The following is a summary of the FreightCar America, Inc. (RAIL) Q1 2024 Earnings Call Transcript:
Financial Performance:
FreightCar's Q1 revenue showed a dramatic increase of 99% YoY, recording $161 million, along with a noteworthy number of rail car deliveries (1,223 units).
An improvement was seen in gross margins, standing at 7.1%, whereas the adjusted EBITDA increased YoY to reach $6.1 million.
The first quarter saw new orders for 384 units, valued at $45.2 million. Despite these milestones, the full-year projections were kept unchanged.
The adjusted net income for the first quarter stood at $4.9 million or $0.02 per share.
Business Progress:
FreightCar has successfully completed the buildout of their new facility and a significant resizing in capacity, resulting in consistent production and shipping of over 1,000 units at their new facility in Mexico.
The launch of the fourth production line at the Mexico facility enables the company to produce a wide array of rail car products at a much higher capacity, eyeing a production of approximately 1,000 units (or more) per quarter.
Their projection for 2024 encompasses deliveries between 4,000 to 4,400 rail cars, marking an expected growth of around 39% at the midpoint of the range.
FreightCar remains optimistic over potential growth opportunities, despite assuming challenges concerning interest rates and customer hesitancy, boosted by the improvement in service metrics.
More details: FreightCar America IR
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