FREIGHTCAR AMERICA, INC., 10-Q filed on 11/10/2025
Quarterly Report
v3.25.3
Document and Entity Information - shares
 9 Months Ended
Sep. 30, 2025
Nov. 05, 2025
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Current Fiscal Year End Date --12-31  
Document Period End Date Sep. 30, 2025  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q3  
Entity Central Index Key 0001320854  
Entity File Number 000-51237  
Entity Registrant Name FREIGHTCAR AMERICA, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 25-1837219  
Entity Address, Address Line One 125 South Wacker Drive  
Entity Address, Address Line Two Suite 1500  
Entity Address, City or Town Chicago  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60606  
City Area Code 800  
Local Phone Number 458-2235  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   19,079,106
Common Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol RAIL  
Security Exchange Name NASDAQ  
Preferred Stock [Member]    
Document Information [Line Items]    
Title of 12(b) Security Preferred Stock Purchase Rights  
No Trading Symbol Flag true  
Security Exchange Name NASDAQ  
v3.25.3
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Current assets    
Cash, cash equivalents and restricted cash equivalents $ 62,743 $ 44,450
Accounts receivable, net of allowance for credit losses of $118 and $47, respectively 32,514 12,506
VAT receivable 5,677 3,851
Inventories, net 104,243 75,281
Assets held for sale 0 629
Prepaid expenses and other current assets 15,948 8,314
Total current assets 221,125 145,031
Property, plant and equipment, net 28,147 30,107
Right of use asset operating lease 2,086 2,423
Right of use asset finance lease 38,650 45,081
Deferred income taxes 49,520 1,024
Other long-term assets 1,229 550
Total assets 340,757 224,216
Current liabilities    
Accounts and contractual payables 98,579 49,574
Accrued payroll and other employee costs 9,633 6,286
Accrued warranty 1,997 2,389
Customer deposits 8,176 0
Deferred Revenue 506 8,556
Current portion of long-term debt 2,875 2,875
Lease liability finance lease, current 1,277 1,256
Other current liabilities 9,804 9,889
Total current liabilities 132,847 80,825
Long-term debt, net of current portion 104,679 105,540
Warrant liability 148,650 136,319
Accrued pension costs 1,268 1,073
Lease liability operating lease, long-term 2,220 2,645
Lease liability finance lease, long-term 41,259 46,678
Other long-term liabilities 708 1,409
Total liabilities 431,631 374,489
Stockholders' deficit    
Preferred stock, $0.01 par value, 2,500,000 shares authorized (100,000 shares each designated as Series A voting and Series B non-voting, 0 shares issued and outstanding as of September 30, 2025 and December 31, 2024) 0 0
Common stock, $0.01 par value, 50,000,000 shares authorized, 19,077,086 and 18,960,608 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 221 221
Additional paid in capital 72,006 69,404
Accumulated other comprehensive income 2,836 721
Accumulated deficit (165,937) (220,619)
Total stockholders' deficit (90,874) (150,273)
Total liabilities and stockholders' deficit $ 340,757 $ 224,216
v3.25.3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Allowance for doubtful accounts $ 118 $ 47
Preferred stock, par value $ 0.01 $ 0.01
Preferred stock, shares authorized 2,500,000 2,500,000
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 50,000,000 50,000,000
Common stock, shares issued 19,077,086 18,960,608
Common stock, shares outstanding 19,077,086 18,960,608
Series A Preferred Stock [Member]    
Preferred stock, shares authorized 100,000 100,000
Series B Preferred Stock [Member]    
Preferred stock, shares authorized 100,000 100,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
v3.25.3
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Income Statement [Abstract]        
Revenues $ 160,511 $ 113,255 $ 375,424 $ 421,729
Cost of sales 136,306 97,059 319,004 375,700
Gross profit 24,205 16,196 56,420 46,029
Selling, general and administrative expenses 9,647 7,538 30,284 23,541
Litigation settlement 0 0 0 (3,214)
Operating income 14,558 8,658 26,136 25,702
Interest expense (4,638) (1,577) (13,356) (5,815)
Loss on change in fair market value of Warrant liability (17,589) (110,040) (12,331) (125,581)
Other income (expense) 78 (680) 3,235 (1,419)
(Loss) income before income taxes (7,591) (103,639) 3,684 (107,113)
Income tax (benefit) provision (146) 3,407 (50,998) 3,327
Net (loss) income $ (7,445) $ (107,046) $ 54,682 $ (110,440)
Net (loss) earnings per common share - basic $ (0.23) $ (3.57) $ 1.66 $ (4.07)
Net (loss) earnings per common share - diluted $ (0.23) $ (3.57) $ 1.57 $ (4.07)
Weighted average common shares outstanding - basic 31,887,926 31,353,997 31,778,768 30,519,545
Weighted average common shares outstanding - diluted 31,887,926 31,353,997 33,738,478 30,519,545
v3.25.3
Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (7,445) $ (107,046) $ 54,682 $ (110,440)
Other Comprehensive (loss) income, net of tax:        
Reclassification adjustment for amortization of net loss (pre-tax other income) before tax 25 39 76 109
Unrealized gain on commodity swap derivatives 0 0 116 0
Unrealized gain (loss) on foreign currency derivatives 356 (1,195) 2,321 (1,941)
(Gain) loss on commodity swap derivatives reclassified into cost of sales (25) 0 (25) 0
(Gain) loss on foreign currency derivatives reclassified into cost of sales (756) 72 (373) (449)
Comprehensive (loss) income $ (7,845) $ (108,130) $ 56,797 $ (112,721)
v3.25.3
Condensed Consolidated Statements of Mezzanine Equity and Stockholders' Deficit (Unaudited) - USD ($)
$ in Thousands
Total
Preferred Stock [Member]
Series C Preferred Stock [Member]
Common Stock [Member]
Additional Paid In Capital [Member]
Accumulated Other Comprehensive (Loss) Income [Member]
Retained (Deficit) [Member]
Balance at Dec. 31, 2023 $ (46,206) $ 83,458 $ 210 $ 94,067 $ 2,365 $ (142,848)
Balance (Shares) at Dec. 31, 2023   85,412 17,903,437      
Net income (loss) (110,440)         (110,440)
Other comprehensive income (loss) (2,281)       (2,281)  
Accretion of Series C preferred shares issuance costs (431)          
Accretion of Series C preferred shares issuance costs (431) $ 431       (431)
Restricted stock awards     $ 8 (8)    
Restricted stock awards, shares     774,796      
Employee stock settlement (40)     (40)    
Employee stock settlement, shares     (14,615)      
Forfeiture of restricted stock awards     $ (1) 1    
Forfeiture of restricted stock awards, shares     (106,790)      
Exercise of stock options and appreciation rights (751)   $ (3) (748)    
Exercise of stock options and appreciation rights, Shares     328,010      
Stock-based compensation recognized 2,330     2,330    
Balance at Sep. 30, 2024 (156,317) $ 83,889 $ 220 97,098 84 (253,719)
Balance (Shares) at Sep. 30, 2024   85,412 18,884,838      
Balance at Jun. 30, 2024 (48,829) $ 83,745 $ 220 96,312 1,168 (146,529)
Balance (Shares) at Jun. 30, 2024   85,412 18,873,850      
Net income (loss) (107,046)         (107,046)
Other comprehensive income (loss) (1,084)       (1,084) 0
Accretion of Series C preferred shares issuance costs (144)          
Accretion of Series C preferred shares issuance costs (144) $ 144       (144)
Exercise of stock options and appreciation rights (18)   $ 0 (18)    
Exercise of stock options and appreciation rights, Shares     10,988      
Stock-based compensation recognized 804     804    
Balance at Sep. 30, 2024 (156,317) $ 83,889 $ 220 97,098 84 (253,719)
Balance (Shares) at Sep. 30, 2024   85,412 18,884,838      
Balance at Dec. 31, 2024 $ (150,273)   $ 221 69,404 721 (220,619)
Balance (Shares) at Dec. 31, 2024 18,960,608   18,960,608      
Net income (loss) $ 54,682         54,682
Other comprehensive income (loss) 2,115       2,115  
Accretion of Series C preferred shares issuance costs 0          
Restricted stock awards     $ 2 (2)    
Restricted stock awards, shares     195,975      
Employee stock settlement (487)   $ (1) (486)    
Employee stock settlement, shares     (50,010)      
Forfeiture of restricted stock awards     $ (1) 1    
Forfeiture of restricted stock awards, shares     (50,326)      
Exercise of stock options and appreciation rights (45)     (45)    
Exercise of stock options and appreciation rights, Shares     20,839      
Stock-based compensation recognized 3,134     3,134    
Balance at Sep. 30, 2025 $ (90,874)   $ 221 72,006 2,836 (165,937)
Balance (Shares) at Sep. 30, 2025 19,077,086   19,077,086      
Balance at Jun. 30, 2025 $ (83,462)   $ 222 71,572 3,236 (158,492)
Balance (Shares) at Jun. 30, 2025     19,127,412      
Net income (loss) (7,445)         (7,445)
Other comprehensive income (loss) (400)       (400) 0
Accretion of Series C preferred shares issuance costs 0          
Forfeiture of restricted stock awards     $ (1) 1    
Forfeiture of restricted stock awards, shares     (50,326)      
Stock-based compensation recognized 433     433    
Balance at Sep. 30, 2025 $ (90,874)   $ 221 $ 72,006 $ 2,836 $ (165,937)
Balance (Shares) at Sep. 30, 2025 19,077,086   19,077,086      
v3.25.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Cash flows from operating activities    
Net (loss) income $ 54,682 $ (110,440)
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:    
Depreciation and amortization 4,598 4,252
Non-cash lease expense on right-of-use assets 2,320 2,226
Loss on change in fair market value for Warrant liability 12,331 125,581
Stock-based compensation recognized 3,134 2,330
Deferred income taxes (48,496) 0
Other non-cash items, net 6,655 2,049
Changes in operating assets and liabilities:    
Accounts receivable (20,008) (17,911)
VAT receivable (1,538) 465
Inventories (27,906) 40,859
Accounts and contractual payables 47,702 (8,300)
Income taxes payable, net (7,478) (2,179)
Lease liability (2,572) (2,802)
Customer deposits 8,176 8,865
Other assets and liabilities (6,868) (5,948)
Net cash flows provided by operating activities 24,732 39,047
Cash flows from investing activities    
Purchase of property, plant and equipment (2,102) (3,731)
Proceeds from sale of assets held for sale, net of selling costs 585 0
Net cash flows used in investing activities (1,517) (3,731)
Cash flows from financing activities    
Deferred financing costs (1,336) 0
Borrowings on revolving line of credit 0 26,595
Repayments on revolving line of credit 0 (56,010)
Repayments on term loan (2,156) 0
Employee stock settlement (487) (40)
Financing lease payments (943) (1,591)
Net cash flows used in financing activities (4,922) (31,046)
Net increase in cash and cash equivalents 18,293 4,270
Cash, cash equivalents and restricted cash equivalents at beginning of period 44,450 40,560
Cash, cash equivalents and restricted cash equivalents at end of period 62,743 44,830
Supplemental cash flow information    
Interest paid 7,196 2,177
Income taxes paid 5,143 5,061
Change in unpaid construction in process $ 597 $ (226)
v3.25.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.3
Description of the Business
 9 Months Ended
Sep. 30, 2025
Description of the Business [Abstract]  
Description of the Business

Note 1 – Description of the Business

 

FreightCar America, Inc. (“FreightCar”) operates primarily in North America through its direct and indirect subsidiaries (collectively with FreightCar, the “Company”, “we”, “us”, or “our”), and designs and manufactures a wide range of railroad freight cars, completes railcar rebody and repair services, provides railcar conversion services that repurpose idled rail assets back into revenue service, and supplies railcar parts. The Company designs and builds high-quality railcars, including boxcars, covered and open-top hopper cars, intermodal and non-intermodal flat cars, mill gondola cars, coil steel cars and coal cars. The Company is headquartered in Chicago, Illinois and has facilities in the following locations: Johnstown, Pennsylvania; Qingdao, People’s Republic of China, and Castaños, Coahuila, Mexico (the “Manufacturing Facility”).
v3.25.3
Basis of Presentation
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

Note 2 – Basis of Presentation

 

The accompanying condensed consolidated financial statements include the accounts of FreightCar and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The foregoing financial information has been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial reporting. The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year. The accompanying interim financial information is unaudited; however, the Company believes the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of financial position, results of operations and cash flows in conformity with GAAP. The 2024 year-end balance sheet data was derived from the audited financial statements as of December 31, 2024.

