GREENBRIER COMPANIES INC
For the period ended May 31, 2026. Filed Jul 1, 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.
May 31, 2026 · Filed Jul 1, 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 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, 2025Current report: 10-Q
Period ended 2026-05-31; filed 2026-07-01.
0001193125-26-292719
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThree Months Ended May 31, 2026 Compared to the Three Months Ended May 31, 2025Nine Months Ended May 31, 2026 Compared to the Nine Months Ended May 31, 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 142 previous paragraphs and 145 current paragraphs.
78 unchanged; 46 reworded; 21 added; 17 removed; 1 previous and 0 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 (21)
Current report
We are monitoring developments related to tariffs and trade policies, including those imposed under Section 232 of the Trade Expansion Act of 1962 on steel and aluminum, the impact of the recent Notice of Determination on freight couplers from the U.S. Customs and Border Protection and the administration of trade policy in North America. Uncertainty in these areas has adversely affected, and may continue to adversely affect, North American industry-wide demand for new railcars, including demand for our products, and therefore, our results of operations. We remain focused on managing and, to the extent possible, mitigating the potential impacts of these evolving conditions on our business.
Current report
Revenue decreased $266.2 million or 31.6% for the three months ended May 31, 2026 as compared to the three months ended May 31, 2025 primarily due to a 38.5% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Cost of revenue decreased $195.8 million or 28.3% for the three months ended May 31, 2026 as compared to the three months ended May 31, 2025 primarily due to a 38.5% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Margin percentage decreased 3.9% for the three months ended May 31, 2026 compared to the three months ended May 31, 2025 primarily due to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the three months ended May 31, 2026.
Current report
$8.8 million change in Net (earnings) loss attributable to noncontrolling interest primarily a result of lower railcar deliveries at our Mexican railcar manufacturing joint venture.
Current report
Manufacturing Revenue decreased $264.3 million or 33.3% for the three months ended May 31, 2026 compared to the three months ended May 31, 2025 primarily due to a 38.5% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Manufacturing Earnings from operations decreased $68.1 million for the three months ended May 31, 2026 compared to the three months ended May 31, 2025. The decrease was primarily attributed to a 38.5% decrease in deliveries and a change in railcar manufacturing product mix during the three months ended May 31, 2026.
Current report
Leasing & Fleet Management Revenue decreased $1.9 million or 3.9% for the three months ended May 31, 2026 compared to the three months ended May 31, 2025. The decrease was attributed to $0.9 million in lower lease revenue primarily associated with utilization based arrangements and a $0.7 million decline in interim rent on leased railcars for syndication during the three months ended May 31, 2026.
Current report
For the three months ended May 31, 2026, we had income tax expense of $3.0 million on pre-tax income of $15.4 million for an effective tax rate of 19.5%. The effective tax rate was primarily impacted by net favorable discrete items related to our foreign subsidiaries.
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
Earnings from unconsolidated affiliates were $5.1 million and $6.2 million for the three months ended May 31, 2026 and May 31, 2025, respectively. The decrease was primarily due to lower earnings at Axis, a joint venture which manufacturers railcar components, for the three months ended May 31, 2026.
Current report
Revenue decreased $610.6 million or 24.6% for the nine months ended May 31, 2026 as compared to the nine months ended May 31, 2025 primarily due to a 32.7% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Cost of revenue decreased $400.8 million or 19.9% for the nine months ended May 31, 2026 as compared to the nine months ended May 31, 2025 primarily due to a 32.7% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Margin percentage decreased 5.1% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025 primarily due to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the nine months ended May 31, 2026.
Current report
$12.6 million decrease in Interest and foreign exchange expense primarily attributed to higher interest income and the change in the Mexican Peso's and Brazilian Real's foreign exchange rates relative to the U.S. Dollar.
Current report
Manufacturing Revenue decreased $609.6 million or 26.1% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025 primarily due to a 32.7% decrease in deliveries and a change in railcar manufacturing product mix.
