GBX - Earnings call 1 2024 | The Greenbrier Companies, Inc.

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Operator

Hello, and welcome to the Greenbrier Companies First Quarter of Fiscal 2024 Earnings Conference Call.

Following today's presentation, we will conduct a question-and-answer session. [Operator Instructions]. At the request of the Greenbrier Companies, this conference call is being recorded for replay purposes. At this time, I would like to turn the conference over to Mr.

and President Vice Roberts, Treasurer. Justin Mr. begin. Roberts, you may

Justin Roberts

by New Thank Downes, Vice Welcome everyone. first Comstock, Today, the Executive CFO. happy President; and President CEO for Leasing you, Good morning, quarter. Officer; call on joined Commercial Andrea. Vice Year I'm Tekorius, to Brian Senior fiscal Greenbrier's and to our and Lorie Chief our and President today call Adrian and and

of outlook fiscal in performance we QX an for Greenbrier's the the on our remainder up update our open Following questions. 'XX, update will and for on call

over differ Annual from you Greenbrier. made on X:XX Lorie. A of in p.m. meaning to In it of at about or posted XX expressed p.m. section Pacific, and additional link be today key press Act found of reminder, by Litigation addition in actual today information materially Meeting our for those any behalf today, can the Securities call XXXX important of IR is will discussion the our statement the as us our like our Greenbrier's within join of forward-looking Throughout minutes morning, will that website. Matters release to issued metrics on the to to Private Reform presentation Eastern. on a describe we financial going discussed this call. in on some results and hand slide I'm factors I'd the invite to Shareholder the available before statements website forward-looking cause a XX conference live and XXXX. today's could go And With to beyond include that,

Lorie Leeson

strategy. to year. we our fiscal our to continue And hope of XXXX great off holiday execute Happy is and and in Justin, our you, year, first the a month quarter with And great I fifth the everyone, start season. and marked had a Year. Monday of calendar good a the start everyone new safe Thank books, the fiscal New while [indiscernible] morning, as

Three financial drive Our strategy. execute we strategy. fundamental priorities progress Better Together early indicates this performance as Greenbrier's multiyear

manufacturing will geographies. our maintain First, leadership across position

ensures while footprint priority we margin for second The our our customers' enhancement. optimizing efficiency industrial meet and needs

specifically services. Third, disciplined simpler to that initiatives lease margins continues. facility strategic growing strategic and and flows generating expect the plan. internal this, our manufacturing rationalizations margins gross it tax-efficient committed and leasing of do I'm our foundation enhancing transform others this recurring that segment to the and equally In the fiscal think we're of bears our through cases, while more remain XXXX to investments linear. performance execute manufacturing today's be revenue while we're gross quarter we growth push. work on ahead We in in some reflected began to in Manufacturing and on fleet. The pursuing were and progress important, not understands and And everyone laying Aggregate repeating and schedules be maintenance sure services cash I call detailed We'll our profitable. in the

but downs, completion our Our there early pleased I'm will performance stage. and target be a multiyear this and ups at goals window, with

but achieve margins mission results. our on XXXX. the with in fiscal start, One gross is million by increase the basis our points. an XXX an mid-teens generated we of to to strategy. Turning premature would declare excellent target it of This margins over revenue XX%, multiyear and be our aggregate of to quarter accomplished in gross mid-teen $XXX aligns margin aggregate

of is XXX XX.X% manufacturing compared an the quarter. increase gross margin basis of prior with points quarter First

have million As savings in resulted our of we Marine previously and the $XX cost disclosed, approximately sale our operation Gunderson year. Foundry per of permanent Texas

strategy is initiatives and as make subassemblies to parts part versus on fabrication of primary our basic insourcing bring buy Our schedule. for in-house proceeding

savings cost of total initiative to $XX target in million expect from achieve to fiscal $XX our this XXXX. million We

the lower at continues then unit in continue This plan winter. years. The multiyear to remained next business. as will enhance material are critical ] across positive efficiency Several remain and all conditions though the even for railcar momentum, market base, explain underway seasonally revenues by volumes shortly, this of compensatory leasing rates. leasing traction. higher gross doubling car originations expected our were at XX.X%. leases [ positive, wheel a at of to allowing Moving and renew margin its initiatives strategy flow, On Maintenance strong gaining cycle of Brian is lease to result our our a to into is heading expanded and times And recurring the is component Services within us solid revenue facilities. improving generate planning X