 

Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted. Certain prior year amounts have been reclassified, where necessary, to conform to the current year presentation. There is no impact on previously reported consolidated statements of operations or statements of cash flows as a result of these reclassifications. In the absence of specific guidance under GAAP, the Company elected to apply International Accounting Standard (“IAS”) 20 by analogy to account for an Employee Retention Credit (“ERC”) of $187 and $3,304 received during the three and nine months ended September 30, 2025, respectively. The Company applied for the credit in September 2023 after assessing certain eligibility criteria. The ERC funds received are recognized as other income in the condensed consolidated statements of operations. The Company acknowledges the potential for IRS review or clawback; however, based on the assessment of eligibility and information submitted, the payments received, and the notices issued by the IRS, the Company believes the likelihood of repayment is remote. These interim financial statements should be read in conjunction with the audited financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

v3.25.3
Revenue Recognition
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3 – Revenue Recognition

 

The following table disaggregates the Company’s revenues by major source:

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

September 30,

 

September 30,

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Railcar sales

 

 

$

153,883

 

 

$

109,010

 

 

$

354,667

 

 

$

405,684

 

Aftermarket sales

 

 

 

6,555

 

 

 

4,175

 

 

 

20,536

 

 

 

14,393

 

Revenues from contracts with customers

 

 

 

160,438

 

 

 

113,185

 

 

 

375,203

 

 

 

420,077

 

Leasing revenues

 

 

 

73

 

 

 

70

 

 

 

221

 

 

 

1,652

 

Total revenues

 

 

$

160,511

 

 

$

113,255

 

 

$

375,424

 

 

$

421,729

 

 

Contract Balances and Accounts Receivable

 

Contract assets represent the Company’s rights to consideration for performance obligations that have been satisfied but for which the terms of the contract do not permit billing at the reporting date. The Company had no contract assets as of September 30, 2025 and December 31, 2024. The Company may receive cash payments from customers in advance of the Company satisfying performance obligations under its sales contracts resulting in deferred revenue or customer deposits, which are considered contract liabilities. Deferred revenue and customer deposits, reported on separate lines in the Company’s condensed consolidated balance sheets, are classified as either current or long-term liabilities in the condensed consolidated balance sheets based on the timing of when the Company expects to recognize the related revenue. Customer deposits were $8,176 as of September 30, 2025. There were no customer deposits as of December 31, 2024. Deferred revenue was $506 and $8,556 as of September 30, 2025 and December 31, 2024, respectively. Deferred revenue as of December 31, 2024 was recognized as revenue during the nine months ended September 30, 2025. The Company has not experienced significant historical credit losses.

 

Performance Obligations

 

The Company is electing not to disclose the value of the remaining unsatisfied performance obligations with a duration of one year or less as permitted by ASU 2014-09, Revenue from Contracts with Customers. Based on existing contracts, approximately $16,454 and $56,640 of unsatisfied performance obligations are expected to be recognized in 2026 and 2027, respectively.
v3.25.3
Segment Information
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Segment Information

Note 4 – Segment Information

 

The Company’s operations consist of two operating and reportable segments, Manufacturing and Aftermarket. The Company identifies reportable segments based on differences in products and services. The Company’s Manufacturing segment includes new railcar manufacturing, used railcar sales, and major conversions and rebodies. The Company’s Aftermarket segment includes the selling of forged, cast and fabricated railcar parts and supplies for all railcar types, and provides aftermarket services including safety training, railcar inspections, and preventative maintenance.

 

The Company’s designated Chief Operating Decision Maker (“CODM”) is our President and Chief Executive Officer. The CODM uses segment gross profit and segment operating income to allocate resources to segments during the planning and forecasting process and assess performance in a given period. Segment gross profit and segment operating income include all external revenues attributable to the segments as well as operating costs and income that management believes are directly attributable to the current production of goods and services. The Company’s management reporting package does not include interest revenue, interest expense or income taxes allocated to individual segments and these items are not considered as a component of segment operating income. Intersegment revenues were not material in any period presented.

 

A summary of segment information and reconciliation to consolidated (loss) income before income taxes is as follows:

 

 

 

Three Months Ended

 

 

 

September 30, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

153,956

 

 

$

6,555

 

 

$

-

 

 

$

160,511

 

Cost of sales

 

 

131,789

 

 

 

4,517

 

 

 

-

 

 

 

136,306

 

Gross profit

 

$

22,167

 

 

$

2,038

 

 

$

-

 

 

$

24,205

 

Other segment items (1)

 

 

437

 

 

 

554

 

 

 

8,656

 

 

 

9,647

 

Operating income (loss)

 

$

21,730

 

 

$

1,484

 

 

$

(8,656

)

 

$

14,558

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(4,638

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(17,589

)

Consolidated other income

 

 

 

 

 

 

 

 

 

 

 

78

 

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(7,591

)

 

(1) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

 

 

Three Months Ended

 

 

 

September 30, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

109,080

 

 

$

4,175

 

 

$

-

 

 

$

113,255

 

Cost of sales

 

 

94,784

 

 

 

2,275

 

 

 

-

 

 

 

97,059

 

Gross profit

 

$

14,296

 

 

$

1,900

 

 

$

-

 

 

$

16,196

 

Other segment items (1)

 

 

473

 

 

 

323

 

 

 

6,742

 

 

 

7,538

 

Operating income (loss)

 

$

13,823

 

 

$

1,577

 

 

$

(6,742

)

 

$

8,658

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(1,577

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(110,040

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(680

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(103,639

)

 

(1) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

 

 

Nine Months Ended

 

 

 

September 30, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

354,888

 

 

$

20,536

 

 

$

-

 

 

$

375,424

 

Cost of sales

 

 

305,685

 

 

 

13,319

 

 

 

-

 

 

 

319,004

 

Gross profit

 

$

49,203

 

 

$

7,217

 

 

$

-

 

 

$

56,420

 

Other segment items (1)

 

 

1,196

 

 

 

1,630

 

 

 

27,458

 

 

 

30,284

 

Operating income (loss)

 

$

48,007

 

 

$

5,587

 

 

$

(27,458

)

 

$

26,136

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(13,356

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(12,331

)

Consolidated other income

 

 

 

 

 

 

 

 

 

 

 

3,235

 

Consolidated income before income taxes

 

 

 

 

 

 

 

 

 

 

$

3,684

 

 

(1) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

 

 

Nine Months Ended

 

 

 

September 30, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

407,336

 

 

$

14,393

 

 

$

-

 

 

$

421,729

 

Cost of sales

 

 

368,318

 

 

 

7,382

 

 

 

-

 

 

 

375,700

 

Gross profit

 

$

39,018

 

 

$

7,011

 

 

$

-

 

 

$

46,029

 

Other segment items (1)

 

 

(1,798

)

 

 

1,123

 

 

 

21,002

 

 

 

20,327

 

Operating income (loss)

 

$

40,816

 

 

$

5,888

 

 

$

(21,002

)

 

$

25,702

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(5,815

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(125,581

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(1,419

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(107,113

)

 

(1) Other segment items in Manufacturing include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket and Corporate segments include selling, general and administrative expenses.

 

A summary of segment depreciation, amortization and capital expenditures is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

1,433

 

 

$

1,331

 

 

$

4,229

 

 

$

3,906

 

Aftermarket

 

 

35

 

 

 

36

 

 

 

106

 

 

 

121

 

Corporate

 

 

84

 

 

 

75

 

 

 

263

 

 

 

225

 

Consolidated depreciation and amortization

 

$

1,552

 

 

$

1,442

 

 

$

4,598

 

 

$

4,252

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

1,146

 

 

$

1,277

 

 

$

1,993

 

 

$

3,485

 

Aftermarket

 

 

18

 

 

 

15

 

 

 

18

 

 

 

15

 

Corporate

 

 

-

 

 

 

170

 

 

 

91

 

 

 

231

 

Consolidated capital expenditures

 

$

1,164

 

 

$

1,462

 

 

$

2,102

 

 

$

3,731

 

 

Segment assets represent operating assets and exclude intersegment accounts, deferred tax assets and income tax receivables. The Company does not allocate cash and cash equivalents to its operating segments as the Company’s treasury function is managed at the corporate level. A summary of segment assets is as follows:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

213,769

 

 

$

165,702

 

Aftermarket

 

 

12,404

 

 

 

11,014

 

Corporate

 

 

65,063

 

 

 

46,361

 

Total operating assets

 

 

291,236

 

 

 

223,077

 

Consolidated income taxes receivable

 

 

49,520

 

 

 

1,139

 

Consolidated assets

 

$

340,756

 

 

$

224,216

 

 

A summary of revenues and long-lived assets by geographic information is as follows:

 

Geographic Information

 

 

 

Revenues

 

 

Long Lived Assets (a)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

160,511

 

 

$

113,255

 

 

$

375,424

 

 

$

421,729

 

 

$

3,276

 

 

$

3,856

 

Mexico

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

65,607

 

 

 

73,755

 

Total

 

$

160,511

 

 

$

113,255

 

 

$

375,424

 

 

$

421,729

 

 

$

68,883

 

 

$

77,611

 

 

 

(a) Long lived assets include property, plant and equipment, net and right of use (ROU) assets.
v3.25.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 5 – Fair Value Measurements

 

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of assets and liabilities and the placement within the fair value hierarchy levels.

 

The Company classifies the inputs to valuation techniques used to measure fair value as follows:

Level 1 — Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2 — Inputs other than quoted prices for Level 1 inputs that are either directly or indirectly observable for the asset or liability including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means.

Level 3 — Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.

 

The following table sets forth by level within the fair value hierarchy the Company’s financial assets that were recorded at fair value on a recurring basis and the Company’s non-financial assets that were recorded at fair value on a non-recurring basis.

 

Recurring Fair Value Measurements

 

As of September 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative asset

 

$

-

 

 

$

1,080

 

 

$

-

 

 

$

1,080

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

148,650

 

 

$

-

 

 

$

148,650

 

 

Recurring Fair Value Measurements

 

As of December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

136,319

 

 

$

-

 

 

$

136,319

 

Foreign currency derivative liability

 

$

-

 

 

$

1,396

 

 

$

-

 

 

$

1,396

 

 

Non-recurring Fair Value Measurements

 

During the Year Ended December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Assets held for sale

 

$

-

 

 

$

-

 

 

$

629

 

 

$

629

 

 

 

The fair value of the Company’s Warrant (as defined in Note 10 - Warrants) liability recorded in the Company’s financial statements, determined using the quoted price of the Company’s common stock, par value $0.01 per share (the “Common Stock”), in an active market, exercise prices ($0.01/share and $3.57/share) and number of shares exercisable, as of September 30, 2025 and December 31, 2024, is a Level 2 measurement.

The fair value of the Company’s foreign currency forward contracts, determined using exit prices obtained from each counterparty, which are based on currency spot and forward rates, as of September 30, 2025 and December 31, 2024 in an active market, is a Level 2 measurement. For further information, see Note 15 - Derivatives.

