DLH Holdings (DLHC) – Post Call Commentary and Updated Models


Friday, May 09, 2025

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Moving Forward. While the path forward has been more challenging than we had anticipated, we believe DLH remains on the right path to strong operating results. We believe the Company’s core competencies are well aligned with the Federal government’s goals.

New Business. Management expects some $1 billion of business to be awarded by the end of the fiscal year, providing a substantial opportunity for DLH to win its fair share and drive organic growth in 2026. Yesterday, the Company announced it had been awarded a five year task order valued at up to $37.7 million to continue delivering scientific research and development, modeling & simulation, artificial intelligence, machine learning, robotic process automation, biomedical engineering, and cloud-enabled big data analytic solutions for the Telemedicine and Advanced Technology Research Center.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Nicola Mining Inc. (NIM:CA) – Multiple Avenues for Value Creation Supported by Operational Cash Flow


Thursday, May 08, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Initiating coverage with an Outperform rating. Nicola Mining is a unique junior exploration company because it offers discovery potential through its ownership of its flagship New Craigmont Copper Project, ownership of the Treasure Mountain high-grade silver-lead-zinc mine, a 75% economic interest in the Dominion Creek gold project, along with 100% ownership of the only mill permitted to receive and process material from throughout British Columbia. The company’s Merritt Mill, along with a sand/gravel pit and rock quarry, generates cash flow to support Nicola’s operations and exploration programs, which minimizes the need for dilutive equity issuance.

New Craigmont Copper Project. New Craigmont is in the Quesnel Trough, one of Canada’s most prolific copper belts, and is surrounded by past and present producing copper mines and is adjacent to Teck Resources’ Highland Valley Copper Mine, the largest copper mine in Canada. New Craigmont derives its name from the historic Craigmont open pit and underground mine that operated on the property from 1961 to 1982. The Craigmont mine produced over 36.75 million tons of ore with an average grade of 1.28% copper, yielding 900 million pounds of copper. The mine ceased operations in 1982 due to low copper prices.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

CoreCivic, Inc. (CXW) – Exceeds 1Q25 Expectations; Raises Full Year Guidance


Thursday, May 08, 2025

CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Exceeds Expectations. Driven by an increase in occupancy to 77%, increased bed utilization, and cost management, CoreCivic exceeded internal expectations as well as our projections. Revenue was $488.6 million, better than our $480.1 million estimate. Adjusted EBITDA was $81 million compared to our $69.1 million estimate. FFO was $0.45/sh versus our $0.35/sh estimate, and EPS was $0.23 compared to our estimate of $0.12. In 1Q24, CoreCivic reported revenue of $500.7 million, adjusted EBITDA of $89.5 million, EPS of $0.08, and adjusted EPS of $0.25. The previous year benefited from contracts that were eventually lost during the year.

More Business. In addition to the 2,400 bed Dilley facility, CoreCivic has received letter agreements from ICE for the potential activation of the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas and at the 2,560-bed California City Immigration Processing Center in California City, California. Management anticipates additional contracting activity as 2025 progresses.


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The GEO Group (GEO) – 1Q25 Results Lag Estimates; but Growth Story Remains Intact


Thursday, May 08, 2025

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 103 facilities totaling approximately 83,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q25 Results. Revenue of $604.9 million, compared to $605.7 million in 1Q24 and our $608 million estimate. Adjusted EBITDA was $99.8 million, down from $117.6 million in 1Q24 and our $114 million estimate. GEO reported net income of $19.6 million, or EPS of $0.14, compared to $22.7 million, or $0.14/sh, in the same period last year.

Ready To Go. GEO remains poised to assist the Federal government in its immigration policies. We have previously discussed a number of new contracts for the Company, and we anticipate additional awards over the remainder of 2025. 


