Why Greenbrier Shares Are Up Big Today

Railcar manufacturer Greenbrier (NYSE: GBX) used strong cost management to easily top expectations and raise profitability guidance for the year.

Investors are relieved, sending shares of Greenbrier up 20% as of 12:30 p.m. ET.

Image source: Getty Images.

Making the most of a tough environment

It is a tough operating environment for railroads, with volumes down due to economic uncertainty and the impact of tariffs. In times like this, you don't normally see railroad companies making big capital expenditures, and shares of supplier Greenbrier came into earnings down 20% for the year based on those low expectations.

Late Tuesday, the company delivered an earnings surprise. Greenbrier earned $1.86 per share in the quarter on revenue of $842.7 million, easily surpassing Wall Street's $0.98 per share on revenue of $795 million consensus estimate.

Revenue was only up 2.7% year over year, but the company was able to use operating efficiencies and gains from its leasing portfolio to boost the bottom line.

"In a dynamic trade and economic environment, our focus on efficiency, agility, and strategic investment is yielding positive results," CEO Lorie L. Tekorius said in a statement.

Is Greenbrier stock a buy?

The company sees more opportunities for improvement up ahead. Greenbrier raised its full-year guidance for gross margin and operating margin, predicting about $10 million in annual savings from its effort to rationalize its European network.

This is a cyclical business, and it could be tough for Greenbrier to really accelerate until railroads see demand grow. But Greenbrier if nothing else is making the case that investors had overreacted in sending the stock down big prior to earnings. For those interested in the 2.3% dividend yield and willing to be patient to ride out a recovery, there is still time to climb on board.

Should you invest $1,000 in Greenbrier Companies right now?

Before you buy stock in Greenbrier Companies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Greenbrier Companies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $939,655!*

Now, it’s worth noting Stock Advisor’s total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of June 30, 2025

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.