Greenbrier closed out its fiscal fourth quarter with a substantial wave of new business, booking orders for 3,400 railcars valued at approximately $600 million. Among the largest awards is a 780-car contract from Saudi Railway Company (SAR), further broadening the freight car builder’s long-standing relationship with the state-owned rail operator into intermodal equipment.
The Lake Oswego, Oregon-based manufacturer (NYSE: GBX) said the orders were booked during the quarter ended Aug. 31 and span several railcar types and end markets. Greenbrier said the volume gives the company a solid commercial foundation as it enters fiscal 2027.
According to Thomas Jackson, Greenbrier’s vice president of marketing and general manager, the latest orders combine new fleets with replacement equipment across a range of applications. The portfolio includes hopper cars, flatcars, tank cars, boxcars and refrigerated cars, as well as gondolas.
The orders are also broadly distributed among three customer groups: railroads, shippers and operating lessors, with each representing an even share of the business, Jackson told FreightWaves.
North American market shows signs of tightening
Greenbrier’s order intake comes as the North American railcar market faces increasing replacement pressure.
In a recent interview with Trains, TrinityRail (NYSE: TRN) Chief Commercial Officer Charley Moore said approximately 200,000 railcars are approaching retirement. At the same time, utilization among fleets owned by public lessors remains in the high 90% range.
Industry production is expected to reach about 25,000 cars in 2026, a level Moore said remains below what is needed to replace aging equipment. He expects production to increase to between 30,000 and 35,000 railcars in 2027, although tariffs, rising steel costs and broader uncertainty have contributed to delays in customer ordering decisions.
Saudi Arabia order expands Greenbrier relationship
The Saudi Railway Company contract includes tank cars designed to carry phosphoric acid and molten sulfur, alongside intermodal railcars.
The order represents Greenbrier’s first sale of intermodal units to SAR. The relationship between the two companies dates back to 2015, when SAR placed its first tank car order with Greenbrier.
Greenbrier said the tank cars, built using U.S. steel, were manufactured at the company’s North American facilities in Mexico and have already begun shipping to Saudi Arabia. The equipment is intended to increase freight capacity and support ongoing rail-infrastructure development in the kingdom.
“Our fiscal fourth-quarter orders demonstrate global customer demand for Greenbrier’s products and the value of our commercial and engineering capabilities,” said Brian Comstock, executive vice president and president of The Americas, in a statement.
Comstock added that the SAR award highlights Greenbrier’s ability to provide specialized equipment tailored to customers’ operating requirements while extending established technologies into international markets.
Greenbrier currently owns a lease fleet of approximately 20,600 railcars, according to the company.
