FreightCar America, Inc. Reports Fourth Quarter and Full Year 2024 Results

• Revenues of $137.7 million, compared to revenues of $126.6 million in the fourth quarter of 2023, up 8.8% on stable railcar deliveries of 1,019, compared to 1,021 in the prior period
• Gross margin of 15.3% with gross profit of $21.0 million, compared to gross margin of 9.6% with gross profit of $12.1 million in the fourth quarter of 2023
• Net income of $34.6 million, or $1.01 per share and Adjusted net income of $8.0 million, or $0.21 per share, driven by a $26.1 million non-cash adjustment on warrant liability
• Adjusted EBITDA of $13.9 million, compared to Adjusted EBITDA of $6.5 million in the fourth quarter of 2023, up 113.8%
• Ended the quarter with a backlog of 2,797 units valued at $266.5 million

Fiscal Year 2024 Highlights

• Revenues of $559.4 million, up 56.2% year-over-year, on deliveries of 4,362 railcars, up 44.3% year-over-year
• Gross margin of 12.0% with gross profit of $67.0 million, compared to gross margin of 11.7% with gross profit of $41.8 million in fiscal year 2023
• Net loss of ($75.8) million, or ($3.12) per share and Adjusted net income of $24.5 million, or $0.15 per share, accounting for primarily non-cash items including a ($99.5) million non-cash adjustment warrant liability due to share price appreciation
• Adjusted EBITDA of $43.0 million, compared to Adjusted EBITDA of $20.1 million in fiscal year 2023, up 113.9%
• Delivered positive free cash flow and optimized balance sheet through lower cost refinancing, which is expected to result in savings of approximately $9.2 million in the first year
• Entered tank car space with significant multi-year conversion order

"This was a year of strong operational performance as we executed our strategic initiatives to drive substantial profitable growth. We delivered $43 million in Adjusted EBITDA for the full year, representing a 114% increase versus the prior year. On the commercial front, we continued to gain market share, expanded our presence in key railcar markets, and secured a multi-year tank car retrofit program, strengthening our competitive position. Additionally, we recently lowered our cost of capital through refinancing, reinforcing our financial flexibility for the future,” commented Nick Randall, President and Chief Executive Officer of FreightCar America.

Randall continued, "As we move into 2025, we are squarely focused on solidifying our position and enhancing cash generation. With a stronger market presence, an optimized capital structure, and a relentless drive for operational excellence, we are well positioned to build on our momentum. We remain committed to delivering profitable growth and driving long-term value for our stakeholders.”

Fiscal Year 2025 Outlook

The Company issued outlook for fiscal year 2025 as follows:

^{1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.}

Mike Riordan, Chief Financial Officer of FreightCar America, commented, "2024 was a pivotal year as we generated strong cash flow and optimized our balance sheet. This transformation has allowed us to completely reservice our debt, underscoring the power of our operational execution and disciplined financial management. We are issuing 2025 revenue guidance at $530 million to $595 million. We expect railcar deliveries to be between 4,500 and 4,900, with Adjusted EBITDA in the range of $43 million to $49 million. Looking ahead, we are well-positioned to consistently generate free cash flow, providing us with the flexibility to execute on our capital allocation priorities.”

Fourth Quarter and Full Year 2024 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Thursday, March 13 at 11:00 a.m. (Eastern Time) to discuss its fourth quarter and full year 2024 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call via the following live and recorded methods:

Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1705240&tp_key=9b9e1839ef

Recorded Webcast: A recorded webcast will be available until Thursday, March 27, 2025, on FreightCar America's website following the conference call date at: https://investors.freightcaramerica.com/news-events/event-calendar/

Teleconference: Dial-in numbers for the live Conference Call are (877) 407-0789 or (201) 689-8562. Please call in at least 10 minutes prior to the start time of the call. An audio replay may be accessed at (844) 512-2921 or (412) 317-6671; Passcode: 13751273.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Forward-Looking Statements

This press release 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 of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release includes measures not derived in accordance with generally accepted accounting principles ("GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company's use of these measures, are presented in the attached pages.