Freightcar America, Inc. · NASDAQ:RAIL
Freightcar America — Investor Presentation (May 2025)
27 slides from Freightcar America's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
Investor Presentation May 2025
Slide 2: Disclosures
Disclosures Forward-Looking Statements This presentation 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
Slide 3: Company Overview
Company Overview 3
Slide 4: 120-year Storied History of Success with Runway for Growth
Storied History of Success with Runway for Growth December 2024 Optimized Capital Structure July 2024 Secured Multi-Year Tank Car Conversion Order Industry Leading 120-year Pure Play June 2024 10,000th railcar produced at Mexico Distinguished Manufacturer of facility Legacy High-Quality 2020 – 2024
Slide 5: Business Model Built to Achieve Profitable Growth
Business Model Built to Achieve Profitable Growth LTM as of 3/31/2025 495M $ 14.2 % $ 11,494 Revenue Gross Margin Adj. EBITDA1 / Railcar Down 38.1% YoY Up 414 bps YoY Up 963 bps YoY 3,849 175K+ 5,000+ Railcar Deliveries Railcars in Service Today Capacity 5 1. See appendix for reconciliation of Non-G
Slide 6: Well Positioned Within Addressable Market
Well Positioned Within Addressable Market Railcar Market Captured Market Share1 ~12% Market Drivers How We Win Potential Tank Car Capture • Increased production • Customer centricity and transparency • Heightened replacement demand • Unique product offering with flexible Addressable for railcars des
Slide 7: Diverse Product Portfolio Catering to a Strong Customer Base
Diverse Product Portfolio Catering to a Strong Customer Base Average Deliveries by Customer Type FY20 to Present Leading railroad, lessors, and shippers based in North America with an average tenure of 20+ Years Gondolas Collaborative approaches to design that deliver on the ultimate shipper need Ve
Slide 8: Company Leadership
Company Leadership Nicholas Randall Michael Riordan Matthew Tonn Chief Executive Officer Chief Financial Officer Chief Commercial Officer • Joined FCA in 2023 to • Joined FCA in 2020 as part • Joined FCA in 2019 to lead prepare Company for its of turn-around team Company’s realignment in next phase
Slide 9: Completed Transformation Driving Profitable Growth
Completed Transformation Driving Profitable Growth WORLD-CLASS MANUFACTURER OF RAIL EQUIPMENT, GENERATING INDUSTRY LEADING 2025 & Beyond MARGINS WITH SIGNIFICANT OPPORTUNITY FOR FURTHER EXPANSION Strategic focus – scaling the business at a higher margin Manufacturing Footprint / Cost Differentiated
Slide 10: Premier Manufacturing Campus
Premier Manufacturing Campus OVER 10,000 CARS COMPLETED SINCE ITS INCEPTION Castaños Railcar Capacity | Timing of Facility Expansion Line 5* 6000 Update photo Line 4 5000 4000 3000 Line 3 2000 Line 2 Castaños, Mexico Facility: 1000 Line 1 2023 completion 0.7M Sq. ft. 2K employees Vertically integrat
Slide 11: Vertically-Integrated Facility Driving Significant Margin Improvement
Vertically-Integrated Facility Driving Significant Margin Improvement Gross Profit / RAILCAR Optimized operational efficiency and cost-effectiveness $20,000 $10,000 Ability to effectively manage supply chain challenges due to consolidated footprint and vertical integration $0 Proximity to low-cost r
Slide 12: Uniquely Positioned within Market
Uniquely Positioned within Market Pure Play Manufacturer That Does Niche Manufacturing Capability Optimized Backlog Not Compete with Its Customers FCA’s business is approximately FCA’s flexible manufacturing and By maintaining open capacity starting equally divided between Class I industry respected
Slide 13: Pillars for Value Creation
Pillars for Value Creation GROWTH STRATEGY Drive Profitable Growth in Optimized Capital Structure Future Product Expansion Railcar Manufacturing Completed new state-of-the- Retired Preferred Shares with a Facilities, people, proximity to the U.S. art 0.7M ft2 campus lower cost debt facility border a
