Greenbrier Companies, Inc. reported first‑quarter 2026 results with revenue of $706.1 million and diluted earnings per share of $1.14, a $0.24 beat over the consensus estimate of $0.90 and a 31% upside to the $0.87 median forecast. The company’s earnings beat was driven by disciplined cost control and a robust leasing portfolio that offset a decline in manufacturing earnings.
Revenue growth was largely powered by the Leasing & Fleet Management segment, which saw earnings from operations rise to $44.0 million from $21.9 million year‑over‑year, thanks to higher lease rates and a strong gain on railcar sales. In contrast, the Manufacturing segment’s earnings from operations fell to $48.6 million from $121.6 million, reflecting lower railcar deliveries and a less favorable product mix that reduced volume and margin.
Operating margins across the company contracted from 19.8% in Q1 FY2025 to an aggregate gross margin of 14.6‑15% in Q1 FY2026. The compression was largely due to the manufacturing segment’s volume decline, while the leasing segment’s margin expansion helped mitigate the overall impact. Manufacturing earnings from operations fell 60% YoY, whereas leasing earnings from operations increased 100% YoY.
Management reiterated full‑year guidance, maintaining revenue expectations of $2.7 billion to $3.2 billion, EPS guidance of $3.75 to $4.75, and a delivery outlook of 17,500 to 20,500 units. The guidance signals confidence in the company’s cost‑control initiatives and the growing stability of its leasing business, even as manufacturing volumes remain subdued.
CEO Lorie L. Tekorius highlighted the company’s “disciplined execution and the resilience of our business,” noting that leasing and fleet management “provided stability through strong execution and recurring cash flows, including selective recycling of capital through fleet sales in a strong equipment market.”
The results underscore a strategic shift toward recurring revenue from leasing, which has become a key stabilizer amid a cyclical downturn in railcar manufacturing. While manufacturing earnings face headwinds from lower deliveries and a challenging product mix, the company’s cost‑control programs and leasing growth position it to maintain profitability and meet its full‑year targets.
The earnings beat and guidance reinforce Greenbrier’s ability to navigate a volatile market, with the leasing segment offsetting manufacturing headwinds and supporting a positive outlook for the remainder of fiscal 2026.
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