FreightCar America, Inc. (RAIL): Business Model Canvas [Dec-2025 Updated]

You're digging into the nuts and bolts of how a major railcar manufacturer actually makes money, and honestly, understanding the mechanics behind FreightCar America, Inc. is key to seeing their near-term potential. As an analyst who's spent two decades mapping industrial plays, I can tell you their model hinges on the agility of their Castaños, Mexico facility, which lets them promise lead times as short as four months, a huge competitive edge. We're looking at a company guiding for revenues between \$500 million and \$530 million in 2025, backed by a solid backlog of \$222 million, so let's break down the nine blocks that drive this operation, from their key partnerships with lessors to how they manage their cost structure post-refinancing.

|Key Partnerships - Component suppliers for critical railcar parts like wheels and axles. - Raw material suppliers for steel and aluminum, often with fixed-price contracts. - Financial partners providing capital and debt refinancing, like the $115 million term loan. - Leasing companies, which represent a majority of the industry's railcar purchases. - Engineering firms for specialized product design and technical support. |Key Activities - Manufacturing new railcars at the Castaños, Mexico facility. - Executing high-margin railcar conversion and rebody programs. - Managing a vertically integrated supply chain for raw materials and components. - Sales and commercial execution to secure new orders and expand market share. - Research and development for specialized railcar designs (e.g., tank cars). |Key Resources - Castaños, Mexico manufacturing facility with >5,000 units annual capacity. - Vertically integrated production lines enabling quick changeovers. - Strong backlog of 2,750 units valued at approximately $222 million (Q3 2025). - Proprietary engineering designs for diverse railcar types. - Skilled labor force, primarily located in Mexico. |Value Propositions - Manufacturing agility allowing for shorter lead times (4 to 9 months). - Lower fixed-cost profile due to the optimized Mexico facility. - Diversified portfolio of railcars, including gondolas and covered hoppers. - Value-added services like railcar repairs and full conversions. - USMCA compliance, providing tariff advantages for North American sales. |Customer Relationships - Dedicated direct sales team for strategic customer engagement. - Long-term, consultative relationships with major railroads and lessors. - Technical support and engineering collaboration for tailored railcar solutions. - Customer service for aftermarket parts and maintenance support. - Responsiveness to customer delivery requirements and small-batch orders. |Channels - Direct sales force to North American railroads and shippers. - Direct sales to financial institutions and railcar leasing companies. - Aftermarket segment for direct sales of forged, cast, and fabricated parts. - International Sales team for exports to Latin America and the Middle East. |Customer Segments - Class I and regional Railroads in North America. - Railcar leasing companies and financial institutions. - North American Shippers transporting bulk commodities (e.g., grain, coal, steel). - Customers requiring specialized railcar conversions (e.g., tank car retrofit program). |Cost Structure - Variable costs of raw materials, primarily steel and aluminum. - Manufacturing labor and overhead costs at the Mexico facility. - Selling, General, and Administrative (SG&A) expenses, which were $10.1 million in Q2 2025. - Interest expense, reduced by an estimated $9.2 million annually from 2024 debt refinancing. - Capital expenditures, projected to be $4 million to $5 million for full-year 2025. |Revenue Streams - New railcar sales, the core revenue driver, with full-year 2025 guidance of $500 million to $530 million. - Revenue from railcar rebuilds and conversion services. - Sales of aftermarket railcar parts and components. - Revenue from used railcar sales and railcar leasing activities. - Adjusted EBITDA is projected to be between $43 million and $49 million for 2025.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Key Partnerships

You're looking at the core relationships FreightCar America, Inc. relies on to keep the railcars rolling out the door. These aren't just names on a contract; they are the lifeline for materials, financing, and final sales volume. Here's the breakdown of those critical external players as of late 2025.

Component suppliers for critical railcar parts like wheels and axles

FreightCar America, Inc. explicitly identifies maintaining relationships with its suppliers of railcar components as a key risk factor, which underscores the importance of these partnerships for consistent production. While specific supplier names aren't public record in the same way financial terms are, the operational dependency is clear.

• Maintaining relationships with component suppliers is a stated risk factor.
• The company's ability to deliver its projected 4,500 - 4,900 railcars for fiscal year 2025 depends on this supply chain stability.

Raw material suppliers for steel and aluminum, often with fixed-price contracts

The cost and timely delivery of primary inputs like steel and aluminum are constant variables FreightCar America, Inc. manages. The company notes the risk of 'fluctuating costs of raw materials, including steel and aluminum' and 'delays in the delivery of raw materials.'