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

NN, Inc. (NNBR) – First Look at the First Quarter of 2025


Thursday, May 08, 2025

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Commercial Traction Building. NN added $16.4 million of new business in the first quarter. The Company is well on pace to hit the lower end of its $60 to $70 million full-year target. NN continues to see positive traction in targeted markets, including medical, high-value automotive, and electrical components. Additionally, the Company’s commercial pipeline is strong at over $740 million.

Mixed Financial Start Amidst Transition. First quarter net sales came in at $105.7 million, compared to $121.2 million a year ago, with the decline primarily reflecting the Lubbock sale and rationalized business lines. On a pro forma basis, revenue was down just 1.3% year-over-year. Power Solutions declined to $43.5 million from $48.2 million in 2024 due to the sale of Lubbock. Mobile Solutions revenue fell to $62.2 million compared to $73.1 million during the same prior year period, due to the closing of the Juarez plant. Adjusted EBITDA was $10.6 million, slightly lower than last year’s $11.3 million and lower than our $11.6 million estimate. Adjusted EPS loss for the quarter improved year-over-year to $0.03 from a loss of $0.08.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

DLH Holdings (DLHC) – First Look into 2Q25


Thursday, May 08, 2025

DLH delivers improved health and readiness solutions for federal programs through research, development, and innovative care processes. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,300 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit www.DLHcorp.com.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Tempered Results. DLH reported fiscal second quarter 2025 results in-line with our projections. Financial results continue to be negatively impacted by small business set asides and the run off of acquired small business revenue. Despite these headwinds, DLH’s core services revenue remained strong as the Company delivered cutting-edge solutions in support of customers’ mission-critical work.

2Q25 Results. Revenue declined 11.7% to $89.2 million in 2Q25, driven by small business conversions, but was in-line with our $90 million projection. DLH’s adjusted EBITDA totaled $9.4 million, down from $10.2 million in 2Q24. We were at $9.75 million. Net income was $0.9 million, or $0.06/sh, compared to $1.6 million, or $0.12/sh, last year and our estimate of $1.0 million, or $0.07/sh.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Release – The GEO Group Reports First Quarter 2025 Results

Research News and Market Data on GEO

May 7, 2025

PDF Version

BOCA RATON, Fla.–(BUSINESS WIRE)–May 7, 2025– The GEO Group, Inc. (NYSE: GEO) (“GEO”), a leading provider of contracted support services for secure facilities, processing centers, and reentry centers, as well as enhanced in-custody rehabilitation, post-release support, and electronic monitoring programs, reported today its financial results for the first quarter of 2025.

First Quarter 2025 Highlights

  • Total revenues of $604.6 million
  • Net Income of $19.6 million
  • Net Income Attributable to GEO of $0.14 per diluted share
  • Adjusted EBITDA of $99.8 million

For the first quarter 2025, we reported net income attributable to GEO of $19.6 million, or $0.14 per diluted share, compared to net income attributable to GEO of $22.7 million, or $0.14 per diluted share, for the first quarter 2024. We reported total revenues for the first quarter 2025 of $604.6 million compared to $605.7 million for the first quarter 2024. We reported first quarter 2025 Adjusted EBITDA of $99.8 million, compared to $117.6 million for the first quarter 2024.

Our first quarter of 2025 results reflect an increase of approximately $5 million in general and administrative expenses compared to the first quarter of 2024, which was partly the result of the previously announced reorganization of our management team in anticipation of future growth projects and related operational activity during 2025. Compared to the fourth quarter of 2024, our first quarter 2025 results also reflect approximately $6 million in higher payroll taxes, which are front loaded in the first quarter of each year.

George C. Zoley, Executive Chairman of GEO, said, “We are pleased with the progress we have made towards meeting our growth and capital allocation objectives. During the first quarter of 2025, we announced two important contract awards for the reactivation of two company-owned facilities totaling 2,800 beds and representing in excess of $130 million in annualized revenues. We believe we have an unprecedented opportunity to assist the federal government in meeting its expanded immigration enforcement priorities. We have taken several important steps to be prepared to meet that opportunity, including making a significant investment commitment of $70 million to strengthen our capabilities to deliver expanded detention capacity, secure transportation, and electronic monitoring services to ICE and the federal government. We also recently completed a reorganization of our senior management team to oversee the operational execution of this expected future growth activity.”

