GREENBRIER COMPANIES INC
For the period ended Feb 28, 2026. Filed Apr 7, 2026.
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.
Feb 28, 2026 · Filed Apr 7, 2026
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 2025-11-30; filed 2026-01-08.
0001193125-26-007768
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThree Months Ended November 30, 2025 Compared to the Three Months Ended November 30, 2024Current report: 10-Q
Period ended 2026-02-28; filed 2026-04-07.
0001193125-26-145619
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThree Months Ended February 28, 2026 Compared to the Three Months Ended February 28, 2025Six Months Ended February 28, 2026 Compared to the Six Months Ended February 28, 2025The 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 99 previous paragraphs and 142 current paragraphs.
59 unchanged; 33 reworded; 38 added; 7 removed; 0 previous and 12 current paragraphs rearranged.
Tables are not compared: 10 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 (38)
Current report
Revenue decreased $174.6 million or 22.9% for the three months ended February 28, 2026 as compared to the three months ended February 28, 2025 primarily due to a 32.0% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Cost of revenue decreased $105.5 million or 16.9% for the three months ended February 28, 2026 as compared to the three months ended February 28, 2025 primarily due to a 32.0% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Margin percentage decreased 6.4% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025 primarily due to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the three months ended February 28, 2026.
Current report
$69.1 million decrease in Margin attributable to a 32.0% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
$18.3 million change in Income tax expense due to lower pre-tax earnings and net favorable discrete items related to foreign currency exchange rates at our U.S. Dollar denominated foreign operations.
Current report
$8.0 million decrease in Interest and foreign exchange expense resulting from the change in the Mexican Peso's and Brazilian Real's foreign exchange rates relative to the U.S. Dollar and higher interest income.
Current report
$7.2 million decrease in Selling and administrative expense primarily attributed to lower employee-related costs.
Current report
Manufacturing Revenue decreased $171.4 million or 24.0% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025 primarily due to a 32.0% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Leasing & Fleet Management Revenue decreased $3.2 million or 6.5% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The decrease was primarily attributed to a $2.0 million decrease in interim rent on leased railcars for syndication during the three months ended February 28, 2026.
Current report
Leasing & Fleet Management Earnings from operations increased $0.9 million for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The increase was primarily attributed to a $3.4 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet partially offset by a decrease in interim rent on leased railcars for syndication during for the three months ended February 28, 2026.
Current report
For the three months ended February 28, 2026, we had income tax expense of $1.7 million on pre-tax income of $11.4 million for an effective tax rate of 14.9%. The effective tax rate was impacted by net favorable discrete items related to foreign currency exchange rates at our U.S. Dollar denominated foreign operations.
Current report
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 report
Overview
Current report
Consolidated Results
Current report
Revenue decreased $344.4 million or 21.0% for the six months ended February 28, 2026 as compared to the six months ended February 28, 2025 primarily due to a 29.2% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Cost of revenue decreased $205.0 million or 15.5% for the six months ended February 28, 2026 as compared to the six months ended February 28, 2025 primarily due to a 29.2% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Margin percentage decreased 5.7% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025 primarily due to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the six months ended February 28, 2026.
Current report
Net earnings attributable to Greenbrier decreased $55.8 million for the six months ended February 28, 2026 as compared to the six months ended February 28, 2025 primarily due to:
Current report
$139.4 million decrease in Margin attributable to a 29.2% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
$15.9 million decrease in Interest and foreign exchange expense resulting from the change in the Mexican Peso's and Brazilian Real's foreign exchange rates relative to the U.S. Dollar and higher interest income.
Current report
$9.3 million decrease in Selling and administrative expense primarily attributed to lower employee-related costs.
Current report
Manufacturing Segment
Current report
Manufacturing Revenue decreased $345.3 million or 22.4% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025 primarily due to a 29.2% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Manufacturing Cost of revenue decreased $206.3 million or 16.0% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The decrease was primarily attributed to a 29.2% decline in deliveries and a change in railcar manufacturing product mix during the six months ended February 28, 2026.
