Condensed Consolidated Statements of Comprehensive Income

Item 1. Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets

Notes to Condensed Consolidated Financial Statements

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the quarterly period ended May 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from ______ to ______

Commission File No. 1-13146

THE GREENBRIER COMPANIES, INC.

(Exact name of registrant as specified in its charter)


Oregon	93-0816972
(State of Incorporation)	(I.R.S. Employer Identification No.)
One Centerpointe Drive, Suite 200, Lake Oswego, OR	97035
(Address of principal executive offices)	(Zip Code)

(503) 684-7000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock without par value	GBX	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares of the registrant’s common stock, without par value, outstanding on June 26, 2025 was 30,883,672 shares.

FORM 10-Q

Table of Contents


		Page
	Forward-Looking Statements	3
PART I.	FINANCIAL INFORMATION	5
Item 1.	Condensed Consolidated Financial Statements	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Income	6
	Condensed Consolidated Statements of Comprehensive Income	7
	Condensed Consolidated Statements of Equity	8
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44
PART II.	OTHER INFORMATION	45
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 5.	Other Information	45
Item 6.	Exhibits	46
	Signatures	47

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements, other than statements of historical fact included in this report, concerning our plans, objectives, goals, strategies, future events, future performance, financing needs, backlog, capital expenditures, plans or intentions relating to business trends and other information referred to under "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. We use words such “affect,” “anticipate,” “assume,” “backlog,” “be,” “believe,” “can,” “contingent,” “conclude,” “continue,” “could,” “due to,” “estimate,” “expect,” “future,” “impact,” “intend,” “likely,” “may,” “opinion,” “optimize,” “plan,” “potential,” “schedule,” “target,” “trend,” “realize,” “result,” “seek,” “strategy,” “will,” “would,” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance.

Forward-looking statements are based on our current expectations and beliefs and on currently available operating, financial and market information and are subject to various risks and uncertainties, many of which, by their nature, are inherently uncertain and beyond our control. Our expectations and beliefs are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations or beliefs will result or be achieved and actual future results and trends may differ materially from what is expressed in or indicated by the forward-looking statements.

There are a number of risks, uncertainties and other important factors that could cause our actual results to differ materially from the forward-looking statements contained in this report. Such risks, uncertainties and important factors include but are not limited to the following:

•

an economic downturn or economic uncertainty;

•

governmental policy changes impacting international trade and corporate tax, including tariffs;

•

risks related to our operations outside of the United States (U.S.) including enforcement actions by regulators related to tax, environmental, labor, safety, or other regulations;

•

a material delay in the movement of our products to customer delivery points, including delays at border crossings;

•

shortages of skilled labor, increased labor costs, or a failure to maintain good relations with our workforce;

•

price volatility for supplies to our business as well as goods and services in our industry;

•

mismatch of supply and demand, interruptions of supply lines, inefficient or overloaded logistics platforms, among other factors which may cause the markets for the inputs to our business to fail to operate effectively or efficiently;

•

undertaking and management of capital expenditures;

•

creation, implementation and use of information technology systems;

•

cybersecurity threats and incidents;

•

equipment failures, technological failures, costs and inefficiencies associated with changing of production lines, or transfer of production between facilities;

•

monetary and other policy interventions by governments and central banks, including the increase of interest rates;

•

changes in demand for our railcar equipment and services;

•

changes in our product mix or revenue due to shifts in demand;

•

the cyclical nature of our business;

•

the loss of, or reduction of, business from one or more of our limited number of customers;

•

impacts from international conflicts or other geopolitical events, including the war in Ukraine and military conflict in the Middle East;

•

our ability to realize the anticipated benefits of our enhanced leasing strategy;

•

inflation, including wage inflation and a rise in prices for energy and other inputs;

•

a decline in performance, or increase in efficiency, of the rail freight industry; and

•

our inability to lease railcars at satisfactory rates, remarket leased railcars on favorable terms upon lease termination, or realize the expected residual values for end of life railcars due to changes in scrap prices.