Current report
Manufacturing Earnings from operations decreased $201.2 million for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The decrease was primarily attributed to a 32.7% decrease in deliveries and a change in railcar manufacturing product mix during the nine months ended May 31, 2026.
Current report
For the nine months ended May 31, 2026, we had income tax expense of $17.0 million on pre-tax income of $72.4 million for an effective tax rate of 23.5%. The effective tax rate was primarily impacted by net favorable discrete items related to our foreign subsidiaries.
Current report
Earnings from unconsolidated affiliates were $13.3 million and $14.6 million for the nine months ended May 31, 2026 and 2025, respectively. The decrease was primarily due to lower earnings at Axis, a joint venture who manufacturers railcar components, for the nine months ended May 31, 2026.
Current report
Our Leasing senior term debt was amended in May 2026 on similar terms, providing for an additional $125.0 million available under a delayed draw facility through November 2026 and extending the maturity date from August 2027 to
Current report
May 2032. The Leasing senior term debt bears interest at a rate of SOFR plus 1.625%, with principal of $2.6 million paid quarterly in arrears and a balloon payment of $237.0 million due upon maturity. Interest rate swap agreements cover nearly 100% of the principal balance to swap the floating interest rate to fixed rates.
Removed paragraphs (17)
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
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
Earnings from unconsolidated affiliates were $8.2 million and $8.4 million for the six months ended February 28, 2026 and 2025, respectively.
Reworded paragraphs (46)
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 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.
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 20,600 railcars as of May 31, 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, 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.
Current wording
We continue to operate in an environment characterized by macroeconomic uncertainty, including inflationary pressures, global trade tensions and tariffs, volatility in foreign exchange and interest rates and geopolitical instability. These conditions, along with the potential for a sustained economic slowdown or ongoing supply chain disruptions, could materially and adversely affect our operations and financial performance. Direct impacts may include increased costs for raw materials, labor, and manufacturing inputs, while indirect impacts may include reduced demand for new railcar orders and leasing activity.
Previous wording
We continue to execute on our strategic plan of increasing recurring revenue, expanding aggregate gross margin and raising return on invested capital. Recurring revenue is defined as Leasing & Fleet Management revenue excluding the impact of syndication transactions. With a global footprint, supply chain and customer base, we are focused on navigating the impact of changing trade policies, such as tariffs, as well as general geopolitical and macroeconomic uncertainty.
Current wording
We continue to execute on our strategic plan of increasing recurring revenue, expanding aggregate gross margin and raising return on invested capital. Recurring revenue is defined as Leasing & Fleet Management revenue excluding the impact of syndication transactions.
Previous 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.
Current wording
Our railcar backlog was 13,800 units with an estimated value of $2.0 billion as of May 31, 2026, with deliveries extending into 2028 and beyond. Our backlog includes approximately $720 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 13% of estimated backlog value as of May 31, 2026 was associated with our Brazilian manufacturing operations which is accounted for under the equity method.
Previous 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:
Current wording
Net earnings attributable to Greenbrier decreased $41.2 million for the three months ended May 31, 2026 as compared to the three months ended May 31, 2025 primarily due to:
Previous wording
$69.1 million decrease in Margin attributable to a 32.0% decrease in deliveries and a change in railcar manufacturing product mix.
Current wording
$70.4 million decrease in Margin attributable to a 38.5% decrease in deliveries and a change in railcar manufacturing product mix.
Previous wording
$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 wording
$15.1 million decrease in Income tax expense due to lower pre-tax earnings and net favorable discrete items related to our foreign subsidiaries.
Previous wording
$7.2 million decrease in Selling and administrative expense primarily attributed to lower employee-related costs.
Current wording
$10.7 million decrease in Selling and administrative expense primarily attributed to lower employee-related costs.
Previous 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.
Current wording
Manufacturing Cost of revenue decreased $196.0 million or 29.1% for the three months ended May 31, 2026 compared to the three months ended May 31, 2025. The decrease was primarily attributed to a 38.5% decline in deliveries and a change in railcar manufacturing product mix during the three months ended May 31, 2026.
Previous 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.