Current report
Manufacturing Margin percentage decreased 6.9% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The decrease was primarily attributed to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the six months ended February 28, 2026.
Current report
Manufacturing Earnings from operations decreased $133.1 million for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The decrease was primarily attributed to a 29.2% decrease in deliveries and a change in railcar manufacturing product mix during the six months ended February 28, 2026.
Current report
Leasing & Fleet Management Cost of revenue increased $1.3 million or 3.8% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The increase was primarily due to ongoing costs related to servicing leased railcars for syndication and from a larger lease fleet during the six months ended February 28, 2026.
Current report
Leasing & Fleet Management Margin percentage decreased 1.0% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The decrease was primarily attributed to ongoing costs related to servicing leased railcars for syndication partially offset by improved lease rates during the six months ended February 28, 2025.
Current report
Selling and Administrative Expense
Current report
Selling and administrative expense was $117.3 million for the six months ended February 28, 2026 compared to $126.6 million for the prior comparable period. The $9.3 million decrease was primarily attributed to lower employee-related costs for the six months ended February 28, 2026.
Current report
Net gain on disposition of equipment was $30.7 million for the six months ended February 28, 2026 compared to $9.8 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, 2026.
Current report
Interest and Foreign Exchange
Current report
Income Tax
Current report
For the six months ended February 28, 2026, we had income tax expense of $14.0 million on pre-tax income of $57.0 million for an effective tax rate of 24.6%. The effective tax rate was impacted by net favorable discrete items related to foreign currency exchange rates at our U.S. Dollar denominated foreign operations.
Current 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.
Current report
Earnings From Unconsolidated Affiliates
Current report
Earnings from unconsolidated affiliates were $8.2 million and $8.4 million for the six months ended February 28, 2026 and 2025, respectively.
Current report
Noncontrolling Interest
Removed paragraphs (7)
Previous report
Revenue decreased $169.8 million or 19.4% for the three months ended November 30, 2025 as compared to the three months ended November 30, 2024 primarily due to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix.
Previous report
Cost of revenue decreased $99.5 million or 14.2% for the three months ended November 30, 2025 as compared to the three months ended November 30, 2024 primarily due to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix.
Previous report
Margin percentage decreased 5.2% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024 primarily due to an unfavorable change in railcar manufacturing product mix during the three months ended November 30, 2025.
Previous report
$70.3 million decrease in Margin primarily due to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix during the three months ended November 30, 2025.
Previous report
Manufacturing Revenue decreased $173.9 million or 20.9% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024 primarily due to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix.
Previous report
For the three months ended November 30, 2025, we had Income tax expense of $12.3 million on pre-tax income of $45.6 million for an effective tax rate of 27.0%. The effective tax rate included a net discrete tax benefit of $0.4 million, primarily related to foreign currency exchange rates at our U.S. Dollar denominated foreign operations.
Previous report
For the three months ended November 30, 2024, we had Income tax expense of $33.4 million on pre-tax income of $88.4 million for an effective tax rate of 37.8%. The effective tax rate includes net discrete tax expenses of $6.7 million, primarily related to foreign currency exchange rates at our U.S. Dollar denominated foreign operations.
Reworded paragraphs (33)
Previous wording
We operate in two reportable segments: Manufacturing and Leasing & Fleet Management. Our segments are operationally integrated. The Manufacturing segment designs, builds and markets freight railcars and component parts in North America and Europe. We also perform sustainable conversions and railcar maintenance, which includes wheel and axle services. The Leasing & Fleet Management segment owns and leases approximately 17,000 railcars as of November 30, 2025. We offer railcar management, regulatory compliance services and leasing services to railroads and other railcar owners in North America.
