Mon, May 5, 8:29 PM (10 days ago)
**FreightCar America, Inc. (RAIL) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $96.3 million, down from $161.1 million in Q1 2024 due to decreased railcar deliveries and production capacity used for spare parts. - **Gross Profit:** $14.4 million, up from $11.4 million in Q1 2024, driven by favorable product mix. - **Net Income:** $50.4 million, a significant improvement from a net loss of $11.6 million in Q1 2024, primarily due to a gain on the change in fair market value of the warrant liability. - **Earnings per Share (EPS):** Basic $1.54, diluted $1.52, compared to a loss of $0.54 in Q1 2024. **Cash Flow:** - **Operating Activities:** Net cash provided was $12.8 million, a significant improvement from a net cash used of $25.3 million in Q1 2024. - **Investing Activities:** Net cash used was $0.3 million, down from $1.0 million in Q1 2024. - **Financing Activities:** Net cash used was $2.8 million, up from $0.3 million in Q1 2024. **Liquidity & Capital Resources:** - **Cash & Cash Equivalents:** $54.1 million, up from $44.5 million in Q4 2024. - **Credit Facilities:** Compliance with covenants under the term loan and revolving credit facility. - **Capital Expenditures:** $0.3 million in Q1 2025, with anticipated spending of $5.0 million to $6.0 million for 2025. **Trends & Uncertainties:** - **Order Backlog:** Increased to 3,337 units, with an estimated sales value of $318 million. - **Economic Factors:** Geopolitical and macroeconomic uncertainties due to trade policies and inflation. - **Operational Efficiencies:** Focus on strategic initiatives to drive operational efficiencies. **Future Operations Impact:** - **Production Capacity:** Increased production capacity year-over-year. - **Market Demand:** Variable purchase patterns and timing of customer orders may cause fluctuations in quarterly results. - **Financial Covenants:** Compliance with financial covenants under credit facilities. **Management's Discussion:** - **Revenue Decline:** Driven by decreased railcar deliveries and production capacity used for spare parts. - **Gross Profit Improvement:** Due to favorable product mix. - **Operating Income:** Stable at $3.9 million, driven by favorable product mix offset by increased selling, general, and administrative expenses. - **Net Income Improvement:** Primarily due to a gain on the change in fair market value of the warrant liability. **Conclusion:** FreightCar America, Inc. showed significant improvement in net income and cash flow from operating activities in Q1 2025 compared to Q1 2024. However, revenue declined due to decreased railcar deliveries and production capacity used for spare parts. The company remains focused on operational efficiencies and compliance with financial covenants under its credit facilities.