The manufacturer confirmed that the unnamed client is unlikely to meet its contractual obligations, forcing the removal of 1,285 railcars from its backlog. This adjustment leaves the company with a preliminary backlog of 2,660 units as of September 30. Following the loss, management slashed its full-year revenue forecast to a range of $370 million to $410 million, down from the previous target of $410 million to $460 million.
In section Market Quotes
FreightCar America Shares Plunge as Retrofit Order Collapses
A 21% after-hours stock drop greeted investors after FreightCar America signaled the likely default of a major tank car retrofit customer. The company, already nursing a 47% share price decline this year, now faces a significant contraction in its revenue outlook as it scrambles to adjust to the sudden instability.
Financial performance continues to struggle, with third-quarter revenue estimated between $75 million and $77 million—a sharp drop from the $160.5 million reported during the same period last year. This latest guidance cut follows an earlier downward revision in August, which the company previously attributed to shifts in the timing of new railcar deliveries.
Comments (0)
No comments yet. Be the first!