Current wording
We operate in two reportable segments: Manufacturing and Leasing & Fleet Management. Our segments are operationally integrated. The Manufacturing segment designs, builds and markets freight railcars and component parts in North America and Europe. We also perform sustainable conversions and railcar maintenance, which includes wheel and axle services. The Leasing & Fleet Management segment owns and leases approximately 16,800 railcars as of February 28, 2026. We offer railcar management, regulatory compliance services and leasing services to railroads and other railcar owners in North America.
Previous wording
We continue to operate in an environment characterized by ongoing macroeconomic uncertainty, including inflationary pressures, potential impacts from global trade tensions and tariffs and volatility in foreign exchange and interest rates. We believe that a sustained economic slowdown or continued supply chain disruption could significantly affect our operations and financial performance. Such developments could impact our business both directly and indirectly. Direct impacts may include higher costs for raw materials, labor and manufacturing inputs. Indirectly, a weaker macroeconomic environment could reduce demand for new railcar orders and leasing activity.
Current wording
We continue to operate in an environment characterized by ongoing macroeconomic uncertainty, including inflationary pressures, potential impacts from global trade tensions and tariffs, volatility in foreign exchange and interest rates and geopolitical instability. We believe that a sustained economic slowdown or continued supply chain disruption could significantly affect our operations and financial performance. Such developments could impact our business both directly and indirectly. Direct impacts may include higher costs for raw materials, labor and manufacturing inputs. Indirectly, a weaker macroeconomic environment could reduce demand for new railcar orders and leasing activity.
Previous wording
Our railcar backlog was 16,300 units with an estimated value of $2.2 billion as of November 30, 2025, with deliveries extending into 2027 and beyond. Our backlog includes approximately $540 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 13% of backlog units and estimated backlog value as of November 30, 2025 was associated with our Brazilian manufacturing operations which is accounted for under the equity method.
Current wording
Our railcar backlog was 15,200 units with an estimated value of $2.1 billion as of February 28, 2026, with deliveries extending into 2027 and beyond. Our backlog includes approximately $650 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 13% of backlog units and 12% of estimated backlog value as of February 28, 2026 was associated with our Brazilian manufacturing operations which is accounted for under the equity method.
Previous wording
Net earnings attributable to Greenbrier decreased $18.9 million for the three months ended November 30, 2025 as compared to the three months ended November 30, 2024 primarily due to:
Current wording
Net earnings attributable to Greenbrier decreased $36.9 million for the three months ended February 28, 2026 as compared to the three months ended February 28, 2025 primarily due to:
Previous wording
Manufacturing Cost of revenue decreased $100.5 million or 14.7% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The decrease was primarily attributed to a 26.8% decline in deliveries and a change in railcar manufacturing product mix during the three months ended November 30, 2025.
Current wording
Manufacturing Cost of revenue decreased $105.8 million or 17.5% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The decrease was primarily attributed to a 32.0% decline in deliveries and a change in railcar manufacturing product mix during the three months ended February 28, 2026.
Previous wording
Manufacturing Margin percentage decreased 6.5% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The decrease was primarily attributed to an unfavorable change in railcar manufacturing product mix during the three months ended November 30, 2025.
Current wording
Manufacturing Margin percentage decreased 7.4% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The decrease was primarily attributed to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the three months ended February 28, 2026.
Previous wording
Manufacturing Earnings from operations decreased $73.0 million for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The decrease was primarily attributed to a 26.8% decrease in deliveries and a change in railcar manufacturing product mix during the three months ended November 30, 2025.
Current wording
Manufacturing Earnings from operations decreased $60.1 million for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The decrease was primarily attributed to a 32.0% decrease in deliveries and a change in railcar manufacturing product mix during the three months ended February 28, 2026.
Previous wording
Leasing & Fleet Management Cost of revenue increased $1.0 million or 5.9% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The increase was primarily due to higher costs from a larger lease fleet during the three months ended November 30, 2025.
Current wording
Leasing & Fleet Management Cost of revenue increased $0.3 million or 1.7% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The increase was primarily due to ongoing costs related to servicing leased railcars for syndication during the three months ended February 28, 2026.