There may be other factors that may cause our actual results to differ materially from the forward-looking statements, including the risks, uncertainties and factors described in more detail in Part I Item 1A “Risk Factors” in our most recent Annual Report on Form 10-K which are incorporated herein by reference. You should evaluate all forward-looking statements made in this report in the context of these risks, uncertainties and factors. You are cautioned not to place undue reliance on any forward-looking statements, which reflect management’s opinions only as of the date hereof. Except as otherwise required by law, we do not assume any obligation to update any forward-looking statements.

PART I. FINANCIAL INFORMATION

(In millions, except number of shares which are reflected in thousands, unaudited)


	May 31, 2025			August 31, 2024
Assets
Cash and cash equivalents	$	296.8		$	351.8
Restricted cash		45.2			16.8
Accounts receivable, net		507.7			523.8
Income tax receivable		33.7			45.1
Inventories		707.6			770.9
Leased railcars for syndication		248.6			130.7
Equipment on operating leases, net		1,300.4			1,243.5
Property, plant and equipment, net		711.7			711.7
Investment in unconsolidated affiliates		95.0			87.3
Intangibles and other assets, net		277.3			244.4
Goodwill		129.2			128.5
	$	4,353.2		$	4,254.5
Liabilities and Equity
Revolving notes	$	378.8		$	351.6
Accounts payable and accrued liabilities		696.2			731.4
Deferred income taxes		151.9			130.1
Deferred revenue		32.5			58.9
Notes payable, net		1,383.9			1,404.2

Commitments and contingencies (Note 15)

Contingently redeemable noncontrolling interest		40.1			41.7

Equity
Greenbrier
Preferred stock - without par value; 25,000 shares authorized; none outstanding		—			—
Common stock - without par value; 50,000 shares authorized; 30,883 and 31,135 shares outstanding at May 31, 2025 and August 31, 2024		—			—
Additional paid-in capital		361.1			375.1
Retained earnings		1,172.5			1,035.0
Accumulated other comprehensive loss		(29.6	)		(34.0	)
Total equity – Greenbrier		1,504.0			1,376.1
Noncontrolling interest		165.8			160.5
Total equity		1,669.8			1,536.6
	$	4,353.2		$	4,254.5

The accompanying notes are an integral part of these financial statements

Condensed Consolidated Statements of Income

(In millions, except number of shares which are reflected in thousands and per share amounts, unaudited)


	Three Months Ended						Nine Months Ended
	May 31, 2025			May 31, 2024			May 31, 2025			May 31, 2024
Revenue
Manufacturing	$	778.2		$	755.0		$	2,298.9		$	2,325.7
Leasing & Fleet Management		64.5			65.2			181.8			166.0
		842.7			820.2			2,480.7			2,491.7
Cost of revenue
Manufacturing		672.6			672.2			1,958.4			2,070.1
Leasing & Fleet Management		18.6			24.2			58.6			54.3
		691.2			696.4			2,017.0			2,124.4
Margin		151.5			123.8			463.7			367.3
Selling and administrative expense		65.9			59.3			192.5			179.2
Net gain on disposition of equipment		(7.0	)		(7.8	)		(16.8	)		(12.6	)
Earnings from operations		92.6			72.3			288.0			200.7
Interest and foreign exchange		13.2			24.7			58.3			72.5
Earnings before income tax and earnings from unconsolidated affiliates		79.4			47.6			229.7			128.2
Income tax expense		(18.1	)		(10.7	)		(71.5	)		(30.0	)
Earnings before earnings from unconsolidated affiliates		61.3			36.9			158.2			98.2
Earnings from unconsolidated affiliates		6.2			3.7			14.6			9.2
Net earnings		67.5			40.6			172.8			107.4
Net earnings attributable to noncontrolling interest		(7.4	)		(6.7	)		(5.5	)		(8.9	)
Net earnings attributable to Greenbrier	$	60.1		$	33.9		$	167.3		$	98.5
Basic earnings per common share	$	1.92		$	1.09		$	5.35		$	3.17
Diluted earnings per common share	$	1.86		$	1.06		$	5.18		$	3.05
Weighted average common shares
Basic		31,186			31,131			31,269			31,091
Diluted		32,184			32,021			32,272			32,456

The accompanying notes are an integral part of these financial statements

(In millions, unaudited)