“As a result of these steps, our financial guidance for 2025 reflects a tale of two halves of the year. The first half of the year is expected to be impacted by higher overhead and operating expenses as well as increased capital expenditures to position our company for future growth, which is expected to begin to layer in during the second half of 2025 and normalize in 2026. We also remain focused on reducing our net debt, deleveraging our balance sheet, and positioning our company to explore opportunities to return capital to shareholders in the future. In 2025, we expect to reduce our total net debt by approximately $150 million to $175 million, bringing our total net debt to approximately $1.54 billion,” Zoley added.

Financial Guidance

Today, we updated our initial financial guidance for 2025. Consistent with our long-standing practice, our updated guidance does not include the impact of any new contract awards that have not been previously announced.

The first half of 2025 reflects higher overhead and operating expenses as well as higher capital expenditures to position our company for anticipated future revenue growth without corresponding revenues, with growth beginning to layer in during the second half of 2025.

For the full year 2025, we expect Net Income Attributable to GEO to be in a range of $0.77 to $0.89 per diluted share, on revenues of approximately $2.53 billion and based on an effective tax rate of approximately 27 percent, inclusive of known discrete items. We expect our full year 2025 Adjusted EBITDA to be between $465 million and $490 million.

For the second quarter of 2025, we expect Net Income Attributable to GEO to be in a range of $0.15 to $0.17 per diluted share, on quarterly revenues of $615 million to $625 million. We expect our second quarter 2025 Adjusted EBITDA to be between $110 million and $114 million.

While our guidance does not include an assumption for new contract awards that have not been previously announced, we anticipate several opportunities to materialize during the year with additional contracts awards expected to be announced during the second quarter of 2025. As we progress through the year and these growth opportunities materialize, we will continue to adjust our financial guidance accordingly.

We expect total Capital Expenditures for the full year 2025 to be between $120 million and $135 million, including the impact of the $70 million investment we announced in December of 2024 to strengthen our capabilities to deliver expanded detention capacity, secure transportation, and electronic monitoring services to ICE and the federal government.

Recent Developments

On February 27, 2025, we announced a 15-year contract with ICE to provide support services for the establishment of a federal immigration processing center at the company-owned, 1,000-bed Delaney Hall Facility in Newark, New Jersey. GEO’s support services include the exclusive use of the Delaney Hall Facility by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel. The new support services contract is expected to generate in excess of $60 million in annualized revenues for GEO in the first full year of operations, with margins consistent with GEO’s company-owned Secure Services facilities.

On March 10, 2025, we announced a contract modification of the current intergovernmental service agreement for the GEO-owned, 1,328-bed Karnes ICE Processing Center in Karnes City, Texas to transition the Karnes ICE Processing Center from housing single adults to housing mixed populations. Subsequently, ICE decided to continue to house single adults at the Karnes ICE Processing Center based on an assessment of the agency’s current needs.

On March 20, 2025, we announced a contract with ICE for the immediate activation of a federal immigration processing center at the GEO-owned, 1,800-bed North Lake Facility in Baldwin, Michigan. GEO and ICE expect to finalize a multi-year contract for GEO to provide support services for ICE at the North Lake Facility that would be expected to generate in excess of $70 million in annualized revenues in the first full year of operations, with margins consistent with GEO’s company-owned Secure Services facilities. GEO’s support services are expected to include the exclusive use of the North Lake Facility by ICE, along with security, maintenance, and food services, as well as access to recreational amenities, medical care, and legal counsel.