Previous wording
Leasing & Fleet Management Margin percentage increased 1.1% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The increase was primarily attributed to improved lease rates during the three months ended November 30, 2025.
Current wording
Leasing & Fleet Management Margin percentage decreased 3.1% for the three months ended February 28, 2026 compared to the three months ended February 28, 2025. The decrease was primarily attributed to ongoing costs related to servicing leased railcars for syndication during the three months ended February 28, 2026.
Previous wording
Selling and administrative expense was $59.9 million for the three months ended November 30, 2025 compared to $62.0 million for the prior comparable period. The $2.1 million decrease was primarily attributed to lower employee-related costs for the three months ended November 30, 2025.
Current wording
Selling and administrative expense was $57.4 million for the three months ended February 28, 2026 compared to $64.6 million for the prior comparable period. The $7.2 million decrease was primarily attributed to lower employee-related costs for the three months ended February 28, 2026.
Previous wording
Net gain on disposition of equipment was $17.7 million for the three months ended November 30, 2025 compared to $0.2 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 November 30, 2025.
Current wording
Net gain on disposition of equipment was $13.0 million for the three months ended February 28, 2026 compared to $9.6 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 three months ended February 28, 2026.
Previous wording
The $7.9 million decrease in Interest and foreign exchange expense for the three months ended November 30, 2025 compared to the three months ended November 30, 2024 was primarily attributed to the change in the Mexican Peso's foreign exchange rates relative to the U.S. Dollar and higher interest income during the three months ended November 30, 2025.
Current wording
The $8.0 million decrease in Interest and foreign exchange expense for the three months ended February 28, 2026 compared to the three months ended February 28, 2025 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 February 28, 2026.
Previous wording
Through unconsolidated affiliates we produce rail and industrial components and have an ownership stake in a railcar manufacturer in Brazil. We record the results from these unconsolidated affiliates on an after-tax basis.
Current wording
Through unconsolidated affiliates we produce rail and industrial components, including an ownership stake in a railcar manufacturer in Brazil. We record the results from these unconsolidated affiliates on an after-tax basis.
Previous wording
Earnings from unconsolidated affiliates were $4.0 million and $4.1 million for the three months ended November 30, 2025 and November 30, 2024, respectively.
Current wording
Earnings from unconsolidated affiliates were $4.2 million and $4.3 million for the three months ended February 28, 2026 and February 28, 2025, respectively.
Previous wording
Net earnings attributable to noncontrolling interest was $0.9 million for the three months ended November 30, 2025 compared to $3.8 million for the three months ended November 30, 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 $2.9 million decrease from the prior year was primarily a result of a decrease in earnings due to lower deliveries at our European operations.
Current wording
Net loss attributable to noncontrolling interest was $1.1 million for the three months ended February 28, 2026 compared to $5.7 million for the three months ended February 28, 2025. Net 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 $4.6 million change from the prior year is primarily a result of an increase in earnings due to higher railcar deliveries at our Mexican railcar manufacturing joint venture.
Previous wording
$21.1 million decrease in Income tax expense due to lower pre-tax earnings during the three months ended November 30, 2025.
Current wording
$39.4 million decrease in Income tax expense due to lower pre-tax earnings.
Previous wording
$17.5 million increase in Net gain on disposition of equipment primarily attributed to higher sales of assets from our lease fleet during the three months ended November 30, 2025.
Current wording
$20.9 million increase in Net gain on disposition of equipment primarily attributed to higher sales of assets from our lease fleet.
Previous wording
Leasing & Fleet Management Revenue increased $4.1 million or 9.1% for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The increase was primarily attributed to a $4.9 million increase in rents associated with growth of the lease fleet and improved lease rates for the three months ended November 30, 2025.
Current wording
Leasing & Fleet Management Revenue increased $0.9 million or 1.0% for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The increase was primarily attributed to a $4.2 million increase in rents associated with growth of the lease fleet and improved lease rates for the six months ended February 28, 2026. This was partially offset by a $2.2 million decrease in interim rent on leased railcars for syndication during the six months ended February 28, 2026.
