Freightcar America, Inc.

Welcome to the Freight Car America's third quarter 2025 earnings conference call. At this time, all participants lines are in listen-only mode. For those of you participating on the conference call, there will be an opportunity for your questions at the end of today's prepared comments. Please note this conference is being recorded. An audio replay of the conference call will be available on the company's website within a few hours after this call. I would now like to turn the call over to Chris O'Day with Riveron Investor Relations. Please go ahead, sir.

Thank you and welcome. Joining me today are Nick Randall, President and Chief Executive Officer, Mike Reardon, Chief Financial Officer, and Matt Ton, Chief Commercial Officer. I'd like to remind everyone that statements made during the conference call relating to the company's expected future performance, future business prospects, or future venture plans may include forward-looking statements. as defined under the Private Securities Litigation Reform Act of 1995. Participants are directed to FreightCar America's Form 10-K for description of certain business risks, some of which may be outside of the control of the company that may cause actual results to materially differ from those expressed in the forward-looking statements. We expressly disclaim any duty to provide updates to our forward-looking statements, whether as a result of new information, future events, or otherwise. During today's call, there will also be a discussion of some items that do not conform to U.S. generally accepted accounting principles, or GAAP. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in earnings release issued yesterday afternoon, or this morning, excuse me. Our results for the third quarter of 2025 is posted on the company's website, freightcaramerica.com, along with our 8K, which was filed pre-market this morning. With that, let me now turn the call over to Nick for a few opening remarks.

Thank you, Chris. Good morning, everyone, and thank you all for joining us today. Freight Car America delivered an exceptional third quarter, highlighted by strong deliveries, revenue growth of over 42%, and a recent record for the third quarter adjusted EBITDA at our new facility of $17 million, growing 56% versus the prior year. We achieved gross margin of 15.1% and adjusted EBITDA margin of 10.6, up approximately 80 basis points and 100 basis points respectively versus the prior year, representing our most profitable quarter since relocating production to Mexico. This performance highlights the strength of our flexible manufacturing model and the disciplined execution of our commercial strategy. During the quarter, our team remained focused on building value and solving complex customer needs. While others in the industry may rely more heavily on commoditized orders, our adaptability and ability to deliver custom, high-value solutions continues to drive sustainable profitability across market conditions. Operationally, our team in Costanos continues to execute at a high level. Improvements in safety, quality, throughput, and cost structure remain consistent quarter after quarter. These efficiency gains and reliability of our processes have been instrumental in supporting our record EBITDA performance at our facility. As we scale, we are reinforcing that culture of execution, one that emphasizes continuous improvement, customer responsiveness, and long-term value creation. Strategically, we remain focused on initiatives that position us for durable growth. We are excited about the progress and developments we have deployed as displayed with our TrueTrack process, integrating digital tracking and monitoring capabilities across each production step, ensuring on-time deliveries, increased efficiencies across all of our manufacturing lines, and most importantly, delivering high quality and reliability in every rail car we produce. In addition, we are also moving forward with enhancements to our plant layout. This initiative is all about improving flow, increasing productivity, and driving higher throughput. It will enable stronger margins per car, expand our ability to meet growing customer demand, and establish a strong market position. It's another great example of how we are executing on the opportunities within our footprint to build a more efficient and capable operation for future growth. At the same time, we continue to explore ways to vertically integrate our capabilities, continue to invest in automation and process control, and strengthen our readiness for future tank car conversions, which is already well ahead of schedule. Together, these actions reflect the continuous progress we are making since transforming our production footprint, and it's laying the groundwork for more consistent profitability through future cycles. From a market standpoint, as we noted last quarter, the broader railcar industry continues to operate below long-term replacement levels, with total deliveries expected to remain under 30,000 railcars this year versus a normalized rate closer to 40,000 units. While this softness has limited overall new car volumes in the industry, our ability to serve more complex customer orders beyond standard new car builds has helped offset that trend. We continue to capture opportunities through conversions, retrofits, and other specialized rail car solutions, all areas where we bring value and deepen our customer partnerships. While industry demand is temporarily muted, the replacement cycle gap is widening, creating pent-up demand that we are well positioned to capture early once the market begins to normalize. As we enter the final quarter of 2025, our priorities remain clear, deliver enhanced quality of earnings, generate positive free cash flow, and maintain our disciplined approach to growth. Our backlog remains healthy and diversified at 2,750 units, valued at approximately $222 million, and our commercial pipeline continues to build across both conversion opportunities and new rail cars, which reinforces our view of the recovery towards normalized replacement levels. Looking ahead, we see numerous opportunities on the horizon and are excited about strengthening our position in the market. Operationally, we're excited to reap the benefits of improvements to our manufacturing lines and deliver on our adjusted EBITDA guidance for the fiscal year. We expect to maintain strong margins and close the year with solid, positive cash generation. With that, I'll turn it to Matt to discuss the industry dynamics.