grow continue remain target, and to high-quality, we our lease and revenue fleet As achieving recurring disciplined work the building towards portfolio. on balanced focused we a

pleased the capital to performance health while and in our long-standing has maintains our us to to allocation. of continuing return capital QX preferred This shareholders. I'm Our allowing our to a week, business approach to again board balance dividend dividend. strike been sheet, commands invest intention and our Greenbrier's consecutive share economy $X.XX per XXth and representing our The this quarterly concern. geopolitical report quarterly broader that declared of is dynamic,

we're the instance, monitoring U.S. closely conditions For Southern at border.

has manufacturing impacts logistics response migration skilled our severe Greenbrier, by performed work current avoided colleagues to far and successfully the the unsustainable. is While so

government our leaders, will resilience impediments trade address railroad and even competitors in and signs is southern shippers commercial to to both positive. attention hear remains and economy many North border. showing concerns Collectively, policymakers our including ensure of draw and at our outlook to joined activity situation. the have America the Meanwhile, our We we Europe and

across continue types North builds see lease railcar to both new and demand America renewals. Europe and stable underpinning to We expect

and near-term are focused because we multiyear it the fiscal focuses future calls. control Brian. as in on demand And on rely progress an scenario. long-term We XXXX now pursue on you, not have on I or confident over sharing we can visibility to to what our forward potential We're and excellent our targets. optimistic look maximizing does platform's for our successfully strategy aspirational

Brian Comstock

Lorie. Thanks,

secured Orders broad-based originations. have upside some most derived been continue During $XXX QX, for orders, of diverse except quarters. nearly be across X,XXX provide are Greenbrier units these approximately where but soft conditions railcar from railcar may and intermodal, future in improving orders market to Of lease worth new million. types, XX% and

As XX, billion. into of November stable, backlog Greenbrier's at continues visibility strong be $X.X railcar Backlog and revenue global units XX,XXX XXXX. valued new to providing significant was

produce excludes reminder, meaningful and a which backlog year. during As requalification revenue programmatic work fiscal the will refurbishment

our Europe accounted in and in Brazil. quarter, the strength Our capabilities momentum origination market lease experience. and sales the position, continuing ongoing XX% in of commercial performance for orders activity reflects strong International leading direct reflecting

been and thanks backlog portfolio. have Europe, product performing in remains well We healthy, broad our to our

enjoys syndicate and has Our the been of opportunity fully in platform is to joint Europe our a [ our secular visited about profitability. Manufacturing business. European critical we expect now and in venture and Leasing increasingly where strong improved Europe in I ability to contributor the tailwinds, meaningful Greenbrier-Maxion recently our to Europe, performance rail to industry our and our Brazil. We're operational ] become leases Likewise, originate Lorie excited

of recent in Services sector be will there South America promises steady business months quarter. unit well Management stream lower activity Europe, also & and While North in come. Leasing in rail in to stabilization performed than the always the America a volumes

added recurring from lease from growing are $XXX up favorable Recurring our units railcars disciplined to commitment our our fleet lease XXX services. revenue on the net leasing grew revenue various and We of towards is including during fleet management terms. about advancing lease as at more investment steadily of We goal new fleet on year basis. a sources, quarter, renewals million doubling to our stated from X.X% or we fulfill and per

with make our this fleet concentration railcar focused expand to risk. I and profile seriously. years counterparties. We that to that the right terms take in right lease keep the will we revenue investment few we only balanced next and deployment As are types this want emphasize during the invest very we on capital recurring reduce assets

underlying our of do not will not value internal an the arbitrary or required fleet We assets chase meet rates if return. size

in to ABS blended in AA X.X% We to offering call respond feature a ABS a to of and completed X.X-year flexibility forward approach environment. highest railcar million interest most lower understand the in discerning aggregate in us composition rate Our recent for issued fleet ever call these gives with rating the $XXX.X principal received space. credit a ratings resulted are November. of our an amount The feature. notes interest We rate

our market Our than average on rate X.X% lower significantly nonrecourse interest leasing of interest debt is rates. current

