About The Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures and markets railroad freight car equipment in North America, Europe, South America and other geographies as opportunities arise. The company offers railcar management, regulatory compliance services and leasing services to railcar owners or other users of railcars in North America. It is a leading provider of freight railcar wheel services, maintenance and parts in North America. Through unconsolidated affiliates the company produces rail and industrial components and has an ownership stake in a railcar manufacturer in Brazil. The company operates an integrated business model in North America that combines freight car manufacturing, wheel services, railcar maintenance, component parts, leasing and fleet management services. The company's model is designed to provide customers with a comprehensive set of freight car product and service solutions by utilizing its substantial engineering, mechanical and technical capabilities, as well as its experienced commercial personnel. The company's integrated model allows it to develop cross-selling opportunities and synergies among its various operating segments thereby enhancing its margins. Segments The company operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. Manufacturing segment North American Railcar Manufacturing - The company manufactures most freight railcar types in use in the North American market (other than coal cars) and it continues to expand its product features and functionality. The company has demonstrated an ability to capture high market shares in many of the car types it produces. The primary products the company produces for the North American market are: Freight Railcars - The company produces a variety of covered hopper cars for food grade products, grain, fertilizer, cement, minerals and plastic pellets, as well as gondolas and open top hoppers for steel, metals, scrap and aggregates. The company also produces a wide range of boxcars, which are used in the transport of paper products, perishables and general merchandise. The company's flat car products include center partition cars for the forest products industry and heavy-duty flat cars. Tank Cars - The company produces a variety of tank cars, including general purpose, pressurized, coiled, lined, insulated and stainless steel. These are designed for the transportation of hazardous and non-hazardous commodities, such as petroleum products, ethanol, liquefied petroleum gas, petrochemicals, caustic soda, chlorine, fertilizers, vegetable oils, bio-diesel and various other products. Intermodal Railcars - The company manufactures a comprehensive portfolio of intermodal railcars. Its most popular intermodal product is its double-stack railcars called Maxi-Stack I and Maxi-Stack IV. The double-stack railcar is designed to transport containers stacked two-high on a single platform and provides significant operating and capital savings over other types of intermodal railcars. Automotive - The company manufactures a full line of railcar equipment specifically designed for the transportation of light vehicles. Its automotive offerings include the Auto-Max II, Multi-Max and Multi-Max Plus products, which are designed to carry automobiles, CUVs, SUVs, trucks and high sided vans efficiently. Sustainable Conversions - The company is a leading designer and manufacturer of sustainable conversions, which repurposes existing railcars into new equipment service. Its sustainable conversions are an efficient, environmentally sustainable and cost-savings option for railcar owners looking to diversify and optimize their fleets. The company rebodies or stretches covered hoppers into larger cubic service, re-rack or perform deck conversion on auto racks, and perform tank car retrofits to help customers manage pending regulations. European Railcar Manufacturing - The company's European manufacturing operations produce a variety of freight railcar types, including gondolas, hoppers, intermodal cars, automobile transport, coil steel and metals, flat cars, and sliding wall cars. In addition, the company's European manufacturing operations produce a comprehensive line of pressurized tank cars for liquid petroleum, LPG gas, chlorine and ammonia and non-pressurized tank cars for light oil, chemicals and other products. Maintenance Services segment Wheel Services - The company operates a wheel services network in North America. Its wheel shops provide complete wheel services, including reconditioning of wheels and axles in addition to new axle machining, finishing and downsizing. Railcar Maintenance - The company operates a railcar maintenance network in North America, including shops certified by the Association of American Railroads (AAR). Its shops perform routine railcar maintenance for third parties and for its leased and managed railcar fleets. Component Parts Manufacturing - The company's component parts facilities recondition and manufacture railcar cushioning units, couplers, yokes, side frames, bolsters and various other parts. Leasing & Management Services segment Leasing - The company operates a railcar leasing business in North America through a number of subsidiaries. The company's relationships with financial institutions and operating lessors combined with its ownership of a lease fleet of approximately 13,400 railcars enables it to offer flexible financing programs to its customers, including operating leases of varied intervals and 'per diem' leases. The percentage of owned units on lease was 98.3% as of