expense (4,638) (1,577) (13,356) (5,815)Loss on change in fair market value of Warrant liability (17,589) (110,040) (12,331) (125,581)Other income (expense) 78 (680) 3,235 (1,419)(Loss) income before income taxes (7,591) (103,639) 3,684 (107,113)Income tax (benefit) provision (146) 3,407 (50,998) 3,327 Net (loss) income $(7,445) $(107,046) $54,682 $(110,440)Net (loss) earnings per common share - basic $(0.23) $(3.57) $1.66 $(4.07)Net (loss) earnings per common share - diluted $(0.23) $(3.57) $1.57 $(4.07)Weighted average common shares outstanding – basic 31,887,926 31,353,997 31,778,768 30,519,545 Weighted average common shares outstanding – diluted 31,887,926 31,353,997 33,738,478 30,519,545

FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited) Nine Months Ended September 30, 2025 2024 Cash flows from operating activities Net income (loss) $54,682 $(110,440)Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: Depreciation and amortization 4,598 4,252 Non-cash lease expense on right of use assets 2,320 2,226 Loss on change in fair market value for Warrant liability 12,331 125,581 Stock-based compensation recognized 3,134 2,330 Deferred income taxes (48,496) — Other non-cash items, net 6,655 2,049 Changes in operating assets and liabilities: Accounts receivable (20,008) (17,911)VAT receivable (1,538) 465 Inventories (27,906) 40,859 Accounts and contractual payables 47,702 (8,300)Income taxes payable, net (7,478) (2,179)Lease liability (2,572) (2,802)Customer deposits 8,176 8,865 Other assets and liabilities (6,868) (5,948)Net cash flows provided by operating activities 24,732 39,047 Cash flows from investing activities Purchase of property, plant and equipment (2,102) (3,731)Proceeds from sale of assets held for sale, net of selling costs 585 — Net cash flows used in investing activities (1,517) (3,731)Cash flows from financing activities Deferred financing costs (1,336) — Borrowings on revolving line of credit — 26,595 Repayments on revolving line of credit — (56,010)Repayments on term loan (2,156) — Employee stock settlement (487) (40)Financing lease payments (943) (1,591)Net cash flows used in financing activities (4,922) (31,046)Net increase in cash and cash equivalents 18,293 4,270 Cash, cash equivalents and restricted cash equivalents at beginning of period 44,450 40,560 Cash, cash equivalents and restricted cash equivalents at end of period $62,743 $44,830 Supplemental cash flow information Interest paid $7,196 $2,177 Income taxes paid $5,143 $5,061 Change in unpaid construction in process $597 $(226)

FreightCar America, Inc.
Reconciliation of (Loss) Income before taxes to EBITDA(1) and Adjusted EBITDA(2)
(In thousands)
(Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 (Loss) income before income taxes $(7,591) $(103,639) $3,684 $(107,113)Depreciation & Amortization 1,552 1,442 4,598 4,252 Interest Expense, net 4,638 1,577 13,356 5,815 EBITDA (1,401) (100,620) 21,638 (97,046) Change in Fair Value of Warrant (a) 17,589 110,040 $12,331 125,581 Litigation Settlement (b) - - - (3,214)Professional Services (c) 477 - 477 - Stock Based Compensation 433 804 3,134 2,330 Other, net (d) (78) 680 (3,235) 1,419 Adjusted EBITDA $17,020 $10,904 $34,345 $29,070

(1) EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similar titled measures reported by other companies.

(2) Adjusted EBITDA represents EBITDA before the following charges:

(a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b) During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars.
(c) During the third quarter of 2025, the Company incurred certain professional services expenses associated with governance items.
(d) During the second quarter of 2025, the Company recognized other income related to a tax credit received.

We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of Net (loss) income and Adjusted net income (loss)(1)
(Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 Net (loss) income $(7,445) $(107,046) $54,682 $(110,440) Change in Fair Value of Warrant (a) 17,589 110,040 12,331 125,581 Litigation Settlement (b) - - - (3,214)Professional Services (c) 477 - 477 - Stock Based Compensation 433 804 3,134 2,330 Release of Valuation Allowance (d) - - (51,872) - Other, net (e) (78) 680 (3,235) 1,419 Total non-GAAP adjustments 18,421 111,524 (39,165) 126,116 Income tax impact on non-GAAP adjustments (f) (3,184) 2,797 (2,279) 906 Adjusted net income $7,792 $7,275 $13,238 $16,582

(1) Adjusted net income represents net income (loss) before the following charges:

(a)  This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b)  During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars.
(c)  During the third quarter of 2025, the Company incurred certain professional services expenses associated with governance items.
(d)  During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
(e)  During the second quarter of 2025, the Company recognized other income related to a tax credit received.
(f)   Income tax impact on non-GAAP adjustments per share represents the tax impact of the presented adjustments on the Company’s income tax provision calculation.

We believe that Adjusted net income is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted net income is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted net income is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of diluted EPS and Adjusted EPS(1)
(Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 Diluted EPS $(0.23) $(3.57) $1.57 $(4.07) Change in Fair Value of Warrant (a) $0.55 $3.51 $0.37 $4.11 Litigation Settlement (b) - - - (0.11)Professional Services (c) 0.01 - 0.01 - Stock Based Compensation 0.01 0.03 0.09 0.08 Release of Valuation Allowance (d) - - (1.54) - Other, net (e) - 0.02 (0.10) 0.05 Total non-GAAP adjustments pre-tax per-share 0.57 3.56 (1.17) 4.13 Income tax impact on non-GAAP adjustments per share (f) (0.10) 0.09 (0.07) 0.03 Adjusted EPS $0.24 $0.08 $0.33 $0.09

(1) Adjusted EPS represents diluted EPS before the following charges:

(a)  This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
(b)  During the second quarter of 2024, the Company recorded a litigation settlement related to a dispute with a former lessee of our railcars.
(c)  During the third quarter of 2025, the Company incurred certain professional services expenses associated with governance items.
(d)  During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
(e)  During the second quarter of 2025, the Company recognized other income related to a tax credit received.
(f)   Income tax impact on non-GAAP adjustments per share represents the tax impact of the presented adjustments on the Company’s income tax provision calculation.

We believe that Adjusted EPS is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of Cash flows provided by operating activities, Free cash flow(1) and Adjusted free cash flow(2)
(Unaudited) Three Months Ended
September 30, Nine Months Ended
September 30, 2025 2024 2025 2024 Cash flows provided by operating activities$3,410 $7,172 $24,732 $39,047 Purchase of property, plant and equipment (1,164) (1,462) (2,102) (3,731)Free cash flow 2,246 5,710 22,630 35,316 Accrued dividends on Series C Preferred stock (a) - (4,676) - (13,340)Adjusted free cash flow$2,246 $1,034 $22,630 $21,976

(1) Free cash flow represents the amount by which Cash flows provided by operating activities exceeds capital expenditures.
(2) Adjusted free cash flow represents the amount by which Free cash flow exceeds the following items:

(a) Represents Series C Preferred stock dividends accrued during the period. All accrued preferred share dividends were paid concurrent with redemption of the preferred shares outstanding on December 31, 2024.

We believe that Free cash flow and Adjusted free cash flow are useful to investors evaluating our operating performance compared to that of other companies in our industry because these metrics provide key insights into the potential for growth and ability to generate returns for investors. Free cash flow and Adjusted free cash flow are not financial measures presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Free cash flow or Adjusted free cash flow in isolation or as a substitute for Cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Free cash flow and Adjusted free cash flow is not necessarily comparable to that of other similarly titled measures reported by other companies.