FreightCar America Anticipates Railcar Market Recovery with Increased Share Gains
FreightCar America (NASDAQ:RAIL) is preparing for a rebound in railcar demand following an industry downturn. The company expects North American orders to reach between 25,000 and 26,000 units in 2026, with potential growth back toward the long-term average of around 40,000 units by 2028. Despite a softer market environment, FreightCar America has significantly increased its share. In Q2 alone, it captured nearly half (47%) of railcar orders in North America—excluding tank cars—which rose to an estimated 55%. However, management acknowledges that sustaining such high levels is unlikely due to capacity constraints and instead targets a more sustainable long-term market share around 18%. The company has expanded its manufacturing capabilities by shifting production from the U.S. to Mexico in 2018 and acquiring aftermarket businesses like Carly Railcar Components and Southern Parts & Equipment. FreightCar America is also diversifying into less cyclical segments, aiming for approximately $430–$440 million in revenue and adjusted EBITDA of about $40 million by the end of 2025.
Tickers: $RAIL
Topics: aftermarket business capacity expansion market share growth railcar manufacturing