Previous wording
Leasing & Fleet Management Earnings from operations increased $22.1 million for the three months ended November 30, 2025 compared to the three months ended November 30, 2024. The increase was primarily attributed to a $17.6 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet and increase in rents associated with growth of the lease fleet and improved lease rates for the three months ended November 30, 2025.
Current wording
Leasing & Fleet Management Earnings from operations increased $23.0 million for the six months ended February 28, 2026 compared to the six months ended February 28, 2025. The increase was primarily attributed to a $21.0 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet and increase in rents associated with growth of the lease fleet and improved lease rates for the six months ended February 28, 2026.
Previous wording
$7.9 million decrease in Interest and foreign exchange expense primarily attributed to the change in the Mexican Peso's foreign exchange rates relative to the U.S. Dollar and higher interest income during the three months ended November 30, 2025.
Current wording
The $15.9 million decrease in Interest and foreign exchange expense for the six months ended February 28, 2026 compared to the six months ended February 28, 2025 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 six months ended February 28, 2026.
Previous wording
We continue to be financed through cash generated from operations and borrowings. At November 30, 2025 Cash and cash equivalents and Restricted cash were $375.4 million, an increase of $49.0 million from $326.4 million at August 31, 2025.
Current wording
We continue to be financed through cash generated from operations and borrowings. At February 28, 2026 Cash and cash equivalents and Restricted cash were $563.0 million, an increase of $236.6 million from $326.4 million at August 31, 2025.
Previous wording
The $141.3 million change in Net cash provided by (used in) operating activities for the three months ended November 30, 2025 compared to the three months ended November 30, 2024 was primarily due to a $138.5 million change in Leased railcars for syndication due to timing of syndication activity and a $31.0 million net change in working capital accounts, primarily Accounts receivable, net and Accounts payable and accrued liabilities associated with the timing of deliveries. This was partially offset by a $21.8 million decrease in Net earnings.
Current wording
The $206.4 million increase in Net cash provided by operating activities for the six months ended February 28, 2026 compared to the six months ended February 28, 2025 was primarily due to a $196.3 million change in Leased railcars for syndication due to timing of syndication activity and a $97.5 million net change in working capital accounts, primarily Accounts receivable, net and Deferred revenue. This was partially offset by a $54.1 million decrease in Net earnings.
Previous wording
Cash used in investing activities primarily related to capital expenditures, net of proceeds from sale of assets. The $38.7 million decrease in Net cash used in investing activities for the three months ended November 30, 2025 compared to the three months ended November 30, 2024 was primarily attributable to a $41.9 million increase in Proceeds from the sale of assets during the three months ended November 30, 2025.
Current wording
Net cash provided by (used in) investing activities primarily related to capital expenditures, net of proceeds from sale of assets. The $96.1 million change in Net cash provided by (used in) investing activities for the six months ended February 28, 2026 was primarily attributable to a $66.6 million increase in Proceeds from the sale of assets and a $38.8 million decrease in Capital expenditures compared to the six months ended February 28, 2025.
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 $165 million for 2026.
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 $175 million for 2026.
Previous wording
Gross capital expenditures for 2026 are expected to be approximately $205 million for Leasing & Fleet Management and approximately $80 million for Manufacturing, which includes the change in capital expenditures accrued in Accounts payable and accrued liabilities. Capital expenditures for 2026 primarily relate to additions to our lease fleet reflecting our leasing strategy and continued investments into the safety and productivity of our facilities.
Current wording
Gross capital expenditures for 2026 are expected to be approximately $300 million for Leasing & Fleet Management and approximately $80 million for Manufacturing, which includes the change in capital expenditures accrued in Accounts payable and accrued liabilities. Capital expenditures for 2026 primarily relate to additions to our lease fleet reflecting our leasing strategy and continued investments into the safety and productivity of our facilities.