Current wording
Manufacturing Margin percentage decreased 5.3% for the three months ended May 31, 2026 compared to the three months ended May 31, 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 May 31, 2026.
Previous 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.
Current wording
Leasing & Fleet Management Cost of revenue increased $0.2 million or 1.1% for the three months ended May 31, 2026 compared to the three months ended May 31, 2025. The increase was primarily due to higher costs from a larger lease fleet during the three months ended May 31, 2026.
Previous 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.
Current wording
Leasing & Fleet Management Margin percentage decreased 1.9% for the three months ended May 31, 2026 compared to the three months ended May 31, 2025. The decrease was primarily attributed to lower lease revenue associated with utilization based arrangements during the three months ended May 31, 2026.
Previous wording
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 wording
Leasing & Fleet Management Earnings from operations decreased $1.6 million for the three months ended May 31, 2026 compared to the three months ended May 31, 2025. The decrease was attributed to lower lease revenue primarily associated with utilization based arrangements and a decline in interim rent on leased railcars for syndication during the three months ended May 31, 2026. This was partially offset by a $0.9 million increase in net gain on disposition of equipment from higher sales of assets from our lease fleet during for the three months ended May 31, 2026.
Previous 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.
Current wording
Selling and administrative expense was $55.2 million for the three months ended May 31, 2026 compared to $65.9 million for the prior comparable period. The $10.7 million decrease was primarily attributed to lower employee-related costs for the three months ended May 31, 2026.
Previous 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.
Current wording
Net gain on disposition of equipment was $6.0 million for the three months ended May 31, 2026 compared to $7.0 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, 2026.
Previous 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.
Current wording
The $3.3 million increase in Interest and foreign exchange expense for the three months ended May 31, 2026 compared to the three months ended May 31, 2025 was primarily attributed to the change in the Brazilian Real's and Mexican Peso's foreign exchange rates relative to the U.S. Dollar during the three months ended May 31, 2026.
Previous 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.
Current wording
Net (earnings) loss attributable to noncontrolling interest was a loss of $1.4 million for the three months ended May 31, 2026 compared to earnings of $7.4 million for the three months ended May 31, 2025. 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 $8.8 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.
Previous wording
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 wording
Net earnings attributable to Greenbrier decreased $97.0 million for the nine months ended May 31, 2026 as compared to the nine months ended May 31, 2025 primarily due to:
Previous wording
$139.4 million decrease in Margin attributable to a 29.2% decrease in deliveries and a change in railcar manufacturing product mix.
Current wording
$209.8 million decrease in Margin attributable to a 32.7% decrease in deliveries and a change in railcar manufacturing product mix.
Previous wording
$39.4 million decrease in Income tax expense due to lower pre-tax earnings.
Current wording
$54.5 million decrease in Income tax expense due to lower pre-tax earnings and net favorable discrete items related to our foreign subsidiaries.
Previous wording
$9.3 million decrease in Selling and administrative expense primarily attributed to lower employee-related costs.
Current wording
$20.0 million decrease in Selling and administrative expense primarily attributed to lower employee-related costs.
Previous wording
$20.9 million increase in Net gain on disposition of equipment primarily attributed to higher sales of assets from our lease fleet.
Current wording
$19.9 million increase in Net gain on disposition of equipment primarily attributed to higher sales of assets from our lease fleet.
Previous wording
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 wording
Manufacturing Cost of revenue decreased $402.3 million or 20.5% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The decrease was primarily attributed to a 32.7% decline in deliveries and a change in railcar manufacturing product mix during the nine months ended May 31, 2026.
Previous wording
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 wording
Manufacturing Margin percentage decreased 6.4% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The decrease was primarily attributed to an unfavorable change in railcar manufacturing product mix and operating at lower volumes during the nine months ended May 31, 2026.
Previous 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.
Current wording
Leasing & Fleet Management Revenue decreased $1.0 million or 0.7% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The decrease was primarily attributed to a $2.9 million decrease in interim rent on leased railcars for syndication during the nine months ended May 31, 2026 and a $1.5 million decrease in management services revenue. This was partially offset by a $3.3 million increase in lease revenue primarily associated with growth of the lease fleet and improved lease rates for the nine months ended May 31, 2026.