	Three Months Ended						Nine Months Ended
	May 31, 2025			May 31, 2024			May 31, 2025			May 31, 2024
Net earnings	$	67.5		$	40.6		$	172.8		$	107.4

Other comprehensive income (loss)
Translation adjustment		15.1			(1.3	)		3.9			(3.1	)
Reclassification of derivative financial instruments recognized in net earnings1		(3.4	)		(4.2	)		(10.3	)		(11.7	)
Unrealized gain (loss) on derivative financial instruments2		(0.9	)		6.4			10.0			13.5
Other (net of tax effect)		0.4			—			0.8			0.6
		11.2			0.9			4.4			(0.7	)
Comprehensive income		78.7			41.5			177.2			106.7
Comprehensive income attributable to noncontrolling interest		(7.4	)		(6.7	)		(5.5	)		(8.9	)
Comprehensive income attributable to Greenbrier	$	71.3		$	34.8		$	171.7		$	97.8

1 Net of tax effect of $0.9 million and $1.2 million for the three months ended May 31, 2025 and May 31, 2024, respectively, and $2.6 million and $3.1 million for the nine months ended May 31, 2025 and May 31, 2024, respectively.

2 Net of tax effect of $1.2 million and ($1.7 million) for the three months ended May 31, 2025 and May 31, 2024, respectively, and ($2.8 million) and ($3.5 million) for the nine months ended May 31, 2025 and May 31, 2024, respectively.

The accompanying notes are an integral part of these financial statements

Condensed Consolidated Statements of Equity

(In millions, except per share amounts, unaudited)


	Attributable to Greenbrier
	Common Stock Shares			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance August 31, 2024		31.1		$	375.1		$	1,035.0		$	(34.0	)	$	1,376.1		$	160.5		$	1,536.6		$	41.7
Net earnings		—			—			167.3			—			167.3			7.1			174.4			(1.6	)
Other comprehensive income, net		—			—			—			4.4			4.4			—			4.4			—
Noncontrolling interest adjustments		—			—			—			—			—			9.1			9.1			—
Joint venture partner distribution declared		—			—			—			—			—			(10.9	)		(10.9	)		—
Restricted stock awards (net of cancellations)		0.3			13.3			—			—			13.3			—			13.3			—
Unamortized restricted stock		—			(18.9	)		—			—			(18.9	)		—			(18.9	)		—
Stock based compensation expense		—			13.4			—			—			13.4			—			13.4			—
Repurchase of stock		(0.5	)		(21.8	)		—			—			(21.8	)		—			(21.8	)		—
Cash dividends ($0.92 per share)		—			—			(29.8	)		—			(29.8	)		—			(29.8	)		—
Balance May 31, 2025		30.9		$	361.1		$	1,172.5		$	(29.6	)	$	1,504.0		$	165.8		$	1,669.8		$	40.1


	Attributable to Greenbrier
	Common Stock Shares			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance February 28, 2025		31.4		$	378.3		$	1,122.7		$	(40.8	)	$	1,460.2		$	160.3		$	1,620.5		$	41.2
Net earnings		—			—			60.1			—			60.1			8.5			68.6			(1.1	)
Other comprehensive income, net		—			—			—			11.2			11.2			—			11.2			—
Noncontrolling interest adjustments		—			—			—			—			—			1.2			1.2			—
Joint venture partner distribution declared		—			—			—			—			—			(4.2	)		(4.2	)		—
Restricted stock awards (net of cancellations)		—			0.7			—			—			0.7			—			0.7			—
Unamortized restricted stock		—			(0.8	)		—			—			(0.8	)		—			(0.8	)		—
Stock based compensation expense		—			4.7			—			—			4.7			—			4.7			—
Repurchase of stock		(0.5	)		(21.8	)		—			—			(21.8	)		—			(21.8	)		—
Cash dividends ($0.32 per share)		—			—			(10.3	)		—			(10.3	)		—			(10.3	)		—
Balance May 31, 2025		30.9		$	361.1		$	1,172.5		$	(29.6	)	$	1,504.0		$	165.8		$	1,669.8		$	40.1