Balance Sheet

At the end of the first quarter of 2025, our net debt totaled approximately $1.68 billion, and our net leverage was approximately 3.78 times Adjusted EBITDA. We ended the first quarter of 2025 with approximately $65 million in cash and cash equivalents and approximately $235 million in total available liquidity.

Conference Call Information

We have scheduled a conference call and webcast for today at 11:00 AM (Eastern Time) to discuss our first quarter 2025 financial results as well as our outlook. The call-in number for the U.S. is 1-877-250-1553 and the international call-in number is 1-412-542-4145. In addition, a live audio webcast of the conference call may be accessed on the Webcasts section under the News, Events and Reports tab of GEO’s investor relations webpage at investors.geogroup.com. A replay of the webcast will be available on the website for one year. A telephonic replay of the conference call will be available through May 14, 2025, at 1-877-344-7529 (U.S.) and 1-412-317-0088 (International). The participant passcode for the telephonic replay is 7721870.

About The GEO Group

The GEO Group, Inc. (NYSE: GEO) is a leading diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO’s diversified services include enhanced in-custody rehabilitation and post-release support through the award-winning GEO Continuum of Care®, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO’s worldwide operations include the ownership and/or delivery of support services for 98 facilities totaling approximately 77,000 beds, including idle facilities and projects under development, with a workforce of up to approximately 18,000 employees.

Reconciliation Tables and Supplemental Information

GEO has made available Supplemental Information which contains reconciliation tables of Net Income Attributable to GEO to Adjusted Net Income, and Net Income to EBITDA and Adjusted EBITDA, along with supplemental financial and operational information on GEO’s business and other important operating metrics. The reconciliation tables are also presented herein. Please see the section below titled “Note to Reconciliation Tables and Supplemental Disclosure – Important Information on GEO’s Non-GAAP Financial Measures” for information on how GEO defines these supplemental Non-GAAP financial measures and reconciles them to the most directly comparable GAAP measures. GEO’s Reconciliation Tables can be found herein and in GEO’s Supplemental Information available on GEO’s investor webpage at investors.geogroup.com.

Note to Reconciliation Tables and Supplemental Disclosure –
Important Information on GEO’s Non-GAAP Financial Measures

Adjusted Net Income, EBITDA, and Adjusted EBITDA are non-GAAP financial measures that are presented as supplemental disclosures. GEO has presented herein certain forward-looking statements about GEO’s future financial performance that include non-GAAP financial measures, including Net Debt, Net Leverage, and Adjusted EBITDA. The determination of the amounts that are included or excluded from these non-GAAP financial measures is a matter of management judgment and depends upon, among other factors, the nature of the underlying expense or income amounts recognized in a given period.

While we have provided a high level reconciliation for the guidance ranges for full year 2025, we are unable to present a more detailed quantitative reconciliation of the forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because management cannot reliably predict all of the necessary components of such GAAP measures. The quantitative reconciliation of the forward-looking non-GAAP financial measures will be provided for completed annual and quarterly periods, as applicable, calculated in a consistent manner with the quantitative reconciliation of non-GAAP financial measures previously reported for completed annual and quarterly periods.

Net Debt is defined as gross principal debt less cash from restricted subsidiaries. Net Leverage is defined as Net Debt divided by Adjusted EBITDA.

EBITDA is defined as net income adjusted by adding provisions for income tax, interest expense, net of interest income, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for net loss attributable to non-controlling interests, stock-based compensation expenses, pre-tax, start-up expenses, pre-tax, transaction fees, pre-tax, ATM equity program expenses, pre-tax, close-out expenses, pre-tax, other non-cash revenue and expenses, pre-tax, and certain other adjustments as defined from time to time.

Given the nature of our business as a real estate owner and operator, we believe that EBITDA and Adjusted EBITDA are helpful to investors as measures of our operational performance because they provide an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures, and to fund other cash needs or reinvest cash into our business.

