1. FreightCar America completed the acquisition of Carly Railcar Components. 2. The acquisition enhances aftermarket distribution with reduced lead times and more components. 3. Carly Railcar Components strengthens FreightCar's position in the railcar aftermarket. 4. Acquisition expected to be immediately accretive to FreightCar's aftermarket business. 5. FreightCar aims for operational improvements via combined capabilities.
FAQ
Why Bullish?
The acquisition could enhance revenue streams and operational efficiency, boosting investor confidence. Similar past acquisitions in the industry have led to positive stock performance.
How important is it?
The acquisition directly expands FreightCar America's offerings and operational efficiency, making it relevant and likely impactful on stock price.
Why Short Term?
Immediate benefits from reduced lead times and component availability may impact quarterly performance quickly, unlike long-term impacts that take longer to manifest.
FreightCar America, Inc. Completes Acquisition of Carly Railcar Components
CHICAGO, Dec. 22, 2025 (GLOBE NEWSWIRE) -- FreightCar America, Inc. (NASDAQ: RAIL), a key manufacturer and supplier of railroad freight cars and railcar components, has finalized its acquisition of Carly Railcar Components, LLC (CRC), enhancing its aftermarket distribution services.
The Impact of the Acquisition on FreightCar America
This acquisition significantly boosts FreightCar America’s aftermarket distribution sector, focusing on running-repair components. These components are essential for maintenance and are frequently replaced, thereby creating a consistent demand that aligns well with the Company’s core offerings.
As a result of this acquisition, customers can expect:
- Reduced lead times for railcar components.
- A larger and more diverse catalog of ready-to-ship components.
Leadership Statements on the Acquisition
“Carly Railcar Components brings highly complementary capabilities that strengthen our position in the railcar aftermarket,” said Nicholas Randall, President and CEO of FreightCar America. He emphasized the operational advantages, noting that CRC’s established presence, including a facility in Orange, Texas, will enhance service to customers with speed, reliability, and improved product availability.
Furthermore, Mike Riordan, Vice President and CFO of FreightCar America, expressed excitement about the acquisition, stating, “Combining their capabilities with our commercial and supply chain excellence will allow us to deliver exceptional value to our customers while achieving significant operational improvements.” This acquisition is expected to yield immediate benefits to the Company’s bottom line by expanding its aftermarket operations.
About Carly Railcar Components
Established in 1995, Carly Railcar Components is a recognized distributor of OEM railcar components and operates a core-exchange program for reconditioned parts. The company serves a diverse clientele, including repair shops, railroads, and private car owners, solidifying its position as a major distributor in North America known for quality and customer service.
For additional information, visit www.carlyrailcar.com.
Company Background: FreightCar America
Since its inception in 1901, FreightCar America has become a leading designer and supplier of railroad freight cars and components. Headquartered in Chicago, Illinois, the Company also specializes in railcar repairs and rebody services, vital for maintaining the integrity of the North American supply chain.
For more details, visit www.freightcaramerica.com.
Forward-Looking Statements and Risk Factors
This announcement contains statements that reflect FreightCar America's anticipated financial performance and future business prospects, classified as “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Actual results may differ significantly due to various risks including:
- The cyclical nature of the railroad industry.
- Economic and market fluctuations.
- Challenges in maintaining supplier relationships.
- Variable patterns of customer purchasing and sales concentration.
- Changes in laws and regulatory requirements.
FreightCar America disclaims any obligation to update these forward-looking statements.