FreightCar America, Inc. Reports Third Quarter 2026 Results

Aftermarket growth and a larger backlog accompanied lower railcar deliveries and reduced quarterly profitability.

Rhea-AI Summary

FreightCar America (NASDAQ: RAIL) reported third-quarter 2026 revenue of $76.5 million, down from the prior-year quarter as railcar deliveries fell. Deliveries totaled 662 versus 1,304, while gross margin declined to 8.8% from 15.1%. Net income was $8 thousand, or $0.00 per diluted share, including a $4.7 million non-cash warrant valuation gain. Adjusted EBITDA, earnings before interest, taxes, depreciation and amortization with further adjustments, fell to $0.1 million from $15.9 million.

Aftermarket revenue grew 65% year over year. Backlog reached 2,660 units valued at $284.5 million, up 28% in value year over year. FreightCar America completed its Trinity Equipment Company acquisition after quarter end. The company reaffirmed fiscal 2026 guidance for 3,100–3,300 railcar deliveries, revenue of $370–$410 million and adjusted EBITDA of $15–$19 million. Nine-month operating cash flow rose to $33.122 million from $24.732 million.

17 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 18 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointStockholders' equity reached $36.329 million, versus a $107.413 million deficit at December 31, 2025.
• Moderate pointBacklog value rose 28% year over year to $284.5 million, covering 2,660 units at quarter end. 2× market cap
• Moderate pointAftermarket revenue grew 65% year over year, supported by organic growth and acquisitions.
• Moderate pointTrinity Equipment Company acquisition completed after quarter end, expanding the aftermarket business.
• Moderate pointNine-month order intake exceeded full-year 2025, supporting the company's production backlog.
• Moderate pointQuarterly aftermarket segment income rose to $3.974 million from $1.484 million a year earlier.
• Moderate pointNine-month operating cash flow increased to $33.122 million from $24.732 million a year earlier.
• Moderate pointCash, cash equivalents and restricted cash equivalents reached $86.759 million, versus $64.295 million at December 31, 2025.
• Moderate pointNo revolving credit facility borrowings remained, and nine-month term-loan repayments totaled $8.049 million. 5.8% of market cap

8 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Latest acquisition is expected to be immediately accretive, the company said.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2026 guidance reaffirmed: 3,100–3,300 deliveries, $370–$410 million revenue and $15–$19 million adjusted EBITDA.
• Minor pointQuarterly net income improved to $8 thousand, versus a $7.445 million loss; diluted EPS improved to $0.00 from $(0.23).
• Minor pointQuarterly warrant valuation gain of $4.671 million was non-cash, versus a $17.589 million loss a year earlier.
• Minor pointNine-month aftermarket revenue increased to $31.008 million from $20.536 million a year earlier.
• Minor pointNine-month aftermarket segment income increased to $8.458 million from $5.587 million a year earlier.
• Minor pointQuarterly interest expense declined to $3.136 million from $4.638 million a year earlier.
• Minor pointNine-month interest expense declined to $9.557 million from $13.356 million a year earlier.

Negative

• Major pointQuarterly revenue declined to $76.5 million from $160.5 million a year earlier.
• Major pointQuarterly adjusted EBITDA fell to $0.1 million from $15.9 million; its margin declined to 0.2% from 9.9%.
• Moderate pointQuarterly railcar deliveries fell to 662 units from 1,304 units a year earlier.
• Moderate pointQuarterly gross profit fell to $6.7 million from $24.2 million; gross margin declined to 8.8% from 15.1%.
• Moderate pointQuarterly adjusted net loss was $9.5 million, or $(0.28) diluted, versus $7.8 million income, or $0.24 diluted.
• Moderate pointBroader railcar demand growth has not materialized despite improving industry indicators, the company said.