We believe that by removing the impact of our asset base (primarily depreciation and amortization) and excluding certain non-cash charges, amounts spent on interest and taxes, and certain other charges that are highly variable from year to year, EBITDA and Adjusted EBITDA provide our investors with performance measures that reflect the impact to operations from trends in occupancy rates, per diem rates and operating costs, providing a perspective not immediately apparent from net income.

The adjustments we make to derive the non-GAAP measures of EBITDA and Adjusted EBITDA exclude items which may cause short-term fluctuations in income from continuing operations and which we do not consider to be the fundamental attributes or primary drivers of our business plan and they do not affect our overall long-term operating performance.

EBITDA and Adjusted EBITDA provide disclosure on the same basis as that used by our management and provide consistency in our financial reporting, facilitate internal and external comparisons of our historical operating performance and our business units and provide continuity to investors for comparability purposes.

Adjusted Net Income is defined as net income attributable to GEO adjusted for certain items which by their nature are not comparable from period to period or that tend to obscure GEO’s actual operating performance, including for the periods presented loss on the extinguishment of debt, pre-tax, start-up expenses, pre-tax, transaction fees, pre-tax, ATM equity program expenses, pre-tax, close-out expenses, pre-tax, and tax effect of adjustments to net income attributable to GEO.

Safe-Harbor Statement

This press release contains forward-looking statements regarding future events and future performance of GEO that involve risks and uncertainties that could materially and adversely affect actual results, including statements regarding GEO’s financial guidance for second quarter and the full year of 2025, statements regarding GEO’s focus on reducing net debt, deleveraging its balance sheet, positioning itself to explore options to return capital to shareholders in the future, making investments to strengthen GEO’s capabilities and deliver expanded detention capacity, secure transportation, and electronic monitoring services, pursuing unprecedented future growth opportunities and significant operational activity, and the upside this could have on GEO’s future financial results and financial guidance, and GEO’s ability to scale up the delivery of diversified services to support the future needs of its government agency partners. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” or “continue” or the negative of such words and similar expressions. Risks and uncertainties that could cause actual results to vary from current expectations and forward-looking statements contained in this press release include, but are not limited to: (1) GEO’s ability to meet its financial guidance for second quarter and full year 2025 given the various risks to which its business is exposed; (2) GEO’s ability to deleverage and repay, refinance or otherwise address its debt maturities in an amount and on terms commercially acceptable to GEO, and on the timeline it expects or at all; (3) GEO’s ability to identify and successfully complete any potential sales of company-owned assets and businesses or potential acquisitions of assets or businesses on commercially advantageous terms on a timely basis, or at all; (4) changes in federal and state government policy, orders, directives, legislation and regulations that affect public-private partnerships with respect to secure, correctional and detention facilities, processing centers and reentry centers; (5) changes in federal immigration policy; (6) public and political opposition to the use of public-private partnerships with respect to secure correctional and detention facilities, processing centers and reentry centers; (7) any continuing impact of the COVID-19 global pandemic on GEO and GEO’s ability to mitigate the risks associated with COVID-19; (8) GEO’s ability to sustain or improve company-wide occupancy rates at its facilities; (9) fluctuations in GEO’s operating results, including as a result of contract activations, contract terminations, contract renegotiations, changes in occupancy levels and increases in GEO’s operating costs; (10) general economic and market conditions, including changes to governmental budgets and its impact on new contract terms, contract renewals, renegotiations, per diem rates, fixed payment provisions, and occupancy levels; (11) GEO’s ability to address inflationary pressures related to labor related expenses and other operating costs; (12) GEO’s ability to timely open facilities as planned, profitably manage such facilities and successfully integrate such facilities into GEO’s operations without substantial costs; (13) GEO’s ability to win management contracts for which it has submitted proposals and to retain existing management contracts; (14) risks associated with GEO’s ability to control operating costs associated with contract start-ups; (15) GEO’s ability to successfully pursue growth opportunities and continue to create shareholder value; (16) GEO’s ability to obtain financing or access the capital markets in the future on acceptable terms or at all; and (17) other factors contained in GEO’s Securities and Exchange Commission periodic filings, including its Form 10-K, 10-Q and 8-K reports, many of which are difficult to predict and outside of GEO’s control.