Previous wording
The $78.2 million change in Net cash provided by (used in) financing activities for the three months ended November 30, 2025 compared to the three months ended November 30, 2024 was primarily attributed to a $70.3 million decrease in net borrowings and a $12.9 million increase in the repurchase of stock during the three months ended November 30, 2025.
Current wording
The $10.5 million change in Net cash used in financing activities for the six months ended February 28, 2026 compared to the six months ended February 28, 2025 was primarily attributed to a $13.3 million increase in the repurchase of stock during the six months ended February 28, 2026.
Previous wording
A quarterly dividend of $0.32 per share was declared on January 7, 2026.
Current wording
A quarterly dividend of $0.34 per share was declared on March 31, 2026.
Previous wording
During the three months ended November 30, 2025, we repurchased a total of 303 thousand shares for $12.9 million. There were no share repurchases during the three months ended November 30, 2024. As of November 30, 2025, the amount remaining for repurchase under the share repurchase program was $64.9 million.
Current wording
During the six months ended February 28, 2026, we repurchased a total of 313 thousand shares for $13.3 million. There were no share repurchases during the six months ended February 28, 2025. As of February 28, 2026, the amount remaining for repurchase under the share repurchase program was $64.5 million.
Previous wording
As of November 30, 2025, we had $361.8 million in Cash and cash equivalents and $535.4 million in available borrowings. The available balance to draw under committed credit facilities includes $435.2 million on the North American credit facility, $86.0 million on the Mexican credit facilities and $14.2 million on the European credit facilities.
Current wording
As of February 28, 2026, we had $521.8 million in Cash and cash equivalents and $559.8 million in available borrowings. The available balance to draw under committed credit facilities includes $373.7 million on the North American credit facility, $151.0 million on the Mexican credit facilities and $35.1 million on the European credit facilities.
Previous wording
Leasing warehouse credit facility – As of November 30, 2025, a $450.0 million nonrecourse warehouse credit facility existed to support the operations of our leasing business in North America. Advances under this facility are secured by a pool of leased railcars and bear interest at the Secured Overnight Financing Rate (SOFR) plus 1.70%. Interest rate swap agreements cover approximately 91% of the outstanding balance to swap the floating interest rate to a fixed rate. The warehouse credit facility converts to a term loan in September 2027 and matures in September 2029.
Current wording
Leasing warehouse credit facility – As of February 28, 2026, a $450.0 million non-recourse warehouse credit facility existed to support the operations of our leasing business in North America. Advances under this facility are secured by a pool of leased railcars and bear interest at the Secured Overnight Financing Rate (SOFR) plus 1.70%. The warehouse credit facility converts to a term loan in September 2027 and matures in September 2029.
Previous wording
North American revolving credit facility – As of November 30, 2025, a $600.0 million revolving line of credit existed to provide working capital and interim financing of equipment, principally for our U.S. and Mexican operations. The North American credit facility is secured by substantially all our U.S. assets not otherwise pledged as security for term loans, the warehouse credit facility, or the railcar asset-backed securities. Available borrowings under the credit facility are generally based on defined levels of eligible inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. Outstanding commitments under the North American credit facility included letters of credit which totaled $5.4 million as of November 30, 2025 and August 31, 2025. Advances under the 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. The North America credit facility matures in May 2030.
Current wording
North American revolving credit facility – As of February 28, 2026, a $600.0 million revolving line of credit existed to provide working capital and interim financing of equipment, principally for our U.S. and Mexican operations. The North American credit facility is secured by substantially all our U.S. assets not otherwise pledged as security for term loans, the warehouse credit facility, or the railcar asset-backed securities. Available borrowings under the credit facility are generally based on defined levels of eligible inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. Outstanding commitments under the North American credit facility included letters of credit which totaled $30.2 million and $5.4 million as of February 28, 2026 and August 31, 2025, respectively. Advances under the 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. The North America credit facility matures in May 2030.