To be fair, the actual terms of any fixed-price contracts aren't disclosed, but the financial reports confirm these materials are a major input consideration.

Raw Material Risk Mentioned	Q3 2025 Revenue Context	2025 Delivery Guidance (Midpoint)
Steel and Aluminum Costs	$160.5 million (Q3 2025 Revenue)	Approx. 4,700 units
Delays in Raw Material Delivery	Gross Margin of 15.1% (Q3 2025)	Expected Revenue Range: $530 - $595 million

Financial partners providing capital and debt refinancing, like the $115 million term loan

This is where the capital structure got a significant tune-up. FreightCar America, Inc. executed a major refinancing event right at the end of 2024 to improve flexibility and lower costs heading into 2025.

Here's the quick math on that deal: they secured a \$115 million 4-year term loan with Blue Torch Finance LLC on December 31, 2024. This move slashed the cost of capital by approximately 40%.

• Loan Amount: \$115 million Term Loan.
• Cost of Capital Reduction: Approximately 40%.
• First-Year Savings Estimate: Approximately \$9.2 million, or about \$0.26 per share on a fully diluted basis.
• Use of Proceeds: Redemption of all 85,412 shares of Series C Preferred Stock for a total redemption price of \$113,274,739, which included accrued dividends of \$27,862,739.

Leasing companies, which represent a majority of the industry's railcar purchases

FreightCar America, Inc.'s customer base is heavily weighted toward financial institutions, railroads, and shippers, with leasing companies often driving a large portion of industry purchases. The company focuses on building strong, longstanding ties with these major entities.

The strength of these relationships is reflected in the order book, which supports future manufacturing schedules.

Customer/Order Metric	Value/Volume	Date/Period
Total Railcar Orders Received	1,250 railcars	Q1 2025
Value of Q1 2025 Orders	Approximately \$141 million	Q1 2025
Backlog Value	Approximately \$222 million	End of Q3 2025
Backlog Unit Count	2,750 units	End of Q3 2025

Engineering firms for specialized product design and technical support

While specific engineering partnerships aren't detailed with financial figures, the company's focus on specialized work-like rebuilds, conversions, and advancing tank car capabilities-implies reliance on external technical expertise or specialized internal engineering support that acts as a key partner in product development and service delivery.

This capability helps FreightCar America, Inc. capture opportunities in complex orders beyond standard new car builds.

Finance: draft 13-week cash view by Friday.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Key Activities

You're looking at the core actions FreightCar America, Inc. takes to deliver value, and honestly, the numbers from late 2025 show a company leaning heavily on its Mexican manufacturing base and service work.

Manufacturing new railcars at the Castaños, Mexico facility.

The Castaños plant is the engine, designed with four fully operational production lines, giving it a capacity to build more than 5,000 units per year, with a potential fifth line adding approximately 20% more volume. The operational improvements there resulted in the most profitable quarter since the relocation. The company reaffirmed its full-year 2025 delivery guidance to be between 4,500 and 4,900 railcars.

Here's a look at the production and sales execution through the third quarter of 2025:

Metric	Q2 2025 Result	Q3 2025 Result
Railcar Deliveries (Units)	939	1,304
Consolidated Revenue	$118.6 million	$160.5 million
Gross Margin	15.0%	15.1%

Executing high-margin railcar conversion and rebody programs.

The focus on conversions is significant enough that management revised the full-year 2025 revenue guidance down to $500 million to $530 million specifically to reflect a greater mix of these conversion projects, which carry lower average selling prices than new builds. Still, these conversions and rebuilds continue to deliver excellent value and strong margins.

Managing a vertically integrated supply chain for raw materials and components.

FreightCar America, Inc. is advancing its strategy through deeper integration, which includes capital investment in its tank car capabilities. The company is also managing its capital expenditures for the full year 2025 to be between $4 million and $5 million.

Sales and commercial execution to secure new orders and expand market share.

Commercial execution remains a key activity, evidenced by the backlog strength and market penetration. The company achieved over 20% order share of the addressable new car market for the third quarter of 2025, and 15% of the total market share.

The order book activity includes:

• Orders received in Q2 2025 totaled 1,226 railcars, valued at $106.9 million.
• Orders received in Q3 2025 totaled 430 railcars.
• The backlog at the end of Q3 2025 stood at 2,750 units, valued at approximately $222 million.