borrowing book in the grow leverage lease that X an our financing continue achieve recurring net to of doubling higher railcar the a market evaluate fleet which our value, the XX%. basis. appraised next fleet at to revenue leverage as fair more QX, are in of was end years. than goal on We results At strategies We assets we value our ratios

lease maintaining a and rates fleet [ remains The high at among while fleet double we ]. consistently extended a to market QX. railcar terms continue shortage utilization by XX% robust, high renewal of leasing utilization in Our of characterized in-demand the types grow and digits, lease successfully lessors

rates, lease remain originations rates and rates in Moving in renewals. our sequence with higher resulting elevated for interest new compensatory, both

our opportunities the for investors, lessen strong as American in confident and remains Fundamentally, we liquid in Europe. and both North the the transactions X,XXX cyclicality The strategically of in solid. In of market and syndicated durations create railcar a North and for the with we offering total lease generating class have staggered team remains favorable syndication market of for a a our impact renewals. liquidity variety and appetite strong asset are America We margins. backdrop to railcars QX,

renewals levels trough years length. retirements railcars be deliveries supply replacement around near keeping led which has levels, growth, We lease pace. The is for strong term expect few of rate to to railcar the industry available next with and still

We right successfully. our strategy place this execute are to in the in confident have environment plan we

to Now Adrian, for quarter. the highlights I'll the to over will financial speak hand who the call

Adrian Downes

you you, happy and new Thank everyone, morning, Good year to all. Brian.

remind the our slides into that available everyone quarter, the in to supplemental financial highlights and release like I press is quarterly information moving of on the website. Before would

to gross the railcar for can enhancement quarter over railcar be Lorie QX an to by increased remained improved units share. orders increase to And to of does XXXX. including favorable After operating average approximately selling capital of highlights XX.X% quarter segments. market generated first year lower our $XXX XXX quarters. segments, revenue. the an X subsidiaries. foreign quarter Greenbrier expense nearly profitability related be conduct deliveries million quarter to to was strong due and performance and across margin. revenue the XX% quarter improved at Net from day-to-day Aggregate $XX for finally, of guidance of points available sequential update tax provide QX from million operating million, of highlighted with of of on at Brian, activity. include due of $XXX and basis and ] $XXX $XXX earnings first XX% marked joint approximately diluted in percent per and million As venture primarily of margin as and to cash a by improvement guidance. aggregate quarter, XXXX going the of efficiencies, gross have include EBITDA valued Administrative Notable all all million margin orders fiscal in representing This include and thousand I we our $XX million net attributable was which also broad-based the conditions benefited an unit. in past in and price lower [ quarter solid fourth to consistently revenue our related consisting $XXX,XXX of QX gross Selling operating The per broad-based we Greenbrier's few ample quarter EPS across to rate million The X,XXX margin some new was highlights was $XXX [indiscernible] syndication employee-related of not Greenbrier's than back level to record affirm the increased requalifications attributed units the new expenditure Consolidated a operations. refurbishments, $XX adjusted unconsolidated believe by X,XXX the or liquidity million, XXX and first or of costs. Quarterly and was adjustments $X.XX declined our margins borrowings units the recertifications. Deliveries our sequentially programmatic a will Brazil.

net debt, sheet. increase balance our of our attributed nearly balance from the sheet prudent and increased issuance $XX Although balance XX-Q nonrecourse portion approximately debt, operations revolving cash are in will retire notes we of from XXXX usage easier cash the convertible payable quarter. The by to recourse of retired the and between is we our to notes. of In in between million we cash be To be flow the million, using the This cash. to now million. we approximately it how under to primarily providing proceeds capital manage in Greenbrier's $XX strong, continues discern was and our senior reflected will make remain February, and structure section breakout note two footnote a with our issued expected repayments. of of remaining $XX

Brian issued credit with rating. our we successfully As in a commentary, ABS AA mentioned his offering second

leasing reminder, we and a fuel of few is this As dash to Greenbrier, our the years. lease growth nonrecourse to over the fleet expect next

is yesterday's approximately our We flows of of are our improve. declared a Lorie's price, and focused yield Based Directors per cash recourse debt commentary, dividend closing Highlighted retiring Greenbrier's dividend as on X.X%. reducing annual share. -- $X.XX on in represents Board

