v3.26.3
Revenue Recognition
 12 Months Ended
Aug. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 3 – Revenue Recognition

The following table presents the Company's revenue disaggregated by category:

 

 

For the Year Ended August 31,

 

(In millions)

 

2026

 

 

2025

 

 

2024

 

Manufacturing:

 

 

 

 

 

 

 

 

 

Railcar sales

 

$

1,908.5

 

 

$

2,662.3

 

 

$

3,011.5

 

Railcar maintenance

 

 

358.0

 

 

 

384.6

 

 

 

359.7

 

 

 

 

2,266.5

 

 

 

3,046.9

 

 

 

3,371.2

 

Leasing & Fleet Management

 

 

194.6

 

 

 

193.3

 

 

 

173.5

 

Total Revenue

 

$

2,461.1

 

 

$

3,240.2

 

 

$

3,544.7

 

 

 

 

 

 

 

 

 

 

 

Contract balances

Contract assets primarily consist of work completed for railcar maintenance but not billed at the reporting date. Contract liabilities primarily consist of customer prepayments for new railcars and other management-type services, for which the Company has not yet satisfied the related performance obligations.

The opening and closing balances of the Company’s contract balances are as follows:

(In millions)

 

Balance sheet classification

 

August 31, 2026

 

 

August 31, 2025

 

 

$ change

 

Contract assets

 

Accounts receivable, net

 

$

2.6

 

 

$

5.9

 

 

$

(3.3

)

Contract assets

 

Inventories

 

$

7.4

 

 

$

9.4

 

 

$

(2.0

)

Contract liabilities 1

 

Deferred revenue

 

$

26.6

 

 

$

40.1

 

 

$

(13.5

)

1 Contract liabilities balance includes deferred revenue within the scope of Revenue from Contracts with Customers (Topic 606).

For the years ended August 31, 2026 and 2025 the Company recognized $26.9 million and $39.9 million of revenue, respectively, that was included in Contract liabilities as of August 31, 2025 and 2024.

Performance obligations

As of August 31, 2026, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table summarizes estimated revenue related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.

(In millions)

 

August 31, 2026

 

Manufacturing:

 

 

 

Railcar sales

 

$

1,208.1

 

Railcar maintenance

 

$

16.2

 

Leasing & Fleet Management

 

 

 

Fleet management

 

$

136.7

 

Based on current production and delivery schedules and existing contracts, approximately $979.7 million of the Railcar sales performance obligations are expected to be recognized in 2027 while the remaining amount is expected to be recognized in 2028 and beyond. Railcar maintenance performance obligations are expected to be recognized in 2027. Fleet management performance obligations include management and maintenance services contracts of which approximately $92.0 million is expected to be recognized through 2031 and the remaining amount through 2037.