Research and development for specialized railcar designs (e.g., tank cars).

The company is accelerating its capability expansion for specialized designs, specifically tank car retrofits. This investment is expected to generate an additional $6 million of EBITDA across 2026 and 2027. Production for this specific retrofit program is anticipated to begin in 2026.

Finance: draft 13-week cash view by Friday.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Key Resources

You're assessing the core assets FreightCar America, Inc. (RAIL) relies on to execute its business strategy. These aren't just things they own; they are the engines driving their value proposition, especially given the shift to a lower-cost manufacturing base.

The primary physical asset is the Castaños, Mexico manufacturing facility. This plant spans nearly 700,000 square feet and is the sole location for new railcar production. Its current operational capacity is set at more than 5,000 units per year. Furthermore, the facility has a fifth production line ready, which offers the potential to increase volume by approximately 20%. For context, in 2024, the Castaños plant produced 5,000 railcars, operating at 87% capacity.

Another critical resource is the company's commitment to process efficiency, which is tied to its operational structure. FreightCar America, Inc. emphasizes vertically integrated production lines, which they state enable quick changeovers and support cost optimization. This integration, along with advancements like the TruTrack digital integration across production steps, is designed to improve flow, increase productivity, and drive higher throughput.

The intellectual property forms a less tangible but vital resource base. FreightCar America, Inc. holds several patents and applications protecting its engineering designs. Key patents cover proprietary components like the one-piece center sill, the MegaFlo™ door system, and the top chord and side stake for coal-carrying railcars. This design capability supports a broad portfolio of railcar types, including covered hoppers, box cars, gondolas, and flat cars.

The human capital is heavily concentrated in Mexico, supporting the manufacturing base. The Castaños facility employs around 2,000 workers. The company strategically located there to access this highly skilled local workforce, a factor noted as the most valuable asset of the region by local government officials.

The current order book demonstrates the immediate value secured by these resources. This backlog is a key indicator of near-term revenue visibility.

Metric	Quantity/Value (Q3 2025)
Ending Backlog Units	2,750 units
Ending Backlog Value	Approximately $222 million
New Orders Received (Q3 2025)	430 orders
Railcar Deliveries (Q3 2025)	1,304 units

These resources support the company's ability to execute on its current commitments and position for future cycles:

• Castaños Workforce Size: Approximately 2,000 employees.
• Capacity Potential: Fifth line available for a potential 20% production increase.
• Proprietary Technology: Patents on key components like the MegaFlo™ door system.
• Recent Performance Metric: Q3 2025 Adjusted EBITDA margin of 10.6% at the new facility.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Value Propositions

Manufacturing agility is supported by operational flexibility across four production lines, which contributed to a gross margin increase from 12.5% in Q2 2024 to 15.0% in Q2 2025, and further to 15.1% in Q3 2025.

The optimized Mexico facility, established by relocating production from the U.S., was projected to deliver fixed cost savings of $20M+ annually compared to the prior footprint, alongside significant labor and overhead reductions. This operational shift supported an Adjusted EBITDA margin of 10.6% in Q3 2025.

FreightCar America manufactures a diversified portfolio of railcars serving the North American market.

• Open top hoppers
• Mill gondola cars
• Covered hopper cars
• Boxcars
• Intermodal and non-intermodal flat cars
• Coal cars
• Coil steel cars
• Woodchip hoppers
• Aluminum vehicle carriers

The company also specializes in value-added services, noting a richer product mix in the second half of 2025 included a larger number of conversion railcars. The tank car retrofit program is specifically expected to generate $6 million in EBITDA over the two years of 2026 and 2027.

The manufacturing base in Mexico provides advantages for North American sales, though the environment is subject to trade policy; for instance, 25% tariffs were cited as looming, effective April 2, 2025.

The portfolio of railcars manufactured includes specific types and associated commodity uses:

Railcar Type	Primary Commodity/Use	2021 Estimated Units
3 X 53' Intermodal Well	Containers	4,950
Tank (Chemicals/Petroleum)	Chemicals, Petroleum	20,000
Hoppers (Plastic Pellets)	Plastic Pellets	8,250
Non-Intermodal Flat	Lumber & Wood	3,700

FreightCar America, Inc. (RAIL) - Canvas Business Model: Customer Relationships

You're looking at how FreightCar America, Inc. keeps its key accounts engaged and growing, which is vital in a cyclical industry where order timing shifts. The relationship strategy centers on deep integration and responsiveness, moving beyond simple transactions.

