LAKE OSWEGO, Ore. - The Greenbrier (NYSE:GBX) Companies, a key player in the global freight transportation market, has declared a quarterly cash dividend of $0.30 per share. The dividend is scheduled to be paid on November 27, 2024, to shareholders who are on record as of November 6, 2024.
The Oregon-based Greenbrier operates through various subsidiaries and joint ventures, specializing in the design, manufacture, and marketing of freight railcars across North America, Europe, and Brazil. The company is also recognized for providing comprehensive wheel services, parts, maintenance, and retrofitting services in North America, alongside managing a sizable lease fleet of about 15,200 railcars.
In addition to manufacturing, Greenbrier extends railcar management, regulatory compliance, and leasing services to railroads and railcar owners in North America. The dividend announcement underscores Greenbrier's ongoing commitment to delivering shareholder value.
While the press release includes forward-looking statements regarding the company's future performance, it also cautions that these are not guaranteed and could be affected by various risks and uncertainties. Factors that may influence the company's actual results are detailed in its filings with the SEC, particularly in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of its most recently filed Annual Report on Form 10-K.
Greenbrier advises readers to exercise caution with respect to these forward-looking statements, which are valid only as of their respective dates. The company does not undertake any obligation to update these statements except as required by law.
This financial update is based on a press release statement from The Greenbrier Companies.
In other recent news, The Greenbrier Companies has made significant strides in its financial standing. The railroad equipment company recently reduced its credit facility by $100 million, a move that saw the exit of Credit Agricole (OTC:CRARY) Corporate and Investment Bank as a lender and adjustments to the commitments of Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC). This restructuring has brought down the total available credit from $550 million to $450 million.
In terms of financial performance, Greenbrier reported a significant rebound, achieving its highest earnings per share (EPS) and EBITDA in over four and a half years. The company registered over $820 million in revenue and a gross margin of 15.1% in the third quarter of fiscal 2024. The strong order backlog and narrowed revenue and delivery guidance suggest a trajectory towards sustained higher performance.
On a somber note, Greenbrier announced the passing of board member Patrick J. Ottensmeyer, who was noted for his significant contributions to the rail industry and international trade relations. Ottensmeyer, who joined Greenbrier's board in 2023, had a distinguished career at Kansas City Southern (NYSE:KSU) before his tenure at Greenbrier. His leadership and expertise were instrumental in shaping trade policies and the North American rail sector. These are the recent developments in the company's journey.
InvestingPro Insights
Greenbrier's recent dividend announcement aligns with its track record of consistent shareholder returns. According to InvestingPro data, the company has maintained dividend payments for 11 consecutive years, with a current dividend yield of 2.28%. This commitment to dividends is particularly noteworthy given the company's recent financial performance.
Despite facing challenges, Greenbrier has demonstrated resilience. The company's P/E ratio of 13.19 suggests a relatively modest valuation compared to its earnings. This is further supported by an InvestingPro Tip indicating that Greenbrier is trading at a low P/E ratio relative to its near-term earnings growth potential.
While Greenbrier's revenue has seen a decline, with a 9.5% decrease over the last twelve months, the company has remained profitable. An InvestingPro Tip highlights that analysts expect net income to grow this year, which could potentially support the company's dividend strategy going forward.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Greenbrier, providing a deeper understanding of the company's financial health and market position.
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