GREENBRIER COMPANIES INC
For the period ended May 31, 2025. Filed Jul 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 31, 2025 · Filed Jul 2, 2025
GBX$41.51-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-02-28; filed 2025-04-08.
0000950170-25-052054
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThree Months Ended February 28, 2025 Compared to the Three Months Ended February 29, 2024Six Months Ended February 28, 2025 Compared to the Six Months Ended February 29, 2024Current report: 10-Q
Period ended 2025-05-31; filed 2025-07-02.
0000950170-25-092942
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThree Months Ended May 31, 2025 Compared to the Three Months Ended May 31, 2024Nine Months Ended May 31, 2025 Compared to the Nine Months Ended May 31, 2024The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 145 previous paragraphs and 145 current paragraphs.
73 unchanged; 52 reworded; 19 added; 18 removed; 2 previous and 1 current paragraphs rearranged.
Tables are not compared: 17 previous and 17 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
In May 2025, we renewed and extended our $600 million domestic revolving facility and $250 million term loan, extending the maturity date of both instruments until 2030.
Current report
Revenue increased 2.7% for the three months ended May 31, 2025 as compared to the three months ended May 31, 2024 primarily due to a 4.0% increase in railcar deliveries.
Current report
Cost of revenue decreased 0.7% for the three months ended May 31, 2025 as compared to the three months ended May 31, 2024 primarily due to fewer sales of railcars which we had purchased from third parties with the intent to resell during the three months ended May 31, 2025.
Current report
Margin percentage increased 2.9% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024 primarily due to operating efficiencies within our Manufacturing segment.
Current report
Net earnings attributable to Greenbrier increased $26.2 million for the three months ended May 31, 2025 as compared to the three months ended May 31, 2024 primarily due to:
Current report
$11.5 million decrease in Interest and foreign exchange expense primarily attributed to the change in the Mexican Peso's and Brazilian Real's foreign exchange rates relative to the U.S. Dollar and higher interest income during the three months ended May 31, 2025.
Current report
Manufacturing Revenue increased $23.2 million or 3.1% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024 primarily due to a 4.0% increase in railcar deliveries.
Current report
Manufacturing Cost of revenue increased $0.4 million or 0.1% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The increase was primarily attributed to a 4.0% increase in railcar deliveries partially offset by operating efficiencies during the three months ended May 31, 2025.
Current report
Manufacturing Margin percentage increased 2.6% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The increase was primarily attributed to operating efficiencies during the three months ended May 31, 2025.
Current report
Manufacturing Earnings from operations increased $23.2 million for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The increase was primarily attributed to a 4.0% increase in railcar deliveries and operating efficiencies during the three months ended May 31, 2025.
Current report
For the three months ended May 31, 2025, we had Income tax expense of $18.1 million on pre-tax income of $79.4 million for an effective tax rate of 22.8%. The effective tax rate benefited from net favorable discrete items related to our foreign subsidiaries.
Current report
For the three months ended May 31, 2024, we had Income tax expense of $10.7 million on pre-tax income of $47.6 million for an effective tax rate of 22.5%. The effective tax rate benefited from net favorable discrete items related to our foreign subsidiaries and U.S. tax credits.
Current report
Net earnings attributable to Greenbrier increased $68.8 million for the nine months ended May 31, 2025 as compared to the nine months ended May 31, 2024 primarily due to:
Current report
$14.2 million decrease in Interest and foreign exchange expense primarily attributed to higher interest income and a $4.2 million increase in foreign exchange gain primarily due to the change in the Mexican Peso's foreign exchange rate relative to the U.S. Dollar during the nine months ended May 31, 2025.
Current report
Manufacturing Margin percentage increased 3.8% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The increase was primarily attributed to operating efficiencies during the nine months ended May 31, 2025.
Current report
Leasing & Fleet Management Margin percentage increased 0.5% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The increase was primarily attributed to improved lease rates and fewer sales of railcars that we purchased from third parties, which have lower margin percentages, during the nine months ended May 31, 2025.
