The Greenbrier Companies, Inc. (NYSE:GBX) Q3 2023 Earnings Call Transcript

Ryan Deveikis : Good morning. This is Ryan Deveikis on for Allison. Congrats on the quarter. Most of my questions were taken, but I kind of want to just pick a little bit, just kind of the smaller market here. So Brazil, came in 200 on the quarter, it didn’t really raises delivery there that implies by my calc around 100. Is that market kind of just softening? Or, you know, is it just a near term headwind that it’s like winter.

Brian Comstock: So, this is Brian, I can jump in Lorie on that question. Right now in Brazil, you’re in a little bit of an and I see a little bit probably over the next six months, they’re in a bit of a softer period only due to capital restraints of some of the concessionaires. In 2024 it looks like things begin to right size as well as a lot of the expansion in Brazil continues to build momentum, there is quite a bit of infrastructure in Central Brazil and other areas that are being completed. So we anticipate long term that Brazil is going to continue to grow. However, right now they’re more in a level data play.

Ryan Deveikis : Okay, thank you. And then I guess one more on the refurbishment side, net backlog has been kind of declining, are we reaching closer to like an end of like market cycle here where there’s not as much activity on those that side of the conversions or whatever it’s called just any color, there would be great?

Brian Comstock: This is Brian, I can dive in again. The conversion side is always lumpy. And it kind of moves up and down. There are a number of cars that have been programmed already. And there is kind of a finite shelf life to the conversions. But I still think there is seems to be at least several years of opportunity on that side. And then kind of behind the conversions you’ve got this requalification to tank cars that are ramping up. So I think what you’ll see is just a shift from some of the large conversions to some of the large tank car requalification programs.

Ryan Deveikis : Perfect, thank you very much.

Operator: Our next question will come from Steve Barger with KeyBanc Capital Markets. You may now go ahead. Q – Jacob Moore

Jacob Moore: Hi, good morning. This is Jacob Moore on for Steve Barger. Thank you for taking the questions. So for my first one, just going back to the cost savings initiatives that you laid out at the investor day. Could you talk specifically about the actions that you’ve already got completed and maybe quantify how much of that $50 million to $55 million you think you’ve already achieved? And then also maybe just a quick clarification on the 20 — $15 million to $20 million in savings from Gunderson exit, is that now fully out of the system moving forward?

Brian Comstock: Hey, Jacob, this is Brian, it seems we’ve lost like us, I think they’re having some communication problems. I can address the first part of that question for you, which is on the $50 billion to $55 billion of cost savings. We’re probably we’re still in the infancy of implementing that plan. It is ahead of schedule, as you see from the — as you can see from this quarter’s earnings, but we anticipate that that will continue to develop really throughout the next fiscal year.

Jacob Moore: Got it understood. And then maybe this one’s a little bit better suited for you anyways, Brian, for my second question, just broadly, overall rail traffic is down, freight seems to be holding in there. But lackluster traffic trends are starting to compound at this point. So my question is really now the work at the halfway point of the year. Could you expand on the earlier landscape comments and maybe provide an updated outlook on rail traffic trends for the remainder of the year?