 

The fair value of the Company’s fleet of triple hopper aggregate railcars held for sale determined using a market-based appraisal, during the year ended December 31, 2024, is a Level 3 measurement. In April 2025, the Company sold the railcars in their current condition.

v3.25.3
Restricted Cash
 9 Months Ended
Sep. 30, 2025
Restricted Cash [Abstract]  
Restricted Cash

Note 6 – Restricted Cash

 

The Company establishes restricted cash balances (i) when required by customer contracts, (ii) to collateralize standby letters of credit, (iii) to collateralize corporate card programs and (iv) to collateralize foreign currency derivative contracts. The carrying value of restricted cash approximates its fair value.

 

The Company’s restricted cash balances are as follows:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Restricted cash from customer deposit

 

$

281

 

 

$

282

 

Restricted cash to collateralize standby letters of credit

 

 

-

 

 

 

197

 

Restricted cash to collateralize corporate card program

 

 

221

 

 

 

103

 

Restricted cash to collateralize foreign currency derivatives

 

 

-

 

 

 

3,300

 

Total restricted cash and restricted cash equivalents

 

$

502

 

 

$

3,882

 

 
v3.25.3
Inventories
 9 Months Ended
Sep. 30, 2025
Inventory Disclosure [Abstract]  
Inventories

Note 7 – Inventories

 

Inventories, net of reserve for excess and obsolete items, consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Raw materials

 

$

59,904

 

 

$

47,340

 

Work in process

 

 

14,030

 

 

 

9,323

 

Finished railcars

 

 

23,342

 

 

 

12,640

 

Parts inventory

 

 

6,967

 

 

 

5,978

 

Total inventories, net

 

$

104,243

 

 

$

75,281

 

 

Inventory on the Company’s condensed consolidated balance sheets includes reserves of $2,085 and $1,852 relating to excess or slow-moving parts inventory and raw materials as of September 30, 2025 and December 31, 2024, respectively.

v3.25.3
Product Warranties
 9 Months Ended
Sep. 30, 2025
Product Warranties Disclosures [Abstract]  
Product Warranties

Note 8 – Product Warranties

 

Warranty terms are based on the negotiated railcar sale, rebody or conversion contract, as applicable. Changes in the warranty reserve for the nine months ended September 30, 2025 and 2024 are as follows:

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

 

 

2025

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the period

 

 

$

2,389

 

 

 

$

1,602

 

 

Current year provision

 

 

 

397

 

 

 

 

511

 

 

Reductions for payments, costs of repairs and other

 

 

 

(1,507

)

 

 

 

(340

)

 

Adjustments to prior warranties

 

 

 

718

 

 

 

 

(280

)

 

Balance at the end of the period

 

 

$

1,997

 

 

 

$

1,493

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to prior warranties include changes in the warranty reserve for warranties issued in prior periods due to expiration of the warranty period, revised warranty cost estimates and other factors.
v3.25.3
Debt Financing and Credit Facilities
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Debt Financing and Credit Facilities

Note 9 – Debt Financing and Credit Facilities

 

Long-term debt consists of the following as of September 30, 2025 and December 31, 2024:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Term loan

 

$

112,844

 

 

$

115,000

 

Less term loan deferred financing costs

 

 

(5,290

)

 

 

(6,585

)

Total debt, net of deferred financing costs

 

 

107,554

 

 

 

108,415

 

Less amounts due within one year

 

 

(2,875

)

 

 

(2,875

)

Long-term debt, net of current portion

 

$

104,679

 

 

$

105,540

 

 

On December 31, 2024, the Company entered into a term loan agreement by and among the Company, FreightCar North America, LLC and certain subsidiaries of FreightCar North America, LLC, the lenders from time to time party thereto, and Blue Torch Finance LLC, as collateral agent and administrative agent in the principal amount of $115,000 (the “Term Loan”) with a maturity date of December 31, 2028. The Term Loan contains both affirmative and negative covenants, as well as financial covenants, including covenants related to liquidity levels, assessed at any time, and quarterly leverage ratios commencing with the three months ended March 31, 2025. The Company is in compliance with such covenants as of September 30, 2025. Proceeds from the Term Loan were used to redeem in full the Preferred Stock (as defined in Note 11 - Mezzanine Equity). The Company incurred $6,511 in deferred financing costs that are presented as a reduction of the long-term debt balance and amortized to interest expense over the term of the Term Loan.

 

The Term Loan bears interest at the Term Secured Overnight Refinancing Rate (“Term SOFR”) rate, with a floor of 3.00% per annum, plus an applicable margin of 6.00% per annum or at a base rate, as selected by the Company as the borrower. Base rate loans, with respect to the Term Loan, bear interest at the highest of (a) 4.00% per annum, (b) the federal funds rate plus 0.50%, (c) the prime rate or (d) the Term SOFR rate plus 1.00% per annum plus an applicable margin of 5.00%. The Term Loan bears interest at 10.3% as of September 30, 2025.

 

On February 12, 2025 (the “ABL Effective Date”), the Company entered into a new revolving credit facility by and among the Company, FreightCar North America, LLC, certain subsidiaries of FreightCar North America, LLC, the lenders from time to time party thereto, and Bank of America, N.A., as agent for the lenders in the form of an asset backed credit facility exists in the maximum aggregate principal amount of $35,000 (the “ABL”), subject to borrowing base requirements and consisting of revolving loans and a sub-facility for letters of credit. The ABL has a term ending on February 12, 2030, provided that if the aggregate outstanding principal amount and related obligations under the Term Loan have not been repaid in full or prior to October 1, 2028, or refinanced with a new maturity date no earlier than May 13, 2030, the term will end on October 2, 2028.

 

Extensions of credit under the ABL are subject to availability under a borrowing base comprised of various percentages of the value of eligible inventory and accounts receivable, which also serves as collateral for borrowings under the ABL. The ABL contains both affirmative and negative covenants, as well as certain financial covenants that are triggered if the availability drops below a certain level. These financial covenants remain in effect as long as the availability stays below that level. The Company is in compliance with such covenants as of September 30, 2025. Revolving loans outstanding bear interest at the Term SOFR rate plus an applicable margin ranging from 1.50% to 2.00% per annum or at a base rate plus an applicable margin ranging from 0.50% to 1.00% per annum, as selected by the Company as the borrower. Base rate loans, with respect to the ABL, bear interest at the highest of (a) the prime rate, (b) the federal funds rate plus 0.50% or (c) Term SOFR rate plus 1.00%, provided that the base rate may not be less than 1.00%. As of September 30, 2025, the ABL bears interest at 6.1% and the Company had borrowing availability of $22,107, of which $452 was reserved for the movement in mark to market valuation of our foreign currency derivatives and $197 was reserved to collateralize standby letters of credit for an office lease security deposit. The Company incurred $874 in deferred financing costs that are presented as an asset and amortized to interest expense over the term of the ABL.

 

The fair value of debt approximates its carrying value as of September 30, 2025 as the interest rate is variable and resets periodically based on Term SOFR. There have been no significant changes in the Company’s credit risk or the relevant market spreads since origination.
v3.25.3
Warrants
 9 Months Ended
Sep. 30, 2025
Warrants and Rights Note Disclosure [Abstract]  
Warrants

Note 10 – Warrants

 

The Company issued warrants to OC III LFE II LP (“OC III LFE”) and various affiliates of OC III LFE (collectively, the “Warrantholder”) in previous years to purchase a number of shares of Common Stock equal to 23% (the “2020 Warrant”), 5% (the “2021 Warrant”), and 5% (the “2022 Warrant”) of the outstanding Common Stock (after giving effect to such issuance) on a fully-diluted basis at the time the warrants are exercised. The 2020 Warrant, 2021 Warrant, and 2022 Warrant each have a per share exercise price of $0.01 and a term of ten (10) years from date of issuance.

 

The 2020 Warrant, issued in November 2020, was exercisable for an aggregate of 9,609,116 and 9,626,968 shares of Common Stock as of September 30, 2025 and December 31, 2024, respectively. The 2021 Warrant, issued in December 2021, was exercisable for an aggregate of 2,088,938 and 2,092,819 shares of Common Stock as of September 30, 2025 and December 31, 2024, respectively. The 2022 Warrant, issued in April 2022, was exercisable for an aggregate of 2,088,938 and 2,092,819 shares of Common Stock as of September 30, 2025 and December 31, 2024, respectively. The Company also issued a warrant to the Warrantholder in May 2023 to purchase an aggregate of 1,636,313 shares of Common Stock (the “2023 Warrant”), exercisable for a term of ten (10) years from date of issuance with a per share exercise price of $3.57.

 

The 2020 Warrant, 2021 Warrant, 2022 Warrant and 2023 Warrant are collectively referred to herein as the “Warrant”. As of September 30, 2025, the Warrant is classified as a liability and subject to fair value remeasurement at each balance sheet date. The fair value of the Warrant as of September 30, 2025 and December 31, 2024 was $148,650 and $136,319, respectively. The change in fair value of the Warrant is reported on a separate line in the condensed consolidated statements of operations.
v3.25.3
Mezzanine Equity
 9 Months Ended
Sep. 30, 2025
Equity [Abstract]  
Mezzanine Equity

Note 11 – Mezzanine Equity

 

In May 2023, the Company issued to OC III LFE 85,412 shares of non-convertible Series C Preferred Stock, $0.01 par value per share, with an initial stated and fair value of $85,412 or $1,000 per share (the “Preferred Stock”). The Company classified the Preferred Stock as mezzanine equity (temporary equity outside of permanent equity) because a deemed liquidation event following a change of control may require redemption of the Preferred Stock that is not solely within the control of the Company. Dividends were

cumulative and accrued at a rate of 17.50% per annum on the initial stated value of the Preferred Stock. Issuance costs of $2,301 were allocated against the outstanding shares of the Preferred Stock upon issuance and amortized using the effective yield method.

 

On December 31, 2024, the Company used the proceeds from the Term Loan to redeem all outstanding shares of Preferred Stock. The Preferred Stock was redeemed at $1,000 per share, for a total redemption price of $113,275, including accrued dividends of $27,863. For further information on the Term Loan, see Note 9 - Debt Financing and Credit Facilities.
v3.25.3
Accumulated Other Comprehensive Income
 9 Months Ended
Sep. 30, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income

Note 12 – Accumulated Other Comprehensive Income

The changes in accumulated other comprehensive income consist of the following:

 

Three months ended September 30, 2025

 

Pre-Tax

 

 

Tax

 

 

After-Tax

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

32

 

 

$

(7

)

 

$

25

 

Other comprehensive gain before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized gain on foreign currency derivatives

 

 

452

 

 

 

(96

)

 

 

356

 

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on commodity swap derivatives reclassified into cost of sales

 

 

(32

)

 

 

7

 

 

 

(25

)

Gain on foreign currency derivatives reclassified into cost of sales

 

 

(960

)

 

 

204

 

 

 

(756

)

 

 

$

(508

)

 

$

108

 

 

$

(400

)

 

Three months ended September 30, 2024

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

39

 

 

$

-

 

 

$

39

 

Other comprehensive loss before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized loss on foreign currency derivatives

 

 

(1,195

)

 

 

-

 

 

 

(1,195

)

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Loss on foreign currency derivatives reclassified into cost of sales

 

 

72

 

 

 

-

 

 

 

72

 

 

 

$

(1,084

)

 

$

-

 

 

$

(1,084

)

 

Nine months ended September 30, 2025

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

97

 

 

$

(21

)

 

$

76

 

Other comprehensive gain before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized gain on commodity swap derivatives

 

 

148

 

 

 

(32

)

 

 

116

 

Unrealized gain on foreign currency derivatives

 

 

2,949

 

 

 

(628

)

 

 

2,321

 

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on commodity swap derivatives reclassified into cost of sales

 

 

(32

)

 

 

7

 

 

 

(25

)

Gain on foreign currency derivatives reclassified into cost of sales

 

 

(473

)

 

 

100

 

 

 

(373

)

 

 

$

2,689

 

 

$

(574

)

 

$

2,115

 

 

Nine months ended September 30, 2024

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

109

 

 

$

-

 

 

$

109

 

Other comprehensive loss before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized loss on foreign currency derivatives

 

 

(1,941

)

 

 

-

 

 

 

(1,941

)

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on foreign currency derivatives reclassified into cost of sales

 

 

(449

)

 

 

-

 

 

 

(449

)

 

 

$

(1,832

)

 

$

-

 

 

$

(1,832

)

 

 

The components of accumulated other comprehensive income consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

2025

 

 

2024

 

Unrecognized pension income, net of tax of $6,261 and $6,282, respectively

 

$

2,193

 

 

$

2,117

 

Unrealized gain on commodity swap derivatives, net of tax of $25 and $0, respectively

 

 

91

 

 

 

-

 

Unrealized gain (loss) on foreign currency derivatives, net of tax of $528 and $0, respectively

 

 

552

 

 

 

(1,396

)

 

 

$

2,836

 

 

$

721

 
v3.25.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2025
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stock-Based Compensation

Note 13 – Stock-Based Compensation

 

Total stock-based compensation was $433 and $804 for the three months ended September 30, 2025 and 2024, respectively, and $3,134 and $2,330 for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, there was $1,639 of unearned compensation expense related to restricted stock awards, which will be recognized over the remaining weighted average requisite service period of 24 months. As of September 30, 2025, there was $1,406 of unearned compensation expense related to time-vested stock options, which will be recognized over the remaining requisite service period of 17 months.