Slide 14: Financial Overview
Financial Overview 14
Slide 15: 1Q25 Financial Results
1Q25 Financial Results Revenue ($ in millions) Strong quarterly results realizing strong revenue growth and profitability $161.1 $96.3 Revenues of $96.3M, down 40.2% YoY 1Q24 1Q25 • 710 railcar deliveries in 1Q25 Gross Profit ($ in millions) Gross Margin of 14.9%, up 787 bps YoY • Q1 margin increase
Slide 16: Historical Financial Performance
Historical Financial Performance Revenue ($ in millions) / Railcar Deliveries (units) 2020-2024 CAGR Deliveries 55% | Revenue 51% 4,362 4,700 3,184 3,022 1,731 $559 $563 751 $365 $358 $108 $203 FY20 FY21 FY22 FY23 FY24 FY25E1 Adjusted EBITDA2 ($ in millions) $43.0 $46.0 $8.4 $20.1 ($7.2) ($29.5) 1 F
Slide 17: Cash Flow
Cash Flow Operating Cash Flow Key Metrics FY24 ($ in millions) $44.9 $11.5 $4.8 $ 44.5M Cash ($58.9) FY20 ($55.4) FY21 FY22 FY23 FY24 $ 108.4M Total Debt 5.0M Delivered third consecutive year of positive operating cash flow $ Delivered positive Adj. Free Cash Flow1 of $21.7 million in FY24 Capital E
Slide 18: Reaffirming Full Year 2025 Guidance
Reaffirming Full Year 2025 Guidance Metric Target YoY Growth at Midpoint Railcar Deliveries 4,500 - 4,900 Cars 7.7% Revenue $ 530 - 595M $ 0.6% Adj. EBITDA1 $ 43 - 49M $ 7.0% 1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty i
Slide 19: Investment Highlights
Investment Highlights Strong Revenue Achieved FY24 revenue of $559M Generation 5,000+ Annual Revenue / Railcar Capacity at 87% with Increased Capacity Capacity capacity1 Equity Capital (as of 3/31/25) Common Stock 19.0 million Employee Options 1.5 million Industry Leading 12.0% FY24 $9,858 FY24 Adj.
Slide 20: Appendix
Appendix
Slide 21: Diluted Share Count at Various Prices
Diluted Share Count at Various Prices REPRESENTS SHARES AND DILUTED SECURITIES OUTSTANDING AT VARIOUS PRICE PER SHARE LEVELS (SHARES IN MILLIONS) Common Stock $ 5.53 $ 6.00 $ 6.50 $ 7.00 $ 7.50 $ 8.00 $ 9.00 $ 10.00 $ 15.00 $ 20.00 Shares held by Affiliates 6.54 6.54 6.54 6.54 6.54 6.54 6.54 6.54 6.
Slide 22: Reconciliation of Income (Loss) Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of Income (Loss) Before Taxes to EBITDA and Adjusted EBITDA Three Months Ended March 31, 2025 2024 Income/(Loss) Before Income Taxes $52,284 $(14,148) Depreciation & Amortization 1,496 1,396 Interest Expense, Net 4,336 2,391 EBITDA 58,116 (10,361) (Gain)/Loss on Change in Fair Market
Slide 23: Reconciliation of Loss Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of Loss Before Taxes to EBITDA and Adjusted EBITDA FY FY FY FY FY FY 2019 2020 2021 2022 2023 2024 Loss Before Income Taxes $(75,353) $(85,899) $(40,034) $(36,535) $(22,088) $(69,979) Depreciation & Amortization 12,438 9,202 4,304 4,135 4,606 5,763 Interest Expense, Net 609 2,225 13,3
Slide 24: Reconciliation of Loss Before Taxes to EBITDA and Adjusted EBITDA
Reconciliation of Loss Before Taxes to EBITDA and Adjusted EBITDA Adjusted EBITDA represents EBITDA before the following charges: a) This adjustment removes the non-cash expense associated with the j) Incurred certain costs in the fourth quarter of 2020 for nonrecurring change in fair market value o
Slide 25: Reconciliation of Income (Loss) Before Income Taxes to EBITDA and Adjusted EBITDA
Reconciliation of Income (Loss) Before Income Taxes to EBITDA and Adjusted EBITDA 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 spe
Slide 26: Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow
Reconciliation of Cash Flows Provided by Operating Activities to Free Cash Flow and Adjusted Free Cash Flow Three Months Ended March 31, 2025 2024 Cash Flows Provided by Operating Activities $12,794 $(25,322) Purchase of Property, Plant and Equipment (330) (966) Free Cash Flow 12,464 (26,288) Accrue
Slide 27: Thank you!
FREIGHTCAR AMERICA Thank you!
FreightCar America — Investor Presentation (May 2025) on 6ix