The Greenbrier Companies, Inc.

Hello and welcome to the Greenbrier Company's third quarter 2025 earnings conference call. Following today's presentation, we will conduct a question and answer session. Until that time, all lines will be in a listen-only mode. At the request of Greenbrier Companies, this conference call is being recorded for instant replay purposes. At this time, I would like to turn the conference over to Mr. Justin Roberts, Vice President of Financial Operations, the Americas. Mr. Roberts, you may begin.

Thank you, Kim. Good afternoon, everyone, and welcome to our third quarter 2025 conference call. Today, I am joined by Lori Ticorius, Greenbrier's CEO and President, Brian Comstock, Executive Vice President and President of the Americas, and Michael Donfress, Senior Vice President and Chief Financial Officer. Following our update on Greenbrier's Q3 performance, In our outlook for the remainder of fiscal 25, we will open up the call for questions. Our earnings release and supplemental slide presentation can be found on the IR section of our website. Matters discussed on today's conference call include forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995. Throughout our discussion today, we will describe some of the important factors that could cause Greenbrier's actual results in 2025 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of Greenbrier. Throughout the call today, we will refer to recurring revenue throughout our comments. Recurring revenue is defined as leasing and fleet management revenue excluding the impact of syndication activity. And with that, I'll hand the call over to Lori.

Thank you, Justin. Good afternoon, everyone, and thank you for joining us. As we begin today, I'm pleased to report that Greenbar's operational execution resulted in strong financial performance for our third quarter ended May 31st, 2025. Net earnings of $60.1 million, or $1.86 per share, increased sequentially and year over year. Our aggregate gross margin stands at an impressive 18%, marking our seventh consecutive quarter at or above our mid-teens long-term target. We also achieved a return on invested capital, or ROIC, that falls within our long-term target range. I am very proud of our team throughout the organization. Our innovation and excellence extends from the shop floor to our headquarters and across all Greenbrier's global sites. The team's flexibility and responsiveness to uneven market conditions are a competitive advantage for Greenbrier. Two recent examples of our efficiency initiatives are European Footprint Rationalization and our North American Insourcing Project. I'm pleased to share that we delivered our last freight wagon from the Arad, Romania facility in late May, ahead of initial expectations. Our aggregate production capacity in Europe remains largely unchanged, and may increase as we continue investing in the remaining locations. Once the capacity rationalization activity is completed, we expect to realize savings of at least 10 million annually. In North America, the expansion of our insourcing capacity in Mexico nears completion. The full value of the initiative will be realized as production scales through fiscal 2026 and beyond. Additionally, we're continuing to reduce overhead throughout our global manufacturing network. Our leasing and fleet management operation maintains a disciplined approach to growing our lease fleet, ensuring predictable revenue and cash flow. We are nearly halfway to meeting our goal of doubling recurring revenues by fiscal 2028. Greenbrae renewed and extended two bank facilities totaling $850 million in May. Michael will provide more details in his remarks, but I want to highlight that our debt profile now features more non-recourse borrowing to support our lease fleet growth. Our balance sheet is in very good shape, and liquidity is at its highest level since 2023. A healthy liquidity position is a critical enabler of our strategy. It allows us to navigate various market conditions and act opportunistically. Greenbar has a very long history and has operated through various macro backdrops. As progress continues towards deals with America's most important trade partners, USMCA-compliant products, like our new rail cars, remain free of direct tariffs. Also, the Senate's passage of the budget bill today includes tax policy that we expect will energize the markets for capital goods like rail cars. As US tax and trade policy becomes more certain, this will be a welcome tailwind for Greenbrier and our customers. Our experienced and agile team will flex our manufacturing capacity to rapidly respond to changes in demand and maximize our operating efficiency. We are positioned to achieve our strategic plan and expect escalating value creation as the demand for our products and services grows. Looking ahead, We see a strong finish to our fiscal year and are optimistic about market conditions in the medium to long term. Lastly, I'm pleased to note that we repurchased approximately 22 million of shares during the quarter. Along with our consistent dividend, this demonstrates the continued confidence of our board and leadership in our long-term strategy, affirming our commitment to return value to our shareholders while investing in the business. And with that, I'll turn the call over to Brian Comstock.