12 minor points

• Minor pointQuarterly operating loss was $3.056 million, versus operating income of $14.558 million a year earlier.
• Minor pointQuarterly manufacturing revenue declined to $65.687 million from $153.956 million a year earlier.
• Minor pointQuarterly manufacturing segment income fell to $1.541 million from $21.730 million a year earlier.
• Minor pointQuarterly selling, general and administrative expenses increased to $9.752 million from $9.647 million a year earlier.
• Minor pointNine-month revenue declined to $253.934 million from $375.424 million a year earlier.
• Minor pointNine-month gross profit declined to $23.677 million from $56.420 million a year earlier.
• Minor pointNine-month operating loss was $7.946 million, versus operating income of $26.136 million a year earlier.
• Minor pointNine-month net income fell to $11.554 million from $54.682 million; diluted EPS declined to $0.32 from $1.57.
• Minor pointNine-month adjusted EBITDA declined to $4.461 million from $31.557 million a year earlier.
• Minor pointNine-month manufacturing revenue fell to $222.926 million from $354.888 million a year earlier.
• Minor pointNine-month manufacturing segment income declined to $11.180 million from $48.007 million a year earlier.
• Minor pointNine-month selling, general and administrative expenses increased to $31.623 million from $30.284 million a year earlier.

News Explained

FreightCar America reports receiving $130,337 thousand through warrant exercises in the nine-month cash-flow disclosure, recording a completed cash transaction rather than a future financing step.

Key Figures

Quarterly revenue: $76.5 million vs. $160.5 million Railcar deliveries: 662 vs. 1,304 units Aftermarket revenue growth: 65% year over year +5 more

Quarterly revenue

$76.5 million vs. $160.5 million

Third quarter 2026 vs. third quarter 2025

Railcar deliveries

662 vs. 1,304 units

Third quarter 2026 vs. third quarter 2025

Aftermarket revenue growth

65% year over year

Third quarter 2026

Adjusted EBITDA

$0.1 million vs. $15.9 million

Third quarter 2026 vs. third quarter 2025

Backlog value

$284.5 million, up 28%

At September 30, 2026, year over year

Fiscal 2026 railcar deliveries outlook

3,100–3,300 railcars

Reaffirmed outlook

Fiscal 2026 revenue outlook

$370–$410 million

Reaffirmed outlook

Fiscal 2026 adjusted EBITDA outlook

$15–$19 million

Reaffirmed outlook

Previous Earnings Reports

3 past events · Latest: Oct 19

Same Type 3 events

1. Oct 19

   Earnings update

   24h Move

   -31.4%

   Preliminary Q3 figures accompanied a reduction in full-year delivery, revenue, and adjusted EBITDA guidance.

2. Aug 03

   Q2 earnings

   24h Move

   +3.6%

   Revenue and gross margin declined, while the company reported a net loss and lowered full-year guidance.

3. Nov 10

   Q3 earnings

   24h Move

   +11.8%

   Revenue, deliveries, gross margin, adjusted EBITDA, and adjusted net income increased year over year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, warrant liability, revolving credit facility, ebitda

4 terms

non-gaap financial

"forward-looking Adjusted EBITDA guidance due to the inherent difficulty"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

warrant liability financial

"change in fair market value of the warrant liability"

Warrant liability is the financial obligation a company records when it grants warrants—special options giving the holder the right to buy company shares at a set price in the future. It matters to investors because changes in this liability can affect a company's reported earnings and overall financial health, similar to how a pending contract can influence a company's future value.

revolving credit facility financial

"no borrowings under our revolving credit facility"

A revolving credit facility is a type of loan that a business can borrow from whenever it needs money, up to a set limit. It’s like having a credit card for companies—allowing them to borrow, pay back, and borrow again as needed, providing flexibility for managing cash flow or funding short-term expenses.

ebitda financial

"EBITDA represents earnings before interest, taxes, depreciation and amortization"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

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Backlog Value Up 28% Year over Year

Aftermarket Revenue Growth of 65% Year over Year

Reaffirms Fiscal Year 2026 Outlook Provided on October 19

CHICAGO, Nov. 09, 2026 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the third quarter ended September 30, 2026. Third quarter results were consistent with the preliminary results the Company announced on October 19, 2026.