Current report
For the nine months ended May 31, 2024, we had Income tax expense of $30.0 million on pre-tax income of $128.2 million for an effective tax rate of 23.4%. The effective tax rate benefited from net favorable discrete items related to U.S. tax credits and changes in foreign currency exchange rates for our U.S. Dollar denominated foreign operations.
Current report
The senior term debt was amended in May 2025 on similar terms, extending the maturity date from August 2026 to May 2030. Principal payments of $3.1 million are to be paid quarterly in arrears with a balloon payment of $190.6 million due upon maturity. The principal balance as of May 31, 2025 was $250.0 million.
Current report
Dividend and Share Repurchase Program
Removed paragraphs (18)
Previous report
Revenue decreased 11.7% for the three months ended February 28, 2025 as compared to the three months ended February 29, 2024 primarily due to a 5.7% decrease in railcar deliveries and a change in product mix.
Previous report
Cost of revenue decreased 15.8% for the three months ended February 28, 2025 as compared to the three months ended February 29, 2024 primarily due to operating efficiencies within our Manufacturing segment and a 5.7% decrease in railcar deliveries.
Previous report
Net earnings attributable to Greenbrier increased $18.5 million for the three months ended February 28, 2025 as compared to the three months ended February 29, 2024 primarily due to:
Previous report
$4.7 million increase in Net gain on disposition of equipment attributed to higher sales of assets from our lease fleet during the three months ended February 28, 2025.
Previous report
Manufacturing Revenue decreased $110.7 million or 13.6% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024 primarily due to a 5.7% decrease in railcar deliveries and a change in product mix.
Previous report
Manufacturing Cost of revenue decreased $120.0 million or 16.5% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The decrease was primarily attributed to operating efficiencies and a 5.7% decrease in railcar deliveries during the three months ended February 28, 2025.
Previous report
Manufacturing Margin percentage increased 3.0% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The increase was primarily attributed to operating efficiencies during the three months ended February 28, 2025.
Previous report
Manufacturing Earnings from operations increased $5.6 million for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The increase was primarily attributed to operating efficiencies during the three months ended February 28, 2025. This was partially offset by a 5.7% decrease in railcar deliveries.
Previous report
For the three months ended February 29, 2024, we had Income tax expense of $9.3 million on pre-tax income of $38.9 million for an effective tax rate of 23.9%. The effective tax rate benefited from net favorable discrete items related to our foreign subsidiaries.
Previous report
Margin percentage increased 4.5% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024 primarily due to operating efficiencies within our Manufacturing segment. This was partially offset by a 4.2% decrease in Leasing & Fleet Management Margin percentage for the six months ended February 28, 2025 primarily attributed to higher sales of railcars that we purchased from third parties, which have lower margin percentages, and lower syndication activity.
Previous report
Net earnings attributable to Greenbrier increased $42.6 million for the six months ended February 28, 2025 as compared to the six months ended February 29, 2024 primarily due to:
Previous report
$5.0 million increase in Net gain on disposition of equipment attributed to higher sales of assets from our lease fleet during the six months ended February 28, 2025.
Previous report
$6.7 million increase in Selling and administrative expense primarily attributed to higher employee-related costs for the six months ended February 28, 2025.
Previous report
Manufacturing Margin percentage increased 4.4% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The increase was primarily attributed to operating efficiencies during the six months ended February 28, 2025.
Previous report
Leasing & Fleet Management Margin percentage decreased 4.2% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The decrease was primarily attributed to higher sales of railcars that we purchased from third parties, which have lower margin percentages, and lower syndication activity for the six months ended February 28, 2025. These were partially offset by improved lease rates for the six months ended February 28, 2025.
Previous report
For the six months ended February 28, 2025, we had Income tax expense of $53.4 million on pre-tax income of $150.3 million for an effective tax rate of 35.5%. The effective tax rate was impacted by net unfavorable discrete items related to our foreign subsidiaries.
