FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars and railcar components for the transportation of bulk commodities and containerized freight products primarily in North America. It operates in two segments, Manufacturing and Parts. The company offers a range of freight cars, including open top hoppers; covered hopper cars; gondolas; triple hoppers and hybrid aluminum/stainless steel railcars; ore hopper and gondola railcars; ballast hopper cars; aggregate hopper cars; intermodal flats; and non-intermodal flat cars. It also provides railcars, including coal cars, bulk commodity cars, coil steel cars, and boxcars; and woodchip hoppers, aluminum vehicle carriers, and articulated bulk container railcars. In addition, the company sells used railcars; leases, rebuilds, and converts railcars; and sells forged, cast, and fabricated parts for various railcars. It also exports its manufactured railcars to Latin America and the Middle East. The company's customers primarily include financial institutions, railroads, and shippers. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois.
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Here are 1-3 brief analogies for FreightCar America:
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- Coal Hopper Cars: Specialized open-top railcars primarily designed for transporting coal and other bulk commodities.
- Covered Hopper Cars: Railcars with a roof, used for transporting grain, cement, sand, and other bulk dry goods requiring protection from the elements.
- Gondola Cars: Open-top railcars utilized for transporting bulk commodities such as scrap metal, aggregates, and steel products.
- Intermodal Cars: Railcars designed to efficiently carry shipping containers for intermodal transportation.
- Freight Railcar Parts & Services: Provides a range of parts, components, and aftermarket support services for freight railcars.
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FreightCar America (symbol: RAIL) sells primarily to other companies (B2B).
According to its most recent 10-K filings (e.g., for the fiscal year ended December 31, 2023), FreightCar America explicitly states that sales to any one customer did not account for more than 10% of its consolidated revenues during the past three fiscal years (2023, 2022, or 2021). Therefore, specific individual "major customers" by name are not publicly disclosed by the company.
However, FreightCar America identifies the following categories of customer companies that it serves:
- Class I Railroads: These are the largest freight railroads in North America. While FreightCar America does not name specific Class I railroads as major customers, examples of public companies in this category include:
- Union Pacific Corporation (UNP)
- CSX Corporation (CSX)
- Norfolk Southern Corporation (NSC)
- Other Railroads: This category encompasses regional railroads, short-line railroads, and industrial railroads.
- Industrial Shippers: These are companies that transport their own goods via rail, often requiring specialized railcars. This is a broad category, and specific major customers are not identified by FreightCar America.
- Railcar Leasing Companies: These companies purchase railcars from manufacturers like FreightCar America and then lease them to various end-users. Examples of public companies in this category include:
- GATX Corporation (GATX)
- Trinity Industries, Inc. (TRN)
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Nicholas Randall, Chief Executive Officer
Nicholas Randall was appointed Chief Executive Officer of FreightCar America effective May 1, 2024, having previously served as Chief Operating Officer since June 2023. He has over 30 years of global experience in leading engineering and manufacturing operations within heavy durable industrial and consumer industries. Before joining FreightCar America, Mr. Randall led a division of Precision Castparts Corporation, an aerospace company part of Berkshire Hathaway Inc., from 2017 to 2023. From 2007 to 2017, he held various capacities at Alcoa Corporation and Arconic Corporation. His earlier career included engineering roles at Jaguar Land Rover Automotive. He holds a bachelor's degree in manufacturing engineering from Liverpool John Moores University.
Michael Riordan, Chief Financial Officer
Michael Riordan was promoted to Chief Financial Officer of FreightCar America in March 2022, having initially joined the company in November 2020 as Corporate Controller and Chief Accounting Officer. He brings over 15 years of experience in finance, accounting, and operations. Prior to FreightCar America, Mr. Riordan served as Controller at InnerWorkings from 2017 to 2020. From 2013 to 2017, he held several financial management positions at Zekelman Industries, including its subsidiary Wheatland Tube, LLC. He also gained experience in various roles at PricewaterhouseCoopers earlier in his career. Mr. Riordan is a Certified Public Accountant and holds a Bachelor's Degree in Accounting & Finance from Miami University.
Matthew Tonn, Chief Commercial Officer
Matthew Tonn has served as FreightCar America's Chief Commercial Officer since September 2019. He possesses over 30 years of commercial and operations experience within the railroad industry. Before joining the company, Mr. Tonn was Vice President, Sales and Marketing of Westinghouse Air Brake Technologies Corporation's (WABTEC) Train Control, Signaling and Analytics Group from May 2017 to September 2019, and a regional Vice President, Sales and Marketing for WABTEC from October 2008 to May 2017. His previous experience includes various sales and marketing roles at Standard Car Truck, Co., National Castings/ABC NACO, and as VP Sales & Marketing / Equity Partner of ZefTek, Inc.
Juan Carlos Fuentes Sierra, Corporate Controller and Chief Accounting Officer
Juan Carlos Fuentes Sierra has held the position of Corporate Controller and Chief Accounting Officer at FreightCar America since April 2022. He joined the company in February 2022 as Operations Controller. Prior to his time at FreightCar America, Mr. Fuentes Sierra was the Director of Internal Audit and SOX Compliance at GrafTech International Ltd from 2014 to 2019. He also gained international experience in various roles focusing on Internal Audit, SOX Compliance, and Controllership between 2007 and 2014.