August 31, 2023 with an average remaining lease term of 3.9 years and an average age of 7.5 years. The company also originates leases of railcars, which are either newly built or refurbished by its operations. These may be held in the fleet or sold with attached leases to financial institutions or other investors, typically with multi-year management services agreements. As an equipment owner and an originator of leases, the company participates principally in the operating lease segment of the market. Assets from the company's owned lease fleet are periodically sold to accommodate customer demand, manage risk and maintain liquidity. Management Services - The company's North American management services business offers a broad array of software and services that include railcar maintenance management, railcar accounting services (such as billing and revenue collection, car hire receivable and payable administration), total fleet management (including railcar tracking using proprietary software), fleet logistics, administration and railcar re-marketing. The company provides management services for a fleet of railcars for railroads, shippers, carriers, institutional investors and other leasing and transportation companies in North America. In addition, the company's Regulatory Services Group offers regulatory, engineering, process consulting and advocacy support to the tank car owner and shipper community, among other services. The company's management services business is responsible for the maintenance and administration of its fleet of railcars. Unconsolidated Affiliates The U.S. Axle Manufacturing - The company has a 41.9% interest in Axis, LLC (Axis), a joint venture that manufactures and sells axles to its joint venture partners for use and distribution both domestically and internationally. Brazilian Railcar Manufacturing - The company has a 60% ownership interest in Greenbrier Maxion-Equipamentos e Serviços Ferroviários S.A. (Greenbrier-Maxion), a leading railcar manufacturer in South America, based in Hortolandia, Brazil. Greenbrier-Maxion also assembles bogies and offers a range of aftermarket services, including railcar overhaul and refurbishment. Brazilian Castings and Component Parts Manufacturing - The company has a 29.5% ownership interest in Amsted-Maxion Fundição e Equipamentos Ferroviários S.A. (Amsted-Maxion) based in Cruzeiro, Brazil. Amsted-Maxion is a manufacturer of various castings and wheel components for railcars and other heavy industrial equipment. Amsted-Maxion has a 40% ownership position in Greenbrier-Maxion and is integrated with the operations of the company's Brazilian railcar manufacturer. Other Unconsolidated Affiliates - The company has other unconsolidated affiliates which primarily include joint ventures that produce rail and industrial components. Customers Customers across the company's segments include railroads, leasing companies, financial institutions, shippers, carriers and transportation companies. The company has strong, long-term relationships with many of its customers. In 2023, revenue from two customers in aggregate accounted for approximately 30% of total revenue. Marketing and Product Development In North America, the company leverages an integrated marketing and sales effort to coordinate relationships in its various segments. The company provides its customers with a diverse range of equipment, services and financing alternatives designed to satisfy each customer's unique needs, whether the customer is buying new equipment, sustainable conversion of existing equipment or seeking to outsource the maintenance or management of equipment. These custom programs may involve a combination of railcar products, leasing, sustainable conversions and remarketing services. In addition, the company provides customized maintenance management, equipment management, accounting and compliance services and proprietary software solutions. In Europe and South America, the company maintains relationships with customers through market-specific sales personnel. The company's engineering and technical staff works closely with their customer counterparts on the design and certification of railcars. Many European railroads are state-owned and are subject to European Union (EU) regulations covering the tender of government contracts. In Brazil, the government grants long-term concession contracts to private companies to operate and invest in Brazil's freight rail network. Regulation The company must comply with the rules of the U.S. Department of Transportation (USDOT) and the administrative agencies it oversees, including the Federal Railroad Administration (FRA), the Pipeline and Hazardous Materials Safety Administration (PHMSA), and the Department of Homeland Security (DHS) in the U.S. and Transport Canada (TC) in Canada, each of which administer and enforce laws and regulations relating to railroad safety. Products sold and leased by the company in North America must meet AAR, TC, PHMSA and FRA standards. The company's operations are subject to regulation of health and safety matters by the U.S. Occupational Safety and Health Administration (OSHA) and the Secretaria del Trabajo y Prevision Social (STPS) in Mexico. Divestitures In May 2023, the company sold its ownership interest in Gunderson Marine and the Gunderson Facility assets (which includes the Portland Property). Research and Development For the year ended August 31, 2023, the company's research and development expenses were $4.0 million. History The Greenbrier Companies, Inc. was founded in 1974.