Our next presentation is FreightCar America. FreightCar is a diversified manufacturer and supplier of railroad freight cars, railcar parts, and components. The stock trades on the Nasdaq under the symbol RAIL. With us today are Nick Randall, the CEO, and Mike Riordan, Chief Financial Officer. Thank you, John. Thank you very much. Well, good afternoon, everybody. My name is Nick Randall. Mike Riordan is just in the front here for any questions that come up. Just going to orientate myself to make sure I can proceed. We have our normal forward-looking disclosure statements. Please be aware of those. A bit about us. We are a rail manufacturing company. We are 125 years old. We are a pure play manufacturer, and I will get back into that in a bit later as to opposed to a leasing company. We are focused purely on manufacturing. We began life as a coal car company way back as a part of U.S. Steel. For the first 110 years or so, we focused on coal cars. Then we grew our product portfolio organically in the early part of the century. In 2018, we manufactured our last railcars in the United States, and we moved our manufacturing to Mexico. In 2019, we started manufacturing in Mexico and been sort of growing the business from a railcar manufacturing business the last four or five years. More recently, we have expanded through M&A into the aftermarket business. That is the parts, components, and distribution of components, and we will talk about that as well. That is really where we have been for the last 125 years. A couple of highlights. Our revenue has grown 25% over the last five years. Adjusted EBITDA has grown by over 1,000 BPS. Market cap recently hit just under $320 million. Our share price growth has been over 4.4x with free cash flows of $89 million and growth margin growth as well. I am going to talk through how we have done that and what we do to go forward from that through the next couple of pages. We have a diverse product portfolio. You can see various pictures of them on there. What is important to see on this is our product portfolio grew organically as opposed to through acquisition. One of the important features of that is there is a lot of shared engineering in our platforms, in our systems. Some of our products, such as the hoppers and the covered hoppers, share a significant portion of the same components, the same bill of materials, and the same designs, so that from a manufacturing perspective, you can interchange them and substitute them effortlessly which drives cost out of the business and increases our productivity. From a product mapping to the customer perspective, if you look at the typical market for the railroads across North America, we break into three groups: the leasing community, that is the red portion; the Class 1 railroads or the large railroads, the blue section; and then private owners or private ecosystems in the gray section. The leasing group is pretty much where we drive our pure play manufacturing because we are not a leasing company. That resonates well with that group that we are not a competitor, we are a supplier, and we can interact with their end users with a more intimacy and design and configure our products to the end user's requirements specifically, which is a pretty good key advantage for us. Railroads, they typically buy larger fleets. We work very well with railroads and customized products specifically for the railroads. They get a unique product that suits their unit length, the conditions their railroads run in, and their service maintenance intervals. Private shippers and private owners, these are short lines or closed ecosystems such as mines and aggregate areas where we are able to do mixed alloys to enhance the corrosion resistance to match the product and materials type to the product or commodity being moved. For all those reasons, we are able to diversify our product and maximize our product portfolio to match the customer's pain points. We look at the main types. Open-top hoppers, we are number 1 in the market position. Market leader on open-top hoppers. A principal driver of that is our gating mechanisms and the multi-alloy, multi-material corrosion resistance that we offer in those places. That really helps drive that market position. With a number one market position, we have a number one gross margin that goes with it as well. It is a nice commanding position to be. Gondolas, we probably get about a third of the market on gondolas. One of our primary products we do build is a gondola, is what a coal car pretty much evolved into. We have got a lot of experience and expertise in those. Covered hoppers, we have really sort of entered the covered hopper market with a lot of energy over the last two or three years, going from sort of a niche product for us to really sort of dominating that space and growing in that space. We have just recently got a lot of growth in that covered hopper market, and we are able to offer a unique set of designs, such as a shorter footprint or a highly configured product to meet exactly what the end users require. Flatcars are really interesting for us. I will separate flatcars into two types, Intermodal and non-Intermodal. Non-Intermodal are usually highly engineered, configured flatcars unique for that customer needs, and we have our on-site and inside engineering team who do a great job of configure it to end users. Boxcars, we have Boxcars in our portfolio. Unless we absolutely have to, we will usually let other people build Boxcars. They are more of a commodity product for us, and sort of you can see that represented by the blue bar. Tank cars, we will be entering the tank car market