Diluted EPS of $1.06 grows to highest level in over 4.5 years New railcar orders of 6,300 units valued at $830 million Gross margin of 15% LAKE OSWEGO, Ore., July 8, 2024 /PRNewswire/ -- The Greenbrier Companies, Inc. (NYSE:GBX) ("Greenbrier"), a leading international supplier of equipment and services to global freight transportation markets, today reported financial results for its third fiscal quarter ended May 31, 2024. Third Quarter Highlights Grew lease fleet by 600 units to 15,200 units with lease fleet utilization of nearly 99%. Generated Operating cash flow of $84 million. Diverse new railcar orders for 6,300 units valued at $830 million and delivered 5,400 units, resulting in new railcar backlog of 29,400 units with an estimated value of $3.7 billion. Net earnings attributable to Greenbrier for the quarter were $34 million, or $1.06 per diluted share, on revenue of $820 million. EBITDA for the quarter of $104 million, reached its highest level in over 4.5 years, equaling 13% of revenue. Board declared a quarterly dividend of $0.30 per share, payable on August 13, 2024 to shareholders of record as of July 23, 2024, representing Greenbrier's 41st consecutive quarterly dividend. "Greenbrier continued positive momentum in the third quarter of fiscal 2024," said Lorie L. Tekorius, CEO and President. "Consolidated gross margin in the mid-teens for a third consecutive quarter drove strong EPS performance. Results reflect our continued focus on efficiencies gained over the last several quarters and execution by the team that extends across the full reach of Greenbrier's business.  Our outlook is optimistic as we expect revenues to grow based on the pace of our delivery schedule.  Greenbrier's leading market position, robust new railcar backlog and a steadily growing recurring revenue stream from the leasing business provide a strong foundation for the future. We continue to create long-term shareholder value across varying market conditions." Business Update & Outlook Based on current trends and production schedules, Greenbrier is updating guidance for fiscal 2024: Deliveries of 23,500 – 24,000 units, including approximately 1,400 units in Brazil Revenue of $3.5 – $3.6 billion Consolidated gross margin percentage increased to the mid-teens Capital expenditures of approximately $150 million in Manufacturing and $15 million in Maintenance Services Gross leasing investment of approximately $340 million in Leasing & Management Services, which includes 2024 capital expenditures and transfers of railcars into the lease fleet that were manufactured and subsequently held on the balance sheet in 2023 Proceeds from equipment sales are expected to be approximately $75 million Financial Summary Q3 FY24 Q2 FY24 Sequential Comparison – Main Drivers Revenue $820.2M $862.7M Primarily timing of new railcar deliveries Gross margin $123.8M $122.2M Improved operating performance inManufacturing and Maintenance Servicesand increased syndication activity Gross margin % 15.1 % 14.2 % Selling and administrative expense $59.3M $63.6M Lower employee-related costs includingperformance-based compensation expense EBITDA(1) $104.0M $95.0M Sustained strong operating performanceas described above Net earnings attributable to noncontrollinginterest $6.7M $0.2M Partners' share of consolidated JV'soperating results Net earnings attributable to Greenbrier $33.9M $33.4M Diluted EPS $1.06 $1.03 (1)  See reconciliation at conclusion of Supplemental Information.   Segment Summary Q3 FY24 Q2 FY24 Sequential Comparison – Main Drivers Manufacturing   Revenue $685.1M $735.8M Timing of new railcar deliveries   Gross margin % 10.9 % 10.8 % Continued focus on execution   Earnings from operations $54.2M $58.8M Primarily attributable to timing of revenue anddeliveries   Operating margin % (1) 7.9 % 8.0 %   Deliveries (2) 5,000 5,300 Maintenance Services   Revenue $69.9M $75.2M Lower hours and bill rates in repair locations   Gross margin % 11.7 % 8.0 % Favorable product mix in wheels and performance inparts   Earnings from operations $5.9M $4.6M   Operating margin % (1) 8.4 % 6.1 % Leasing & Management Services    Revenue $65.2M $51.7M Increased syndication activity including externallysourced activity (railcars purchased from third partieswith the intent to syndicate)    Gross margin % 62.9 % 70.8 % Externally sourced syndication activity generatesmargin dollars but a lower margin %    Earnings from operations $40.5M $33.2M Increased syndication activity and gains from equipment sales as part of ongoing fleet optimization    