] million in program, which quarter of of from dividends first of XXXX. periodically capital under authorization through shares. long-term January quarter, activity extends and [indiscernible] Including to leaving to to shareholder million continue quarterly and the increases through we Greenbrier Board XX,XXX repurchase current million we'll is $X to evaluate shareholders $XXX committed $XX shares our and to. We this way the dividend team Additionally, nearly [ share and value, over just believe over repurchase returned management great remaining create our a for the remain repurchases, we'll repurchased opportunistically share

updating trends Turning fiscal based capital are on guidance and our we business to production our and outlook. revenue expenditure gross Greenbrier's guidance. And schedules, and delivery guidance margin current but XXXX affirming and

expected Management to to Capital which XXXX includes fiscal in expenditures ] [ of $X.X units, between billion XX,XXX and be lease Brazil. Greenbrier-Maxion and around X,XXX primarily $XX segment. initiatives, into were our capital of approximately includes Services million sales million and expected railcars XX,XXX expenditures $XXX fleet, of And Selling capital manufacturing $XX million. to Maintenance expenditures be of have $X.X are and approximately to which in XXXX. Proceeds deliveries million to on equipment the Revenues includes segment updated transfers & balance for billion. are million, by been $XXX from approximately is $XXX the guidance in the followed produced expected held is units $XXX Our sheet our in-sourcing which expense in in Leasing million. gross Administrative approximately be services investment

now year to margin performance expect our increase consolidated the margin percent aggregate results. first to gross pleased to raising outlook We are and of very our with low I'm gross quarter full mid-teens. percent the

now Our earnings questions. positive outlook for open we fiscal for XXXX is will with up expected to grow, and it

Operator

our And of Justin question Instructions] [Operator will come from Long Stephens. first

Justin Long

Good morning.

the the fiscal Pass the of but year? see you could for could maybe addressed with the the any we we earlier, where was a see quarter? sequentially Eagle encouraging in It So from if sequential thoughts remainder manufacturing the you any over start margin. But on And moment, the activity second here to impact to the I potential from was on gross share about go wondering improvement. border here thoughts question across

Lorie Leeson

don't Justin. guidance, be know to to Been I always ever too the it team to those that predict continue first margin results those with remarks, in said prepared And give for our the on I in this business pleased you quarter-by-quarter I'm in questions, long is as quarter. able will the build very we that We results. Thank had to linear. be working that for

incorporates production certainly, the and of out We second have our starts. holidays puts couple of our weeks quarter, And fiscal activity. a which takes typical

that our because achievements challenge. But products side about while making the of manufacturing our first the appropriately, women bit it's we material we hard certain not and that about our have is operations just a to and very of in. like we in not on inventory can logistics having constant to the the the quarter. railcars. up, produced has bit team men who build coming in I It's alternatives, conversations the successful our Talking say picking that that the in with thinking of impact little of get a the are absolutely here, working I So border, little been difficult in deliveries. a and are railroads outbound said, have positioned a things be a working would that

really to does So just again, good certainly freight be down as how shutting to the well without the deal and broader pleased of pressure out shutdown, the beyond giving not to as as am crisis it really on versa. opposed Mexico moving United industry take? If going in how? when were States the industry to prolonged there I'm I vice our to to figure into and might it's others notice elected it's to as our time see take putting it really a way are rail with this officials it any border get out open feedback a to or whether What everything or at

it future any women this as publicly flowing. our I'm impact our and that to and to for to they on thank might doing logistics again, depend But that areas what the So opportunity the going keep in just, it's going take, long shutdowns. work our are to working hard be. to How products procurement they're that are men

Justin Long

question. margin the in follow Adrian, to And to the now Great. mid-teens the low consolidated maybe gross be to you said on Okay. up expecting full margin you're year. for

at right The first midpoint quarter of the was XX%, mid-teens.

here. be forward. positive for listen that margin opportunity like of I kind there's implies we're to when sequentially down the sounds flat the So from to going you're that self-help it some going But to commentary, that improvement

a of we it's be offset else? mindful whether that, of should that So or a mix headwind that some is could there something

Justin Roberts

have I think we do mix. some

jump in briefly. I'll Justin. is Sorry, this

the did kind a why but is, to on we do year. of of think we visibility tackling. That's positive and lot ultimately, in a increase our the margin seeing is of year of are we a very a we trend QX, I execution this year bit And this guidance. do full mix rest blocking and have of good little have on

I would going on for buy say, also, might if the think you are bullish of is but we margins not year, out So our on part be rest margins. And, that. of the XX% and bullish performance, I this our guys to at necessarily I guess we're came we said

creating to effectively. trying we're without with that So makes sense necessarily of a a, our much find leading path chin too

Lorie Leeson

being to opposed Balanced expectations overly conservative. aggressive or as overly

Justin Roberts

better a say That's way to it.

