Shares of Greenbrier Companies (GBX) surged 12.98% in pre-market trading on Wednesday, following the release of its impressive fiscal third-quarter 2025 financial results and improved outlook. The railroad equipment manufacturer's performance significantly exceeded market expectations, fueling investor optimism.

Greenbrier reported Q3 earnings per share of $1.86, nearly doubling the analyst estimate of $0.98. Revenue for the quarter reached $842.7 million, surpassing the projected $785.72 million. The company's net income hit $60 million, with a robust operating margin of 11% of revenue. Greenbrier's EBITDA climbed to $129 million, representing 15% of revenue, while the aggregate gross margin stood at an impressive 18%, marking the seventh consecutive quarter of achieving or surpassing its mid-teens gross margin target.

Adding to the positive sentiment, Greenbrier raised its fiscal year 2025 margin guidance while affirming its outlook on deliveries and revenue. The company also highlighted progress on key initiatives, including footprint optimization in Europe and insourcing expansion in Mexico. Furthermore, Greenbrier approved a quarterly dividend of $0.32 per share, demonstrating confidence in its financial position. CEO Lorie Tekorius emphasized that the company's focus on efficiency, agility, and strategic investment is helping Greenbrier navigate changes in the trade and economic environment, contributing to the strong performance despite previous concerns about lower demand for new railcars due to economic uncertainty.