Previous report
For the six months ended February 29, 2024, we had Income tax expense of $19.3 million on pre-tax income of $80.6 million for an effective tax rate of 23.9%. The effective tax rate benefited from net favorable discrete items related to our foreign subsidiaries.
Previous report
Dividend & Share Repurchase Program
Reworded paragraphs (52)
Previous wording
We operate in two reportable segments: Manufacturing and Leasing & Fleet Management. Our segments are operationally integrated. The Manufacturing segment, which primarily operates from facilities in the U.S., Mexico, Poland and Romania, produces freight railcars, tank cars, intermodal railcars, automotive railcar products, sustainable conversions, and a variety of parts for the rail industry. We also perform railcar maintenance, which includes wheel and axle servicing. The Leasing & Fleet Management segment owns approximately 16,600 railcars as of February 28, 2025. We also provide fleet management for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America.
Current wording
We operate in two reportable segments: Manufacturing and Leasing & Fleet Management. Our segments are operationally integrated. The Manufacturing segment, which primarily operates from facilities in the U.S., Mexico, Poland and Romania, produces freight railcars, tank cars, intermodal railcars, automotive railcar products, sustainable conversions, and a variety of parts for the rail industry. We also perform railcar maintenance, which includes wheel and axle servicing. The Leasing & Fleet Management segment owns approximately 16,800 railcars as of May 31, 2025. We also provide fleet management for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America.
Previous wording
We continue to execute on our multi-year strategy. Overall, demand in the marketplace is relatively steady for our products and services. We delivered strong results for the six months ended February 28, 2025, which included the following:
Current wording
We continue to execute on our multi-year strategy. While we believe that macroeconomic uncertainty is affecting demand across the markets in which we operate, we delivered strong results for the nine months ended May 31, 2025, which included the following:
Previous wording
Margin percentage of 19.1% which was a 4.5% improvement compared to the same period last year. The increase was driven by operating efficiencies and a favorable product mix in our Manufacturing segment.
Current wording
Margin percentage of 18.7% which was a 4.0% improvement compared to the same period last year. The increase was primarily driven by operating efficiencies in our Manufacturing segment.
Previous wording
Net earnings attributable to Greenbrier increased $42.6 million or 65.9% compared to the same period last year. The increase was attributed to higher Margin as described above and an increase in Net gain on disposition of equipment attributed to higher sales of assets from our lease fleet.
Current wording
Net earnings attributable to Greenbrier increased $68.8 million or 69.8% compared to the same period last year. The increase was primarily attributed to higher Margin as described above.
Previous wording
Increased our owned lease fleet by 1,100 railcars, representing a 7.1% increase since August 31, 2024.
Current wording
Increased our owned lease fleet by 1,300 railcars, representing an 8.4% increase since August 31, 2024.
Previous wording
Our railcar backlog was 20,400 units with an estimated value of $2.6 billion as of February 28, 2025, with deliveries extending into 2026 and beyond. Our backlog includes approximately $590 million of railcars intended for syndication which are supported by lease agreements with external customers and may be syndicated to third parties or held in our lease fleet depending on a variety of factors. Approximately 6% of backlog units and 5% of estimated backlog value as of February 28, 2025 was associated with our Brazilian manufacturing operations which is accounted for under the equity method.
Current wording
Our railcar backlog was 18,900 units with an estimated value of $2.5 billion as of May 31, 2025, with deliveries extending into 2027 and beyond. Our backlog includes approximately $390 million of railcars intended for syndication which are supported by lease agreements with external customers and may be syndicated to third parties or held in our lease fleet depending on a variety of factors. Approximately 12% of backlog units and estimated backlog value as of May 31, 2025 was associated with our Brazilian manufacturing operations which is accounted for under the equity method.
Previous wording
As part of our continued optimization efforts of our industrial footprint, we are consolidating our European operations and approved the closure of one of our manufacturing facilities in Romania. We expect the closure to be completed in 2025.
Current wording
As part of our continued optimization efforts of our industrial footprint, we are consolidating our European operations and are closing one of our manufacturing facilities in Romania. The closure is expected to be completed by the end of 2025.
