Note 12 – Segment Information The Company operates in two reportable segments: Manufacturing and Leasing & Fleet Management. Effective September 1, 2025, the Company changed its measurement basis for allocating revenue and expenses associated with syndication activity between the Manufacturing and Leasing & Fleet Management reportable segments. This change reflects the information currently provided to the Company’s CODM to assess performance and allocate resources and had no impact on the Company’s consolidated results of operations or financial position. Prior period segment results have been recast to conform to the current period presentation. The Company's CODM is Greenbrier's President and Chief Executive Officer. Segment earnings from operations is the measure of profit or loss used by the CODM. As part of the Company’s budgeting and forecasting process, the CODM uses Segment earnings from operations to allocate capital and resources to each segment and considers variances from budget, forecasts, and prior period results to assess current period performance for each segment. Segment earnings from operations includes all revenues, expenses, and net gains or losses on asset dispositions that are directly attributable to each segment. Corporate expenses include selling and administrative costs not directly attributable to the reportable segments due to the Company’s integrated business model and therefore are not allocated to Segment earnings from operations. The Company does not allocate Interest and foreign exchange, Earnings from unconsolidated affiliates, or Income tax for either external or internal reporting purposes. Intersegment sales and transfers are valued as if the sales or transfers were to third parties. Related revenue and margin are eliminated in consolidation and therefore are not included in consolidated results in the Company’s Consolidated Financial Statements. The information in the following tables is derived directly from the segments’ internal financial reports used for corporate management purposes, which includes the significant expense categories that are regularly reviewed by the CODM. For the three months ended May 31, 2026:
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|
|
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|
(in millions) |
|
Manufacturing |
|
|
Leasing & Fleet Management |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
$ |
529.1 |
|
|
$ |
47.4 |
|
|
$ |
576.5 |
|
Intersegment revenue |
|
|
10.4 |
|
|
|
0.1 |
|
|
|
10.5 |
|
|
|
|
539.5 |
|
|
|
47.5 |
|
|
|
587.0 |
|
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(10.5 |
) |
Total consolidated revenues |
|
|
|
|
|
|
|
|
576.5 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
Cost of revenue from external customers |
|
|
476.6 |
|
|
|
18.8 |
|
|
|
495.4 |
|
Intersegment cost of revenue |
|
|
10.4 |
|
|
|
0.1 |
|
|
|
10.5 |
|
|
|
|
487.0 |
|
|
|
18.9 |
|
|
|
505.9 |
|
Margin |
|
|
52.5 |
|
|
|
28.6 |
|
|
|
81.1 |
|
Selling and administrative |
|
|
22.4 |
|
|
|
5.1 |
|
|
|
|
Net gain on disposition of equipment |
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|
(0.3 |
) |
|
|
(5.7 |
) |
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|
|
Segment earnings from operations |
|
$ |
30.4 |
|
|
$ |
29.2 |
|
|
$ |
59.6 |
|
For the nine months ended May 31, 2026:
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|
|
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|
|
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|
(in millions) |
|
Manufacturing |
|
|
Leasing & Fleet Management |
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Total |
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Revenue |
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|
|
|
|
|
|
|
|
Revenue from external customers |
|
$ |
1,727.6 |
|
|
$ |
142.5 |
|
|
$ |
1,870.1 |
|
Intersegment revenue |
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|
30.6 |
|
|
|
0.2 |
|
|
|
30.8 |
|
|
|
|
1,758.2 |
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|
|
142.7 |
|
|
|
1,900.9 |
|
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(30.8 |
) |
Total consolidated revenues |
|
|
|
|
|
|
|
|
1,870.1 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
Cost of revenue from external customers |
|
|
1,561.9 |
|
|
|
54.3 |
|
|
|
1,616.2 |
|
Intersegment cost of revenue |
|
|
30.6 |
|
|
|
0.2 |
|
|
|
30.8 |
|
|
|
|
1,592.5 |
|
|
|
54.5 |
|
|
|
1,647.0 |
|
Margin |
|
|
165.7 |
|
|
|
88.2 |
|
|
|
253.9 |
|
Selling and administrative |
|
|
66.4 |
|
|
|
15.8 |
|
|
|
|
Net gain on disposition of equipment |
|
|
(0.4 |
) |
|
|
(36.3 |
) |
|
|
|