 

In June 2023, the Company issued 300,000 inducement stock options (the “Inducement Options”) outside of the FreightCar America, Inc. 2022 Long Term Incentive Plan to one individual. As of September 30, 2025, there was $46 of unrecognized compensation expense related to the Inducement Options, which will be recognized over the remaining requisite service period of 9 months.
v3.25.3
Employee Benefit Plans
 9 Months Ended
Sep. 30, 2025
Retirement Benefits [Abstract]  
Employee Benefit Plans

Note 14 – Employee Benefit Plans

 

The Company has a qualified, defined benefit pension plan (the “Plan”) that was established to provide benefits to certain employees. The Plan is frozen and participants are no longer accruing benefits. Generally, contributions to the Plan were not less than the minimum amounts required under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and not more than the maximum amount that can be deducted for federal income tax purposes. The Plan assets are held by an independent trustee and consist primarily of equity and fixed income securities.

 

The components of net periodic benefit cost for the three and nine months ended September 30, 2025 and 2024, are as follows:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

Pension Benefits

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Interest cost

 

$

133

 

 

$

130

 

 

$

397

 

 

$

399

 

Expected return on plan assets

 

 

(68

)

 

 

(70

)

 

 

(202

)

 

 

(220

)

Amortization of unrecognized net income

 

 

32

 

 

 

39

 

 

 

97

 

 

 

109

 

 

 

$

97

 

 

$

99

 

 

$

292

 

 

$

288

 

 

The Company made no significant contributions to the Plan for the three and nine months ended September 30, 2025 and 2024. We may be required to make a contribution to the Plan in 2026 to meet minimum funding requirements. However, we may elect to adjust the level of contributions based on a number of factors, including performance of pension investments and changes in interest rates.

 

The Company also maintains qualified defined contribution plans, which provide benefits to employees based on employee contributions and employee earnings with discretionary contributions allowed.
v3.25.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

Note 16 - Commitments and Contingencies

 

The Company is involved in various litigation matters from time to time, including intellectual property litigation, and warranty and repair claims incidental to the conduct of our business. Although the Company is taking actions to vigorously contest these matters, it is not possible to determine the outcome of these matters and proceedings. The Company does not believe these actions will have a material adverse effect on our financial position, results of operations or cash flows.

 
v3.25.3
Derivatives
 9 Months Ended
Sep. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives

Note 15 – Derivatives

 

The Company’s operations and expenditures in its normal course of business are subject to opportunities and risks related to foreign currency and commodity price fluctuations. From time to time, the Company utilizes foreign currency forward contracts to hedge Mexican Peso denominated expenses against exchange rate volatility, and commodity swap contracts to hedge anticipated and probable commodity price fluctuations.

Since 2023, the Company has entered into foreign currency forward contracts with terms between one and 12 months, which require the Company to exchange currencies at agreed-upon rates at each settlement date. In May 2025, the Company entered into a commodity swap contract with a term of three months. The counterparties to both types of contracts consist of a limited number of

domestic and international financial institutions. The Company classifies these contract types as cash flow hedges in accordance with ASC 815, Derivatives and Hedging.

 

The Company does not have any non-designated derivatives. The Company assesses the assumed effectiveness of the contracts at each reporting period. The derivative instruments are recorded on the balance sheets at fair value. The Company records unrealized gains or losses related to changes in the fair value of the derivative instruments in other comprehensive income as long as the contracts are assumed to be effective. Amounts accumulated in other comprehensive income are reclassified to the condensed consolidated statements of operations on the same line as the items being hedged when the hedged item impacts earnings or upon determination that the contract is no longer assumed to be effective.
 

The notional amounts of outstanding derivative instruments are as follows:

 

 

 

September 30,

 

 

December 31,

 

Notional Amount

 

2025

 

 

2024

 

Derivative instruments designated as hedges:

 

 

 

 

 

 

Foreign currency derivatives

 

$

7,548

 

 

$

8,780

 

 

The fair value of outstanding derivative instruments designated as hedges are as follows:

 

 

 

September 30,

 

 

December 31,

 

Fair Value

 

2025

 

 

2024

 

Prepaid expenses and current assets:

 

 

 

 

 

 

Foreign currency derivatives

 

$

1,080

 

 

$

-

 

Other current liabilities:

 

 

 

 

 

 

Foreign currency derivatives

 

$

-

 

 

$

1,396

 

 

The pre-tax realized (gains) losses on commodity swap and foreign currency derivatives are recognized in the condensed consolidated statements of operations as follows:

 

 

 

 

 

Amount of (Gain)/Loss Recognized

 

 

Amount of Gain Recognized

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

Location of Realized (Gain)/Loss Recognized in the Condensed Consolidated Statements of Operations

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Derivative instruments designated as cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity swap derivatives

 

Cost of sales

 

$

(32

)

 

$

-

 

 

$

(32

)

 

$

-

 

Foreign currency derivatives

 

Cost of sales

 

$

(960

)

 

$

72

 

 

$

(473

)

 

$

(449

)
v3.25.3
(Loss) Earnings Per Share
 9 Months Ended
Sep. 30, 2025
Earnings Per Share [Abstract]  
(Loss) Earnings Per Share

Note 17 – (Loss) Earnings Per Share

 

The net (loss) income available to common stockholders and weighted-average common shares outstanding are as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(7,445

)

 

$

(107,046

)

 

$

54,682

 

 

$

(110,440

)

Accretion of financing fees

 

 

-

 

 

 

(144

)

 

 

-

 

 

 

(431

)

Accrued dividends on Series C Preferred Stock

 

 

-

 

 

 

(4,676

)

 

 

-

 

 

 

(13,340

)

Allocation of undistributed earnings to nonvested restricted shares

 

 

-

 

 

 

-

 

 

 

(1,828

)

 

 

-

 

Net (loss) income available to common stockholders - basic

 

$

(7,445

)

 

$

(111,866

)

 

$

52,854

 

 

$

(124,211

)

Undistributed earnings reallocated to nonvested restricted shares

 

 

-

 

 

 

-

 

 

 

103

 

 

 

-

 

Net (loss) income available to common stockholders - diluted

 

$

(7,445

)

 

$

(111,866

)

 

$

52,957

 

 

$

(124,211

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

18,088,444

 

 

 

17,633,629

 

 

 

17,981,898

 

 

 

17,433,479

 

Issuance of Warrants

 

 

13,799,482

 

 

 

13,720,368

 

 

 

13,796,870

 

 

 

13,086,066

 

Weighted average common shares outstanding - basic

 

 

31,887,926

 

 

 

31,353,997

 

 

 

31,778,768

 

 

 

30,519,545

 

Issuance of Fixed Warrants

 

 

-

 

 

 

-

 

 

 

962,424

 

 

 

-

 

Dilutive effect of employee stock options

 

 

-

 

 

 

-

 

 

 

997,286

 

 

 

-

 

Weighted average common shares outstanding - diluted

 

 

31,887,926

 

 

 

31,353,997

 

 

 

33,738,478

 

 

 

30,519,545

 

 

 

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for Common Stock and participating securities. The Company’s participating securities are its grants of restricted stock which contain non-forfeitable rights to dividends. The Company allocates earnings between both classes; however, in periods of undistributed losses, they are only allocated to common shares as the unvested restricted stockholders do not contractually participate in losses of the Company. The Company computes basic earnings per share by dividing net income allocated to common shareholders by the weighted average number of shares outstanding during the period. Warrants issued in connection with the Company’s long-term debt were issued at a nominal exercise price and are considered outstanding at the date of issuance. The 2023 Warrant was issued out-of-the money and the Company will apply the treasury stock method to the 2023 Warrant when computing earnings per share. Diluted earnings per share is calculated to give effect to all potentially dilutive common shares that were outstanding during the period. Weighted average diluted common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and the assumed vesting of non-vested share awards. For the three months ended September 30, 2025 and 2024, 2,288,859 and 2,058,180 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive. For the nine months ended September 30, 2025 and 2024, 2,285,159 and 3,119,672 shares, respectively, were not included in the weighted average common shares outstanding calculation as they were anti-dilutive.

 

Shareholder Rights Plan

 

On September 2, 2025, the Company’s Board of Directors declared a dividend of one preferred share purchase right (a “Right”), payable on September 8, 2025, for each outstanding share of the Company’s common stock to stockholders of record on September 2, 2025. Each Right entitles the shareholder to purchase from the Company one one-hundredth of a share of Series D Junior Participating Preferred Stock for $42.00, once the Rights become exercisable, subject to adjustment.

The Rights will initially trade with and will be inseparable from common stock. The Rights will not be exercisable until: i) 10 business days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 15% or more of the Company’s outstanding common stock (or 20% or more in the case of a person or group that is entitled to file, and does file, a Schedule 13G (a “13G Investor”)); or ii) 10 business days after a person or group begins or announces a tender or exchange offer which, if completed, would result in that person or group becoming an Acquiring Person. The Rights will expire on August 5, 2026, unless the Expiration Date is advanced or extended or unless the Rights are earlier redeemed or exchanged by the Company.
v3.25.3
Related Parties
 9 Months Ended
Sep. 30, 2025
Related Party Transactions [Abstract]  
Related Parties

Note 18 – Related Parties

 

The following persons are owners of Fabricaciones y Servicios de México, S.A. de C.V. (“Fasemex”): Jesús Gil, a director of the Company; and Alejandro Gil and Salvador Gil, siblings of Jesús Gil. Fasemex owns approximately 10.2% of the outstanding shares of Common Stock as of September 30, 2025 and provides steel fabrication services to the Company. The lessors of the Manufacturing Facility are Jesús Gil, Alejandro Gil, and Salvador Gil. Distribuciones Industriales JAS S.A. de C.V. (“DI”) is owned by Alejandro Gil and Salvador Gil and provides material and safety supplies to the Company. Maquinaria y equipo de transporte Jova S.A. de C.V (“METJ”) is owned by Jorge Gil, a sibling of Jesús Gil, and provides trucking services to the Company. Additionally, Alejandro Gil has joint ownership of an external warehouse in Castaños, Coahuila, Mexico that the Company started leasing on July 1, 2025. Fasemex, DI, METJ, Jesús Gil, Alejandro Gil, Salvador Gil, and Jorge Gil are collectively referred to as the “Gil Family”.

