The Greenbrier Companies announced new orders totalling 5,500 freight railcars valued at more than USD 530 million received thus far during its fourth fiscal quarter that began on June 1, 2021.
This increases Greenbrier’s backlog and provides further visibility entering fiscal 2022. The announced orders are from a diverse mix of customers and comprise a broad range of freight railcar types, including intermodal, boxcars, tanks, covered hoppers, and gondolas.
“Greenbrier’s proven ability to adjust production capacity in response to growing demand positions us to actively secure new orders, strengthening our backlog. We expect this order trend to continue into fiscal 2022,” William A. Furman CEO of Greenbrier said.
In the third quarter of 2021, ended May 31, 2021, Greenbrier received orders for 3,800 freight railcars including intermodal units, tank cars, boxcars and covered hoppers. USD 400 million is the total value of these orders. The diversified new railcar backlog as of May 31, 2021, was 24,800 units with an estimated value of USD 2.6 billion.
In the Q3 FY21 company’s revenue increased by to USD 450.1 million, from USD 295.6 million recorded in the second quarter of 2021. The 65% higher deliveries reflect increased production levels and overall improving demand environment.
During the third quarter of 2021, GBX Leasing was formed to create stable, tax-advantaged cash flows with initial railcar funding of nearly USD 100 million, under a USDA 300 million non-recourse warehouse credit facility. GBX Leasing is consolidated in Greenbrier’s financial statements, see supplemental information in this release. GBX Leasing, a special purpose subsidiary, will own and manage a portfolio of leased railcars primarily built by Greenbrier. The subsidiary will acquire approximately USD 200 million per year of newly built and leased railcars from Greenbrier. The initial portfolio for GBX Leasing has been identified from leased railcars on Greenbrier’s balance sheet or in its backlog. Leased railcars will be aggregated to obtain permanent debt financing through the asset-backed securities market. GBX Leasing will be consolidated in Greenbrier’s financial statements, and Greenbrier initially owns about 90% of GBX Leasing. The Longwood Group, a Chicago-based transport equipment advisory and asset management firm, will own the balance.
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