Third Quarter 2026 Highlights

• Revenues of $76.5 million, compared to $160.5 million in the third quarter of 2025, with railcar deliveries of 662 units compared to 1,304 units in the prior year period
• Aftermarket revenues grew 65% year over year, reflecting continued organic growth in parts and components and the contribution from our recent acquisitions
• Gross margin of 8.8% with gross profit of $6.7 million, compared to gross margin of 15.1% with gross profit of $24.2 million in the third quarter of 2025
• Recorded a $4.7 million non-cash gain related to the change in fair market value of the warrant liability, resulting in net income of $8 thousand, or $0.00 per diluted share, and adjusted net loss of $9.5 million, or $(0.28) per diluted share, compared to adjusted net income of $7.8 million, or $0.24 per diluted share, in the prior year period
• Adjusted EBITDA of $0.1 million, representing a margin of 0.2%, compared to $15.9 million and a margin of 9.9% in the third quarter of 2025
• Ended the quarter with a backlog of 2,660 units valued at $284.5 million, up 28% from $222.0 million at September 30, 2025
• Completed the acquisition of Trinity Equipment Company following quarter end, expanding our aftermarket platform and marking our third transaction in less than a year

“While our third quarter results reflect a challenging period for the business, they were consistent with the preliminary figures we reported in October,” said Nick Randall, President and Chief Executive Officer of FreightCar America. “We continued to make progress on our commercial priorities, with order intake through the first nine months exceeding our total for all of 2025 and backlog value up 28% year over year. Following quarter end, we completed our third aftermarket acquisition, further expanding our parts and components offering.”

Randall continued, “Looking ahead, some industry indicators are improving, although we have yet to see that translate into broader growth in railcar demand. Our backlog provides visibility into planned production, and our focus remains on disciplined execution, cost control and converting orders into profitable deliveries. We continue to integrate our acquisitions and grow our aftermarket business, while maintaining the manufacturing flexibility to respond to changes in customer demand.”

Fiscal Year 2026 Outlook

The Company is reaffirming its outlook for fiscal year 2026, as provided on October 19, 2026:

	Fiscal 2026 Outlook
Railcar Deliveries	3,100 - 3,300 railcars
Revenue	$370 - $410 million
Adjusted EBITDA1	$15 - $19 million

1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.

Mike Riordan, Chief Financial Officer of FreightCar America, added, “Our balance sheet remains solid, with no borrowings under our revolving credit facility. Our cost structure has improved, and our aftermarket business is contributing a growing share of our results. Integration of our acquired businesses is on track, and our most recent acquisition is expected to be immediately accretive, consistent with our capital allocation priorities. With our full-year outlook unchanged, our focus is on converting our backlog into profitable deliveries.”

Third Quarter 2026 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Tuesday, November 10, 2026, at 11:00 a.m. (Eastern Time) to discuss its third quarter 2026 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call. Teleconference details are as follows:

• November 10, 2026
• 11:00 a.m. Eastern Time
• Phone: 1-877-407-0789 or 1-201-689-8562
• Webcast access: FreightCar America Third Quarter 2026 Earnings Conference Call - 1778357

An audio replay of the conference call will be available beginning at 3:00 p.m. (Eastern Time) on Tuesday, November 10, 2026, until 11:59 p.m. (Eastern Time) on Tuesday, November 24, 2026. To access the replay, please dial (844) 512-2921 or (412) 317-6671. The replay passcode is 13763137. An archived version of the webcast will also be available on the FreightCar America Investor Relations website.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Forward-Looking Statements

This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion, delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; our ability to successfully integrate acquired businesses and realize the anticipated benefits of acquisitions; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, and Free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

Investor Contact: chris@jbgcapadvisory.com

FreightCar America, Inc. Condensed Consolidated Balance Sheets (In thousands, except for share data) (Unaudited)
		September 30, 2026				December 31, 2025
Assets
Current assets
Cash, cash equivalents and restricted cash equivalents		$	86,759			$	64,295
Accounts receivable, net			19,055				12,443
VAT receivable			6,007				6,097
Inventories, net			80,408				68,295
Prepaid expenses and other current assets			11,671				8,875
Total current assets			203,900				160,005
Property, plant and equipment, net			27,117				30,969
Right of use asset lease			38,913				40,281
Intangibles, net			5,035				4,877
Deferred income taxes			53,200				52,970
Other long-term assets			823				947
Total assets		$	328,988			$	290,049
Liabilities and Stockholders’ Equity (Deficit)
Current liabilities
Accounts and contractual payables		$	108,709			$	55,671
Accrued payroll and other employee costs			5,715				9,110
Accrued warranty			957				2,050
Customer deposits			15,658				—
Deferred revenue			—				539
Current portion of long-term debt			2,875				9,728
Lease liability, current			1,945				1,888
Other current liabilities			6,003				6,611
Total current liabilities			141,862				85,597
Long-term debt, net of current portion			97,538				97,514
Warrant liability			9,306				168,529
Accrued pension costs			877				1,256
Lease liability, long-term			41,775				43,233
Other long-term liabilities			1,301				1,333
Total liabilities			292,659				397,462
Stockholders’ equity (deficit)
Common stock			358				221
Additional paid-in capital			205,364				72,557
Accumulated other comprehensive income			1,568				2,324
Accumulated deficit			(170,961	)			(182,515	)
Total stockholders’ equity (deficit)			36,329				(107,413	)
Total liabilities and stockholders’ equity (deficit)		$	328,988			$	290,049

