The Greenbrier Companies, Inc.

Hello, and welcome to the Greenbrier Company's second 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. Travis Williams, head of investor relations. Mr. Williams, you may begin.

Thank you, operator. Good afternoon, everyone, and welcome to our second quarter of Fiscal 2026 earnings call. Today, I'm joined by Lori Decorius, Greenbrier's CEO and President, Brian Comstock, Executive Vice President and President of the Americas, and Michael Donfritz, Senior Vice President and CFO. Following our update on Greenbrier's Q2 performance and outlook for Fiscal 2026, we'll open the call for questions. Our earnings release and supplemental slide presentation can be found in the IR section of our website. Matters discussed on today's call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Throughout our discussion, 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 management services revenue, excluding the impact of syndication transactions. And with that, I'll turn the call over to Lori.

Thank you, Travis, and good afternoon, everyone. We appreciate you joining us today. Greenbrier delivered resilient second quarter results. Steady execution across our integrated business model and disciplined pricing supported our performance as our customers' needs continue to evolve and the expected production ramp-up shifts beyond the current fiscal year. Consistent with our expectations and production schedules as we exited Q1, deliveries and revenues were lower sequentially. Notably though, aggregate gross margin and earnings exceeded prior periods with similar delivery levels. The structural improvements we've executed over the last several years drives our ability to deliver better financial performance on lower volumes and achieve what we like to call higher lows. Current FTR forecasts indicate approximately 24,000 new railcar deliveries for the North American market in calendar 2026. The last time the freight railcar industry generated annual deliveries at these levels, Greenbrier was a much different company. Our cost structure was higher, our capital planning was less targeted, our market position was narrower, and our earnings profile was materially less dependable. That context matters because Greenberg is fundamentally stronger today. We have structurally and systematically improved our operations and grown our market presence, resulting in a more balanced and durable business model. As a result, even in a more moderate railcar investment climate, we're generating solid profitability and positive cash flow while maintaining a high level of liquidity. Market conditions can be dynamic. Customers are deliberate with capital investments amid evolving freight conditions, changing trade policies, geopolitical developments, and a mixed macroeconomic backdrop. However, as we entered March, customer commitments increased, reinforcing our view that underlying demand remains intact over the long term. In North America and Europe, we're experiencing longer customer decision-making times, which has shifted the timing of production. How will we remain confident in market fundamentals? We expect the constraints on order activity to begin to loosen in the near term. You'll hear more about the market from Brian in just a few minutes. In more limited order environments, execution and customer alignment are critical, and our commercial team remains closely engaged with customers as their timing requirements and other needs take shape. We continue to align our manufacturing footprint with current demand levels. Production rates moderated during the quarter, and we took targeted actions to right-size our workforce while ensuring the flexibility to respond to evolving market conditions. These are thoughtful, proactive steps that protect profitability and preserve operational agility. In Europe, the operating environment is driving our footprint rationalization initiatives in Poland and Romania and includes a full exit from Turkey. Our leasing and fleet management business continues to perform at a high level and remains a vital source of stability and growth, supported by high rail car utilization and retention and strong renewal rates. We're optimizing the composition of Greenbar's own railcar fleet and expanding it through thoughtful investments, including pursuing opportunities in the secondary railcar market. Our balance sheet remains strong. We ended the quarter with over a billion dollars of available liquidity, providing us with the flexibility to continue investing in the business, pursue opportunities in the secondary market, and return capital to shareholders, including This quarter, 6% dividend increase to 34 cents a share. Looking ahead, our updated outlook for this fiscal year accounts for the near-term demand environment and a shift of some deliveries from the second half of fiscal 2026 to fiscal 2027. Our attention is focused on the elements within our control, driving operational efficiency, maintaining commercial discipline, aligning capacity with demand, and allocating capital to the highest return opportunities. In closing, I want to thank our employees for their continued focus and commitment. Their execution in a dynamic market environment demonstrates the strength of our culture and operating model. We have an experienced team, a robust platform, and the agility to navigate changing market conditions as we remain focused on delivering long-term shareholder value. And with that, I'll turn the call over to Brian to discuss our operations in more detail.