	Attributable to Greenbrier
	Common Stock Shares		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance August 31, 2023		30.9	$	364.4		$	897.5		$	(7.3	)	$	1,254.6		$	155.6		$	1,410.2		$	55.6
Net earnings		—		—			98.5			—			98.5			8.2			106.7			0.7
Other comprehensive loss, net		—		—			—			(0.7	)		(0.7	)		—			(0.7	)		—
Noncontrolling interest adjustments		—		—			—			—			—			1.7			1.7			—
Joint venture partner distribution declared		—		—			—			—			—			(7.2	)		(7.2	)		—
Restricted stock awards (net of cancellations)		0.2		14.5			—			—			14.5			—			14.5			—
Unamortized restricted stock		—		(19.6	)		—			—			(19.6	)		—			(19.6	)		—
Stock based compensation expense		—		12.2			—			—			12.2			—			12.2			—
Repurchase of stock		—		(1.3	)		—			—			(1.3	)		—			(1.3	)		—
Cash dividends ($0.90 per share)		—		—			(29.1	)		—			(29.1	)		—			(29.1	)		—
Balance May 31, 2024		31.1	$	370.2		$	966.9		$	(8.0	)	$	1,329.1		$	158.3		$	1,487.4		$	56.3


	Attributable to Greenbrier
	Common Stock Shares		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total Equity - Greenbrier			Noncontrolling Interest			Total Equity			Contingently Redeemable Noncontrolling Interest
Balance February 29, 2024		31.1	$	366.1		$	942.7		$	(8.9	)	$	1,299.9		$	154.6		$	1,454.5		$	56.0
Net earnings		—		—			33.9			—			33.9			6.4			40.3			0.3
Other comprehensive income, net		—		—			—			0.9			0.9			—			0.9			—
Noncontrolling interest adjustments		—		—			—			—			—			0.1			0.1			—
Joint venture partner distribution declared		—		—			—			—			—			(2.8	)		(2.8	)		—
Restricted stock awards (net of cancellations)		—		0.4			—			—			0.4			—			0.4			—
Unamortized restricted stock		—		(0.4	)		—			—			(0.4	)		—			(0.4	)		—
Stock based compensation expense		—		4.1			—			—			4.1			—			4.1			—
Cash dividends ($0.30 per share)		—		—			(9.7	)		—			(9.7	)		—			(9.7	)		—
Balance May 31, 2024		31.1	$	370.2		$	966.9		$	(8.0	)	$	1,329.1		$	158.3		$	1,487.4		$	56.3

The accompanying notes are an integral part of these financial statements

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)


	Nine Months Ended
	May 31, 2025			May 31, 2024
Cash flows from operating activities
Net earnings	$	172.8		$	107.4
Adjustments to reconcile net earnings to net cash provided by operating activities:
Deferred income taxes		8.7			(33.1	)
Depreciation and amortization		89.3			82.3
Net gain on disposition of equipment		(16.8	)		(12.6	)
Stock based compensation expense		13.4			12.2
Noncontrolling interest adjustments		9.1			1.7
Other		2.6			3.1
Decrease (increase) in assets:
Accounts receivable, net		15.2			43.3
Income tax receivable		11.4			22.2
Inventories		39.3			6.4
Leased railcars for syndication		(133.5	)		(29.8	)
Other assets		0.8			2.4
Increase (decrease) in liabilities:
Accounts payable and accrued liabilities		(17.8	)		(94.2	)
Deferred revenue		(26.8	)		27.1
Net cash provided by operating activities		167.7			138.4
Cash flows from investing activities
Proceeds from sales of assets		75.4			67.9
Capital expenditures		(209.1	)		(324.7	)
Cash distribution from unconsolidated affiliates and other		6.2			2.5
Net cash used in investing activities		(127.5	)		(254.3	)
Cash flows from financing activities
Net change in revolving notes with maturities of 90 days or less		12.3			19.0
Proceeds from revolving notes with maturities longer than 90 days		48.2			176.9
Repayments of revolving notes with maturities longer than 90 days		(34.2	)		(145.8	)
Proceeds from issuance of notes payable		48.8			180.5
Repayments of notes payable		(71.5	)		(78.9	)
Debt issuance costs		(5.0	)		(2.8	)
Repurchase of stock		(21.8	)		(1.3	)
Dividends		(29.7	)		(29.1	)
Cash distribution to joint venture partner		(10.9	)		(7.2	)
Tax payments for net share settlement of restricted stock		(5.6	)		(5.2	)
Net cash provided by (used in) financing activities		(69.4	)		106.1
Effect of exchange rate changes		2.6			(1.1	)
Decrease in Cash and cash equivalents and Restricted cash		(26.6	)		(10.9	)
Cash and cash equivalents and Restricted cash
Beginning of period		368.6			302.7
End of period	$	342.0		$	291.8
Balance sheet reconciliation
Cash and cash equivalents	$	296.8		$	271.6
Restricted cash		45.2			20.2
Total Cash and cash equivalents and Restricted cash as presented above	$	342.0		$	291.8
Cash paid during the period for
Interest	$	64.2		$	65.9
Income taxes paid, net	$	28.3		$	40.3
Non-cash activity
Transfers between Leased railcars for syndication and Inventories and Equipment on operating leases, net	$	42.5		$	66.8
Capital expenditures accrued in Accounts payable and accrued liabilities	$	8.0		$	15.7
Change in Accounts payable and accrued liabilities associated with dividends declared	$	0.1		$	—