FreightCar America, Inc. Condensed Consolidated Statements of Operations (In thousands, except for share and per share data) (Unaudited)
		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2026				2025				2026				2025
Revenues		$	76,488			$	160,511			$	253,934			$	375,424
Cost of sales			69,792				136,306				230,257				319,004
Gross profit			6,696				24,205				23,677				56,420
Selling, general and administrative expenses			9,752				9,647				31,623				30,284
Operating (loss) income			(3,056	)			14,558				(7,946	)			26,136
Interest expense			(3,136	)			(4,638	)			(9,557	)			(13,356	)
Gain (loss) in fair market value of warrant liability			4,671				(17,589	)			28,886				(12,331	)
Other (expense) income			(54	)			78				(78	)			3,235
(Loss) income before income taxes			(1,575	)			(7,591	)			11,305				3,684
Income tax benefit			(1,583	)			(146	)			(249	)			(50,998	)
Net income (loss)		$	8			$	(7,445	)		$	11,554			$	54,682
Net earnings (loss) per common share - basic		$	0.00			$	(0.23	)		$	0.35			$	1.66
Net earnings (loss) per common share - diluted		$	0.00			$	(0.23	)		$	0.32			$	1.57
Weighted average common shares outstanding – basic			32,094,098				31,887,926				31,987,628				31,778,768
Weighted average common shares outstanding – diluted			35,214,095				31,887,926				35,459,764				33,738,478

FreightCar America, Inc.
Condensed Consolidated Segment Information
(In thousands)
(Unaudited)

		Three Months Ended												Three Months Ended
		September 30, 2026												September 30, 2025
		Manufacturing				Aftermarket				Total				Manufacturing				Aftermarket				Total
Revenues		$	65,687			$	10,801			$	76,488			$	153,956			$	6,555			$	160,511
Cost of sales			63,798				5,994								131,789				4,517
Segment gross profit		$	1,889			$	4,807			$	6,696			$	22,167			$	2,038			$	24,205
Other segment items(1)			348				833								437				554
Segment income		$	1,541			$	3,974			$	5,515			$	21,730			$	1,484			$	23,214

⁽¹⁾ Other segment items in Manufacturing and Aftermarket segments include selling, general and administrative expenses.

		Nine Months Ended												Nine Months Ended
		September 30, 2026												September 30, 2025
		Manufacturing				Aftermarket				Total				Manufacturing				Aftermarket				Total
Revenues		$	222,926			$	31,008			$	253,934			$	354,888			$	20,536			$	375,424
Cost of sales			210,435				19,822								305,685				13,319
Segment gross profit		$	12,491			$	11,186			$	23,677			$	49,203			$	7,217			$	56,420
Other segment items(1)			1,311				2,728								1,196				1,630
Segment income		$	11,180			$	8,458			$	19,638			$	48,007			$	5,587			$	53,594

⁽¹⁾ Other segment items in Manufacturing and Aftermarket segments include selling, general and administrative expenses.

