FreightCar America Slumps 21% As Q4 Results And FY26 Disappoints Investors

Published : Mar 10, 2026, 04:05 AM IST
https://stocktwits.com/news-articles/markets/equity/freightcar-america-slumps-as-q4-2025-results-disappoints-investors/cZdVUYkRIee

Synopsis

The company said its revenues in Q4 came at $125.6 million, lower than $137.7 million in the fourth quarter of 2024, despite railcar deliveries of 1,172 units compared to 1,019 units in the prior year period.

  • The revenue fell well short of analyst estimates of $144.95 million, according to data from Fiscal.ai. 
  • The company said that its gross margin for Q4 was at 13.4%, compared to gross margin of 15.3% from year-ago. 
  • The company said it expects FY 2026 revenue of $500 million to $550 million. However, it fell way short of Wall Street expectations of $625.65 million. 

FreightCar America shares slumped 19% during extended hours of trading on Monday as it reported a decline in its fourth quarter revenue. 

The company said its revenues in Q4 came at $125.6 million, lower than $137.7 million in the fourth quarter of 2024, despite railcar deliveries of 1,172 units compared to 1,019 units in the prior year period. 

The revenue fell well short of analyst estimates of $144.95 million, according to data from Fiscal.ai. 

Q4 Snapshot

The company posted a fall in its profit in Q4. It reported adjusted net income of $4.9 million, or $0.16 per share, compared to $0.21 per share from the year-ago quarter. RAIL also missed profit expectations of $0.19 per share, as per Fiscal.ai. 

“In 2025, FreightCar America executed with discipline amid a challenging industry environment, delivering revenue in line with our expectations while producing exceptional profitability,” said Nick Randall, President and Chief Executive Officer of FreightCar America.

The company said that its gross margin was at 13.4% with gross profit of $16.8 million, compared to gross margin of 15.3% with gross profit of $21.0 million in the fourth quarter of 2024. 

Outlook

The company said it expects FY 2026 revenue of $500 million to $550 million. However, it fell way short of Wall Street expectations of $625.65 million. 

“As we enter 2026, we remain focused on converting backlog into profitable deliveries while continuing to invest for growth,” Randall said. 

“Looking ahead to 2026, our guidance reflects ongoing industry uncertainty while reinforcing our confidence in the underlying strength and resilience of the business,” said Mike Riordan, Chief Financial Officer of FreightCar America. 

How Did Stocktwits Users React?

Retail sentiment around RAIL trended in ‘bullish’ territory amid ‘high’ message volume. 

Shares in the company have fallen nearly 11% so far in 2026. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

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