The accompanying notes are an integral part of these financial statements

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

(Unaudited)

Note 1 – Interim Financial Statements

The Condensed Consolidated Financial Statements of The Greenbrier Companies, Inc. and its subsidiaries as of May 31, 2025 and for the three and nine months ended May 31, 2025 and May 31, 2024 have been prepared to reflect all adjustments (consisting of normal recurring accruals) that, in the opinion of management, are necessary for a fair presentation of the financial position, operating results and cash flows for the periods indicated. References in this Quarterly Report on Form 10-Q to the “Company,” “Greenbrier,” “we,” “us” and “our” refer to The Greenbrier Companies, Inc. and, where appropriate, its subsidiaries. All references to years refer to the fiscal years ended August 31st unless otherwise noted. The results of operations for the three and nine months ended May 31, 2025 are not necessarily indicative of the results to be expected for the entire year ending August 31, 2025.

Certain notes and other information have been condensed or omitted from the interim financial statements presented in this Quarterly Report on Form 10-Q. Therefore, these unaudited financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s Annual Report on Form 10-K for the year ended August 31, 2024.

Effective September 1, 2024, the Company combined the former Maintenance Services and Manufacturing segments into a single reportable segment, Manufacturing. The combined Manufacturing reportable segment reflects a comprehensive production operation that allows the Company to streamline production processes and resources to better serve customers. Separately, the Company renamed the former Leasing & Management Services reportable segment to Leasing & Fleet Management. These changes reflect the realignment of the Company’s organizational structure and reporting regularly provided to the Company’s chief operating decision maker to assess performance and allocate resources. These changes had no impact on the Company’s consolidated results of operations or financial position. Prior period segment results have been recast to reflect the Company’s new reportable segments. See Note 13 - Segment Information to the Condensed Consolidated Financial Statements for additional information on the Company’s reportable segments.

Management Estimates – The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) in the U.S. requires judgment on the part of management to arrive at estimates and assumptions on matters that are inherently uncertain. These estimates may affect the amount of assets, liabilities, revenue and expenses reported in the financial statements and accompanying notes and disclosure of contingent assets and liabilities within the financial statements. Estimates and assumptions are periodically evaluated and may be adjusted in future periods. Actual results could differ from those estimates.

Share Repurchase Program – The Board of Directors has authorized the Company to repurchase in aggregate up to $100.0 million of the Company’s common stock. The program may be modified, suspended, or discontinued at any time without prior notice. On January 8, 2025, the Board of Directors authorized the extension of the existing share repurchase program from January 31, 2025 to January 31, 2027 and renewed the amount remaining for repurchase to $100.0 million. Under the share repurchase program, shares of common stock may be purchased from time to time on the open market or through privately negotiated transactions. The timing and amount of purchases is based upon market conditions, securities law limitations and other factors.

