The Greenbrier Companies, Inc.

Hello, and welcome to the Greenbrier Company's first quarter 2026 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 the 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, Gary. Good afternoon, everyone, and welcome to our first quarter of fiscal 2026 conference call. Today, I am joined by Lori Takouras, Greenbrier's CEO and President, Ryan Comstock, Executive Vice President and President of the Americas, and Michael Donfress, Senior Vice President and CFO. Following our update on Greenbrier's Q1 performance and our outlook for fiscal 26, we will open 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 meaning 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 2026 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of Greenbrier. We will refer to recurring revenue throughout our comments today. Recurring revenue is defined as leasing and fleet management revenue excluding the impact of syndication transactions. Before I turn the call over to Lori, I would like to take a moment and introduce Travis Williams, Greenbrier's new head of investor relations. Travis joined Greenbrier this week to lead the IR function. His background includes buy side and sell side analyst experience. And most recently, he led the IR function in-house at a publicly traded industrial tool manufacturing company. Please join me in welcoming him. Thanks, Justin. Excited to be on board.

Welcome, Travis. And thank you, Justin. And good afternoon, everyone. Appreciate you guys joining us today. Greenbrier delivered good first quarter performance exhibiting our disciplined execution and the resilience of our business. Our results demonstrate the strength of our integrated manufacturing and leasing model, continued progress on operating efficiency initiatives, and determined action on the things we can control. As a result, meaningful earnings, strong liquidity, and progress on our long-term strategic priorities were highlights in Q1. Our model is designed to outperform during a business environment like the current one. And our model delivered, producing what we describe as higher lows through the cycle and as reflected in our 15% aggregate gross margin this quarter. Customers across North America and Europe are circumspect about capital investments as they evaluate current freight volumes, ongoing trade policy considerations, and improving rail service that has increased railroad velocity, reducing the near-term pressure for new rolling stock. These conditions impact the timing of new railcar orders, but do not change the underlying long-term replacement demand. In this environment, execution matters, and Greenbar's commercial team continues to perform well. We are competing effectively and securing high-quality orders despite intense competition. As the quarter progressed, order momentum improved, reinforcing our confidence in the durability of customer demand. Brian will provide more details in a few minutes. Trade and tariff policy remains an important consideration for our customers and the industry. While policy considerations influence the timing of customer decisions, it does not change the long-term fundamentals of the rail car replacement cycle or Green Bear's competitive position. We stay engaged with customers and industry stakeholders and are winning business in this evolving landscape. Operationally, we're taking proactive steps to align our manufacturing footprint with current demand levels while continuing to invest in efficiency, cost discipline, and process improvement. Production rates moderated slightly and we adjusted headcount accordingly, primarily in Mexico, which allowed us to intensify our focus on overhead optimization and operational excellence. These actions are structural and position Greenbar to respond quickly and profitably as the market evolves. In Europe, market conditions remain complex and performance was affected by operating inefficiencies as we continue to execute restructuring and right-sizing initiatives. We're confident that these actions will strengthen our European platform over time and drive improved competitiveness and profitability. Brazil continues to provide diversification within our portfolio. Economic conditions there remain relatively stable, customer engagement is steady, and our operations deliver consistent performance. Our leasing and fleet management business continues to provide stability and growth. As we continue disciplined fleet construction and management, this business remains an important source of recurring earnings and through cycle resilience. Turning briefly to capital allocation, our priorities remain unchanged. We continue to deploy capital where returns are strongest, maintain balance sheet strength and liquidity, and return capital to shareholders. We opportunistically sold rail cars from the fleet at attractive values, recycling capital while contributing meaningfully to earnings and cash flow. Looking ahead, we are reiterating our fiscal 2026 guidance. And while near-term market conditions remain varied, our outlook reflects the improved foundation of our business, discipline execution, and the flexibility built into our operating model. We remain confident in our ability to navigate current conditions and position Greenbrier for long-term value creation. In closing, I want to recognize our employees for their continued focus, flexibility, and commitment. Periods like this demand discipline and teamwork, and I am proud of how the Greenbar team continues to execute. Our integrated model, strong liquidity position, and experienced leadership team position us well to manage the current environment and to capitalize as markets recover. And with that, I'll turn the call over to Brian, who will walk through our operational performance in more detail.