Previous wording
$16.4 million increase in Margin primarily due to operating efficiencies within our Manufacturing segment and a $7.8 million increase in rents associated with a larger fleet and improved lease rates in our Leasing & Fleet Management segment during the three months ended February 28, 2025.
Current wording
$27.7 million increase in Margin primarily due to a 4.0% increase in railcar deliveries and operating efficiencies within our Manufacturing segment during the three months ended May 31, 2025. In addition, a $7.0 million increase in rents associated with a larger fleet and improved lease rates in addition to higher syndication activity in our Leasing & Fleet Management segment during the three months ended May 31, 2025.
Previous wording
$10.7 million increase in Income tax expense due to higher pre-tax earnings and jurisdictional earnings mix.
Current wording
$7.4 million increase in Income tax expense due to higher pre-tax earnings during the three months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Revenue increased $16.5 million or 16.4% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The increase was primarily attributed to an increase of $14.4 million in rents associated with growth of the fleet and improved lease rates in addition to a $6.8 million increase in the sale of railcars which we had purchased from third parties with the intent to resell during the six months ended February 28, 2025. These were partially offset by lower syndication activity during the six months ended February 29, 2024.
Current wording
Leasing & Fleet Management Revenue decreased $0.7 million or 1.1% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The decrease was primarily attributed to an $8.9 million decrease in the sale of railcars which we had purchased from third parties with the intent to resell during the three months ended May 31, 2025. This was partially offset by a $7.0 million increase in rents associated with growth of the fleet and improved lease rates in addition to higher syndication activity during the three months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Cost of revenue increased $3.0 million or 19.9% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The increase was primarily due to higher costs from a larger fleet during the three months ended February 28, 2025.
Current wording
Leasing & Fleet Management Cost of revenue decreased $5.6 million or 23.1% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The decrease was primarily due to fewer sales of railcars which we had purchased from third parties with the intent to resell during the three months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Margin percentage decreased 0.1% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The decrease was primarily attributed to higher sales of railcars that we purchased from third parties, which have lower margin percentages, during the three months ended February 28, 2025. This was partially offset by improved lease rates and higher syndication activity for the three months ended February 28, 2025.
Current wording
Leasing & Fleet Management Margin percentage increased 8.3% for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The increase was primarily attributed to fewer sales of railcars that we purchased from third parties, which have lower margin percentages, improved lease rates and higher syndication activity during the three months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Earnings from operations increased $12.8 million for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The increase was primarily attributed to higher rents associated with a larger fleet and improved lease rates in addition to a $4.4 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet for the six months ended February 28, 2025. These were partially offset by lower syndication activity for the six months ended February 28, 2025.
Current wording
Leasing & Fleet Management Earnings from operations increased $4.8 million for the three months ended May 31, 2025 compared to the three months ended May 31, 2024. The increase was primarily attributed to higher rents associated with a larger fleet and improved lease rates in addition to higher syndication activity for the three months ended May 31, 2025.
Previous wording
Selling and administrative expense was $64.6 million for the three months ended February 28, 2025 compared to $63.6 million for the prior comparable period. The $1.0 million increase was primarily attributed to higher employee-related costs for the three months ended February 28, 2025.
Current wording
Selling and administrative expense was $65.9 million for the three months ended May 31, 2025 compared to $59.3 million for the prior comparable period. The $6.6 million increase was primarily attributed to higher employee-related costs for the three months ended May 31, 2025.
Previous wording
Net gain on disposition of equipment was $9.6 million for the three months ended February 28, 2025 compared to $4.9 million for the prior comparable period. The increase in Net gain on disposition of equipment was primarily attributed to higher sales of assets from our lease fleet during the three months ended February 28, 2025.
Current wording
Net gain on disposition of equipment was $7.0 million for the three months ended May 31, 2025 compared to $7.8 million for the prior comparable period. The decrease in Net gain on disposition of equipment was primarily attributed to lower sales of assets from our lease fleet during the three months ended May 31, 2025.