Dedicated direct sales team for strategic customer engagement.

FreightCar America, Inc. maintains its market position by actively competing for business, achieving over 20% of the addressable market order share for new car orders, or 15% of the total market, as of the third quarter of 2025. This level of capture suggests a highly effective sales and commercial execution strategy. The company is recognized as the fastest-growing railcar manufacturer in North America, a testament to these commercial efforts. The sales focus is clearly on securing future work, evidenced by the backlog growth seen earlier in the year; for instance, the first quarter of 2025 added 1,250 new railcar orders valued at approximately $141 million.

Long-term, consultative relationships with major railroads and lessors.

The company cultivates relationships with a defined set of customers, which include railroads, North American shippers, and financial institutions, the latter often representing lessors. These relationships are sustained by a commitment to high-quality products backed by engineering design expertise. The focus on specialized work, like the tank car retrofit program, further solidifies these long-term consultative ties, positioning FreightCar America, Inc. as a go-to partner rather than just a supplier. The company's backlog at the end of Q3 2025 stood at 2,750 units valued at $222.0 million, indicating substantial ongoing commitment from these core customers.

The evolution of the order book shows the dynamic nature of these customer commitments:

Period End Date	Railcar Units in Backlog	Backlog Value (USD)
Q1 2025	3,337	$318 million
Q2 2025	3,624	$316.9 million
Q3 2025	2,750	$222.0 million

The Q1 2025 backlog was 61% higher than the backlog of 2,075 railcars from Q1 2024.

Technical support and engineering collaboration for tailored railcar solutions.

Engineering collaboration is key to delivering customized value. The company is advancing its operational readiness for specialized projects, notably the tank car retrofit program, with initial shipments expected to begin in 2026. This program is projected to generate $6 million in EBITDA over the two years of 2026 and 2027. Furthermore, the ability to handle custom fabrications is mentioned as a factor influencing sales mix, suggesting engineering flexibility directly translates into revenue opportunities. The manufacturing facility in Castanos, Mexico, is vertically integrated, which allows for quick flexibility and customizations to provide what customers need.

Customer service for aftermarket parts and maintenance support.

The Aftermarket segment, which includes parts sales and services like railcar inspections and maintenance, is a growing component of the relationship structure. This segment is showing strong traction, with aftermarket sales increasing almost 61% in the second quarter of 2025 compared to the prior year period. This growth in service revenue suggests customers are relying on FreightCar America, Inc. for the upkeep and servicing of their assets, not just new builds.

Responsiveness to customer delivery requirements and small-batch orders.

FreightCar America, Inc. highlights its agility in meeting customer needs, which is demonstrated by the shifting production schedules. For example, lower deliveries in the first half of 2025 were attributed to a strategic decision to produce cars that were scheduled to deliver in the second half of the year. This flexibility, utilizing all four production lines, allows the company to manage customer timing expectations, even when overall industry order activity is temporarily soft. The company delivered 1,304 railcar units in Q3 2025, a significant increase from the 939 units delivered in Q2 2025, showing a clear ramp-up in fulfillment as the year progressed.

• Operational flexibility is cited as a key differentiator.
• The Mexico plant capacity is over 5,000 railcars annually.
• The company is focused on enhancing cash generation and delivering on its 2025 Adjusted EBITDA guidance of $43 million to $49 million.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Channels

You're looking at the sales engine for FreightCar America, Inc. (RAIL) as of late 2025, focusing on how the product gets from the factory floor to the customer's rail yard. The entire operation is geared toward moving product through direct relationships, which is typical for this capital-intensive industry.

The scale of the business being channeled is significant. For the third quarter ended September 30, 2025, FreightCar America reported consolidated revenues of $160.5 million, on the back of 1,304 railcar deliveries. This volume is supported by a backlog at that time of 2,750 units valued at $222.0 million. The company holds an estimated 20% market share in new car orders as of Q3 2025.

Here's a look at the structure of those channels:

• Direct sales force to North American railroads and shippers.
• Direct sales to financial institutions and railcar leasing companies.
• Aftermarket segment for direct sales of forged, cast, and fabricated parts.
• International Sales team for exports to Latin America and the Middle East.

The company's full-year 2025 revenue guidance, as of October 2025, is set between $500.000 million and $530.000 million. This revenue is the aggregate result flowing through all these direct channels.