During the three and nine months ended May 31, 2025, the Company repurchased a total of 507 thousand shares for $21.8 million, which were repurchased under the current authorization of the share repurchase plan. There were no share repurchases during the three months ended May 31, 2024. During the nine months ended May 31, 2024, the Company repurchased a total of 38 thousand shares for $1.3 million. As of May 31, 2025, the amount remaining for repurchase under the share repurchase program was $78.2 million.

Recent Accounting Pronouncements

Improvements to Reportable Segment Disclosures

In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires disclosure of incremental segment information on an annual and interim basis, primarily through enhanced disclosures of significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024 and requires retrospective application to all periods presented upon adoption. The Company has completed a preliminary assessment and does not expect the adoption of ASU 2023-07 to have a material impact on the consolidated financial statements, but will result in expanded reportable segment disclosures.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that ASU 2023-09 will have on its consolidated financial statement disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires disclosure of incremental income statement expense information on an annual and interim basis, primarily through enhanced disclosures of specified costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that ASU 2024-03 will have on its consolidated financial statement disclosures.

Note 2 – Revenue Recognition

Contract balances

Contract assets primarily consist of work completed for railcar maintenance but not billed at the reporting date. Contract liabilities primarily consist of customer prepayments for new railcars and other management-type services, for which the Company has not yet satisfied the related performance obligations.

The contract balances are as follows:


(in millions)	Balance sheet classification	May 31, 2025		August 31, 2024		$ Change
Contract assets	Accounts receivable, net	$	6.8	$	6.7	$	0.1
Contract assets	Inventories	$	10.8	$	10.8	$	—
Contract liabilities (1)	Deferred revenue	$	25.8	$	54.6	$	(28.8	)

(1) Contract liabilities balance includes deferred revenue within the scope of Revenue from Contracts with Customers (Topic 606).

For the three and nine months ended May 31, 2025, the Company recognized $7.1 million and $34.0 million, respectively, of revenue that was included in Contract liabilities as of August 31, 2024.

Performance obligations

As of May 31, 2025, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.


(in millions)	May 31, 2025
Revenue type:
Manufacturing – Railcar sales	$	1,660.1
Fleet management	$	141.9
Other	$	12.0

Based on current production and delivery schedules and existing contracts, approximately $1.3 billion of Manufacturing – Railcar sales are expected to be recognized through 2026 while the remaining amount is expected to be recognized in 2027 and beyond. Fleet management includes management and maintenance service contracts of which approximately $85.8 million is expected to be recognized through 2029 and the remaining amount is expected to be recognized through 2037. Other performance obligations are expected to be recognized through 2026.

Note 3 – Inventories

The following table summarizes the Company’s Inventories balance:


(in millions)	May 31, 2025			August 31, 2024
Manufacturing supplies and raw materials	$	482.1		$	532.6
Work-in-process		134.2			152.0
Finished goods		99.7			92.6
Excess and obsolete adjustment		(8.4	)		(6.3	)
	$	707.6		$	770.9

Note 4 – Intangibles and Other Assets, net

The following table summarizes the Company’s identifiable Intangibles and other assets, net balance:


(in millions)	May 31, 2025			August 31, 2024
Intangible assets subject to amortization:
Customer relationships	$	87.5		$	87.5
Accumulated amortization		(74.2	)		(72.1	)
Other intangibles		41.9			43.3
Accumulated amortization		(28.7	)		(27.2	)
		26.5			31.5
Intangible assets not subject to amortization		2.3			2.3
Prepaid and other assets		48.3			52.0
Operating lease right-of-use assets		88.8			65.1
Nonqualified savings plan investments		56.7			54.5
Debt issuance costs, net		7.7			4.8
Deferred tax assets		47.0			34.2
	$	277.3		$	244.4

Note 5 – Goodwill

The Company performed its annual goodwill impairment test during the third quarter. The Company utilized the qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its respective carrying value. This qualitative assessment may include, but is not limited to, reviewing factors such as macroeconomic considerations and industry indicators, financial performance, and cost estimates associated with a particular reporting unit. If, based on a review of qualitative factors, it is more likely than not that the fair value of a reporting unit is less than its carrying value, a quantitative impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Based on the qualitative assessment, the Company determined that it was more likely than not that the fair value of each reporting unit with goodwill exceeded its respective carrying value and a quantitative impairment test was not necessary; therefore, the Company concluded that goodwill was not impaired.