in the future. We have a couple of designs approved. You've got the designs approved for general purpose tank cars, and we will be configuring and getting our plant certified over the coming years. Expect 2028 to 2029 to be that launch window of tank cars into the marketplace. Our current product portfolio covers approximately 70% of the market. Normally in the market, we consider the market in the industry to be about 40,000 units a year placed. We can see there is some cyclicality on that. Right now in 2026, we expect orders placed to be around 25,000- 26,000, in a trough of that average market with an uptick back to 40,000 over 2026 and 2027. Sorry, 2027 and 2028, with 2028 being when we expect to see 40,000 units placed again. Well-positioned, growing in the sectors covered hoppers and flatcars, and pretty much number one already in open-top hoppers, where we command a nice premium. We also look at the fundamentals driving the railcar market. These are the commodities and the things that are being shipped by railcar, which would drive the demand or appetite for replacement railcars. When we look at the first half of 2026, it's the first time since 2019, or it was the highest since 2019, the first half of the year being at just over 5.68 million carloads, which is a signal that the railroad and railcars are clearly in use at sustainable rates. Then we look at the categories or the commodities. Grain, and grain is moved by covered hoppers, covered hoppers being the largest segment, is up 12% year-on-year. The amount of grain being shipped by railcars this year is up 12%. Petroleum products and petroleum derivatives are up by 7.4%. Intermodal is up just short of 7% at 6.7%. Grain mill products is up at 5.2%. Carloads excluding coal, everything else, up 4.5%, then chemicals at 2.1%. Of these 20 commodities that are tracked, 16 of them grew year-over-year, and most of them the highest quarter since 2021. Some good underlying fundamentals about the health of what's being moved on the railroads. That will help drive new car demand as we look forward over 2027 and 2028. In addition to new railcars, we've really started to push on our aftermarket business. Our aftermarket segment, we've done parts for quite some time. That was typically historically providing parts for our coal car fleet, unique aluminum parts. We really spent some periods of time growing that business and now augmenting that business with bolt-on acquisitions. We recently bought a company called Carly Railcar and then Southern Parts & Equipment in the last nine months. The aftermarket is a rail-adjacent opportunity for us, but it has a different cyclicality or a different flow than our whole goods do. There's a couple of things that drive the attractiveness on there. As railcars age and railcars need serviceable maintenance, that's consistent regardless of the commodity uses. There's just stricter regulatory standards, which require components and elements to be replaced and repaired. Then we have OEM supply challenges. As an OEM of a railcar, we have good relationship with those component manufacturers and part manufacturers, and we are able to bundle and combine deliveries so the end user gets one delivery as opposed to multiple deliveries, and that consolidation converts to a price premium for us and a service enhancement for the end user. The aftermarket process is pretty attractive for us, and we have been actively adding that organically and inorganically to grow our business. A couple of different positions we have for total growth. We have a flexible manufacturing campus. Our campus in Castaños, we have four operating lines. Typically, each line can run about 1,500 railcars a year, so four would give us a capacity of 6,000. We have a fifth manufacturing line that is not turned on, but it is under roof, so we could turn that on in less than 90 days if customer demand justified it. More recently, we took a big operation improvement in Q2 where we have demonstrated continuous productivity improvements over the last two years, and we had surplus headcount. We are able to build more than one product type down the same line. Historically, that would be more than one product line, but on different periods. More recently, we can do more than one product line simultaneously. We could really build a covered hopper, followed by a mill gondola, followed by a covered hopper, followed by an AGON in the same line, in the same shift, in the same people. That gives us a huge amount of agility in the rail space. It allows us to keep our inventories low, our reaction times short, and keeps our cost control and our price and productivity well-buffered from cyclical segment changes in the rail industry. That is what we mean when we say our flexible manufacturing campus. Our optimized order fulfillment. One of the things I mentioned before about our organic growth of the engineered product portfolio, approximately 40% of the first half of the build sequence between covered hoppers and open-top hoppers, as an example, is identical. From a supply chain, bill of material, training, development, scheduling process, it does not matter to us whether a customer is going to order covered hoppers or open-top hoppers. The preparation is identical, which cannot be said for multiple other products. Vertically integrated product platform. We have a lot of on-site fabrication, so our raw materials can start life as a single plate or a single coil. We bring that onto the facility and we transform that, cut it, weld it, fabricate it into everything required to make a railcar, as opposed to outsourcing it or having a complex spread out