The North American focus, covering both railroads and leasing companies, drives the bulk of the volume, as evidenced by the delivery figures. For instance, Q1 2025 saw 1,223 units delivered, generating $161.1 million in revenue in that quarter in 2024, which sets a benchmark for the core market activity. The company is positioned to deliver between 4,500 and 4,900 railcars for the full year 2025.

The aftermarket segment, which includes direct sales of forged, cast, and fabricated parts, is integrated into the overall commercial strategy, supporting the core business and providing recurring revenue streams. While specific revenue attribution for this segment isn't broken out in the latest public filings, the company emphasizes its expertise in providing customized solutions, which includes these components and services like railcar repairs and conversions.

The international channel, targeting Latin America and the Middle East, is part of the overall commercial execution, though the primary reported volumes relate to North American activity. The company's ability to remain agile and responsive, particularly in rebuilds and conversions, allows it to capture opportunities across its customer base, which includes international parties.

To give you a sense of the scale of orders feeding these channels:

Metric	Q3 2025 Value	Q1 2025 Value
New Railcars Ordered (Units)	Not specified for Q3	1,250
New Railcars Ordered (Value)	Not specified for Q3	$141 million
Total Backlog (Units)	2,750	3,337
Total Backlog (Value)	$222.0 million	$318 million

The company ended Q3 2025 with $62.7 million in cash and equivalents and no borrowings under its revolving credit facility, showing the financial strength supporting these sales efforts.

Finance: draft 13-week cash view by Friday.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Customer Segments

You're looking at the core buyers for FreightCar America, Inc. as of late 2025. The business model is clearly segmented, focusing on the major players in North American rail, but with a strategic pivot toward higher-value, specialized work.

FreightCar America, Inc. designs and builds high-quality railcars, including bulk commodity cars, covered hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars, and boxcars. The Company also manufactures and distributes a wide range of railcar parts and components. One key risk noted is the reliance upon a small number of customers that represent a large percentage of FreightCar America's sales.

The primary customer groups are:

• Class I and regional Railroads in North America: These are the core operators needing new builds and replacements.
• Railcar leasing companies and financial institutions: FreightCar America supports this segment through its FreightCar America Leasing Company, which leases freight cars.
• North American Shippers transporting bulk commodities: This group drives demand for specific car types like covered hopper cars and coal cars.
• Customers requiring specialized railcar conversions: This segment is increasingly important, focusing on repairs and conversions to repurpose idled rail assets.

The company's commercial strategy in 2025 emphasizes building for value and meeting complex customer requirements over chasing commoditized throughput, which is a direct reflection of serving these distinct segments with tailored solutions. For instance, in Q3 2025, the strong Adjusted EBITDA performance reflected a favorable product mix, which suggests a higher proportion of custom or conversion work.

Here's a quick look at the customer activity reflected in the order book and deliveries through the third quarter of 2025:

Metric	Q1 2025	Q2 2025	Q3 2025	FY 2025 Outlook (Midpoint)
Railcar Deliveries (Units)	N/A	939	1,304	4,700
New Orders (Units)	1,250	1,226	N/A (Backlog noted)	N/A
Backlog (Units)	3,337	3,624	2,750	N/A
Backlog Value (Millions USD)	$318	$316.9	$222.0	N/A

The focus on specialized work is concrete. FreightCar America captured 36% of its addressable market during Q1 2025, partly due to customer trust in products like gondolas, open-top hoppers, and covered hopper cars. Furthermore, the company is strategically advancing its operational readiness for tank car conversions. This specific program is projected to start production in 2026 and is expected to generate $6 million in EBITDA over the two years of 2026 and 2027, showing a clear investment in a specific customer need.

The reaffirmed full-year 2025 guidance projects total revenues between $530 million and $595 million, with expected Adjusted EBITDA in the range of $43 million to $49 million. The Q3 results, with revenue at $160.5 million and Adjusted EBITDA at $17.0 million, show the company is on track to meet that guidance, supported by strong execution across its customer base.

Finance: draft 13-week cash view by Friday.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Cost Structure

You're looking at the hard costs FreightCar America, Inc. (RAIL) faces to keep those railcars rolling out of their facilities. It's a capital-intensive business, so understanding where the money goes is key to seeing the real profitability.

The most immediate, recurring operating cost data we have is from the mid-year reports. For the second quarter of 2025, the Selling, General, and Administrative (SG&A) expenses totaled $10.1 million. This was up from $8.5 million in the second quarter of 2024, largely due to the timing of spending on professional services.