The Company paid $6,109 and $17,025 to the Gil Family during the three and nine months ended September 30, 2025, respectively, and $6,058 and $20,711 during the three and nine months ended September 30, 2024, respectively, related to steel fabrication services, rent and security deposit payments for the Manufacturing Facility, material and safety supplies, trucking services and royalty payments.

Until June 9, 2025, Commercial Specialty Truck Holdings, LLC (“CSTH”) was minority owned by James R. Meyer, a member of our Board, our former CEO, and beneficial owner of over 5% of our Common Stock. On June 9, 2025, Mr. Meyer divested his ownership interest in CSTH, at which point CSTH ceased to be a related party. The Company sold no specialty parts supplies in an amount equal to $0 and $167 to CSTH during the three and nine months ended September 30, 2025, respectively. The Company sold specialty parts in an amount equal to $268 and $683 to CSTH during the three and nine months ended September 30, 2024, respectively.

 

Related party asset, included in prepaid expenses and other current assets on the condensed consolidated balance sheets, of $566 as of September 30, 2025, includes other assets of $566 from the Gil Family. Related party accounts payable, included in other current liabilities on the condensed consolidated balance sheets, of $4,442 as of September 30, 2025 are payable to the Gil Family. Related party asset, included in prepaid expenses and other current assets on the condensed consolidated balance sheets, of $959 as of December 31, 2024 includes other receivables of $614 from the Gil Family and $345 from CSTH. Related party accounts payable, included in other current liabilities on the condensed consolidated balance sheets of $2,693 as of December 31, 2024 are payable to the Gil Family.
v3.25.3
Income Taxes
 9 Months Ended
Sep. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

Note 19 – Income Taxes

 

The Company’s tax provision for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items. The Company’s reported effective income tax rate was 1.9% and (3.3)% for the three months ended September 30, 2025 and 2024, respectively. The effective tax rate of 1.9% for the three months ended September 30, 2025 is lower than the 21% U.S. statutory tax rate due to the decreased year-to-date and forecasted income with respect to estimated tax expense, which includes substantial permanent differences (such as nondeductible losses associated with mark to market adjustments on stock warrants) and remained relatively flat. The effective tax rate for the three months ended September 30, 2025 differs from the effective tax rate for the three months ended September 30, 2024 due to the mix of income from jurisdictions with different statutory tax rates and the impact of permanent items.

 

The Company’s effective tax rate was (1,384.5)% and (3.1)% for the nine months ended September 30, 2025 and 2024, respectively. The effective tax rate of (1,384.5)% varies from the U.S. statutory tax rate of 21% and the effective tax rate for the nine months ended September 30, 2024, primarily due to a release of the majority of the valuation allowance in the United States on federal and state deferred tax assets. The positive year-to-date pre-tax income, when compared to the overall tax benefit, results in a negative year-to-date effective tax rate.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA makes permanent many of the tax provisions enacted in 2017 as part of the Tax Cuts and Jobs Act that were set to expire at the end of 2025. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented as of 2026. The impact of these tax law changes is not material to the consolidated financial statements.
v3.25.3
Basis of Presentation (Policy)
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

The accompanying condensed consolidated financial statements include the accounts of FreightCar and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The foregoing financial information has been prepared in accordance with the accounting principles generally accepted in the United States of America (“GAAP”) and rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial reporting. The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year. The accompanying interim financial information is unaudited; however, the Company believes the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of financial position, results of operations and cash flows in conformity with GAAP. The 2024 year-end balance sheet data was derived from the audited financial statements as of December 31, 2024.

 

Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with GAAP have been condensed or omitted. Certain prior year amounts have been reclassified, where necessary, to conform to the current year presentation. There is no impact on previously reported consolidated statements of operations or statements of cash flows as a result of these reclassifications. In the absence of specific guidance under GAAP, the Company elected to apply International Accounting Standard (“IAS”) 20 by analogy to account for an Employee Retention Credit (“ERC”) of $187 and $3,304 received during the three and nine months ended September 30, 2025, respectively. The Company applied for the credit in September 2023 after assessing certain eligibility criteria. The ERC funds received are recognized as other income in the condensed consolidated statements of operations. The Company acknowledges the potential for IRS review or clawback; however, based on the assessment of eligibility and information submitted, the payments received, and the notices issued by the IRS, the Company believes the likelihood of repayment is remote. These interim financial statements should be read in conjunction with the audited financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

v3.25.3
Revenue Recognition (Tables)
 9 Months Ended
Sep. 30, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue Recognition

The following table disaggregates the Company’s revenues by major source:

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

September 30,

 

September 30,

 

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Railcar sales

 

 

$

153,883

 

 

$

109,010

 

 

$

354,667

 

 

$

405,684

 

Aftermarket sales

 

 

 

6,555

 

 

 

4,175

 

 

 

20,536

 

 

 

14,393

 

Revenues from contracts with customers

 

 

 

160,438

 

 

 

113,185

 

 

 

375,203

 

 

 

420,077

 

Leasing revenues

 

 

 

73

 

 

 

70

 

 

 

221

 

 

 

1,652

 

Total revenues

 

 

$

160,511

 

 

$

113,255

 

 

$

375,424

 

 

$

421,729

 
v3.25.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment

A summary of segment information and reconciliation to consolidated (loss) income before income taxes is as follows:

 

 

 

Three Months Ended

 

 

 

September 30, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

153,956

 

 

$

6,555

 

 

$

-

 

 

$

160,511

 

Cost of sales

 

 

131,789

 

 

 

4,517

 

 

 

-

 

 

 

136,306

 

Gross profit

 

$

22,167

 

 

$

2,038

 

 

$

-

 

 

$

24,205

 

Other segment items (1)

 

 

437

 

 

 

554

 

 

 

8,656

 

 

 

9,647

 

Operating income (loss)

 

$

21,730

 

 

$

1,484

 

 

$

(8,656

)

 

$

14,558

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(4,638

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(17,589

)

Consolidated other income

 

 

 

 

 

 

 

 

 

 

 

78

 

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(7,591

)

 

(1) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

 

 

Three Months Ended

 

 

 

September 30, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

109,080

 

 

$

4,175

 

 

$

-

 

 

$

113,255

 

Cost of sales

 

 

94,784

 

 

 

2,275

 

 

 

-

 

 

 

97,059

 

Gross profit

 

$

14,296

 

 

$

1,900

 

 

$

-

 

 

$

16,196

 

Other segment items (1)

 

 

473

 

 

 

323

 

 

 

6,742

 

 

 

7,538

 

Operating income (loss)

 

$

13,823

 

 

$

1,577

 

 

$

(6,742

)

 

$

8,658

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(1,577

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(110,040

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(680

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(103,639

)

 

(1) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

 

 

Nine Months Ended

 

 

 

September 30, 2025

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

354,888

 

 

$

20,536

 

 

$

-

 

 

$

375,424

 

Cost of sales

 

 

305,685

 

 

 

13,319

 

 

 

-

 

 

 

319,004

 

Gross profit

 

$

49,203

 

 

$

7,217

 

 

$

-

 

 

$

56,420

 

Other segment items (1)

 

 

1,196

 

 

 

1,630

 

 

 

27,458

 

 

 

30,284

 

Operating income (loss)

 

$

48,007

 

 

$

5,587

 

 

$

(27,458

)

 

$

26,136

 

Reconciliation to consolidated income before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(13,356

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(12,331

)

Consolidated other income

 

 

 

 

 

 

 

 

 

 

 

3,235

 

Consolidated income before income taxes

 

 

 

 

 

 

 

 

 

 

$

3,684

 

 

(1) Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.

 

 

 

Nine Months Ended

 

 

 

September 30, 2024

 

 

 

Manufacturing

 

 

Aftermarket

 

 

Corporate

 

 

Total

 

Revenues

 

$

407,336

 

 

$

14,393

 

 

$

-

 

 

$

421,729

 

Cost of sales

 

 

368,318

 

 

 

7,382

 

 

 

-

 

 

 

375,700

 

Gross profit

 

$

39,018

 

 

$

7,011

 

 

$

-

 

 

$

46,029

 

Other segment items (1)

 

 

(1,798

)

 

 

1,123

 

 

 

21,002

 

 

 

20,327

 

Operating income (loss)

 

$

40,816

 

 

$

5,888

 

 

$

(21,002

)

 

$

25,702

 

Reconciliation to consolidated loss before income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated interest expense

 

 

 

 

 

 

 

 

 

 

 

(5,815

)

Loss on change in fair market value of Warrant liability

 

 

 

 

 

 

 

 

 

 

 

(125,581

)

Consolidated other expense

 

 

 

 

 

 

 

 

 

 

 

(1,419

)

Consolidated loss before income taxes

 

 

 

 

 

 

 

 

 

 

$

(107,113

)

 

(1) Other segment items in Manufacturing include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket and Corporate segments include selling, general and administrative expenses.

 

A summary of segment depreciation, amortization and capital expenditures is as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

1,433

 

 

$

1,331

 

 

$

4,229

 

 

$

3,906

 

Aftermarket

 

 

35

 

 

 

36

 

 

 

106

 

 

 

121

 

Corporate

 

 

84

 

 

 

75

 

 

 

263

 

 

 

225

 

Consolidated depreciation and amortization

 

$

1,552

 

 

$

1,442

 

 

$

4,598

 

 

$

4,252

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing

 

$

1,146

 

 

$

1,277

 

 

$

1,993

 

 

$

3,485

 

Aftermarket

 

 

18

 

 

 

15

 

 

 

18

 

 

 

15

 

Corporate

 

 

-

 

 

 

170

 

 

 

91

 

 

 

231

 

Consolidated capital expenditures

 

$

1,164

 

 

$

1,462

 

 

$

2,102

 

 

$

3,731

 
Reconciliation of Assets From Segment to Consolidated A summary of segment assets is as follows:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Assets:

 

 

 

 

 

 

Manufacturing

 

$

213,769

 

 

$

165,702

 

Aftermarket

 

 

12,404

 

 

 

11,014

 

Corporate

 

 

65,063

 

 

 

46,361

 

Total operating assets

 

 

291,236

 

 

 

223,077

 

Consolidated income taxes receivable

 

 

49,520

 

 

 

1,139

 

Consolidated assets

 

$

340,756

 

 

$

224,216

 
Geographic Information

A summary of revenues and long-lived assets by geographic information is as follows:

 

Geographic Information

 

 

 

Revenues

 

 

Long Lived Assets (a)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30,

 

 

September 30,

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

United States

 

$

160,511

 

 

$

113,255

 

 

$

375,424

 

 

$

421,729

 

 

$

3,276

 

 

$

3,856

 

Mexico

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

65,607

 

 

 

73,755

 

Total

 

$

160,511

 

 

$

113,255

 

 

$

375,424

 

 

$

421,729

 

 

$

68,883

 

 

$

77,611

 

 

 

(a) Long lived assets include property, plant and equipment, net and right of use (ROU) assets.
v3.25.3
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value, Assets Measured on Recurring Basis and Non-Recurring Basis

The following table sets forth by level within the fair value hierarchy the Company’s financial assets that were recorded at fair value on a recurring basis and the Company’s non-financial assets that were recorded at fair value on a non-recurring basis.