supply chain. Again, reduces the cost and makes us more agile. As an example of that, some of our lead times on product from placement of order to shipment of order can be measured in weeks and sometimes as low as six weeks from order to shipment. Traditionally, in rail space, that can be six to nine months, so it is a significant risk reduction factor for our customers. One example where that turns up, if you are buying covered hoppers to haul grain and you would like to find out how good the harvest is looking around about May in a year to figure out how many cars you actually need in October for the harvest, our agility stops you having to guess. You can know exactly how many you need, and your order can be an exact number required, not a speculation, which is a value proposition which many of our customers think is worthy of a premium. Industry-leading technical expertise. We have, gosh, probably over 200 years of engineering expertise across our engineering teams, whether it be in Pennsylvania, Texas, or in Castaños facility, from a railcar related expertise, whether that is from design for new products, augmenting or changing existing products through a rebuild or a rebody or supporting customers with existing cars that they need some help or service or improvements on. We offer those. Aftermarket capabilities, we have always been able to provide our own parts, but now we can provide other services as well in that aftermarket, and we will continue to grow that. We have these value engines that we compound upon each other and allow us to build a stronger position and a stronger business. We have been able to drive our balance sheet through liquidity and cash position, been able to reduce inventory significantly. A lot of things we do through agility. While we do have inventory, it is an inventory intense production. We have been able to really shrink that down. The time period between buying raw materials, converting raw materials, shipping and getting paid is significantly less and generates cash for us. We have been doing an execute disciplined M&A. Rather than trying to get four the biggest, quickest ones, we have been building up our competencies in those, building up our ability to lay out the thesis of the ecosystem and then select and build elements of that to support each other and really sort of respond in that. We did do Carly Railcar Components and Southern Parts & Equipment, Inc. in the last eight months for those two acquisitions. We have organic investments as well. As I mentioned before, this year will be about 25,000 demand across railcar, and the average is 40,000. In Q2, our market share was 47% overall. Historically, we have been around 5%-6% market share. Last two or three years being grown into the low teens. Q2 was 47%. This year, first six months were about 30%, which is pretty significant given our two large competitors, which have been historically dominant in the railcar space. We have also got significant automation processes across our plant. We use a lot of automated welding, robotic welding, and a mix between human and machine interface. We have a TrueTrack quality system, which gives us a digital package and exhibits that the customer can take away, photographs, testing, et cetera, on the whole life cycle of a product as it is being built. We are able to support customers in the aftermarket on whole car products if they need to do a conversion, if they have some aged out or corroded or fatigued materials, cars maybe 15 or 20 years old. We can assess them, give them a price, rebody them, and make them perform like new cars, even though they may be 20 years old with 30 years of asset life left in those cars. Pillars for value creation. We are going to continue to drive our strategic growth in railcar manufacturing. As that industry cycle grows, we expect to grow with it. We drive a lot of lean manufacturing ability to scale. We take things like forklift trucks and excess things out of our equipment, out of our facility. We have a consistent flow from a raw material through to an end product with as little disruption as possible on the way. Industry leading margins on the products we produce and the products we ship. We have been able to generate free cash flow, been able to keep that working capital as low as possible, pay down debt, and pursue M&A with that free cash. We have been able to continually look at our financing options. We refinanced about 18 months ago, and we will continue to look at refinancing lower than the cost of debt between those. We took some productivity improvements in Q2, which annualized gives us an extra $12 million of savings per year based on historically where we have been in Castaños. Future expansion and aftermarket. As I mentioned, we have four operating lines today. A fifth line can be switched on. We could go to about 7,000 or 8,000 units a year without significant investment. We are on a 100-acre parcel of land. We currently use 45 acres, so even if we wanted to and that was not enough, we could expand even further. Looking at the aftermarket business, adding those through M&A and through organic and through the synergies between those aftermarket as they fuel each other, that will keep on growing for us as well as we invest our time and build out that process. Before I get into the financial overview, any questions? I will pause for any questions, if there are any questions. Yes, sir. Historically, about five years ago, it would be 4% or 5%. We have been growing market share ever since. Last quarter, we were at 47% market share. Wow. Last year, we were probably about 13%, so it is kind of bridge point in