As of May 31, 2025, the goodwill balance of $129.2 million is related to the Manufacturing segment and is comprised of the following:


(In millions)	May 31, 2025		August 31, 2024
Reporting Unit:
North American Manufacturing	$	56.3	$	56.3
Wheels & Parts		42.6		42.6
Europe Manufacturing		30.3		29.6
Total Goodwill	$	129.2	$	128.5

Note 6 – Revolving Notes

Senior secured credit facilities aggregated to $1.3 billion as of May 31, 2025. The Company had an aggregate of $472.3 million available to draw down under credit facilities as of May 31, 2025. This amount consists of $361.1 million available on the North American credit facility, $15.1 million on the European credit facilities and $96.0 million on the Mexican credit facilities.

Nonrecourse credit facilities

GBX Leasing – As of May 31, 2025, a $450.0 million nonrecourse warehouse credit facility existed to support the operations of GBX Leasing. Advances under this facility are secured by a pool of leased railcars and bear interest at the Secured Overnight Financing Rate (SOFR) plus 1.70%. Interest rate swap agreements cover approximately 88% of the outstanding balance to swap the floating interest rate to a fixed rate. The warehouse credit facility converts to a term loan in September 2027 and matures in September 2029.

Other credit facilities

North America – The North American credit facility was renewed in May 2025, extending the maturity date from August 2026 to May 2030. As of May 31, 2025, a $600.0 million revolving line of credit existed to provide working capital and interim financing of equipment, principally for the Company’s U.S. and Mexican operations. The North American credit facility is secured by substantially all the Company's U.S. assets not otherwise pledged as security for term loans, the warehouse credit facility, or the railcar asset-backed securities. Available borrowings under the credit facility are generally based on defined levels of eligible inventory, receivables, property, plant and equipment and leased equipment, as well as total debt to consolidated capitalization and fixed charges coverage ratios. Advances under the North American credit facility bear interest at SOFR plus 1.50% plus 0.10% as a SOFR adjustment or Prime plus 0.50% depending on the type of borrowing.

Europe – As of May 31, 2025, lines of credit totaling $96.2 million, secured by certain of the Company’s European assets, were available for working capital needs of the Company’s European manufacturing operations. The European lines of credit include $34.0 million which is guaranteed by the Company. The European credit facilities have variable rates that range from Warsaw Interbank Offered Rate (WIBOR) plus 1.10% to WIBOR plus 1.40% and Euro Interbank Offered Rate (EURIBOR) plus 1.90%. European credit facilities are regularly renewed and currently have maturities that range from July 2025 through September 2026.

Mexico – As of May 31, 2025, the Company’s Mexican railcar manufacturing operations had lines of credit totaling $166.0 million for working capital needs, $66.0 million of which the Company and its joint venture partner have each guaranteed 50%. Advances under these facilities bear interest at variable rates that range from SOFR plus 2.22% to SOFR plus 4.25%. Currently, the Mexican credit facilities have maturities that range from June 2026 through March 2027.

Revolving notes consisted of the following balances:


(in millions)	May 31, 2025		August 31, 2024
Nonrecourse credit facility balances
GBX Leasing	$	231.4	$	194.9
Other credit facility balances
North America		—		—
Europe		77.4		46.7
Mexico		70.0		110.0
Total Revolving notes	$	378.8	$	351.6

Outstanding commitments under the North American credit facility included letters of credit which totaled $3.5 million and $5.9 million as of May 31, 2025 and August 31, 2024, respectively.

