FreightCar America removed 1,285 railcars from its backlog after determining that the customer was unlikely to meet obligations under a tank-car retrofit contract. The order was scheduled for delivery from the second half of 2026 through 2027, and the company’s shares fell about 18% after the announcement.
Management said no other backlog orders were affected and described the remaining commitments as firm.
The figures were unaudited and subject to completion of quarter-end procedures.
Chief Executive Nick Randall said the adjustment applied to one customer order and that FreightCar America’s commitment to the tank-car retrofit market remained unchanged. Chief Financial Officer Mike Riordan said the company’s lower cost base, aftermarket expansion and remaining backlog supported stronger results as deliveries shift into 2027.