Operator

The Elkott Cowen. TD comes of Matt next question from

Matthew Elkott

quarter, see the in the you being as half, Given the in second? the cadence first guys the still strong in do first performance XX% XX%

Lorie Leeson

Yes.

I think XX-XX%, that I is XX-XX% still split. is, it's but to close very a think good

Matthew Elkott

the Good. then, Lorie, types more some Okay. the versus it did shippers. order ] And us the large give And of can in end? insight Good know. post quarter of orders quarter if by And [ on customers, the also cars, the maybe Brian, inquiry activity lessors. include contracts multiyear and lessors to you or any types

Brian Comstock

order Ben, our, No. multiyear There's continues are a cars, cars, cars, flat really it's metal be There of. The speak gondolas, Brian. really no Yes. Thanks, to orders auto, number in hopper broad-based. in very backlog diverse. of book it's covered to extremely our

have to. are And deliver going we so it that truly that is slots shippers to

origination about far mix, the as XX%. As leasing it's

Matthew Elkott

good. quarter activity. earnings And activity was how Very post order

Brian Comstock

QX pretty well. bit than to quite cycle have good stronger a Usually, of during the Yes, holidays. a a we're as And in quiet off frankly, quite normal. start a you

Matthew Elkott

think then if so ASP last up good That's this Can that? you hear. quarter orders the you XX% I compare about the pretty to of nicely, the or And quarter. talk to were

Adrian Downes

what mix, it. that's Well, honestly, really [indiscernible] that drives

Operator

of comes Bank from The of next Hoexter Ken America. question

Unknown Analyst

maybe the the of margin trend seeing syndication second quarter? what for strength to I'd on This you're year is talking maybe about is the bit team market. activity that also in the little I And about when for here assuming that how start in you're of opportunity Adrian's Ken. and comment mid-teens And in the syndication guess terms to into a Nathan dialing low like target? continued just rest

Justin Roberts

to I it to so continues I thinking strong. was be say, going syndication about the think market,

continue to leases. We leases, originate take

that We worked year quarter have pleased to to and continue these years. last are a kind with with relatively of our stable your see to several what throughout sitigation was We cadence over partners. in this relationships quarter quarter liquidity with that And partners just this Nathan? to second continuing the question, we've work we're market deepen and the the

Unknown Analyst

you're an And in that, year? low just in answered what regarding right what cadence would just assuming be I margin the equal you're syndication Yes, over you assuming target. of, to assuming going that's mid-teens terms in that I think be to

Justin Roberts

say and things business that it is would do is stable rest year. to that's the I customers we benefit and the biggest the change, thing see throughout and now of what our being Well, decisions right It's, ultimately, the we will continue make relatively shareholders.

that our And little greatest latest things a mean sometimes getting snapshot. but may around move bit, you're

Unknown Analyst

it. follow-up lowering fleet, Got capital targets again of a priorities in shareholder side return regarding leverage team lease equation. on the I just maybe leverage returns? has you about the remind and that And quick when of plan. the ambitious Maybe you're understand your on as thinking what the target cash would some just a us cash could pretty be as investing kind well

Justin Roberts

Yes.