between. I think we have really focused hard on earning the right to win customers' work. We have a number of larger competitors, so our decision was, we are not going to be able to win market share on price. We cannot be a volume discounter. That would not work for us. We did not have the balance sheet and bigger players would beat us. Being able to target our product specifically to end users' pain points has been a real big growth factor for us. Rarely do we win by being the lowest price product. That is a game we probably would not win very often. We really work with our customers, understand what their pain points are, and configure whether the design and the mechanics or whether the material selection and the resistance to the commodity the car is going to be using, and focus on that, on how we create value over a three, four, five year period or longer for our customers, not just on a transactional purchase price. That resonates really well with leasing companies because they are not. Yes, they would like a lower purchase price, but it is really about can they get repeat leasing business and can it lease out? Also on those closed ecosystems where it is very unique and very specific. If you are hauling limestone, which is very corrosive when wet, carbon steel, it will corrode out well before the end of life of the unit. Being able to do mixed alloys such as aluminum, stainless steel in a way that does not accelerate corroding, that creates a value proposition that other people have not been able to compete with. When we pull those together, great relationships, great products that actually do what they need to do, and we have got the agility where our lead times are shorter than other people, so they can have this risk management taken out. They do not have to speculate. That collectively allows us to grow that market share and build stronger relationships. You said the industry is at a trough. It is. Is that part of this issue? I mean, 47%, that's not We probably won't sustain 47%, and we wouldn't have the capacity, nor we want to sustain 47%. What I think it does is a testament that when we focus our efforts, we can gain that market share. Realistically, our capacity at the moment without that fifth line is about 6,000. With the fifth line, maybe 7,500. Realistically, we want to fill that when the market comes up, but don't chase low margin, high volume. Keep the same strategy of niche, command a premium, but save the customer money by the operating costs. I think that's where that will fit in. If we finish on a 40,000, I call it 7,000, we've got about 18% market share. But 18% market share, that wasn't won on price discounting. That's really the sort of position that we would look to be in that 40,000 unit year run rate. Thank you. Any other questions? I guess maybe just related. What market are you specifically referring to when you say a 47% market share? 47% market share of All orders placed in Q2 of this year, as reported by FTR Transportation Intelligence. All- Yeah. If you took out Tank cars, which we don't do, it would've been 55% market share, but 47% was everything. There was about 2,000 Tank cars placed. That was really a disaster for everybody else. Yes. It's low for everyone else. I caveat that order intake can be somewhat lumpy anyway. It's not consistently smooth. This year there's going to probably be around, call it 25,000 units placed. If you divided that by four, any given quarter should be six or something thousand. Typically Q1 and Q2 can be the highest ones. Q3 is a bit lower, Q4 can be a bit higher. It's not uncommon for it to be low for someone, and then they come back roaring the following quarter. When we look at the first half, we're about 30%, so when you average the first two. Historically, I think for last year, we were about 14% for the full-year. It's, yes, Q2 is particularly high for us. It's just more of a strong solid point, but it's a consistent solid point on that trajectory. Any other questions? I am going to try and do the financial interview justice. If there are any questions that I cannot answer, Mike, our CFO, is on hand. Typically, I think this chart does it visually better. We have made a step change in our transformation around about 2022, 2023. That is when we started doing our vertical integration. We started really picking up sustainable amount of orders, and we started to prove the point of our Castaños facility. While the top line growth of units shipped is a slight decrease over three years, that is in the biggest trough of railcars. Typically, 2023 and 2024 were 40,000 orders units placed. 2025 was about 26,000. 2026 were about 26,000. At a time when the industry took about a 45% haircut on orders, ours is pretty much staying same, and that is the market share gaining with it. You can see that translates into the EBITDA as well. Being able to sustain EBITDA at this level through the trough is really a major proof point for us. In prior troughs we have been through, it would be a loss-making. Being able to not only just break even through this down period, but being able to generate free cash flow, generate sizable EBITDA, and then as that industry comes back, being able to build upon that and reflect up with it as well. If you just look at the straightforward metrics, they are holding still. I think given the industry headwinds, holding still is a pretty strong win from where we have come from. Cash flow. As you generate cash, you can see the cash draw on the left-hand side going through. Key metrics for the end of 2025, $64.3 million of cash. Total debt, $107 million. Annual CapEx is about 1% of revenue, $3 million-$4 