Shares of Greenbrier Companies Inc. (NYSE: GBX) plummeted 5.39% in pre-market trading on Tuesday following the release of its second-quarter fiscal 2025 earnings report. The railcar manufacturer reported disappointing results that fell short of analyst expectations, prompting concerns about its near-term outlook.

Greenbrier posted quarterly sales of $762.1 million, significantly missing the analyst consensus estimate of $898.530 million. The company also announced a reduction in its delivery and revenue guidance for the year, citing production changes and facility rationalization in Europe. As part of its long-term strategy to reduce costs and improve its competitive position, Greenbrier plans to rationalize one facility in Romania, which will impact deliveries from its European facilities in the second half of fiscal 2025.

Despite the revenue shortfall, Greenbrier's management highlighted some positive aspects of their performance. The company raised its aggregate gross margin and operating margin guidance, demonstrating a continued focus on operational efficiency. Additionally, Greenbrier secured orders for 3,100 new railcars worth nearly $400 million during the quarter, maintaining a strong backlog of 20,400 units valued at $2.6 billion.

Lorie Tekorius, Greenbrier's CEO, commented on the results, stating, "While we face some near-term challenges, our team remains laser-focused on delivering strong performance and operating efficiency gains. We are confident in our ability to navigate short-term market weakness and continue executing our strategic plan."

Investors appear to be reacting negatively to the mixed results and uncertain outlook, as reflected in the stock's pre-market decline. The market will likely be watching closely for any signs of improvement in Greenbrier's order activity and its ability to maintain profitability in the face of production adjustments and market uncertainties.