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FreightCar America (RAIL) operates in the freight railcar manufacturing and services industry, with its primary products including various types of freight cars and related aftermarket services. The addressable markets for its main products and services are as follows:
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Gondola Rail Cars: The global gondola rail car market size is estimated at $15 billion in 2025, with a projected growth to $22 billion by 2033, exhibiting a Compound Annual Growth Rate (CAGR) of 6% from 2025 to 2033. North America is a significant contributor to this market.
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Hopper Rail Cars (Covered and Open-Top): The global hoppers market size was valued at USD 3.8 billion in 2023 and is projected to grow at a CAGR of 5.9% between 2024 and 2032. Specifically, the covered hopper segment alone is expected to exceed USD 4.5 billion by 2032. North America held over 40% of the hoppers market share in 2023 and is anticipated to reach approximately USD 2 billion by 2032. Another estimate places the global railroad hopper car market size at $15 billion in 2023, with North America accounting for roughly 50% of this market.
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Flat Cars: The global flatcar market is estimated at USD 358.7 million in 2025, with a forecast to reach USD 679.8 million by 2035 at a CAGR of 6.6%. Another source estimates the global flatcar market size at approximately $15 billion in 2025, projected to grow to about $22 billion by 2033 with a CAGR of 6%. North America is expected to be a leading region for growth in the flatcar market.
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Freight Railcar Manufacturing (overall, including various types): The market size of the Railcar Manufacturing industry in the United States is valued at $4.4 billion in 2025.
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Aftermarket Parts and Services (Freight Railcar Parts): The global freight railcar parts market size grew from $11.16 billion in 2024 to $11.61 billion in 2025 at a CAGR of 4%. It is expected to reach $14.39 billion by 2029 with a CAGR of 5.5%. Another projection indicates the global freight railcar part market is expected to reach USD 17.7 billion in 2024, with an anticipated increase to USD 28.6 billion by 2035 at a CAGR of 4.47% from 2025 to 2035. North America dominated the global freight railcar parts market, generating about USD 3.52 billion in 2023.
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Railcar Leasing: The North America railcar leasing market size is forecast to increase by USD 8.30 billion at a CAGR of 9.1% between 2024 and 2029.
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Intermodal Freight Transportation: The global intermodal freight transportation market size was valued at USD 42.9 billion in 2023 and is projected to reach USD 93.51 billion by 2030, growing at a CAGR of 12.1% from 2024 to 2030. North America held the largest share of 35.6% in the intermodal freight transportation market in 2023.
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FreightCar America (RAIL) is expected to drive future revenue growth over the next 2-3 years through several key factors:
- Increased Railcar Deliveries and Production Output: The company has consistently reported increased railcar deliveries and raised its full-year guidance for deliveries, indicating a focus on higher production volume. For example, FreightCar America raised its full-year 2024 railcar deliveries guidance to between 4,300 to 4,700 units and for 2025, reaffirmed guidance of 4,500-4,900 railcars. This growth is supported by the capabilities of its manufacturing facility in Mexico, which is capable of producing 5,000 or more railcars per year.
- Expansion of Product Portfolio and Value-Added Services: FreightCar America is expanding its product offerings beyond new railcar manufacturing to include higher-margin services such as railcar conversions, rebodies, and repairs. The company secured a significant multi-year tank car conversion order, expanding its product offerings, and its portfolio includes a healthy mix of car types to meet diverse customer needs. This strategic focus on conversion railcars and customized solutions positions the company for profitable growth.
- Market Share Gains: The company has demonstrated an ability to gain market share within its addressable markets. In Q2 2024, FreightCar America realized market share gains for orders across gondolas, flat cars, and open-top hoppers in the North American market. In Q3 2025, it maintained over 20% of the addressable market order share for new car orders.
- Enhanced Operational Efficiency and Capacity Utilization: Improvements in production efficiency, particularly at its Mexico facility, are contributing to revenue growth by enabling higher throughput and better cost management. The company has achieved record adjusted EBITDA at its new facility, attributed to gains in production efficiency and a favorable product mix. This operational excellence and the facility operating at full capacity are expected to drive sustained growth and cash generation.
- Favorable Industry Demand and Tailwinds: The broader railcar market is experiencing positive trends that are expected to benefit FreightCar America. Industry tailwinds include aging infrastructure requiring renewal, rising intermodal and bulk freight demand, and sustainability mandates pushing for longer-lasting railcar materials. The U.S. railcar market is projected to grow at a 4.0% CAGR through 2033.
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Share Repurchases
No significant share repurchase programs or dollar amounts of common share repurchases were explicitly detailed in the provided information for the last 3-5 years.
Share Issuance
- In 2023, FreightCar America received approximately $13.25 million in proceeds from the issuance of preferred shares, net of issuance costs.
- The company reported a $52.9 million non-cash adjustment in Q1 2025 related to a change in warrant liability.
- A $17.6 million non-cash warrant liability charge due to share price appreciation was recorded in Q3 2025, impacting reported net loss.
Inbound Investments
- FreightCar America secured a new $115 million 4-year term loan facility on December 31, 2024, to redeem all outstanding Series C Preferred Stock and settle accrued dividends.
Outbound Investments
No large, specific strategic outbound investments in other companies by FreightCar America were detailed in the provided information for the last 3-5 years.
Capital Expenditures
- Expected capital expenditures for the full year 2025 are in the range of $4 million to $5 million.
- Capital expenditures for the third quarter of 2025 were $1.2 million, with year-to-date 2025 capital expenditures totaling $2.1 million.
- Primary focus of capital expenditures includes preparing for tank car conversions and entrance into new tank car markets, with production for the tank car retrofit program expected to begin in 2026.