FreightCar America, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

		Nine Months Ended September 30,
		2026				2025
Cash flows from operating activities
Net income		$	11,554			$	54,682
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation and amortization			5,599				4,598
Non-cash lease expense on right of use assets			1,368				2,320
(Gain) loss on change in fair market value for Warrant liability			(28,886	)			12,331
Stock-based compensation recognized			2,862				3,134
Bargain purchase gain			(152	)			—
Deferred income taxes			(230	)			(48,496	)
Other non-cash items, net			434				6,655
Changes in operating assets and liabilities:
Accounts receivable			(6,612	)			(20,008	)
VAT receivable			329				(1,538	)
Inventories			(9,853	)			(27,906	)
Accounts and contractual payables			50,997				47,702
Income taxes payable, net			(1,792	)			(7,478	)
Customer deposits			15,658				8,176
Other assets and liabilities			(8,154	)			(9,440	)
Net cash flows provided by operating activities			33,122				24,732
Cash flows from investing activities
Acquisitions			(945	)			—
Purchase of property, plant and equipment			(1,228	)			(2,102	)
Proceeds from sale of assets held for sale, net of selling costs			—				585
Net cash flows used in investing activities			(2,173	)			(1,517	)
Cash flows from financing activities
Deferred financing costs			—				(1,336	)
Borrowings on revolving line of credit			8,000				—
Repayments on revolving line of credit			(8,000	)			—
Repayments on term loan			(8,049	)			(2,156	)
Employee stock settlement			(436	)			(487	)
Financing lease payments			—				(943	)
Net cash flows used in financing activities			(8,485	)			(4,922	)
Net increase in cash and cash equivalents			22,464				18,293
Cash, cash equivalents and restricted cash equivalents at beginning of period			64,295				44,450
Cash, cash equivalents and restricted cash equivalents at end of period		$	86,759			$	62,743
Supplemental cash flow information
Interest paid		$	8,284			$	7,196
Income taxes paid		$	1,381			$	5,143
Change in unpaid construction in process		$	(47	)		$	597
Contingent consideration recognized in connection with acquisition		$	344			$	—
Exercise of warrants		$	130,337			$	—

FreightCar America, Inc. Reconciliation of (Loss) income before taxes to EBITDA(1) and Adjusted EBITDA(2) (In thousands) (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
(Loss) income before income taxes	$	(1,575	)		$	(7,591	)		$	11,305			$	3,684
Depreciation & Amortization		1,887				1,552				5,599				4,598
Interest Expense, net		3,136				4,638				9,557				13,356
EBITDA		3,448				(1,401	)			26,461				21,638
Change in Fair Value of Warrant (a)		(4,671	)			17,589				(28,886	)			12,331
Productivity Initiatives (b)		-				-				2,202				-
Professional Services (c)		415				477				1,286				477
Acquisition & Integration Costs (d)		97				-				458				-
Lease payments in Interest (e)		-				(1,149	)			-				(2,788	)
Stock Based Compensation		790				433				2,862				3,134
Other, net		54				(78	)			78				(3,235	)
Adjusted EBITDA	$	133			$	15,871			$	4,461			$	31,557

⁽¹⁾ EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

⁽²⁾  Adjusted EBITDA represents EBITDA before the following charges:

1. (a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
2. (b) During the second quarter of 2026, the Company incurred workforce realignment costs as a result of sustained productivity gains in its Manufacturing segment. 
3. (c) During 2026 and 2025, the Company incurred certain professional services expenses associated with governance items.
4. (d) During 2026, the Company incurred costs related to the acquisition and integration of businesses in its Aftermarket segment.
5. (e) Represents lease payments recorded within Interest expense due to certain leases previously classified as financing prior to December 2025.

We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc. Reconciliation of Net (Loss) income and Adjusted net income (loss)(1) (In thousands) (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Net (loss) income	$	8			$	(7,445	)		$	11,554			$	54,682
Change in Fair Value of Warrant (a)		(4,671	)			17,589				(28,886	)			12,331
Productivity Initiatives (b)		-				-				2,202				-
Professional Services (c)		415				477				1,286				477
Acquisition & Integration Costs (d)		97				-				458				-
Stock Based Compensation		790				433				2,862				3,134
Release of Valuation Allowance (e)		-				-				-				(51,872	)
Other, net		54				(78	)			78				(3,235	)
Total non-GAAP adjustments		(3,315	)			18,421				(22,000	)			(39,165	)
Income tax impact on non-GAAP adjustments (f)		(6,222	)			(3,184	)			(382	)			(2,279	)
Adjusted net (loss) income	$	(9,529	)		$	7,792			$	(10,828	)		$	13,238