Previous wording
European revolving credit facilities – As of November 30, 2025, lines of credit totaling $122.6 million, secured by certain of our European assets, were available for working capital needs of our European manufacturing operations. The European lines of credit include $59.2 million which is guaranteed by us. The European credit facilities have variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.10% to WIBOR plus 1.30% and Euro Interbank Offered Rate (EURIBOR) plus 1.50% to EURIBOR plus 1.90%. The European credit facilities are regularly renewed and currently have maturities that range from January 2026 through December 2026.
Current wording
European revolving credit facilities – As of February 28, 2026, lines of credit totaling $135.8 million, secured by certain of our European assets, were available for working capital needs of our European manufacturing operations. The European lines of credit include $60.3 million which is guaranteed by us. The European credit facilities have variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.10% to WIBOR plus 1.30% and Euro Interbank Offered Rate (EURIBOR) plus 1.00% to EURIBOR plus 1.90%. The European credit facilities are regularly renewed and currently have maturities that range from June 2026 through November 2027.
Previous wording
To mitigate the exposure to changes in interest rates, we have managed a portion of our variable rate debt with interest rate swap agreements, effectively converting $680.6 million of variable rate debt to fixed rate debt as of November 30, 2025.
Current wording
To mitigate the exposure to changes in interest rates, we have managed a portion of our variable rate debt with interest rate swap agreements, effectively converting $473.8 million of variable rate debt to fixed rate debt as of February 28, 2026.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Revenue, Cost of revenue, Margin and Earnings from operations presented below, include amounts from external parties and exclude intersegment activity that is eliminated in consolidation.
Current report — wording carried from elsewhere
Performance for our segments is evaluated based on Earnings from operations. Corporate includes selling and administrative costs not directly related to goods and services and certain costs that are intertwined among segments due to our integrated business model. Management does not allocate Interest and foreign exchange or Income tax expense for either external or internal reporting purposes.
Current report — wording carried from elsewhere
Through our integrated business model, we provide a broad range of custom products and services in each of our reportable segments, which have various selling prices and margins. The demand for and mix of products and services delivered changes from period to period, which causes fluctuations in our financial results.
Current report — wording carried from elsewhere
This was partially offset by the following:
Current report — wording carried from elsewhere
Our Manufacturing segment primarily generates revenue from manufacturing a wide range of railcar products and components, syndication activity associated with leases attached to new railcar sales and performing sustainable conversion services. Manufacturing also generates revenue by providing railcar maintenance services.
Current report — wording carried from elsewhere
The Leasing & Fleet Management segment generates revenue from leasing railcars from our lease fleet, providing various fleet management services and interim rent on leased railcars for syndication.
Current report — wording carried from elsewhere
Net Gain on Disposition of Equipment
Current report — wording carried from elsewhere
Net gain on disposition of equipment typically includes the sale of assets from our lease fleet (Equipment on operating leases, net) and disposition of property, plant and equipment. Assets are periodically sold in the normal course of business in order to optimize our lease fleet and to manage risk and liquidity.
Current report — wording carried from elsewhere
Interest and foreign exchange expense was composed of the following:
Current report — wording carried from elsewhere
The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year and may be positively or negatively impacted by adjustments that are required to be reported in the quarter. The effective tax rate can fluctuate year-to-year due to changes in the mix of foreign and domestic pre-tax earnings. It can also fluctuate with changes in the proportion of pre-tax earnings attributable to our Mexican railcar manufacturing joint venture. The joint venture is treated as a partnership for tax purposes and, as a result, the partnership’s entire pre-tax earnings are included in earnings before income taxes and earnings from unconsolidated affiliates, whereas only our 50% share of the tax is included in Income tax expense.
Current report — wording carried from elsewhere
Through unconsolidated affiliates we produce rail and industrial components, including an ownership stake in a railcar manufacturer in Brazil. We record the results from these unconsolidated affiliates on an after-tax basis.
Current report — wording carried from elsewhere
Net loss attributable to noncontrolling interest was $0.2 million for the six months ended February 28, 2026 compared to $1.9 million for the six months ended February 28, 2025. Net 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.