Financial Analysis

Note 14 Commitments and Contingencies Portland Harbor Superfund Site The Company has been identified as a potentially responsible party (PRP) by the U.S. Environmental Protection Agency (EPA) in connection with the Companys former Portland, Oregon manufacturing facility (Portland Property), which is within the boundary of the Portland Harbor Superfund Site. The Company sold the Portland Property in May 2023. The EPAs January 6, 2017 record of decision (ROD) for the Portland Harbor Superfund Site identifies a cleanup remedy that the EPA estimates will take 13 years of active remediation, followed by 30 years of monitoring with an estimated undiscounted cost of $ 1.7 billion. The EPA typically expects its cost estimates to be accurate within a range of - 30 % to + 50 %, but this ROD states that changes in costs are likely to occur. Multiple PRPs and the EPA have been conducting remedial design studies for several years and the work continues. Remedial action will follow remedial design. Approximately 100 parties, including the State of Oregon and the federal government, are participating in a non-judicial, mediated allocation process to try to allocate costs associated with remediation of the Portland Harbor Superfund Site. Some allocation participants that have received a Special Notice Letter from the EPA, including the Company, are discussing remedial action consent decree terms with the EPA and the U.S. Department of Justice. A suit filed by the Company and other PRPs again …

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Note 8 Debt, net Recourse debt is debt where the lender may pursue repayment beyond the value of any pledged collateral and is generally secured by general assets of the Company. Non-recourse debt is debt where the lenders ability to pursue repayment from the Company is limited to the value of the specific assets collateralized by the debt. The following table summarizes the Companys recourse and non-recourse debt balances: (in millions) May 31, 2026 August 31, 2025 Corporate and other Recourse: Revolving credit facilities North America $ $ 5.0 Europe 101.4 77.6 Mexico 20.0 70.0 121.4 152.6 Corporate senior term debt 240.6 250.0 2.875 % Convertible senior notes, due 2028 373.8 373.8 Other notes payable 2.5 1.4 738.3 777.8 Debt discount and issuance costs ( 5.0 ) ( 6.6 ) Debt, net Recourse 733.3 771.2 Lease fleet and other Non-recourse: Leasing warehouse credit facility 222.3 Leasing senior term debt 300.0 308.2 Leasing GBXL I asset-backed term notes 743.5 456.2 European debt 42.7 1,086.2 986.7 Debt discount and issuance costs ( 13.9 ) ( 7.0 ) Debt, net Non-recourse 1,072.3 979.7 Total Debt, net $ 1,805.6 $ 1,750.9 Corporate and other Recourse North American revolving credit facility As of May 31, 2026 , a $ 600.0 million revolving line of credit existed to provide working capital and interim financing of equipment, principally for the Companys U.S. and Mexican operations. The North American credit facility is secured by substantially all the Company's U.S. assets not otherwis …

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The following table presents the Company's revenue disaggregated by category: Three months ended May 31, Nine months ended May 31, (in millions) 2026 2025 2026 2025 Manufacturing: Railcar sales $ 431.7 $ 694.3 $ 1,454.9 $ 2,045.2 Railcar maintenance 97.4 99.1 272.7 292.0 529.1 793.4 1,727.6 2,337.2 Leasing & Fleet Management 47.4 49.3 142.5 143.5 $ 576.5 $ 842.7 $ 1,870.1 $ 2,480.7