Note 7 – Accounts Payable and Accrued Liabilities


(in millions)	May 31, 2025		August 31, 2024
Trade payables	$	287.1	$	370.7
Accrued payroll and related liabilities		158.6		170.5
Accrued liabilities and other		139.4		100.4
Operating lease liabilities		88.8		66.0
Accrued warranty		22.3		23.8
	$	696.2	$	731.4

Note 8 – Accrued Warranty

Accrued warranty is included in Accounts payable and accrued liabilities on the Condensed Consolidated Balance Sheets. Warranty accrual activity consisted of the following:


	Three Months Ended						Nine Months Ended
(in millions)	May 31, 2025			May 31, 2024			May 31, 2025			May 31, 2024
Balance at beginning of period	$	24.0		$	23.0		$	23.8		$	25.6
Charged to cost of revenue, net		0.9			2.7			4.7			7.4
Payments		(3.0	)		(4.2	)		(6.3	)		(11.9	)
Currency translation effect		0.4			—			0.1			0.4
Balance at end of period	$	22.3		$	21.5		$	22.3		$	21.5

Note 9 – Notes Payable, net


(In millions)	May 31, 2025			August 31, 2024
Leasing nonrecourse term loans	$	771.2		$	792.1
Senior term debt		250.0			251.7
2.875% Convertible senior notes, due 2028		373.8			373.8
Other notes payable		3.3			3.3
	$	1,398.3		$	1,420.9
Debt discount and issuance costs		(14.4	)		(16.7	)
	$	1,383.9		$	1,404.2

Leasing nonrecourse term loans include:

•

Nonrecourse senior term debt, which is secured by a pool of leased railcars. The principal balance as of May 31, 2025 was $311.3 million.

•

Asset-backed term notes secured by a portfolio of leased railcars, which includes the term notes issued by GBX Leasing 2022-1 LLC. The principal balance as of May 31, 2025 was $459.9 million.

The senior term debt was amended in May 2025 on similar terms, extending the maturity date from August 2026 to May 2030. Senior term debt bears a floating interest rate of SOFR plus 1.50% plus 0.10% as a SOFR adjustment. Interest rate swap agreements cover approximately 72% of the principal balance to swap the floating interest rate to fixed rates. Principal payments of $3.1 million are to be paid quarterly in arrears with a balloon payment of $190.6 million due upon maturity. The principal balance as of May 31, 2025 was $250.0 million.

Note 10 – Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss (AOCL), net of tax effect as appropriate, consisted of the following:


(in millions)	Unrealized Gain (Loss) on Derivative Financial Instruments			Foreign Currency Translation Adjustment			Other			AOCL
Balance, August 31, 2024	$	15.2		$	(47.0	)	$	(2.2	)	$	(34.0	)
Other comprehensive gain before reclassifications		10.0			3.9			0.8			14.7
Amounts reclassified from AOCL		(10.3	)		—			—			(10.3	)
Balance, May 31, 2025	$	14.9		$	(43.1	)	$	(1.4	)	$	(29.6	)

The amounts reclassified out of AOCL into the Condensed Consolidated Statements of Income, with financial statement caption, were as follows:


	Three Months Ended
(in millions)	May 31, 2025			May 31, 2024			Financial Statement Caption
Gain on derivative financial instruments:
Foreign exchange contracts	$	(1.4	)	$	(1.1	)	Revenue and Cost of revenue
Interest rate swap contracts		(2.9	)		(4.3	)	Interest and foreign exchange
		(4.3	)		(5.4	)
		0.9			1.2		Income tax expense
	$	(3.4	)	$	(4.2	)


	Nine Months Ended
(in millions)	May 31, 2025			May 31, 2024			Financial Statement Caption
Gain on derivative financial instruments:
Foreign exchange contracts	$	(3.0	)	$	(2.0	)	Revenue and Cost of revenue
Interest rate swap contracts		(9.9	)		(12.8	)	Interest and foreign exchange
		(12.9	)		(14.8	)
		2.6			3.1		Income tax expense
	$	(10.3	)	$	(11.7	)

Note 11 – Earnings Per Share

The shares used in the computation of basic and diluted earnings per common share are reconciled as follows:

          
         Three Months Ended

         Nine Months Ended

         (In thousands)

         May 31, 
2025

         May 31, 
2024

         May 31, 
2025

         May 31, 
2024

Weighted average basic common shares outstanding

31,186

31,131

31,269

31,091

Dilutive effect of 2.875% convertible notes due 2024 (1)

N/A

N/A

N/A

461

Dilutive effect of 2.875% convertible notes due 2028 (2)

—

—

40

—

Dilutive effect o

GREENBRIER COMPANIES INC 10-Q