million a year in a sustainable way. Then full-year guidance for this year, midpoint 3,700 railcars. Let us say down from a year point, year-over-year, but the industry is down about 40%, so being able to hold that is pretty high. Revenue, midpoint $440 million, $430 million in revenues. Then adjusted EBITDA, midpoint just around $40 million of adjusted EBITDA for the year. Pretty strong if you look at the macro environment with our intention is when we build upon that as the industry pulls back, we would grow with it as well, and that would scale accordingly. I think that is the end of our presentation. Any further questions? Yes. Do you have the balance sheet to The- Are you going to wait for There's a couple of ways we look at that. Obviously the balance sheet does constrain us being able to go out very fast on the M&A. We wanted to try and do them so we can fund them ourselves, so we can do that through that process. We always want to look at a good fit for us that's almost immediately accretive. The first two have definitely been that. As we look for the rest, we will look at the attractiveness of it. If we had to take on more debt, it would have to be very attractive to do it. But realistically, we'll try and do it with the cash we're generating ourselves. And the revenue year It does. These are our full combined blended- Number. Number. Yeah. What is the leverage? Do you want the leverage rate is? Yeah, the net leverage. 3x? No, it's around I believe. Yes, sir. You mentioned being able to reduce inventory times with the Yep. Sorry. How many days are you expecting the inventory Do you know off the top of your head? Approximately 60. 60 days. How's the peso treating? It's been pretty strong. Yeah, but we hedge. We do some FX hedging on there as well. We think we do five to six-month contracts and kind of-- We're not trying to make money on speculating. We're trying to protect the pricing we assumed when we won a contract. We want to lock it in at that. So we typically do it to lock in our pricing. Tell me where we are with the warrants. I think a lot of them were converted. Yeah. There were three of the anti-dilutive warrants that were converted at the end of June, around 25th of June. There is a very small sliver, 0.01% of each, so it does show active warrants, but they are insignificant compared to the ones we had. There is one last warrant left which is not anti-dilutive. I think it is a strike price of $2.60 or something, maybe. That is the smaller one. But the rest, the significant ones have all been exercised, and that is why you see our market cap now has that full value in there as well. The shares were always in our EPS calculation, so the EPS calculation is consistent throughout that whole process. Those indicating what they want to do, or you do not know? We filed our S3 probably 18 months ago, and PIMCO listed as a potential seller on the S3. We talked to them, but obviously it will be PIMCO's decision as to what they want to do with that. But if they wanted to run something, we would certainly support them through whatever process they want. Yeah. How long have you been the CEO? I joined in May of 2023 as the Chief Operating Officer to be CEO, to replace Jim, who was retiring. I did about six to eight months as the Chief Operating Officer to really sort of get engaged in Castaños and the operating plant. Then I took over officially as CEO in May of 2024, so just over two years, two and a half years. Was it summer? Yeah. It probably would've been Jim. Jim Meyer. Yes. What is the dynamic? Why is the market so soft? What is going on? It is an interesting question. The commodities certainly are not off. The commodities, the things being moved by rail is still the right numbers. I think there is a couple of drivers. One is steel prices have continually gone up, so there is a sticker shock price for customers when if they had an asset that was aged out and now they have got to replace that asset and it is $110,000, $120,000, $130,000, whatever the product may be, which forced people for a while to look at the secondary market. There is only a finite number of cars in the secondary market, and I think the last 18 months there has been a lot of reutilization, repurchasing of secondary market. That is winding down. What we are seeing is our inquiry levels significantly higher this year than they were last year. But there is no commodity type. Last year people were nervous about tariffs. We are covered under USMCA, so the rail cars tariffs. I think people are looking at it saying the sticker price has gone really high. If I could wait a little longer while steel prices come down. They have not, and now we are seeing people commit to those orders. That probably some of the orders we got in Q2 would have helped that. But yeah. It is certainly not the commodities. It is certainly not the stuff that is being moved by rail. That has been pretty strong throughout the period. How is your aftermarket? It does. The aftermarket is not just about fatigued end of life. There's perpetual maintenance, so there's defined time intervals, defined mile intervals, brake shoes, wear shoes, all those sort of things. The aftermarket piece is somewhat, we expect it to be less cyclical than new car builds, which is why it's very attractive to us if we had both of those built out fully. One's going to be less cyclical than the other, for sure. What is aftermarket percent? What do the? We'll keep on pushing as long as we can find targets to acquire to it. All right. Well, thank you for your time, thank you for the questions, and have a great afternoon. Thank you. Thanks. Nice meeting you.