Previous wording
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 wording
Leasing & Fleet Management Cost of revenue increased $1.5 million or 2.8% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The increase was primarily due to ongoing costs related to servicing leased railcars for syndication and from a larger lease fleet during the nine months ended May 31, 2026.
Previous wording
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 wording
Leasing & Fleet Management Margin percentage decreased 1.3% for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The decrease was primarily attributed to ongoing costs related to servicing leased railcars for syndication partially offset by improved lease rates during the nine months ended May 31, 2025.
Previous 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.
Current wording
Leasing & Fleet Management Earnings from operations increased $21.4 million for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025. The increase was primarily attributed to a $20.1 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 nine months ended May 31, 2026.
Previous wording
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 wording
Selling and administrative expense was $172.5 million for the nine months ended May 31, 2026 compared to $192.5 million for the prior comparable period. The $20.0 million decrease was primarily attributed to lower employee-related costs for the nine months ended May 31, 2026.
Previous wording
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 wording
Net gain on disposition of equipment was $36.7 million for the nine months ended May 31, 2026 compared to $16.8 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 nine months ended May 31, 2026.
Previous 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.
Current wording
The $12.6 million decrease in Interest and foreign exchange expense for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025 was primarily attributed to higher interest income and the change in the Mexican Peso's and Brazilian Real's foreign exchange rates relative to the U.S. Dollar during the nine months ended May 31, 2026.
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
On July 4, 2025, the U.S. enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (OBBBA). We are still assessing the impact of OBBBA but do not expect the provisions to have a material impact on our effective tax rate.
Current wording
On July 4, 2025, the U.S. enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (OBBBA). We do not expect the provisions to have a material impact on our effective tax rate.
Previous wording
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.
Current wording
Net (earnings) loss attributable to noncontrolling interest was a loss of $1.6 million for the nine months ended May 31, 2026 compared to earnings of $5.5 million for the nine months ended May 31, 2025. 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 $7.1 million change from the prior year is primarily a result of a decrease in earnings due to a change in railcar manufacturing product mix at our Mexican railcar manufacturing joint venture.
Previous 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.
Current wording
We continue to be financed through cash generated from operations and borrowings. At May 31, 2026, Cash and cash equivalents and Restricted cash were $322.8 million, a decrease of $3.6 million from $326.4 million at August 31, 2025.
Previous 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.
Current wording
The $159.6 million decrease in Net cash provided by operating activities for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025 was primarily due to a $104.1 million decrease in Net earnings, a $56.4 million change in Leased railcars for syndication due to timing of syndication activity and a $19.9 million change in Net gain on disposition of equipment. This was partially offset by a $43.6 million net change in working capital accounts, primarily Accounts payable and accrued liabilities, Deferred revenue and Accounts receivable, net.
Previous 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.
Current wording
Net cash provided by (used in) investing activities primarily related to capital expenditures, net of proceeds from sale of assets. The $144.0 million change in Net cash provided by (used in) investing activities for the nine months ended May 31, 2026 was primarily attributable to a $94.9 million increase in Proceeds from the sale of assets and a $61.9 million decrease in Capital expenditures compared to the nine months ended May 31, 2025.
Previous 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.
Current wording
Gross capital expenditures for 2026 are expected to be approximately $285 million for Leasing & Fleet Management and approximately $95 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 $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.
Current wording
The $27.7 million decrease in Net cash used in financing activities for the nine months ended May 31, 2026 compared to the nine months ended May 31, 2025 was primarily attributed to a $56.6 million increase in net borrowings partially offset by $27.9 million change in cash distribution to joint venture partners for the nine months ended May 31, 2026.
Previous 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.
Current wording
During the nine months ended May 31, 2026, we repurchased a total of 313 thousand shares for $13.3 million. During the nine months ended May 31, 2025, we repurchased a total of 507 thousand shares for $21.8 million. As of May 31, 2026, the amount remaining for repurchase under the share repurchase program was $64.5 million.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.