Previous wording
The $2.9 million decrease in Interest and foreign exchange expense for the three months ended February 28, 2025 compared to the three months ended February 29, 2024 was primarily attributed to higher interest income during the three months ended February 28, 2025.
Current wording
The $11.5 million decrease in Interest and foreign exchange expense for the three months ended May 31, 2025 compared to the three months ended May 31, 2024 was primarily attributed to the change in the Mexican Peso's and Brazilian Real's foreign exchange rates relative to the U.S. Dollar and higher interest income during the three months ended May 31, 2025.
Previous wording
Earnings from unconsolidated affiliates were $4.3 million and $4.0 million for the three months ended February 28, 2025 and February 29, 2024, respectively. The increase was primarily related to $0.5 million in higher earnings at our Brazil operations for the three months ended February 28, 2025.
Current wording
Earnings from unconsolidated affiliates were $6.2 million and $3.7 million for the three months ended May 31, 2025 and May 31, 2024, respectively. The increase was primarily related to $2.3 million in higher earnings at our Brazil operations for the three months ended May 31, 2025.
Previous wording
Net loss attributable to noncontrolling interest was $1.9 million for the six months ended February 28, 2025 compared to Net earnings attributable to noncontrolling interest of $2.2 million for the six months ended February 29, 2024. Net (earnings) loss attributable to noncontrolling interest primarily represents our joint venture partner's share in the results of operations of our Mexican railcar manufacturing joint ventures, adjusted for intercompany sales, and our European partner’s share of the results of our European operations.
Current wording
Net earnings attributable to noncontrolling interest was $7.4 million for the three months ended May 31, 2025 compared to $6.7 million for the three months ended May 31, 2024. Net earnings attributable to noncontrolling interest primarily represents our joint venture partner's share in the results of operations of our Mexican railcar manufacturing joint ventures, adjusted for intercompany sales, and our European partner’s share of the results of our European operations. The $0.7 million change from the prior year was primarily a result of an increase in earnings due to higher railcar deliveries at our Mexican railcar manufacturing joint venture.
Previous wording
Revenue decreased 2.0% for the six months ended February 28, 2025 as compared to the six months ended February 29, 2024 primarily due to a $30.4 million reduction in railcar maintenance services revenue due to lower volumes in addition to a change in railcar manufacturing product mix. This was partially offset by a $16.5 million increase in Revenue in our Leasing & Fleet Management segment primarily attributed to higher rents associated with a larger fleet and improved lease rates in addition to an increase in the sale of railcars which we had purchased from third parties with the intent to resell during the six months ended February 28, 2025.
Current wording
Revenue decreased 0.4% for the nine months ended May 31, 2025 as compared to the nine months ended May 31, 2024 primarily due to a $26.6 million reduction in railcar maintenance services revenue due to lower volumes in addition to a change in railcar manufacturing product mix. This was partially offset by a 2.6% increase in railcar deliveries and a $15.8 million increase in Revenue in our Leasing & Fleet Management segment primarily attributed to higher rents associated with a larger fleet and improved lease rates during the nine months ended May 31, 2025.
Previous wording
Cost of revenue decreased 7.2% for the six months ended February 28, 2025 as compared to the six months ended February 29, 2024 primarily due to operating efficiencies within our Manufacturing segment and a decrease in railcar maintenance service volumes.
Current wording
Cost of revenue decreased 5.1% for the nine months ended May 31, 2025 as compared to the nine months ended May 31, 2024 primarily due to operating efficiencies within our Manufacturing segment and a decrease in railcar maintenance service volumes.
Previous wording
Margin percentage increased 4.0% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024 primarily due to operating efficiencies within our Manufacturing segment.
Current wording
Margin percentage increased 4.0% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024 primarily due to operating efficiencies within our Manufacturing segment.
Previous wording
$68.7 million increase in Margin primarily due to operating efficiencies within our Manufacturing segment for the six months ended February 28, 2025.