 

Recurring Fair Value Measurements

 

As of September 30, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency derivative asset

 

$

-

 

 

$

1,080

 

 

$

-

 

 

$

1,080

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

148,650

 

 

$

-

 

 

$

148,650

 

 

Recurring Fair Value Measurements

 

As of December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

$

-

 

 

$

136,319

 

 

$

-

 

 

$

136,319

 

Foreign currency derivative liability

 

$

-

 

 

$

1,396

 

 

$

-

 

 

$

1,396

 

 

Non-recurring Fair Value Measurements

 

During the Year Ended December 31, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Assets held for sale

 

$

-

 

 

$

-

 

 

$

629

 

 

$

629

 
v3.25.3
Restricted Cash (Tables)
 9 Months Ended
Sep. 30, 2025
Restricted Cash [Abstract]  
Restricted Cash

The Company’s restricted cash balances are as follows:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Restricted cash from customer deposit

 

$

281

 

 

$

282

 

Restricted cash to collateralize standby letters of credit

 

 

-

 

 

 

197

 

Restricted cash to collateralize corporate card program

 

 

221

 

 

 

103

 

Restricted cash to collateralize foreign currency derivatives

 

 

-

 

 

 

3,300

 

Total restricted cash and restricted cash equivalents

 

$

502

 

 

$

3,882

 

 
v3.25.3
Inventories (Tables)
 9 Months Ended
Sep. 30, 2025
Inventory Disclosure [Abstract]  
Schedule of Inventory Current

Inventories, net of reserve for excess and obsolete items, consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Raw materials

 

$

59,904

 

 

$

47,340

 

Work in process

 

 

14,030

 

 

 

9,323

 

Finished railcars

 

 

23,342

 

 

 

12,640

 

Parts inventory

 

 

6,967

 

 

 

5,978

 

Total inventories, net

 

$

104,243

 

 

$

75,281

 
v3.25.3
Product Warranties (Tables)
 9 Months Ended
Sep. 30, 2025
Product Warranties Disclosures [Abstract]  
Changes in Warranty Reserve Changes in the warranty reserve for the nine months ended September 30, 2025 and 2024 are as follows:

 

 

 

 

For the Nine Months Ended September 30,

 

 

 

 

 

2025

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Balance at the beginning of the period

 

 

$

2,389

 

 

 

$

1,602

 

 

Current year provision

 

 

 

397

 

 

 

 

511

 

 

Reductions for payments, costs of repairs and other

 

 

 

(1,507

)

 

 

 

(340

)

 

Adjustments to prior warranties

 

 

 

718

 

 

 

 

(280

)

 

Balance at the end of the period

 

 

$

1,997

 

 

 

$

1,493

 

 

 

 

 

 

 

 

 

 

 

 
v3.25.3
Debt Financing and Credit Facilities (Tables)
 9 Months Ended
Sep. 30, 2025
Debt Disclosure [Abstract]  
Schedule of Long Term Debt Instruments

Long-term debt consists of the following as of September 30, 2025 and December 31, 2024:

 

 

 

September 30,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Term loan

 

$

112,844

 

 

$

115,000

 

Less term loan deferred financing costs

 

 

(5,290

)

 

 

(6,585

)

Total debt, net of deferred financing costs

 

 

107,554

 

 

 

108,415

 

Less amounts due within one year

 

 

(2,875

)

 

 

(2,875

)

Long-term debt, net of current portion

 

$

104,679

 

 

$

105,540

 
v3.25.3
Accumulated Other Comprehensive Income (Tables)
 9 Months Ended
Sep. 30, 2025
Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income consist of the following:

 

Three months ended September 30, 2025

 

Pre-Tax

 

 

Tax

 

 

After-Tax

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

32

 

 

$

(7

)

 

$

25

 

Other comprehensive gain before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized gain on foreign currency derivatives

 

 

452

 

 

 

(96

)

 

 

356

 

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on commodity swap derivatives reclassified into cost of sales

 

 

(32

)

 

 

7

 

 

 

(25

)

Gain on foreign currency derivatives reclassified into cost of sales

 

 

(960

)

 

 

204

 

 

 

(756

)

 

 

$

(508

)

 

$

108

 

 

$

(400

)

 

Three months ended September 30, 2024

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

39

 

 

$

-

 

 

$

39

 

Other comprehensive loss before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized loss on foreign currency derivatives

 

 

(1,195

)

 

 

-

 

 

 

(1,195

)

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Loss on foreign currency derivatives reclassified into cost of sales

 

 

72

 

 

 

-

 

 

 

72

 

 

 

$

(1,084

)

 

$

-

 

 

$

(1,084

)

 

Nine months ended September 30, 2025

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

97

 

 

$

(21

)

 

$

76

 

Other comprehensive gain before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized gain on commodity swap derivatives

 

 

148

 

 

 

(32

)

 

 

116

 

Unrealized gain on foreign currency derivatives

 

 

2,949

 

 

 

(628

)

 

 

2,321

 

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on commodity swap derivatives reclassified into cost of sales

 

 

(32

)

 

 

7

 

 

 

(25

)

Gain on foreign currency derivatives reclassified into cost of sales

 

 

(473

)

 

 

100

 

 

 

(373

)

 

 

$

2,689

 

 

$

(574

)

 

$

2,115

 

 

Nine months ended September 30, 2024

 

 

 

 

 

 

 

 

 

Pension liability activity:

 

 

 

 

 

 

 

 

 

Reclassification adjustment for amortization of net loss (pre-tax other income)

 

$

109

 

 

$

-

 

 

$

109

 

Other comprehensive loss before reclassifications:

 

 

 

 

 

 

 

 

 

Unrealized loss on foreign currency derivatives

 

 

(1,941

)

 

 

-

 

 

 

(1,941

)

Amounts reclassified from accumulated other comprehensive income:

 

 

 

 

 

 

 

 

 

Gain on foreign currency derivatives reclassified into cost of sales

 

 

(449

)

 

 

-

 

 

 

(449

)

 

 

$

(1,832

)

 

$

-

 

 

$

(1,832

)

 

 
Components of Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income consist of the following:

 

 

 

September 30,

 

 

December 31,

 

 

2025

 

 

2024

 

Unrecognized pension income, net of tax of $6,261 and $6,282, respectively

 

$

2,193

 

 

$

2,117

 

Unrealized gain on commodity swap derivatives, net of tax of $25 and $0, respectively

 

 

91

 

 

 

-

 

Unrealized gain (loss) on foreign currency derivatives, net of tax of $528 and $0, respectively

 

 

552

 

 

 

(1,396

)

 

 

$

2,836

 

 

$

721

 
v3.25.3
Employee Benefit Plans (Tables)
 9 Months Ended
Sep. 30, 2025
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for the three and nine months ended September 30, 2025 and 2024, are as follows:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

Pension Benefits

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Interest cost

 

$

133

 

 

$

130

 

 

$

397

 

 

$

399

 

Expected return on plan assets

 

 

(68

)

 

 

(70

)

 

 

(202

)

 

 

(220

)

Amortization of unrecognized net income

 

 

32

 

 

 

39

 

 

 

97

 

 

 

109

 

 

 

$

97

 

 

$

99

 

 

$

292

 

 

$

288

 
v3.25.3
Derivatives (Tables)
 9 Months Ended
Sep. 30, 2025
Foreign Currency [Abstract]  
Schedule of Notional Amounts of Outstanding Forgein Currency Derivatives

The notional amounts of outstanding derivative instruments are as follows:

 

 

 

September 30,

 

 

December 31,

 

Notional Amount

 

2025

 

 

2024

 

Derivative instruments designated as hedges:

 

 

 

 

 

 

Foreign currency derivatives

 

$

7,548

 

 

$

8,780

 
Schedule of Fair Value of Outstanding Forgein Currency Derivatives Designated as Hedges

The fair value of outstanding derivative instruments designated as hedges are as follows:

 

 

 

September 30,

 

 

December 31,

 

Fair Value

 

2025

 

 

2024

 

Prepaid expenses and current assets:

 

 

 

 

 

 

Foreign currency derivatives

 

$

1,080

 

 

$

-

 

Other current liabilities:

 

 

 

 

 

 

Foreign currency derivatives

 

$

-

 

 

$

1,396

 
Schedule of Pre-text Realizes Gain on Forgein Currency Derivatives

The pre-tax realized (gains) losses on commodity swap and foreign currency derivatives are recognized in the condensed consolidated statements of operations as follows:

 

 

 

 

 

Amount of (Gain)/Loss Recognized

 

 

Amount of Gain Recognized

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

Location of Realized (Gain)/Loss Recognized in the Condensed Consolidated Statements of Operations

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Derivative instruments designated as cash flow hedges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commodity swap derivatives

 

Cost of sales

 

$

(32

)

 

$

-

 

 

$

(32

)

 

$

-

 

Foreign currency derivatives

 

Cost of sales

 

$

(960

)

 

$

72

 

 

$

(473

)

 

$

(449

)
v3.25.3
(Loss) Earnings Per Share (Tables)
 9 Months Ended
Sep. 30, 2025
Earnings Per Share [Abstract]  
Schedule of Weighted Average Common Shares Outstanding

The net (loss) income available to common stockholders and weighted-average common shares outstanding are as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(7,445

)

 

$

(107,046

)

 

$

54,682

 

 

$

(110,440

)

Accretion of financing fees

 

 

-

 

 

 

(144

)

 

 

-

 

 

 

(431

)

Accrued dividends on Series C Preferred Stock

 

 

-

 

 

 

(4,676

)

 

 

-

 

 

 

(13,340

)

Allocation of undistributed earnings to nonvested restricted shares

 

 

-

 

 

 

-

 

 

 

(1,828

)

 

 

-

 

Net (loss) income available to common stockholders - basic

 

$

(7,445

)

 

$

(111,866

)

 

$

52,854

 

 

$

(124,211

)

Undistributed earnings reallocated to nonvested restricted shares

 

 

-

 

 

 

-

 

 

 

103

 

 

 

-

 

Net (loss) income available to common stockholders - diluted

 

$

(7,445

)

 

$

(111,866

)

 

$

52,957

 

 

$

(124,211

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

18,088,444

 

 

 

17,633,629

 

 

 

17,981,898

 

 

 

17,433,479

 

Issuance of Warrants

 

 

13,799,482

 

 

 

13,720,368

 

 

 

13,796,870

 

 

 

13,086,066

 

Weighted average common shares outstanding - basic

 

 

31,887,926

 

 

 

31,353,997

 

 

 

31,778,768

 

 

 

30,519,545

 

Issuance of Fixed Warrants

 

 

-

 

 

 

-

 

 

 

962,424

 

 

 

-

 

Dilutive effect of employee stock options

 

 

-

 

 

 

-

 

 

 

997,286

 

 

 

-

 

Weighted average common shares outstanding - diluted

 

 

31,887,926

 

 

 

31,353,997

 

 

 

33,738,478

 

 

 

30,519,545

 
v3.25.3
Basis of Presentation (Additional Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Employee Retention Credit Fund Received $ 187 $ 3,304
v3.25.3
Revenue Recognition (Narrative) (Details) - USD ($)
$ in Thousands
Dec. 31, 2027
Dec. 31, 2026
Sep. 30, 2025
Dec. 31, 2024
Disaggregation of Revenue [Line Items]        
Contract assets     $ 0 $ 0
Customer deposits     8,176 0
Deferred Revenue     $ 506 $ 8,556
Performance obligation $ 56,640 $ 16,454    
v3.25.3
Revenue Recognition (Schedule of Revenue Recognition) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers $ 160,438 $ 113,185 $ 375,203 $ 420,077
Leasing revenues 73 70 221 1,652
Total revenues 160,511 113,255 375,424 421,729
Railcar Sales [Member]        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers 153,883 109,010 354,667 405,684
Aftermarket Sales [Member]        
Disaggregation of Revenue [Line Items]        
Revenues from contracts with customers $ 6,555 $ 4,175 $ 20,536 $ 14,393
v3.25.3
Segment Information (Narrative) (Details)
 9 Months Ended
Sep. 30, 2025
Segment
Segment Reporting [Abstract]  
Number of operating segments 2
v3.25.3
Segment Information (Schedule of Segment Reporting Information, by Segment) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Segment Reporting Information [Line Items]        
Revenues $ 160,511 $ 113,255 $ 375,424 $ 421,729
Cost of sales 136,306 97,059 319,004 375,700
Gross profit 24,205 16,196 56,420 46,029
Operating income (loss) 14,558 8,658 26,136 25,702
Gain (loss) on change in fair market value of Warrant liability (17,589) (110,040) (12,331) (125,581)
Consolidated other expense 78 (680) 3,235 (1,419)
Depreciation and amortization     4,598 4,252
Operating Segments [Member]        
Segment Reporting Information [Line Items]        
Revenues 160,511 113,255 375,424 421,729
Cost of sales 136,306 97,059 319,004 375,700
Gross profit 24,205 16,196 56,420 46,029
Other segment items 9,647 [1] 7,538 [2] 30,284 [3] 20,327 [4]
Operating income (loss) 14,558 8,658 26,136 25,702
Consolidated interest expense (4,638) (1,577) (13,356) (5,815)
Gain (loss) on change in fair market value of Warrant liability (17,589) (110,040) (12,331) (125,581)
Consolidated other expense 78 (680) 3,235 (1,419)
Consolidated loss before income taxes (7,591) (103,639) 3,684 (107,113)
Depreciation and amortization 1,552 1,442 4,598 4,252
Capital expenditures 1,164 1,462 2,102 3,731
Operating Segments [Member] | Manufacturing [Member]        
Segment Reporting Information [Line Items]        
Revenues 153,956 109,080 354,888 407,336
Cost of sales 131,789 94,784 305,685 368,318
Gross profit 22,167 14,296 49,203 39,018
Other segment items 437 [1] 473 [2] 1,196 [3] (1,798) [4]
Operating income (loss) 21,730 13,823 48,007 40,816
Depreciation and amortization 1,433 1,331 4,229 3,906
Capital expenditures 1,146 1,277 1,993 3,485
Operating Segments [Member] | Aftermarket [Member]        
Segment Reporting Information [Line Items]        
Revenues 6,555 4,175 20,536 14,393
Cost of sales 4,517 2,275 13,319 7,382
Gross profit 2,038 1,900 7,217 7,011
Other segment items 554 [1] 323 [2] 1,630 [3] 1,123 [4]
Operating income (loss) 1,484 1,577 5,587 5,888
Depreciation and amortization 35 36 106 121
Capital expenditures 18 15 18 15
Operating Segments [Member] | Corporate Segment [Member]        
Segment Reporting Information [Line Items]        
Revenues 0 0 0 0
Cost of sales 0 0 0 0
Gross profit 0 0 0 0
Other segment items 8,656 [1] 6,742 [2] 27,458 [3] 21,002 [4]
Operating income (loss) (8,656) (6,742) (27,458) (21,002)
Depreciation and amortization 84 75 263 225
Capital expenditures $ 0 $ 170 $ 91 $ 231
[1] Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.
[2] Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.
[3] Other segment items in Manufacturing, Aftermarket and Corporate segments include selling, general and administrative expenses.
[4] Other segment items in Manufacturing include selling, general and administrative expenses and litigation settlement. Other segment items in Aftermarket and Corporate segments include selling, general and administrative expenses.
v3.25.3
Segment Information (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Segment Reporting Information [Line Items]    
Total assets $ 340,757 $ 224,216
Operating Segments [Member]    
Segment Reporting Information [Line Items]    
Total operating assets 291,236 223,077
Consolidated income taxes receivable 49,520 1,139
Total assets 340,756 224,216
Operating Segments [Member] | Manufacturing [Member]    
Segment Reporting Information [Line Items]    
Total operating assets 213,769 165,702
Operating Segments [Member] | Aftermarket [Member]    
Segment Reporting Information [Line Items]    
Total operating assets 12,404 11,014
Operating Segments [Member] | Corporate Segment [Member]    
Segment Reporting Information [Line Items]    
Total operating assets $ 65,063 $ 46,361
v3.25.3
Segment Information (Geographic Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Dec. 31, 2024
Segment Reporting Information [Line Items]          
Revenues $ 160,511 $ 113,255 $ 375,424 $ 421,729  
Operating Segments [Member]          
Segment Reporting Information [Line Items]          
Revenues 160,511 113,255 375,424 421,729  
Long Lived Assets [1] 68,883   68,883   $ 77,611
Operating Segments [Member] | United States [Member]          
Segment Reporting Information [Line Items]          
Revenues 160,511 $ 113,255 375,424 $ 421,729  
Long Lived Assets [1] 3,276   3,276   3,856
Operating Segments [Member] | Mexico [Member]          
Segment Reporting Information [Line Items]          
Long Lived Assets [1] $ 65,607   $ 65,607   $ 73,755
[1] Long lived assets include property, plant and equipment, net and right of use (ROU) assets.
v3.25.3
Fair Value Measurements (Narrative) (Details) - Fair Value, Inputs, Level 2 [Member] - $ / shares
Sep. 30, 2025
Dec. 31, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Warrant Exercise price $ 0.01 $ 3.57
Common stock, par value $ 0.01 $ 0.01
v3.25.3
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis and Non-Recurring Basis) (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset $ 1,080  
Warrant liability 148,650 $ 136,319
Foreign currency derivative liability   1,396
Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   629
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset 0  
Warrant liability 0 0
Foreign currency derivative liability   0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset 1,080  
Warrant liability 148,650 136,319
Foreign currency derivative liability   1,396
Fair Value, Inputs, Level 2 [Member] | Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Foreign currency derivative asset 0  
Warrant liability $ 0 0
Foreign currency derivative liability   0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Railcars available for lease, net   $ 629
v3.25.3
Restricted Cash (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Restricted Cash and Cash Equivalent Item [Line Items]    
Total restricted cash $ 502 $ 3,882
Restricted Cash from Customer Deposit [Member]    
Restricted Cash and Cash Equivalent Item [Line Items]    
Total restricted cash 281 282
Restricted Cash to Collateralize Standby Letters of Credit [Member]    
Restricted Cash and Cash Equivalent Item [Line Items]    
Total restricted cash 0 197
Restricted cash to collateralize corporate card program [Member]    
Restricted Cash and Cash Equivalent Item [Line Items]    
Total restricted cash 221 103
Restricted Cash to Collateralize Foreign Currency Derivatves [Member]    
Restricted Cash and Cash Equivalent Item [Line Items]    
Total restricted cash $ 0 $ 3,300
v3.25.3
Inventories (Schedule of Inventory Current) (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Raw materials $ 59,904 $ 47,340
Work in process 14,030 9,323
Finished railcars 23,342 12,640
Parts inventory 6,967 5,978
Total inventories, net $ 104,243 $ 75,281
v3.25.3
Inventories (Narrative) (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Inventory Disclosure [Abstract]    
Inventory valuation reserves $ 2,085 $ 1,852
v3.25.3
Product Warranties - Changes in Warranty Reserve (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Product Warranties Disclosures [Abstract]    
Balance at the beginning of the period $ 2,389 $ 1,602
Current year provision 397 511
Reductions for payments, costs of repairs and other (1,507) (340)
Adjustments to prior warranties 718 (280)
Balance at the end of the period $ 1,997 $ 1,493
v3.25.3
Debt Financing and Credit Facilities (Narrative) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended 12 Months Ended
Feb. 12, 2025
Sep. 30, 2025
Dec. 31, 2024
May 31, 2023
Line of Credit Facility [Line Items]        
Federal Funds Purchased Average Rate Paid   0.50%    
Less term loan deferred financing costs   $ 5,290 $ 6,585  
Common stock, par value   $ 0.01 $ 0.01  
Preferred stock, par value   $ 0.01 $ 0.01  
Common stock   19,077,086 18,960,608  
Current portion of long-term debt   $ 2,875 $ 2,875  
Base Rate [Member]        
Line of Credit Facility [Line Items]        
Debt Instrument, Interest Rate During Period   6.00%    
SecuredOvernightFinancingRateSofr [Member]        
Line of Credit Facility [Line Items]        
Debt Instrument, Basis Spread on Variable Rate   3.00%    
Federal Funds Purchased Average Rate Paid   1.00%    
Debt Instrument, Interest Rate During Period   5.00%    
Debt Instrument Interest Rate Effective Percentage   10.30%    
Debt Instrument Basis Spread On Variable Rate1   3.00%    
Term Loan Credit Agreement [Member]        
Line of Credit Facility [Line Items]        
Aggregate principal amount     115,000  
Less term loan deferred financing costs     $ 6,511  
Debt Instrument Maturity Date     Dec. 31, 2028  
Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Federal Funds Purchased Average Rate Paid 0.50%      
Line Of Credit Facility Interest Rate At Period End   6.10%    
Line of Credit Facility, Remaining Borrowing Capacity   $ 22,107    
Less term loan deferred financing costs   874    
Maximum borrowing capacity $ 35,000      
Debt Instrument Maturity Date Feb. 12, 2030      
Line of credit facility, remaining borrowing capacity   22,107    
Revolving Credit Facility [Member] | Foreign Currency Hedging Arrangement [Member]        
Line of Credit Facility [Line Items]        
Line Of Credit Facility Capacity Available For Specific PurposeOther Than For Trade Purchases   452    
Revolving Credit Facility [Member] | Operating Lease Security Deposit [Member]        
Line of Credit Facility [Line Items]        
Line Of Credit Facility Capacity Available For Specific PurposeOther Than For Trade Purchases   $ 197    
Revolving Credit Facility [Member] | SecuredOvernightFinancingRateSofr [Member]        
Line of Credit Facility [Line Items]        
Federal Funds Purchased Average Rate Paid 1.00%      
Minimum | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Debt Instrument, Basis Spread on Variable Rate 1.50%      
Federal Funds Purchased Average Rate Paid 1.00%      
Debt Instrument, Interest Rate During Period 0.50%      
Debt Instrument Basis Spread On Variable Rate1 1.50%      
Maximum | Base Rate [Member]        
Line of Credit Facility [Line Items]        
Debt Instrument, Basis Spread on Variable Rate   4.00%    
Debt Instrument Basis Spread On Variable Rate1   4.00%    
Maximum | Revolving Credit Facility [Member]        
Line of Credit Facility [Line Items]        
Debt Instrument, Basis Spread on Variable Rate 2.00%      
Debt Instrument, Interest Rate During Period 1.00%      
Debt Instrument Basis Spread On Variable Rate1 2.00%      
Series C Preferred Stock [Member]        
Line of Credit Facility [Line Items]        
Preferred stock, shares issued       85,412
Preferred stock, par value       $ 0.01
v3.25.3
Debt Financing and Credit Facilities (Long-Term Debt) (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Less term loan deferred financing costs $ (5,290) $ (6,585)
Total debt, net of deferred financing costs 107,554 108,415
Less amounts due within one year (2,875) (2,875)
Long-term debt, net of current portion 104,679 105,540
Term Loan [Member]    
Debt Instrument [Line Items]    
Total debt $ 112,844 $ 115,000
v3.25.3
Warrants (Additional Information) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2025
Dec. 31, 2024
May 31, 2023
Class of Warrant or Right [Line Items]      
Common stock, shares issued 19,077,086 18,960,608  
Warrant liability $ 148,650 $ 136,319  
2023 Warrant      
Class of Warrant or Right [Line Items]      
Warrant Exercise price $ 3.57    
Warrants term 10 years    
Warrants issued to purchase common stock     1,636,313
2022 Warrant      
Class of Warrant or Right [Line Items]      
Percentage of oustanding common shares 5.00%    
Warrant Exercise price $ 0.01    
Warrants term 10 years    
Common stock, shares issued 2,088,938 2,092,819  
2021 Warrant      
Class of Warrant or Right [Line Items]      
Percentage of oustanding common shares 5.00%    
Warrant Exercise price $ 0.01    
Warrants term 10 years    
Common stock, shares issued 2,088,938 2,092,819  
2020 Warrant      
Class of Warrant or Right [Line Items]      
Percentage of oustanding common shares 23.00%    
Warrant Exercise price $ 0.01    
Warrants term 10 years    
Common stock, shares issued 9,609,116 9,626,968  
v3.25.3
Mezzanine Equity (Additional Information) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended 12 Months Ended
May 31, 2023
Sep. 30, 2025
Dec. 31, 2024
Class of Stock [Line Items]      
Preferred stock, par value   $ 0.01 $ 0.01
Preferred Stock, Redemption Price Per Share     $ 1,000
Preferred Stock, Redemption Amount     $ 113,275
Dividends declared on preferred shares     $ 27,863
Preferred Stock [Member]      
Class of Stock [Line Items]      
Stock issuance costs $ 2,301    
Series C Preferred Stock [Member]      
Class of Stock [Line Items]      
Preferred stock, shares issued 85,412    
Preferred stock, par value $ 0.01    
Preferred stock, initial stated value $ 85,412    
Preferred stock, initial fair value, per share $ 1,000    
Preferred stock, dividend rate   17.50%  
v3.25.3
Accumulated Other Comprehensive Income (Schedule of Changes in Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Reclassification adjustment for amortization of net loss (pre-tax other income) after tax $ (25) $ (39) $ (76) $ (109)
Unrealized gain on foreign currency derivatives after tax (356) 1,195 (2,321) 1,941
(Gain) loss on commodity swap derivatives reclassified into cost of sales (25) 0 (25) 0
(Gain) loss on foreign currency derivatives reclassified into cost of sales (756) 72 (373) (449)
Other comprehensive Income (Loss), Net of Tax, Total 400 1,084 (2,115) 2,281
Reclassification out of Accumulated Other Comprehensive Income [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Reclassification adjustment for amortization of net loss (pre-tax other income) tax (7)   (21)  
Unrealized gain on commodity swap derivatives, before tax     148  
Other comprehensive Income (Loss), Derivatives, after Adjustments, Tax     (32)  
Unrealized gain on commodity swap derivatives, after tax     116  
Unrealized gain on foreign currency derivatives before tax (452) (1,195) 2,949 (1,941)
Gain on commodity swap derivatives reclassified into cost of sales before tax (32)   (32)  
Unrealized Gain or loss On Foreign Currency Derivatives Reclassified from accumulated other comprehensive income (960) 72 (473) (449)
Unrealized gain on foreign currency derivatives tax (96)   (628)  
Gain on commodity swap derivatives reclassified into cost of sales 7   7  
Gain on foreign currency derivatives reclassified into cost of sales tax 204   100  
Unrealized gain on foreign currency derivatives after tax (356) (1,195) 2,321 (1,941)
(Gain) loss on commodity swap derivatives reclassified into cost of sales (25)   (25)  
(Gain) loss on foreign currency derivatives reclassified into cost of sales (756) 72 (373) (449)
Other comprehensive Income (Loss), before Tax, Total (508) (1,084) 2,689 (1,832)
Other comprehensive Income (Loss), Tax, Total 108   (574)  
Other comprehensive Income (Loss), Net of Tax, Total (400) (1,084) 2,115 (1,832)
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | Pension Benefits [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Reclassification adjustment for amortization of net loss (pre-tax other income) before tax 32 39 97 109
Reclassification adjustment for amortization of net loss (pre-tax other income) after tax $ 25 $ 39 $ 76 $ 109
v3.25.3
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2025
Dec. 31, 2024
Jun. 30, 2025
Sep. 30, 2024
Jun. 30, 2024
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Unrecognized pension income, net of tax of $6,261 and $6,282, respectively $ (90,874) $ (150,273) $ (83,462) $ (156,317) $ (48,829) $ (46,206)
Accumulated Other Comprehensive Income 2,836 721        
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Unrecognized pension income, net of tax of $6,261 and $6,282, respectively 2,193 2,117        
Unrealized gain (loss) on foreign currency derivatives, net of tax of $528 and $0, respectively 552 (1,396)        
Reclassification out of Accumulated Other Comprehensive Income [Member]            
Accumulated Other Comprehensive Income (Loss) [Line Items]            
Unrealized gain on commodity swap derivatives, net of tax of $25 and $0, respectively $ 91 $ 0        
v3.25.3
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Parenthetical) (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Pension Benefits [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, tax $ 6,261 $ 6,282
Unrealized Gain On Commodity Swap Derivatives [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, tax 25 0
Unrealized gain (loss) on foreign currency derivatives [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Accumulated other comprehensive loss, tax $ 528 $ 0
v3.25.3
Stock-Based Compensation (Narrative) (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 9 Months Ended
Jun. 30, 2023
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Stock-based compensation recognized   $ 433 $ 804 $ 3,134 $ 2,330
Inducement Options [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unearned compensation related to options   46   $ 46  
Remaining service period       9 months  
Inducement Options [Member] | The Freightcar America Inc [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Granted 300,000        
Restricted Stock [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unearned compensation related to options   1,639   $ 1,639  
Remaining requisite service period       24 months  
Time-Vested Stock Options [Member]          
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]          
Unearned compensation related to options   $ 1,406   $ 1,406  
Remaining service period       17 months  
v3.25.3
Employee Benefit Plans (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2025
Sep. 30, 2024
Pension Benefits [Member]      
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]      
Contributions to pension plan $ 0 $ 0 $ 0
v3.25.3
Employee Benefit Plans (Components of Net Periodic Benefit Cost) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Interest cost $ 133 $ 130 $ 397 $ 399
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Expected return on plan assets $ (68) $ (70) $ (202) $ (220)
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Amortization of unrecognized net income $ 32 $ 39 $ 97 $ 109
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent Comprehensive Income (Loss), Net of Tax, Attributable to Parent
Total net periodic benefit cost $ 97 $ 99 $ 292 $ 288
v3.25.3
Derivatives (Additional Information) (Details)
 9 Months Ended
Sep. 30, 2025
Foreign Currency [Abstract]  
Description Of Contract contracts with terms between one and 12 months, which require the Company to exchange currencies at agreed-upon rates at each settlement date.
v3.25.3
Derivatives - Schedule of Notional Amounts of Outstanding Foreign Currency Derivatives (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Derivative Instruments Designated as Hedges [Member]    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Notional Amount $ 7,548 $ 8,780
v3.25.3
Derivatives - Schedule of Fair Value of Outstanding Foreign Currency Derivatives Designated as Hedges (Details) - USD ($)
$ in Thousands
Sep. 30, 2025
Dec. 31, 2024
Other current assets:    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Fair Value $ 1,080 $ 0
Other current liabilities:    
Foreign Currency Fair Value Hedge Derivative [Line Items]    
Fair Value $ 0 $ 1,396
v3.25.3
Derivatives - Schedule of Pre-tax Realized Gain on Foreign Currency Derivatives (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Gain (Loss) on Derivative Instruments [Member]        
Foreign Currency Fair Value Hedge Derivative [Line Items]        
Unrealized Loss/(Gain) on foreign currency derivatives, before Tax $ (960) $ 72 $ (473) $ (449)
Commodity Swap Derivatives [Member]        
Foreign Currency Fair Value Hedge Derivative [Line Items]        
Unrealized Loss/(Gain) on foreign currency derivatives, before Tax $ (32) $ 0 $ (32) $ 0
v3.25.3
Employee Retention Credit (Additional Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2025
Employee-related Liabilities [Abstract]    
ERC fund received $ 187 $ 3,304
v3.25.3
(Loss) Earnings Per Share - Schedule of (Weighted Average Common Shares Outstanding) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Earnings Per Share [Abstract]        
Net (loss) income $ (7,445) $ (107,046) $ 54,682 $ (110,440)
Accretion of Series C preferred shares issuance costs 0 (144) 0 (431)
Accrued dividends on Series C Preferred Stock 0 (4,676) 0 (13,340)
Allocation of undistributed earnings to nonvested restricted shares (0) 0 (1,828) 0
Net (loss) income available to common stockholders - basic (7,445) (111,866) 52,854 (124,211)
Undistributed earnings reallocated to nonvested restricted shares 0 0 103 0
Net (loss) income available to common stockholders - diluted $ (7,445) $ (111,866) $ 52,957 $ (124,211)
Weighted average common shares outstanding 18,088,444 17,633,629 17,981,898 17,433,479
Issuance of Warrants 13,799,482 13,720,368 13,796,870 13,086,066
Weighted average common shares outstanding - basic 31,887,926 31,353,997 31,778,768 30,519,545
Issuance of Fixed Warrants 0 0 962,424 0
Dilutive effect of employee stock options 0 0 997,286 0
Weighted average common shares outstanding - diluted 31,887,926 31,353,997 33,738,478 30,519,545
v3.25.3
(Loss) Earnings Per Share (Narrative) (Details)
 3 Months Ended 9 Months Ended
Sep. 02, 2025
USD ($)
Sep. 30, 2025
USD ($)
shares
Sep. 30, 2024
USD ($)
shares
Sep. 30, 2025
USD ($)
shares
Sep. 30, 2024
USD ($)
shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]          
Anti-dilutive common shares excluded from computation of earnings per share amount | shares   2,288,859 2,058,180 2,285,159 3,119,672
Participating Preferred Stock   $ 0 $ 4,676,000 $ 0 $ 13,340,000
Stock holder Rights Plan Percentage Of Beneficial Interest Needed 15.00%        
Shareholder Rights Plan Description The Rights will initially trade with and will be inseparable from common stock. The Rights will not be exercisable until: i) 10 business days after the public announcement that a person or group has become an “Acquiring Person” by obtaining beneficial ownership of 15% or more of the Company’s outstanding common stock (or 20% or more in the case of a person or group that is entitled to file, and does file, a Schedule 13G (a “13G Investor”)); or ii) 10 business days after a person or group begins or announces a tender or exchange offer which, if completed, would result in that person or group becoming an Acquiring Person. The Rights will expire on August 5, 2026, unless the Expiration Date is advanced or extended or unless the Rights are earlier redeemed or exchanged by the Company.        
Schedule 13G [Member] | Minimum [Member]          
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]          
Stock holder Rights Plan Percentage Of Beneficial Interest Needed 20.00%        
Equity Unit Purchase Agreements [Member] | Preferred Stock [Member]          
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]          
Purchase Price Of The Preferred Stock 42        
v3.25.3
Related Parties (Narrative) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Dec. 31, 2024
Related Party Transaction [Line Items]          
Related party asset $ 566   $ 566   $ 959
Fasemex [Member]          
Related Party Transaction [Line Items]          
Percentage of common stock outstanding     10.20%    
Gil Family [Member]          
Related Party Transaction [Line Items]          
Operating costs and expenses 6,109 $ 6,058 $ 17,025 $ 20,711  
Related party asset         614
Other assets 566   566    
Related party accounts payable 4,442   $ 4,442   2,693
Commercial Specialty Truck Holdings Csth [Member]          
Related Party Transaction [Line Items]          
Percentage of common stock outstanding     5.00%    
Specialty parts supplies $ 0 $ 268 $ 167 $ 683  
Related party asset         $ 345
v3.25.3
Income Taxes (Additional Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2025
Sep. 30, 2024
Income Tax [Line Items]        
Effective income tax rate 1.90% (3.30%) (1384.50%) (3.10%)
Income Tax Expense (Benefit) $ (146) $ 3,407 $ (50,998) $ 3,327
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest $ (7,591) $ (103,639) $ 3,684 $ (107,113)
Statutory tax rate 21.00%     21.00%
United States [Member]        
Income Tax [Line Items]        
Effective income tax rate       (1384.50%)