GREENBRIER COMPANIES INC Revenue Disclosure
Note 3 – Revenue Recognition
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, 2025 |
|
|
August 31, 2024 |
|
|
$ change |
|
|||
Contract assets |
|
Accounts receivable, net |
|
$ |
5.9 |
|
|
$ |
6.7 |
|
|
$ |
(0.8 |
) |
Contract assets |
|
Inventories |
|
$ |
9.4 |
|
|
$ |
10.8 |
|
|
$ |
(1.4 |
) |
Contract liabilities 1 |
|
Deferred revenue |
|
$ |
40.1 |
|
|
$ |
54.6 |
|
|
$ |
(14.5 |
) |
1 Contract liabilities balance includes deferred revenue within the scope of Revenue from Contracts with Customers (Topic 606).
For the years ended August 31, 2025 and 2024 the Company recognized $39.9 million and $22.9 million of revenue, respectively, that was included in Contract liabilities as of August 31, 2024 and 2023.
Performance obligations
As of August 31, 2025, the Company has entered into contracts with customers for which revenue has not yet been recognized. The following table outlines estimated transaction prices related to performance obligations wholly or partially unsatisfied, that the Company anticipates will be recognized in future periods.
(In millions) |
|
August 31, 2025 |
|
|
Revenue type: |
|
|
|
|
Manufacturing – Railcar sales |
|
$ |
1,448.7 |
|
Manufacturing – Railcar maintenance |
|
$ |
55.3 |
|
Fleet management |
|
$ |
131.8 |
|
Based on current production and delivery schedules and existing contracts, approximately $1.0 billion of the Manufacturing – Railcar sales amount is expected to be recognized in while the remaining amount is expected to be recognized in 2027 and beyond. Manufacturing – Railcar maintenance performance obligations are expected to be recognized in 2026. Fleet management includes management and maintenance services contracts of which approximately $84.3 million is expected to be recognized through and the remaining amount through 2037.
The following table presents the Company's revenue disaggregated by category:
|
|
For the Year Ended August 31, |
|
|||||||||
(In millions) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Manufacturing: |
|
|
|
|
|
|
|
|
|
|||
Railcar sales |
|
$ |
2,606.6 |
|
|
$ |
2,952.7 |
|
|
$ |
3,341.4 |
|
Railcar maintenance |
|
|
384.6 |
|
|
|
359.7 |
|
|
|
422.7 |
|
|
|
|
2,991.2 |
|
|
|
3,312.4 |
|
|
|
3,764.1 |
|
Leasing & Fleet Management |
|
|
249.0 |
|
|
|
232.3 |
|
|
|
179.9 |
|
Total Revenue |
|
$ |
3,240.2 |
|
|
$ |
3,544.7 |
|
|
$ |
3,944.0 |
|
|
|
|
|
|
|
|
|
|
|
|||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 28, 2025 | Showing above |
| 2024 | Oct 24, 2024 | |
| 2023 | Oct 25, 2023 | |
| 2022 | Oct 31, 2022 | |
| 2021 | Oct 26, 2021 | |
| 2020 | Oct 28, 2020 | |
| 2019 | Oct 29, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.