Financing costs have seen a structural improvement. The debt refinancing completed at the end of 2024, which involved redeeming preferred stock with a new term loan, was expected to generate annual savings of approximately $9.2 million in the first year. This reduction in the cost of capital enhances financial flexibility.

Investment in future capacity, or Capital Expenditures (CapEx), has been adjusted for the full year 2025. Following the third quarter update, the projection for full-year 2025 capital expenditures was revised down to the range of $4 million to $5 million, reflecting a shift in the timing of certain spend into 2026. This compares to an earlier projection from the second quarter of $9 million to $10 million, with about $4 million allocated to routine operations.

The variable costs tied to raw materials are a constant pressure point. FreightCar America, Inc. explicitly notes that fluctuating costs of raw materials, specifically steel and aluminum, represent a significant risk to the cost structure. While specific 2025 material cost percentages aren't available here, the company's entire manufacturing strategy hinges on managing these inputs.

For manufacturing labor and overhead, the move to the Mexico facility was a major cost restructuring event. The relocation to the Castaños campus resulted in historical cost reductions of about $20 million USD per year, alongside reducing employee salaries by more than 60% compared to the previous U.S. operations. The facility currently employs approximately 2,000 individuals. The company has the capacity to manufacture or overhaul over 5,000 railcars annually with its current four assembly lines.

Here's a summary of the key financial figures impacting the Cost Structure as of late 2025:

Cost Component	Specific Financial Data Point	Period/Context
Selling, General, and Administrative (SG&A)	$10.1 million	Q2 2025 Expense
Interest Expense Reduction (Annualized)	$9.2 million	Estimated annual savings from 2024 debt refinancing
Projected Capital Expenditures (CapEx)	$4 million to $5 million	Full-Year 2025 Projection (Revised)
Historical Annual Cost Savings from Mexico Move	$20 million	Reported savings following 2021 relocation
Mexico Facility Employee Count	~2,000	As of late 2025

The variable cost of raw materials, steel and aluminum, remains a primary driver of Cost of Goods Sold, though specific 2025 figures are not itemized here.

FreightCar America, Inc. (RAIL) - Canvas Business Model: Revenue Streams

You're looking at the core ways FreightCar America, Inc. brings in money, and right now, it's all about getting those railcars built and delivered. The main engine for revenue is definitely new railcar sales, which is the biggest chunk of the pie. For the full year 2025, the company is guiding total revenue in the range of $500 million to $530 million. That number got adjusted recently, though, to reflect a shift in what they're building; specifically, they are seeing a greater mix of conversion work in the second half of the year compared to initial new car expectations. Still, the overall profitability picture looks solid, with the projected Adjusted EBITDA for 2025 sitting between $43 million and $49 million. That's the target for operational earnings before a few non-cash items get factored in.

The second key area driving revenue is the service side of the business, specifically revenue from railcar rebuilds and conversion services. Management has pointed out that their agility in handling conversions-taking older railcars and repurposing them-is a key differentiator that lets them capture meaningful opportunities in a dynamic market. This service work is what caused the adjustment to the top-line revenue guidance, even as they reaffirmed that profitability target. To give you some context on where they stand as of the third quarter, they delivered 1,304 railcar units in Q3 2025, contributing to a consolidated revenue of $160.5 million for that quarter alone. Plus, they are sitting on a healthy backlog of 2,750 units valued at approximately $222 million, which helps secure future revenue visibility.

Beyond the big ticket sales and conversions, FreightCar America, Inc. has other important, supporting revenue streams. These include:

• Sales of aftermarket railcar parts and components.
• Revenue from used railcar sales.
• Railcar leasing activities.

These ancillary services help smooth out the cyclical nature of new car orders. Here's a quick look at the key numbers framing the 2025 outlook versus recent performance:

Metric	Full-Year 2025 Guidance Range	Q3 2025 Actual
Revenue	$500 million to $530 million	$160.5 million
Adjusted EBITDA	$43 million to $49 million	$17.0 million
Railcar Deliveries (Units)	4,500 to 4,900 units	1,304 units
Backlog Value	Not specified for FY guidance	Approximately $222 million

The company's ability to generate cash is also a revenue stream consideration, as they aim to maintain positive cash flow alongside these revenue targets. They generated $3.4 million in operating cash flow in the third quarter, with an Adjusted Free Cash Flow of approximately $2.2 million for that same period. Finance: draft 13-week cash view by Friday.