Operating margin % (1) 62.1 % 64.2 % Lower gross margin % attributable to externally sourced railcar syndication activity   Owned fleet (units) 15,200 14,600 Disciplined portfolio construction   Fleet utilization 98.7 % 98.5 % (1)     See supplemental segment information in Supplemental Information. (2)     Excludes Brazil deliveries which are not consolidated into Manufacturing revenue and margins. Conference CallGreenbrier will host a teleconference to discuss its third quarter 2024 results. In conjunction with this news release, Greenbrier has posted a supplemental earnings presentation to our website. Teleconference details are as follows: July 8, 2024 8:00 a.m. Pacific Daylight Time Phone: 1-888-317-6003 (Toll Free), 1-412-317-6061 (International), Entry Number "4941482" Real-time Audio Access: ("Newsroom" at http://www.gbrx.com) Please access the site 10-15 minutes prior to the start time. About Greenbrier Greenbrier, headquartered in Lake Oswego, Oregon, is a leading international supplier of equipment and services to global freight transportation markets. Through its wholly-owned subsidiaries and joint ventures, Greenbrier designs, builds and markets freight railcars in North America, Europe and Brazil. We are a leading provider of freight railcar wheel services, parts, maintenance and retrofitting services in North America through our maintenance services business unit. Greenbrier owns a lease fleet of approximately 15,200 railcars that originate primarily from Greenbrier's manufacturing operations. Greenbrier offers railcar management, regulatory compliance services and leasing services to railroads and other railcar owners in North America. Learn more about Greenbrier at www.gbrx.com. THE GREENBRIER COMPANIES, INC. CONSOLIDATED BALANCE SHEETS (In millions, unaudited) May 31,  2024 February 29,2024 November 30,2023 August 31, 2023 May 31, 2023 Assets    Cash and cash equivalents $            271.6 $              252.0 $              307.3 $          281.7 $            321.4    Restricted cash 20.2 20.0 14.0 21.0 20.1    Accounts receivable, net  488.5 519.1 458.7 529.9 533.6    Income tax receivable    20.0 20.9 10.5 42.2 29.8    Inventories 812.4 827.0 883.6 823.6 888.0    Leased railcars for syndication 155.3 134.4 159.8 187.4 119.4    Equipment on operating leases, net 1,226.9 1,160.5 1,095.8 1,000.0 941.0    Property, plant and equipment, net 648.3 636.1 618.1 619.2 600.4    Investment in unconsolidated affiliates 90.3 90.0 89.4 88.7 86.4    Intangibles and other assets, net 254.3 255.6 248.9 255.8 253.3    Goodwill 128.0 128.0 128.6 128.9 128.3 $         4,115.8 $           4,043.6 $           4,014.7 $       3,978.4 $         3,921.7 Liabilities and Equity    Revolving notes $            348.4 $              300.8 $              279.4 $          297.1 $            280.0    Accounts payable and accrued liabilities 652.9 649.3 640.9 743.5 741.6    Deferred income taxes 82.9 79.7 85.2 114.1 88.3    Deferred revenue 74.0 81.5 42.2 46.2 56.6    Notes payable, net 1,413.9 1,421.8 1,479.4 1,311.7 1,320.3 Contingently redeemable noncontrolling interest   56.3   56.0   56.5   55.6   54.1    Total equity – Greenbrier 1,329.1 1,299.9 1,274.0 1,254.6 1,232.7    Noncontrolling interest 158.3 154.6 157.1 155.6 148.1    Total equity 1,487.4 1,454.5 1,431.1 1,410.2 1,380.8 $         4,115.8 $           4,043.6 $           4,014.7 $       3,978.4 $         3,921.7   THE GREENBRIER COMPANIES, INC. CONSOLIDATED STATEMENTS OF INCOME (In millions, except number of shares which are reflected in thousands and per share amounts, unaudited) Three Months Ended May 31, Nine Months Ended May 31, 2024 2023 2024 2023 Revenue         Manufacturing $              685.1 $              870.2 $           2,096.8 $           2,485.3         Maintenance Services 69.9 122.9 228.9 306.4         Leasing & Management Services 65.2 45.0 166.0 134.9 820.2 1,038.1 2,491.7 2,926.6 Cost of revenue         Manufacturing 610.5 786.5 1,867.6 2,292.2         Maintenance Services 61.7 109.8 202.5 279.0         Leasing & Management Services 24.2 13.7 54.3 41.0 696.4 910.0 2,124.4 2,612.2 Margin 123.8 128.1 367.3 314.4 Selling and administrative expense 59.3 63.3 179.2 175.7 Net gain on disposition of equipment (7.8) (2.3) (12.6) (15.2) Asset impairment, disposal, and exit costs — 16.4 — 40.6 Earnings from operations 72.3 50.7 200.7 113.3 Other costs Interest and foreign exchange 24.7 22.8 72.5 64.0 Earnings before income tax and earnings fromunconsolidated affiliates 47.6 27.9 128.2 49.3 Income tax expense (10.7) (3.6)