So business maintenance. initiatives to Manufacturing are and basics with and investing we're going with other in of the in-sourcing our business the activity other Maintenance and we start

as Europe number from Leasing but that And which business, an is are our well. bear in again, invest in mind optics it. to do you lever have then a We we large perspective, continuing a

at our it's periodic piece. And July. it We much increases And then equity increase a smaller to about We look so did think dividend. do safeguarding that. you last

share we but off look it explicitly, and that volatility on then what or say of share would price do given at look consistently. So going forward. we see repurchases I in at not And pretty the our kind opportunistically, that we do is ongoing the table

in not are type we the just that into don't an we current before have focusing the off most And on of some if... I think It's necessarily we expansion growth business of mode. of back the I platform table. know kind making is move the

Lorie Leeson

least that the thing an at that those particularly $XX million North the here $XX to [indiscernible]. America manufacturing million of we investments is are one making, annual I'd in say we're One, a emphasize in generating, expect on return would I on

pretty nice a that's return. darn think I So

Adrian Downes

And also recourse reducing focused then we're on dash. our

Operator

The comes Poliniak Fargo. Alison from next question Wells of

Allison Poliniak-Cusic

doesn't to little bit moving car I storage that see a about? know cars latest than just less the into about more get orders? X to data. we make your trend, want back some a thoughts I but storage start on did month just you're number? worried seasonality. the those any, you that Are types specific you not seeing Are were how thinking Or

Brian Comstock

Yes. that expands, seasonal days. Allison, beyond the mind as lot cars that for XX at a that this start A trends. the vessels to to keep are is stored count lot that Brian. are product. also of as of of fleet is some they're used the car look those when continues storage that pellet And you the vessels And ARCI in those grows, plastic

of So is pellet a bit. But the bit well. artificially lot influx of it's that number little that number seasonality up is skewed cars really a driving that little and a as by

Allison Poliniak-Cusic

But up maybe in can some then talk the lease high. absolute And know I car still are absolutely that? lease are about Is going helpful. the you trends, rates the color That's rate, it rates specific certainly you any there? type? lease seeing lease Just stability is, the around renewal trends?

Brian Comstock

years A ago, and go renewals. of up rates some were lot fairly Yes. today's We're they're seeing sizably. to rates. of mind, Keep catching couple done so lease in lease continuing of those to a our up still leases

cars the deep We board. XX%, XX% into on across increases seeing the are still

to far if last on as of we're point, were at see as to continuing As few you look maybe some months, even point those increases the to well.

are lease the appreciating. So rates still, trajectory still is

Operator

comes Majors question Susquehanna. next of The Bascome from

Bascome Majors

bit question. secondary buyers you're the you the comments leasing participating in more on you types seeing? about or deals? up follow market. To How the a and not little any Can the feel that on you're And Whether about valuation? talk depth of

Brian Comstock

So basis a the We continue secondary we the on that believe a in be overvalued. to of participating portfolios market. are are lot overvalued, very selective

And engage which continue a in transactions very marketplace. see selective we we're we that of to in. in So lot the transactions

being So But arena. there's very, still of lot on. that going Bascome selective we're in a trading yes, very

Lorie Leeson

would now right on that it's nice that build, being we've pay to be And we things I right the participate. attention is -- broad-based but in one to deals what's this diversity with that we're originating market can the got that demand don't for about the secondary us say pricing going of got a to such to we're we market, going the

Bascome Majors

a you about that's some of or whether a views change reduction in there? talk Can the little bit and CapEx investment deferral on in maintenance the

Lorie Leeson

think just of need we the is I timing, do reviewing and and is. is of where timing the it actual, make when investments some it's of the other to just timing

a bright-eyed Sometimes get beginning go the we can of and a in are done into fiscal when we [indiscernible], bit. year, we in XXX sets but little things we think and XX minutes, then reality sometimes

Bascome Majors

you've on one you you you pretty intent Should success and expect funding there? due model had have about remaining of future? on balance given the the soon is to here. more the of, convertibles one Can secured we your a use the convertibles in talk piece you lastly, Will your to shift more And sheet.

Adrian Downes

would grow as will at as and we to look for they need we continue funding as leasing, the to sources our options say themselves I portfolio. continue present to

In terms do convertible us market for Yes, now to stuff cash. of over focus our is debt, we're that up me one personally, recourse expecting repay our from good years. the in been this a have repaying coming has shortly right the We

color. gives know if don't you So enough I that

Bascome Majors

paid take need capital for needs? wait feel we recourse your you there? more buyback capital something and to that's need and to down of like mean a Or funding do I more you think care just do opportunistic you

Lorie Leeson

think down focus on is adjust I fleet. mean, an I on the some the debt. comes wait. up lease then recourse opportunity investments will if depending there's in The it think to this I convert the that going pay nonrecourse will and reducing that of we're our needs And to be...