⁽¹⁾ Adjusted net (loss) income represents net (loss) income before the following charges:

1. (a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
2. (b) During the second quarter of 2026, the Company incurred workforce realignment costs as a result of sustained productivity gains in its Manufacturing segment. 
3. (c) During 2026 and 2025, the Company incurred certain professional services expenses associated with governance items.
4. (d) During 2026, the Company incurred costs related to the acquisition and integration of businesses in its Aftermarket segment.
5. (e) During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
6. (f) Income tax impact on non-GAAP adjustments represents the tax impact of the presented adjustments on the Company’s income tax provision calculation.

We believe that Adjusted net income is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted net income is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted net income is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc. Reconciliation of Diluted EPS and Adjusted EPS(1) (In dollars per share) (Unaudited)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Diluted EPS	$	0.00			$	(0.23	)		$	0.32			$	1.57
Change in Fair Value of Warrant (a)	$	(0.13	)		$	0.55			$	(0.81	)		$	0.37
Productivity Initiatives (b)		-				-				0.06				-
Professional Services (c)		0.01				0.01				0.04				0.01
Acquisition & Integration Costs (d)		-				-				0.01				-
Stock Based Compensation		0.02				0.01				0.08				0.09
Release of Valuation Allowance (e)		-				-				-				(1.54	)
Other, net		-				-				-				(0.10	)
Total non-GAAP adjustments pre-tax per-share		(0.10	)			0.57				(0.62	)			(1.17	)
Income tax impact on non-GAAP adjustments per share (f)		(0.18	)			(0.10	)			(0.01	)			(0.07	)
Adjusted EPS	$	(0.28	)		$	0.24			$	(0.31	)		$	0.33

⁽¹⁾ Adjusted EPS represents diluted EPS before the following charges:

1. (a) This adjustment removes the non-cash (income) expense associated with the change in fair market value of the Company’s warrant liability.
2. (b) During the second quarter of 2026, the Company incurred workforce realignment costs as a result of sustained productivity gains in its Manufacturing segment. 
3. (c) During 2026 and 2025, the Company incurred certain professional services expenses associated with governance items.
4. (d) During 2026, the Company incurred costs related to the acquisition and integration of businesses in its Aftermarket segment.
5. (e) During the second quarter of 2025, the Company released the majority of the valuation allowance in the United States on federal and state deferred tax assets.
6. (f) Income tax impact on non-GAAP adjustments per share represents the tax impact of the presented adjustments on the Company’s income tax provision calculation.

We believe that Adjusted EPS is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.
Reconciliation of Cash flows provided by operating activities and Free cash flow⁽¹⁾
(In thousands)
(Unaudited)

	Three Months Ended September 30,							Nine Months Ended September 30,
		2026			2025				2026			2025
Cash flows provided by operating activities	$	25,356		$	3,410			$	33,122		$	24,732
Purchase of property, plant and equipment		(345	)		(1,164	)			(1,228	)		(2,102	)
Free cash flow		25,011			2,246				31,894			22,630

⁽¹⁾ Free cash flow represents the amount of Cash flows provided by operating activities less capital expenditures.

We believe that Free cash flow is useful to investors evaluating our operating performance compared to that of other companies in our industry because these metrics provide key insights into the potential for growth and ability to generate returns for investors. Free cash flow is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Free cash flow in isolation or as a substitute for Cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Free cash flow is not necessarily comparable to that of other similarly titled measures reported by other companies.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were FreightCar America's third-quarter 2026 earnings?

FreightCar America reported net income of $8 thousand, or $0.00 per diluted share, for the quarter ended September 30, 2026. Results included a $4.7 million non-cash warrant valuation gain. Adjusted net loss was $9.5 million, or $(0.28) per diluted share, compared with adjusted net income of $7.8 million, or $0.24 per diluted share, a year earlier.

What is FreightCar America's fiscal 2026 outlook?

FreightCar America reaffirmed its fiscal 2026 outlook for 3,100–3,300 railcar deliveries, revenue of $370–$410 million and adjusted EBITDA of $15–$19 million. The outlook is unchanged from the guidance provided on October 19, 2026.