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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.