Press Release

FreightCar America, Inc. Reports Fourth Quarter and Full Year 2024 Results

Reports full year Revenue up 56% with Gross Profit up 60%

Generates full year Operating Cash Flow of $45 million and Adj. Free Cash Flow of $22 million

Projecting sequential growth across Deliveries, Revenue and Adj. EBITDA for 2025

CHICAGO, March 12, 2025 – FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Fiscal Year 2024 Highlights

“This was a year of strong operational performance as we executed our strategic initiatives to drive substantial profitable growth. We delivered $43 million in Adjusted EBITDA for the full year, representing a 114% increase versus the prior year. On the commercial front, we continued to gain market share, expanded our presence in key railcar markets, and secured a multi-year tank car retrofit program, strengthening our competitive position. Additionally, we recently lowered our cost of capital through

refinancing, reinforcing our financial flexibility for the future,” commented Nick Randall, President and Chief Executive Officer of FreightCar America.

Randall continued, “As we move into 2025, we are squarely focused on solidifying our position and enhancing cash generation. With a stronger market presence, an optimized capital structure, and a relentless drive for operational excellence, we are well positioned to build on our momentum. We remain committed to delivering profitable growth and driving long-term value for our stakeholders.”

Fiscal Year 2025 Outlook

The Company issued outlook for fiscal year 2025 as follows:

1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA due to the inherent difficulty in forecasting and quantifying the adjustments that are necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to any one of these items could have a significant effect on future GAAP results.

Mike Riordan, Chief Financial Officer of FreightCar America, commented, “2024 was a pivotal year as we generated strong cash flow and optimized our balance sheet. This transformation has allowed us to completely reservice our debt, underscoring the power of our operational execution and disciplined financial management. We are issuing 2025 revenue guidance at $530 million to $595 million. We expect railcar deliveries to be between 4,500 and 4,900, with Adjusted EBITDA in the range of $43 million to $49 million. Looking ahead, we are well-positioned to consistently generate free cash flow, providing us with the flexibility to execute on our capital allocation priorities.”

Fourth Quarter and Full Year 2024 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Thursday, March 13 at 11:00 a.m. (Eastern Time) to discuss its fourth quarter and full year 2024 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call via the following live and recorded methods:

Live Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1705240&tp_key=9b9e1839ef

Recorded Webcast: A recorded webcast will be available until Thursday, March 27, 2025, on FreightCar America’s website following the conference call date at: https://investors.freightcaramerica.com/news-events/event-calendar/

Teleconference: Dial-in numbers for the live Conference Call are (877) 407-0789 or (201) 689-8562. Please call in at least 10 minutes prior to the start time of the call. An audio replay may be accessed at (844) 512-2921 or (412) 317-6671; Passcode: 13751273.

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Forward-Looking Statements

This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the

applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

 

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FreightCar America, Inc.

Consolidated Balance Sheets

(In thousands, except for share data)

FreightCar America, Inc.

Consolidated Statements of Operations

(In thousands, except for share and per share data)

FreightCar America, Inc.

Consolidated Statements of Cash Flows

(In thousands)

Non-GAAP Financial Measures

FreightCar America, Inc.

Reconciliation of Income (Loss) before income taxes to EBITDA(1) and Adjusted EBITDA(2)

(In thousands)

(Unaudited)

(1) EBITDA represents earnings before interest, taxes, depreciation and amortization. We believe EBITDA is useful to investors in evaluating our operating performance compared to that of other companies in our industry. In addition, our management uses EBITDA to evaluate our operating performance. The calculation of EBITDA eliminates the effects of financing, income taxes and the accounting effects of capital spending. These items may vary for different companies for reasons unrelated to the overall performance of the company’s business. EBITDA is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of EBITDA is not necessarily comparable to that of other similar titled measures reported by other companies.

(2) Adjusted EBITDA represents EBITDA before the following charges:

We believe that Adjusted EBITDA is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EBITDA is not a financial measure presented in accordance with U.S.

GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EBITDA in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EBITDA is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.

Reconciliation of Net income (loss) and Adjusted net income (loss)(1)

(Unaudited)
 

(1) Adjusted net income (loss) represents net (loss) income before the following charges:

We believe that Adjusted net income (loss) is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted net income (loss) is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted net income (loss) in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted net income (loss) is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.

Reconciliation of EPS and Adjusted EPS(1)

(Unaudited)

(1) Adjusted EPS represents basic and diluted EPS before the following charges:

We believe that Adjusted EPS is useful to investors evaluating our operating performance compared to that of other companies in our industry because it eliminates the impact of certain non-cash charges and other special items that affect the comparability of results in past quarters. Adjusted EPS is not a financial measure presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Adjusted EPS in isolation or as a substitute for net income or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Adjusted EPS is not necessarily comparable to that of other similarly titled measures reported by other companies.

FreightCar America, Inc.

Reconciliation of Cash flows provided by operating activities, Free cash flow and Adjusted free cash flow(1)

(Unaudited)

(1) Free cash flow represents the amount by which Cash flows provided by operating activities exceeds capital expenditures. Adjusted free cash flow represents the amount by which Free cash flow exceeds the following items:

We believe that Free cash flow and Adjusted free cash flow are useful to investors evaluating our operating performance compared to that of other companies in our industry because these metrics provide key insights into the potential for growth and ability to generate returns for investors. Free cash flow and Adjusted free cash flow are not financial measures presented in accordance with U.S. GAAP. Accordingly, when analyzing our operating performance, investors should not consider Free cash flow or Adjusted free cash flow in isolation or as a substitute for Cash flows from operating activities or other statements of operations or statements of cash flow data prepared in accordance with U.S. GAAP. Our calculation of Free cash flow and Adjusted free cash flow is not necessarily comparable to that of other similarly titled measures reported by other companies.