[Management View]
Revenue in the third quarter of 2025 was $160.5 million, representing a 42% increase due to higher production and deliveries. Gross Margin in the third quarter of 2025 was 15.1%, up 80 basis points from the prior year, driven by product mix and operational efficiency. Adjusted EBITDA in the third quarter of 2025 was $17 million, a 56% increase, with a margin of 10.6%, up 100 basis points. Railcar Deliveries -- 1,304 units delivered in 2025, compared to 961 in 2024. Backlog -- 2,750 units, valued at approximately $222 million, reflecting a healthy and diversified order book. Operating Cash Flow -- $3.4 million generated in the quarter. Adjusted Free Cash Flow -- approximately $2.2 million, up $1.2 million year-over-year. Cash Balance -- $62.7 million, with no borrowings under the revolving credit facility. Capital Expenditures -- $1.2 million for the quarter; full-year 2025 expected to be $4 million to $5 million, as timing shifts some spend into 2026. Adjusted Net Income -- $7.8 million, or $0.24 per diluted share; reported net loss of $7.4 million, or $0.23 per share, including a $17.6 million non-cash warrant liability charge. Market Share -- Over 20% order share of the addressable new car market for the quarter, and 15% of total market share.

[Outlook]
Full-year adjusted EBITDA and railcar delivery guidance reaffirmed; revenue guidance revised to $500 million-$530 million to reflect greater mix of conversions. Management cited industry-wide new railcar deliveries expected below 30,000 units for the year, versus normalized levels of 40,000 units. Fourth-quarter margins guided lower sequentially, attributed to seasonality, annual maintenance shutdown, and product mix shift toward lower-margin, commoditized cars. Continued investment in digital tracking (TrueTrack process), automation, plant layout enhancements, and operational readiness for tank car conversions.

[Financial Performance]
Revenue increased by 42% YoY to $160.5 million. Gross margin improved by 80 basis points to 15.1%. Adjusted EBITDA grew by 56% to $17 million, with a margin of 10.6%, up 100 basis points. Railcar deliveries increased to 1,304 units from 961 units in the prior year. Adjusted net income was $7.8 million, or $0.24 per diluted share, compared to $7.3 million, or $0.08 per diluted share, in the prior year. Reported net loss was $7.4 million, or $0.23 per share, including a $17.6 million non-cash warrant liability charge.

[Q&A Highlights]
Question 1: Could you walk us through your plans to prepare for the tank car conversions and entrance in the new tank car markets, and how those capital expenditures unfold into 2026?
Answer: The CapEx investments are not a change in scope, just a move of timing. Investments for vertically integrated components for the tank car retrofit originally scheduled for late December will move into early January. Preparation and readiness for the tank car conversion are well ahead of schedule. The change in CapEx allocation is just a couple of weeks in timing.

Question 2: On the revenue guidance, would you expect the margins for the fourth quarter to look pretty much like the third quarter?
Answer: The average selling price changes with conversions, leading to a lower revenue dollar guidance but stable adjusted EBITDA and unit count. The revenue dollar is down due to a higher proportion of conversions than originally forecast.

Question 3: Do you expect your product mix to shift following the change in guidance, and can you share any additional color on the mix between rebuilds and new builds?
Answer: The revenue move implies a higher proportion of conversions compared to the original forecast. The adjusted EBITDA and unit count guidance remain the same, with revenue reflecting the product mix change.

Question 4: Could you share more detail on the demand for coal car repair and its impact on 2026?
Answer: Coal car repair sits in the aftermarket business. There is sustained demand for coal car components and repair support items, which is expected to continue.

Question 5: Have you experienced any disruptions or order delays tied to the government shutdown or related policy?
Answer: The rail industry is less susceptible to short-term items like government shutdowns. No direct effects have been seen, and border crossing is highly automated, minimizing disruption.

Question 6: Can you expand on the step down in adjusted EBITDA margin from the third quarter to the fourth quarter?
Answer: The step down is due to the absence of specialty new cars, annual planned maintenance shutdown, and a higher proportion of lower-margin commoditized cars in Q4.

Question 7: Can you quantify the addressable market for tank car retrofits related to the 2029 deadline?
Answer: The retrofit program provides short-term benefits and positions the company for new tank car production. The addressable market for retrofits may be smaller, but the goal is to switch to new tank car production post-retrofit program.

Question 8: Are you confident in an uptick towards replacement level demand in 2026?
Answer: Yes, confidence in trending towards normalized replacement levels in 2026, with order placement expected to increase in the latter half of the year.

Question 9: What do you attribute the 20% market share of new railcar orders to?
Answer: The market share is attributed to experience, breadth of product, execution, and strong customer relationships.

[Sentiment Analysis]
Analysts were generally positive, focusing on the company's strong financial performance and strategic initiatives. Management maintained a confident and optimistic tone, emphasizing operational efficiency, strategic investments, and readiness for future growth.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-------------------------|---------------|---------------|
| Revenue | $160.5 million| $113.3 million|
| Gross Margin | 15.1% | 14.3% |
| Adjusted EBITDA | $17 million | $10.9 million |
| Railcar Deliveries | 1,304 units | 961 units |
| Adjusted Net Income | $7.8 million | $7.3 million |
| Reported Net Loss | $7.4 million | N/A |
| Cash Balance | $62.7 million | N/A |

[Risks and Concerns]
- Industry-wide new railcar deliveries expected below normalized levels.
- Fourth-quarter margins guided lower due to seasonality, annual maintenance shutdown, and product mix shift.
- Potential disruptions in border crossing, although currently minimized by automation.

[Final Takeaway]
FreightCar America delivered a strong third quarter with record adjusted EBITDA and significant revenue growth. The company is well-positioned for future growth with strategic investments in digital tracking, automation, and tank car conversions. Despite industry-wide challenges, the company's operational efficiency and healthy backlog provide a solid foundation for continued profitability and cash generation. Management remains confident in achieving full-year guidance and capturing market opportunities as demand normalizes.