Current wording
$96.4 million increase in Margin primarily due to operating efficiencies within our Manufacturing segment for the nine months ended May 31, 2025.
Previous wording
$34.1 million increase in Income tax expense due to higher pre-tax earnings, jurisdictional earnings mix, and net unfavorable discrete items related to our foreign subsidiaries.
Current wording
$41.5 million increase in Income tax expense due to higher pre-tax earnings and net unfavorable discrete items related to our foreign subsidiaries.
Previous wording
Manufacturing Revenue decreased $50.0 million or 3.2% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024 primarily from a $30.4 million reduction in railcar maintenance services revenue due to lower volumes in addition to a change in railcar manufacturing product mix. These were partially offset by a 1.0% increase in railcar deliveries for the six months ended February 28, 2025.
Current wording
Manufacturing Revenue decreased $26.8 million or 1.2% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024 primarily from a $26.7 million reduction in railcar maintenance services revenue due to lower volumes in addition to a change in railcar manufacturing product mix. These were partially offset by a 2.6% increase in railcar deliveries for the nine months ended May 31, 2025.
Previous wording
Manufacturing Cost of revenue decreased $112.1 million or 8.0% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The decrease was primarily attributed to operating efficiencies and a decrease in railcar maintenance service volumes during the six months ended February 28, 2025. These were partially offset by a 1.0% increase in railcar deliveries.
Current wording
Manufacturing Cost of revenue decreased $111.7 million or 5.4% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The decrease was primarily attributed to operating efficiencies and a decrease in railcar maintenance service volumes during the nine months ended May 31, 2025. These were partially offset by a 2.6% increase in railcar deliveries.
Previous wording
Manufacturing Earnings from operations increased $56.8 million for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The increase was primarily attributed to operating efficiencies and a 1.0% increase in railcar deliveries during the six months ended February 28, 2025.
Current wording
Manufacturing Earnings from operations increased $80.0 million for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The increase was primarily attributed to operating efficiencies and a 2.6% increase in railcar deliveries during the nine months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Revenue increased $10.1 million or 19.5% for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The increase was primarily attributed to an increase of $7.8 million in rents associated with growth of the fleet and improved lease rates in addition to higher syndication activity during the three months ended February 28, 2025.
Current wording
Leasing & Fleet Management Revenue increased $15.8 million or 9.5% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The increase was primarily attributed to an increase of $21.3 million in rents associated with growth of the fleet and improved lease rates. This was partially offset by a $2.1 million decrease in the sale of railcars which we had purchased from third parties with the intent to resell during the nine months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Cost of revenue increased $9.9 million or 32.9% for the six months ended February 28, 2025 compared to the six months ended February 29, 2024. The increase was primarily due to higher costs from an increase in the volume of railcars sold that we purchased from third parties and a larger fleet during the six months ended February 28, 2025.
Current wording
Leasing & Fleet Management Cost of revenue increased $4.3 million or 7.9% for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The increase was primarily due to higher costs from a larger fleet during the nine months ended May 31, 2025. This was partially offset by a decrease in the volume of railcars sold that we purchased from third parties during the nine months ended May 31, 2025.
Previous wording
Leasing & Fleet Management Earnings from operations increased $12.4 million for the three months ended February 28, 2025 compared to the three months ended February 29, 2024. The increase was primarily attributed to higher rents associated with a larger fleet and improved lease rates, a $4.3 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet and higher syndication activity for the three months ended February 28, 2025.
Current wording
Leasing & Fleet Management Earnings from operations increased $17.6 million for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024. The increase was primarily attributed to higher rents associated with a larger fleet and improved lease rates in addition to a $3.2 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet for the nine months ended May 31, 2025.
Previous wording
Selling and administrative expense was $126.6 million for the six months ended February 28, 2025 compared to $119.9 million for the prior comparable period. The $6.7 million increase was primarily attributed to higher employee-related costs for the six months ended February 28, 2025.