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Note 15 Fair Value Measures Certain assets and liabilities are reported at fair value on either a recurring or nonrecurring basis. Fair value, for this disclosure, is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, under a three-tier fair value hierarchy that prioritizes the inputs used in measuring fair value as follows: Level 1 - observable inputs such as unadjusted quoted prices in active markets for identical instruments; Level 2 - inputs, other than the quoted market prices in active markets for similar instruments, which are observable, either directly or indirectly; and Level 3 - unobservable inputs for which there is little or no market data available, which require the reporting entity to develop its own assumptions. Assets and liabilities measured at fair value on a recurring basis as of May 31, 2026 were: (in millions) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 20.5 $ $ 20.5 $ Nonqualified savings plan investments 68.7 68.7 Cash equivalents 138.6 138.6 $ 227.8 $ 207.3 $ 20.5 $ Liabilities: Derivative financial instruments $ 0.3 $ $ 0.3 $ Assets and liabilities measured at fair value on a recurring basis as of August 31, 2025 were: (in millions) Total Level 1 Level 2 (1) Level 3 Assets: Derivative financial instruments $ 19.0 $ $ 19.0 $ Nonqualified savings plan investments 59.4 59.4 Cash equivalents 134.0 …

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Recent Accounting Pronouncements Improvements to Income Tax Disclosures In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company has completed a preliminary assessment and does not expect the adoption of ASU 2023-09 to have a material impact on the consolidated financial statements, but expects that it will result in expanded income tax disclosures. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires disclosure of incremental income statement expense information on an annual and interim basis, primarily through enhanced disclosures of specified expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that ASU 2024-03 will have on its consolidated financial statement disclosures.

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Note 16 Related Party Transactions The Company has a 41.9 % interest in Axis, LLC (Axis), a joint venture. The Company purchase d $ 0.7 million and $ 4.3 million of railcar components from Axis for the three and nine months ended May 31, 2026 , respectively, and $ 2.0 million and $ 6.7 million for the three and nine months ended May 31, 2025, respectively. …

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Note 2 Revenue Recognition The following table presents the Company's revenue disaggregated by category: Three months ended May 31, Nine months ended May 31, (in millions) 2026 2025 2026 2025 Manufacturing: Railcar sales $ 431.7 $ 694.3 $ 1,454.9 $ 2,045.2 Railcar maintenance 97.4 99.1 272.7 292.0 529.1 793.4 1,727.6 2,337.2 Leasing & Fleet Management 47.4 49.3 142.5 143.5 $ 576.5 $ 842.7 $ 1,870.1 $ 2,480.7 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 contract balances are as follows: (in millions) Balance sheet classification May 31, 2026 August 31, 2025 $ Change Contract assets Accounts receivable, net $ 5.0 $ 5.9 $ ( 0.9 ) Contract assets Inventories $ 7.8 $ 9.4 $ ( 1.6 ) Contract liabilities (1) Deferred revenue $ 22.7 $ 40.1 $ ( 17.4 ) (1) Contract liabilities balance includes deferred revenue within the scope of Revenue from Contracts with Customers (Topic 606). For the three and nine months ended May 31, 2026 , the Company recognized $ 2.4 million and $ 26.6 million, respectively, of revenue that was included in Contract liabilities as of August 31, 2025. Performance obligations The Company has entered into contracts with customers for which revenue has not yet been recognized as o …

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Note 12 Segment Information The Company operates in two reportable segments: Manufacturing and Leasing & Fleet Management. Effective September 1, 2025, the Company changed its measurement basis for allocating revenue and expenses associated with syndication activity between the Manufacturing and Leasing & Fleet Management reportable segments. This change reflects the information currently provided to the Companys CODM to assess performance and allocate resources and had no impact on the Companys consolidated results of operations or financial position. Prior period segment results have been recast to conform to the current period presentation. The Company's CODM is Greenbrier's President and Chief Executive Officer. Segment earnings from operations is the measure of profit or loss used by the CODM. As part of the Companys budgeting and forecasting process, the CODM uses Segment earnings from operations to allocate capital and resources to each segment and considers variances from budget, forecasts, and prior period results to assess current period performance for each segment. Segment earnings from operations includes all revenues, expenses, and net gains or losses on asset dispositions that are directly attributable to each segment. Corporate expenses include selling and administrative costs not directly attributable to the reportable segments due to the Companys integrated business model and therefore are not allocated to Segment earnings from operations. The Compan …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing