Commentary

Cowen Insight: 1Q22 Shipper Surveys Say …

Cowen and Company transportation analysts Jason Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Elliott Alper recently conducted their first-quarter 2022 rail equipment and shipper surveys. Following are the results, plus insights on The Greenbrier Companies Inc. (GBX), Trinity Industries Inc. (TRN), GATX Corporation, and the Class I railroads, ahead of earnings.

Pictured: Lorie Tekorius, Greenbrier (left) and Lisa Smith, Cando Rail & Terminals.

People News: Greenbrier, Cando

The Greenbrier Companies, Inc. President and CEO Lorie Tekorius has been elected to the company’s Board of Directors. Also, Cando Rail & Terminals has elevated Lisa Smith to Assistant Vice President of Safety, Environmental and Regulatory.

Lorie Tekorius

Greenbrier: Tekorius Taking the Throttle March 1

Greenbrier President and Chief Operating Officer Lorie Tekorius on March 1 will become the company’s next CEO and President, succeeding Co-founder, Chairman and CEO William A. Furman; Furman will serve as Executive Chair, retaining responsibility for certain line functions until Aug. 31, 2022, the end of Greenbrier’s fiscal year.

Through GBX Leasing, The Greenbrier Companies and The Longwood Group are developing an owned portfolio of leased railcars that will be primarily built by Greenbrier.

Supply Side: Greenbrier; Railroad Software/Automated Rail

The Greenbrier Companies, Inc. has completed the first offering of railcar asset-backed securities and long-term financing for GBX Leasing, its joint venture with The Longwood Group. Also, Railroad Software and Automated Rail have formed a strategic partnership.

Greenbrier’s new orders comprise a “broad range of railcar types including gondolas, tanks, covered hoppers and automobile-carrying units, indicative of broader industry trends that reveal a resurgent North American freight railcar market,” the manufacturer said on Feb. 2.

For Greenbrier, Another 2,900 Railcars

The Greenbrier Companies, Inc., received orders for 2,900 new railcars, valued at $345 million, in December and January, the first two months of its second fiscal quarter that began Dec. 1, 2021; this follows first fiscal quarter orders for 6,300 cars.

U.S. Steel is building a new mill in Osceola, Ark., close to its Big River Steel plant (pictured), where non-grain oriented electrical steel and galvalume/galvanizing lines are currently under construction.

New U.S. Steel Facility Coming To Arkansas

United States Steel Corp. reported on Jan. 11 that it will build a $3 billion steel mill in Osceola, Ark., to be served by BNSF.

“Order intake for the quarter was more than 35% of all new orders received during fiscal 2021,” Furman said during Greenbrier’s first-quarter 2022 earnings announcement on Jan. 7.

Greenbrier: $3B Backlog in 1Q22, ‘Strengthening’ Market Demand

“During the first fiscal quarter of 2022, Greenbrier achieved its fourth consecutive quarter with a book-to-bill ratio exceeding 1.0x amid the strengthening demand environment,” Chairman and CEO William A. Furman reported on Jan. 7; net earnings came in at $11 million, or $0.32 per diluted share, on revenue of $551 million.

Greenbrier Joins RailPulse Coalition

The Greenbrier Companies, Inc., has signed on with RailPulse, a coalition of railcar owners, builders and operators whose aim is to “aggregate North American railcar fleet data on a single platform” to increase safety and the visibility of customer goods.

For Greenbrier, 6,200 New Railcars on Order

The Greenbrier Companies, Inc. has received orders for 6,200 new railcars valued at $670 million during its first fiscal quarter that began on Sept. 1, 2021. Also on order: rebody work for 1,400 railcars.

Greenbrier: Tekorius Taking the Throttle; 4Q21 ‘Strong, Balanced’

Following a fiscal fourth quarter marked by a 1.5x book-to-bill and more than $80 million of operating cash flow, The Greenbrier Companies, Inc. appointed President and Chief Operating Officer Lorie Tekorius as the company’s next CEO and President, succeeding Co-founder, Chairman and CEO William A. Furman. “continuing the company’s executive succession and talent pipeline process.”

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