Segment earnings from operations |
|
$ |
99.7 |
|
|
$ |
108.7 |
|
|
$ |
208.4 |
|
For the three months ended May 31, 2025:
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|
|
|
|
|
|
|
|
|
|
(in millions) |
|
Manufacturing |
|
|
Leasing & Fleet Management |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
$ |
793.4 |
|
|
$ |
49.3 |
|
|
$ |
842.7 |
|
Intersegment revenue |
|
|
15.2 |
|
|
|
— |
|
|
|
15.2 |
|
|
|
|
808.6 |
|
|
|
49.3 |
|
|
|
857.9 |
|
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(15.2 |
) |
Total consolidated revenues |
|
|
|
|
|
|
|
|
842.7 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
Cost of revenue from external customers |
|
|
672.6 |
|
|
|
18.6 |
|
|
|
691.2 |
|
Intersegment cost of revenue |
|
|
13.7 |
|
|
|
— |
|
|
|
13.7 |
|
|
|
|
686.3 |
|
|
|
18.6 |
|
|
|
704.9 |
|
Elimination of intersegment margin |
|
|
(1.5 |
) |
|
|
— |
|
|
|
(1.5 |
) |
Margin |
|
|
120.8 |
|
|
|
30.7 |
|
|
|
151.5 |
|
Selling and administrative |
|
|
22.7 |
|
|
|
6.5 |
|
|
|
|
Net gain on disposition of equipment |
|
|
(0.4 |
) |
|
|
(6.6 |
) |
|
|
|
Segment earnings from operations |
|
$ |
98.5 |
|
|
$ |
30.8 |
|
|
$ |
129.3 |
|
For the nine months ended May 31, 2025:
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|
|
|
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|
|
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|
(in millions) |
|
Manufacturing |
|
|
Leasing & Fleet Management |
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|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
Revenue from external customers |
|
$ |
2,337.2 |
|
|
$ |
143.5 |
|
|
$ |
2,480.7 |
|
Intersegment revenue |
|
|
71.3 |
|
|
|
0.4 |
|
|
|
71.7 |
|
|
|
|
2,408.5 |
|
|
|
143.9 |
|
|
|
2,552.4 |
|
Elimination of intersegment revenues |
|
|
|
|
|
|
|
|
(71.7 |
) |
Total consolidated revenues |
|
|
|
|
|
|
|
|
2,480.7 |
|
Cost of revenue |
|
|
|
|
|
|
|
|
|
Cost of revenue from external customers |
|
|
1,964.2 |
|
|
|
52.8 |
|
|
|
2,017.0 |
|
Intersegment cost of revenue |
|
|
60.1 |
|
|
|
0.4 |
|
|
|
60.5 |
|
|
|
|
2,024.3 |
|
|
|
53.2 |
|
|
|
2,077.5 |
|
Elimination of intersegment margin |
|
|
(11.2 |
) |
|
|
— |
|
|
|
(11.2 |
) |
Margin |
|
|
373.0 |
|
|
|
90.7 |
|
|
|
463.7 |
|
Selling and administrative |
|
|
72.7 |
|
|
|
19.6 |
|
|
|
|
Net gain on disposition of equipment |
|
|
(0.6 |
) |
|
|
(16.2 |
) |
|
|
|
Segment earnings from operations |
|
$ |
300.9 |
|
|
$ |
87.3 |
|
|
$ |
388.2 |
|
Reconciliation of Segment earnings from operations to Earnings before income tax and earnings from unconsolidated affiliates:
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|
|
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|
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|
|
|
|
|
|
|
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|
Three months ended
May 31, |
|
|
Nine months ended
May 31, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Segment earnings from operations |
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing |
|
$ |
30.4 |
|
|
$ |
98.5 |
|
|
$ |
99.7 |
|
|
$ |
300.9 |
|
Leasing & Fleet Management |
|
|
29.2 |
|
|
|
30.8 |
|
|
|
108.7 |
|
|
|
87.3 |
|
|
|
|
59.6 |
|
|
|
129.3 |
|
|
|
208.4 |
|
|
|
388.2 |
|
Corporate |
|
|
(27.7 |
) |
|
|
(36.7 |
) |
|
|
(90.3 |
) |
|
|
(100.2 |
) |
Earnings from operations |
|
|
31.9 |
|
|
|
92.6 |
|
|
|
118.1 |
|
|
|
288.0 |
|
Interest and foreign exchange |
|
|
16.5 |
|
|
|
13.2 |
|
|
|
45.7 |
|
|
|
58.3 |
|
Earnings before income tax and earnings from unconsolidated affiliates |
|
$ |
15.4 |
|
|
$ |
79.4 |
|
|
$ |
72.4 |
|
|
$ |
229.7 |
|
The following tables present selected financial information by segment.
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Total assets |
|
(in millions) |
|
May 31,
2026 |
|
|
August 31,
2025 |
|
Manufacturing |
|
$ |
1,948.3 |
|
|
$ |
2,085.9 |
|
Leasing & Fleet Management |
|
|
2,015.7 |
|
|
|
1,858.4 |
|
Unallocated, including cash |
|
|
384.2 |
|
|
|
416.3 |
|
|
|
$ |
4,348.2 |
|
|
$ |
4,360.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
May 31, |
|
|
Nine months ended
May 31, |
|
(in millions) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing |
|
$ |
21.5 |
|
|
$ |
19.0 |
|
|
$ |
63.7 |
|
|
$ |
57.1 |
|
Leasing & Fleet Management |
|
|
10.6 |
|
|
|
10.7 |
|
|
|
32.4 |
|
|
|
32.2 |
|
|
|
$ |
32.1 |
|
|
$ |
29.7 |
|
|
$ |
96.1 |
|
|
$ |
89.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing |
|
$ |
50.6 |
|
|
$ |
20.0 |
|
|
$ |
88.5 |
|
|
$ |
107.9 |
|
Leasing & Fleet Management |
|
|
9.0 |
|
|
|
62.7 |
|
|
|
58.7 |
|
|
|
101.2 |
|
|
|
$ |
59.6 |
|
|
$ |
82.7 |
|
|
$ |
147.2 |
|
|
$ |
209.1 |
|
|