Brian Comstock

Specific We'll with we come across that that. deal transaction once or something.

Adrian Downes

we've maturities. of Yes. mean got nice very ladder I a

through facilities. our debt various If you go outstanding

Operator

from The next Barger comes KeyBanc Markets. question Capital Steve of

Unknown Analyst

avoid, to to did want I were know mention And you as more some more specifically margin get factors? one-offs I'm margin the avoid improved wanted quarterly durable just to driver. efficiency release walk, know the by efficiencies I mix the to trying morning. operating Good Thanks. factor? or press manufacturing swing or gross driven increase the the What but was you

Justin Roberts

momentum one-offs. that months the is year. I North rationalize is also last last the combination would combination is the saw of did no of fiscal America. capacity of This we in of And we This X primarily part a mix. good our say continuing some that of

some that are flow as well. seeing starting in we're initiative to of benefits Mexico so see some in-sourcing of the through. And and the of we And

So combination but efficiencies, it's really that operating of away falls do factors we to any not these necessarily. expect under go of a

Unknown Analyst

Understood. the $XX the getting rationalization, say the And that's when that million you're and to $XX Foundry from sale? the Marine million you

Justin Roberts

Correct.

kind million to, to $XX million spoke Lorie think, I forward. we've of is realized $XX landed of going expect savings what on we about

Unknown Analyst

I you sight that hundreds backlog activity. of much Is do tens frame refurbishment excludes millions And or there? have of it. the line you that? know millions? Got of revenue rebuild Can and But to how

Brian Comstock

perspective, a much probably that on QX, Brian, we've about from acquired. we We've, thousand the Steve. just car there half ASP The what It's new high-level those Yes. would millions. are margin It's in of be were a cars are tens of several percentages stronger. but

Unknown Analyst

Yes.

benefit? So that's mix that part of

Brian Comstock

Correct.

Unknown Analyst

approach about Brian, the And deals. to to disciplined great and hear you then, leasing really talk

what business, you using ABS weighted think the cost about and leasing vet are hurdle I to assumption of your in rate X.X% decisions? make deals or average capital As for the

Brian Comstock

activities. cost a capital X% of kind kind is a using probably of around of for to we're XX% these that So

cost as so has everybody's of our it's last, where, of those increasing debt over been increasing. the And been cost as has one debt of

We appropriately and a our ago. having returns X lease we're this rates sure years ago, to took we compensatory first X trip that expected generating that through increase are the flow we when make seeing in this that we are to X years to

Unknown Analyst

Yes.

one. And think across most or Which see capacity? portfolio? leverage one operating Okay. one, I'm utilization just the of could And business quick better units your open about asset where to have the trying final we

Justin Roberts

of open And at this own point. space year probably, destiny. as units, execution, August. do very Well, a control say year the able fiscal hundreds and in little space Otherwise, and Brazil we're see in has then have not in good that's of to we of to our July that I a shape bit open thousands. would I point, this really our it's a ironically, And XXXs. at most be

Lorie Leeson

And I we're being thing would disciplined. is nice say on very that the I other believe, job doing, a

just really only are being how we're how lease we're our investments on extent that the having or to product impacts not the move rates that and and organization. that the thinking happy commercial the fleet having disciplined up balanced. We're can slow activity strong manufacturing but efficiency our through So about the continue our keep in down very our think making to throughout balance in also disciplined being ramping to portfolio, we sheet, we activities balance production in

Operator

This concludes to turn like conference over our I to question-and-answer for back closing remarks. would the session. management any

Lorie Leeson

our participating Year, in again, Happy today. you for call everyone. Thank New

our have Pacific do X:XX we call, Eastern noon the of p.m. time Meeting top the at at Annual Shareholder mentioned today. Justin As

So in And you talking and look please if are to coming a please vote. forward the haven't join to you voted, We months. shareholder you in.

Bascome Majors

Thanks, everyone.

Operator

The conference you for has today's now attending concluded. may now Thank disconnect. you and presentation,

The Greenbrier Companies, Inc. (GBX) 5 Jan 242024 Q1 Earnings call transcript