Current wording
Selling and administrative expense was $192.5 million for the nine months ended May 31, 2025 compared to $179.2 million for the prior comparable period. The $13.3 million increase was primarily attributed to higher employee-related costs for the nine months ended May 31, 2025.
Previous wording
Net gain on disposition of equipment was $9.8 million for the six months ended February 28, 2025 compared to $4.8 million for the prior comparable period. The increase in Net gain on disposition of equipment was primarily attributed to higher sales of assets from our lease fleet during the six months ended February 28, 2025.
Current wording
Net gain on disposition of equipment was $16.8 million for the nine months ended May 31, 2025 compared to $12.6 million for the prior comparable period. The increase in Net gain on disposition of equipment was primarily attributed to higher sales of assets from our lease fleet during the nine months ended May 31, 2025.
Previous wording
The $2.7 million decrease in Interest and foreign exchange expense for the six months ended February 28, 2025 compared to the six months ended February 29, 2024 was attributed to a higher interest income during the six months ended February 28, 2025. This was partially offset by a $2.6 million increase in foreign exchange loss primarily due to the change in the Brazilian Real's and Mexican Peso's foreign exchange rate relative to the U.S. Dollar.
Current wording
The $14.2 million decrease in Interest and foreign exchange expense for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024 was attributed to higher interest income and a $4.2 million increase in foreign exchange gain primarily due to the change in the Mexican Peso's foreign exchange rate relative to the U.S. Dollar during the nine months ended May 31, 2025.
Previous wording
For the three months ended February 28, 2025, we had Income tax expense of $20.0 million on pre-tax income of $61.9 million for an effective tax rate of 32.3%. The effective tax rate was impacted by net unfavorable discrete items related to our foreign subsidiaries.
Current wording
For the nine months ended May 31, 2025, we had Income tax expense of $71.5 million on pre-tax income of $229.7 million for an effective tax rate of 31.1%. The effective tax rate was impacted by net unfavorable discrete items related to our foreign subsidiaries.
Previous wording
During the six months ended February 28, 2025, we became subject to minimum tax legislation in Europe modeled after the Organization for Economic Co-operation and Development (OECD) Global Anti-Base Erosion Model Rules (Pillar Two). At this time, we do not expect Pillar Two to have a material impact on our Consolidated Financial Statements and will continue to monitor our potential exposure as the U.S., Mexico and Brazil work to enact similar legislation that aligns with the OECD framework.
Current wording
During the nine months ended May 31, 2025, we became subject to minimum tax legislation in Europe modeled after the Organization for Economic Co-operation and Development (OECD) Global Anti-Base Erosion Model Rules (Pillar Two). At this time, we do not expect Pillar Two to have a material impact on our Consolidated Financial Statements and will continue to monitor our potential exposure as the U.S. and Mexico work to enact similar legislation that aligns with the OECD framework.
Previous wording
Earnings from unconsolidated affiliates were $8.4 million and $5.5 million for the six months ended February 28, 2025 and February 29, 2024, respectively. The increase was primarily related to $2.1 million in higher earnings at our Brazil operations for the six months ended February 28, 2025.
Current wording
Earnings from unconsolidated affiliates were $14.6 million and $9.2 million for the nine months ended May 31, 2025 and May 31, 2024, respectively. The increase was primarily related to $4.4 million in higher earnings at our Brazil operations for the nine months ended May 31, 2025.
Previous wording
Net loss attributable to noncontrolling interest was $5.7 million for the three months ended February 28, 2025 compared to Net earnings attributable to noncontrolling interest of $0.2 million for the three months ended February 29, 2024. Net (earnings) loss attributable to noncontrolling interest primarily represents our joint venture partner's share in the results of operations of our Mexican railcar manufacturing joint ventures, adjusted for intercompany sales, and our European partner’s share of the results of our European operations. The $5.9 million change from the prior year is primarily a result of a decrease in earnings due to lower railcar deliveries at our Mexican railcar manufacturing joint venture.
