Greenbrier Companies Inc

Heavy transportation equipment stocks reported a satisfactory second quarter, with revenues beating analysts' consensus estimates by 2.2% and next quarter's revenue guidance coming in 8.6% above expectations. Greenbrier was the weakest performer, with revenues of $576.5 million, down 31.6% year over year and missing estimates by 5.9%, while Wabash was the best, with revenues of $417.2 million, down 9.1% year over year but beating estimates by 3.6%. Allison Transmission delivered the fastest revenue growth of the group, up 92.4% year over year to $1.57 billion, and its stock is up 8.6% since reporting. On average, share prices of the 12 tracked companies are down 3.9% since the latest earnings results.

Westinghouse Air Brake Technologies, known as Wabtec, will announce its second-quarter results Wednesday morning. The market expects revenue to grow 13.7% year on year, an improvement from the 2.3% increase in the same quarter last year. Analysts have generally reconfirmed their estimates over the last 30 days, though Wabtec has missed Wall Street's revenue estimates multiple times over the past two years. In the heavy machinery segment, peer Greenbrier reported a 31.6% revenue decline, missing expectations by 5.9%, while Lindsay's revenue fell 5.1%, also missing by 5.1%. Wabtec's stock is down 6.8% over the last month, heading into earnings with an average analyst price target of $302.83 compared to the current share price of $257.98.

Susquehanna downgraded Greenbrier to Neutral from Positive with a $52 price target, citing the company's declining order backlog. Greenbrier shares fell 3.3% in Thursday's trading. Analyst Harrison Bauer noted the backlog is at its lowest level since 2010 at roughly 13,800 units after the lowest order total in nearly 10 years, which management attributed to broad-based capital investment hesitancy. Bauer said the backdrop is driving lower visibility into 2027 and that recovery may not materialize until the second half of 2027 even if orders start to improve. The analyst expects a stronger recovery later in 2027 or into 2028 rather than a near-term inflection, adding that rising backlogs historically support elevated early-cycle multiples but that confidence in improving backlog and orders is needed to underwrite a higher multiple.

HSBC upgraded Adobe to Buy from Hold with a price target of $308, up from $282, arguing the market overestimates the adverse impact of AI-based design tools. DA Davidson upgraded Palantir to Buy from Neutral with a price target of $175, up from $165, noting the company has grown into its valuation as profits rose significantly and the stock's multiple contracted. Wolfe Research upgraded Chevron to Outperform from Peer Perform with a $210 price target, citing incremental production options that extend the free cash flow growth outlook beyond 2030. Needham upgraded Silicom to Buy from Hold with a $60 price target after the company announced material progress with a new AI inference customer, resulting in initial production orders. TD Securities upgraded BCE to Buy from Hold with an unchanged price target of C$37, calling the 13% selloff since early June unjustified and an attractive entry point. On the downgrade side, Goldman Sachs cut SkyWest to Neutral from Buy with a price target of $108, down from $126, citing downside risk to block hours. Susquehanna downgraded Greenbrier to Neutral from Positive with an unchanged price target of $52, pointing to a lack of visibility on improved builds and tariffs. Barclays downgraded Dana to Equal Weight from Overweight with a price target of $33, down from $41, believing the path to a higher valuation multiple will take time. DA Davidson downgraded AGNT Inc. to Neutral from Buy with a price target of $6.50, down from $10.25, as checks suggest core U.S. agent count trends resumed their downward trajectory midway through Q2. China Renaissance downgraded Trip.com to Hold from Buy with a $42 price target. Among new initiations, BMO Capital started Honeywell Aerospace with an Outperform rating and $276 price target, implying 21% upside. JPMorgan resumed coverage of On Holding with an Overweight rating and $51 price target, placing the shares on Positive Catalyst Watch. RBC Capital initiated NiSource with an Outperform rating and $52 price target, highlighting a rare combination of above-peer EPS growth and a favorable data center setup in Indiana. RBC Capital also initiated PSEG with a Sector Perform rating and $81 price target, noting the New Jersey regulatory overhang is potentially alleviating but wanting more clarity. KeyBanc initiated Waystar with an Overweight rating and $30 price target, seeing a large valuation disconnect given the company's high-margin growth story with large moats.

Brixmor Property Group acquired four shopping centers for $164.3 million as part of its investment activity update for the three and six months ended June 30. Greenbrier shares slipped in extended trading after its quarterly revenue of $576.5 million fell short of the average analyst estimate by $36.19 million, though its non-GAAP earnings per share of $0.60 matched the consensus. Columbus McKinnon appointed John R. Linker as executive vice president of Finance and chief financial officer.

Greenbrier reported second-quarter fiscal 2026 revenue of $576.5 million, missing analyst estimates of $612.7 million and marking a 31.6% year-on-year decline. The rail transportation company's GAAP earnings per share came in at $0.60, below the $0.62 consensus, while adjusted EBITDA of $69.1 million narrowly beat expectations. Greenbrier reconfirmed its full-year revenue guidance of $2.45 billion at the midpoint, which is 4.3% below analyst estimates, and issued full-year EPS guidance of $3.08, missing projections by 3.1%. Sales volumes fell 43.6% year on year, and free cash flow swung to negative $286.4 million from positive $66.4 million a year earlier. The stock traded down 2.7% to $46.64 following the release.

Four companies are scheduled to report quarterly earnings after the market closes on July 1, 2026. Greenbrier Companies is expected to post earnings per share of $0.57 for the quarter ending May 31, a 69.35% decline from the prior year, after missing estimates by 52.04% in the previous quarter. Franklin Covey's consensus forecast stands at $0.24 per share, a 33.33% increase year-over-year. Bassett Furniture Industries is projected to earn $0.20 per share, down 9.09%, following two consecutive negative surprises. Culp is anticipated to report a loss of $0.11 per share for the quarter ending April 30, an 83.33% drop, after missing estimates by 64.29% in its latest report.

Cummins reported first-quarter revenues of $8.40 billion, a 2.7% year-on-year increase that exceeded analysts' expectations by 0.9%. The heavy transportation equipment company, whose engines power more than half of the heavy-duty truck market, posted a mixed quarter with a decent beat on EBITDA estimates but a miss on adjusted operating income. Among the 12 heavy transportation equipment stocks tracked, Douglas Dynamics delivered the best performance with a 19.8% revenue jump and the highest full-year guidance raise, while Greenbrier was the slowest with a 22.9% revenue decline and guidance that missed expectations. Allison Transmission achieved the fastest revenue growth in the group at 83.6%, and Trinity saw a 16% revenue drop. Since reporting, Cummins' stock has risen 10.1% to $722.95.