FreightCar America Sees 260 bps Margin Expansion and Guides $500–550M 2026 Revenue
FreightCar America generated $501 million in 2025 revenue with gross margin up 260 bps to 14.6% and 8.9% adjusted EBITDA of $44.8 million. It ended Q4 with a 1,926-unit backlog valued at $137.5 million, acquired Carly Railcar Components to expand aftermarket revenue, and guided 2026 revenue of $500–$550 million (+4.8%) with 4,000–4,500 railcar deliveries.
1. Fourth Quarter and Full Year 2025 Results
In the quarter ended December 31, 2025, FreightCar America reported revenues of $125.6 million, down from $137.7 million a year earlier, with railcar deliveries rising to 1,172 units. Full year revenue reached $501.0 million versus $559.4 million in 2024, gross margin improved to 14.6%, adjusted EBITDA rose to $44.8 million (8.9% margin), and net income was $38.1 million on 4,125 railcar deliveries.
2. Acquisition and Cash Flow Performance
FreightCar America generated operating cash flow of $34.8 million and free cash flow of $31.4 million, up 44.8% year-over-year, and improved its balance sheet via lower-cost refinancing. The company completed the acquisition of Carly Railcar Components to strengthen its aftermarket business and ended Q4 with a backlog of 1,926 units valued at $137.5 million.
3. 2026 Guidance and Growth Strategy
For fiscal 2026, the company guided revenue of $500 million–$550 million (4.8% growth at midpoint), adjusted EBITDA of $41 million–$50 million (+10.4% at midpoint), and railcar deliveries of 4,000–4,500 units (+3% at midpoint). Management plans to convert backlog into profitable deliveries, expand its aftermarket and tank car offerings, and pursue strategic opportunities to drive growth.