Current wording
Net earnings attributable to noncontrolling interest was $5.5 million for the nine months ended May 31, 2025 compared to $8.9 million for the nine months ended May 31, 2024. Net earnings attributable to noncontrolling interest primarily represents our joint venture partner's share in the results of operations of our Mexican railcar manufacturing joint ventures, adjusted for intercompany sales, and our European partner’s share of the results of our European operations. The $3.4 million change from the prior year was primarily a result of a decrease in earnings due to lower railcar deliveries at our Mexican railcar manufacturing joint venture.
Previous wording
We continue to be financed through cash generated from operations and borrowings. At February 28, 2025 Cash and cash equivalents and Restricted cash were $301.9 million, a decrease of $66.7 million from $368.6 million at August 31, 2024.
Current wording
We continue to be financed through cash generated from operations and borrowings. At May 31, 2025 Cash and cash equivalents and Restricted cash were $342.0 million, a decrease of $26.6 million from $368.6 million at August 31, 2024.
Previous wording
The $25.9 million decrease in Net cash provided by operating activities for the six months ended February 28, 2025 compared to the six months ended February 29, 2024 was primarily due to a $139.7 million change in Leased railcars for syndication due to timing of syndication activity. This was partially offset by a $48.9 million change in Deferred income taxes, a $38.5 million increase in Net earnings and a $22.0 million net change in working capital accounts, primarily Inventories, Deferred revenue, and Accounts payable and accrued liabilities.
Current wording
The $29.3 million increase in Net cash provided by operating activities for the nine months ended May 31, 2025 compared to the nine months ended May 31, 2024 was primarily due to a $65.4 million increase in Net earnings, a $41.8 million change in Deferred income taxes due to utilizing accelerated depreciation methods (including bonus depreciation) and a $16.5 million net change in working capital accounts, primarily Accounts payable and accrued liabilities and Deferred revenue associated with the timing of railcar deliveries. This was partially offset by a $103.7 million change in Leased railcars for syndication due to timing of syndication activity.
Previous wording
Net cash used in investing activities primarily related to capital expenditures net of Proceeds from the sale of assets. The $98.1 million decrease in cash used in investing activities for the six months ended February 28, 2025 was primarily attributable to a $64.1 million decrease in Capital expenditures and a $29.7 million increase in proceeds from the sale of assets compared to the six months ended February 29, 2024.
Current wording
Net cash used in investing activities primarily related to capital expenditures net of proceeds from sale of assets. The $126.8 million decrease in cash used in investing activities for the nine months ended May 31, 2025 was primarily attributable to a $115.6 million decrease in Capital expenditures and a $7.5 million increase in Proceeds from the sale of assets compared to the nine months ended May 31, 2024.
Previous wording
Capital expenditures primarily relate to additions to our lease fleet and on-going investments in the safety, productivity and improvements of our facilities. Proceeds from the sale of assets primarily relate to sales of railcars from our lease fleet within Leasing & Fleet Management. Assets from our lease fleet are periodically sold in the normal course of business to accommodate customer demand and to manage risk and liquidity. Proceeds from sales of assets are expected to be approximately $60 million for 2025.
Current wording
Capital expenditures primarily relate to additions to our lease fleet and on-going investments in the safety, productivity and improvements of our facilities. Proceeds from the sale of assets primarily relate to sales of railcars from our lease fleet within Leasing & Fleet Management. Assets from our lease fleet are periodically sold in the normal course of business to accommodate customer demand and to manage risk and liquidity. Proceeds from sales of assets are expected to be approximately $75 million for 2025.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
North American credit facility bear interest at SOFR plus 1.50% plus 0.10% as a SOFR adjustment or Prime plus 0.50% depending on the type of borrowing.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
$5.9 million increase in net loss attributable to noncontrolling interest primarily due to lower railcar deliveries at our Mexican railcar manufacturing joint venture during the three months ended February 28, 2025.
Previous report — wording carried elsewhere
Mexico – As of February 28, 2025, our Mexican railcar manufacturing operations had lines of credit totaling $166.0 million for working capital needs, $66.0 million of which we and our joint venture partner have each guaranteed 50%.