FreightCar America cuts 2026 outlook after tank car order removal

FreightCar America (NASDAQ: RAIL) has revised its full-year 2026 financial outlook downward after removing a 1,285-railcar tank car retrofit order from its backlog, citing doubts about the customer's ability to meet its contractual obligations.

The company now expects railcar deliveries of 3,100 to 3,300 units for fiscal 2026, down from a prior outlook of 3,500 to 3,900 units issued Aug. 3, 2026. Revenue guidance was lowered to $370–$410 million from $410–$460 million, and adjusted EBITDA guidance was cut to $15–$19 million from $36–$44 million.

Following the removal, FreightCar America's backlog as of Sept. 30, 2026 stood at 2,660 units valued at $284.5 million. The company said no other orders in its backlog are affected.

Preliminary third-quarter 2026 results showed railcar deliveries of 662 units, compared with 1,304 units in the third quarter of 2025. Revenue came in at $75–$77 million, versus $160.5 million a year earlier. Adjusted EBITDA was $(0.3) million to $0.3 million, compared with $17.0 million in the prior-year period. These figures are unaudited and subject to completion of quarter-end closing procedures.

"We have elected to remove the customer's contractually committed tank car retrofit order from our reported backlog in full," said Nick Randall, President and Chief Executive Officer. "This adjustment is specific to one customer order. Our remaining backlog continues to be supported by firm customer commitments."

The tank car retrofit order had been scheduled to begin delivery in the second half of 2026 and continue through 2027.

FreightCar America expects to release full third-quarter 2026 results on Nov. 9, 2026, after market close, with a conference call scheduled for Nov. 10, 2026, at 11:00 a.m. Eastern Time.

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