View full release here.

Pablo E. Paez, (866) 301 4436
Executive Vice President, Corporate Relations

Source: The GEO Group, Inc.

FreightCar America (RAIL) – First Quarter Results Exceeded Our Estimates


Wednesday, May 07, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter financial results. FreightCar America reported net income of $1.604 million or $0.05 per share compared to our estimate of $1.223 million or $0.03 per share. The variances to our estimates were largely revenue and margin driven. As expected, revenue and rail car deliveries declined to $96.3 million and 710, respectively, compared to $161.1 million and 1,223 during the first quarter of 2024. Our estimates were $82.5 million and 700. During the quarter, a portion of RAIL’s railcar production capacity was utilized for custom fabrications by its Aftermarket segment. Management expected lower deliveries to be reflected in first quarter revenues. Gross profit and margin improved to $14.4 million and 14.9%, respectively, compared to $11.4 million and 7.1% during the prior year period. Adjusted EBITDA increased to $7.3 million compared to $6.1 million during the first quarter of 2024. RAIL generated free cash flow of $12.5 million and ended the quarter with $54.1 million in cash.

No Change to 2025 corporate guidance. Railcar deliveries are expected to be in the range of 4,500 to 4,900, revenue is expected to be in the range of $530 million to $595 million, and adjusted EBITDA is expected to be in the range of $43 to $49 million. Compared to 2024, railcar deliveries, revenue, and adjusted EBITDA are expected to increase 7.7%, 0.6%, and 7.0%, respectively, at the midpoints of guidance.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Great Lakes Dredge & Dock (GLDD) – An Exceptional Quarter


Wednesday, May 07, 2025

Great Lakes Dredge & Dock Corporation is the largest provider of dredging services in the United States. In addition, Great Lakes is fully engaged in expanding its core business into the rapidly developing offshore wind energy industry. The Company has a long history of performing significant international projects. The Company employs experienced civil, ocean and mechanical engineering staff in its estimating, production and project management functions. In its over 131-year history, the Company has never failed to complete a marine project. Great Lakes owns and operates the largest and most diverse fleet in the U.S. dredging industry, comprised of approximately 200 specialized vessels. Great Lakes has a disciplined training program for engineers that ensures experienced-based performance as they advance through Company operations. The Company’s Incident-and Injury-Free® (IIF®) safety management program is integrated into all aspects of the Company’s culture. The Company’s commitment to the IIF® culture promotes a work environment where employee safety is paramount.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Exceptional Quarter. Driven by strong project performance and high utilization, as all active dredges were operational, Great Lakes generated exceptional operating results in the quarter, significantly exceeding our, and consensus, estimates. While, planned drydockings will impact future quarters, the $1+ billion backlog and strong operating environment bode well for the Company.

1Q25 Results. Revenue of $242.9 million in 1Q25 was up 22.3% from $198.7 million in 1Q24, and above our $215.5 million estimate. Gross margin improved to 28.6% from 22.9% last year and our 21.1% estimate. Adjusted EBITDA was $60.1 million versus $42.9 million in 1Q24 and our $39.5 million estimate. Net income for 1Q25 totaled $33.4 million, or $0.49/sh, up from $21.0 million and $0.31/sh last year. We had an estimated net income of $17 million or $0.25/sh.


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*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

V2X, Inc. (VVX) – Solid 1Q25, Expanding Opportunities


Tuesday, May 06, 2025

V2X builds innovative solutions that integrate physical and digital environments by aligning people, actions, and technology. V2X is embedded in all elements of a critical mission’s lifecycle to enhance readiness, optimize resource management, and boost security. The company provides innovation spanning national security, defense, civilian, and international markets. With a global team of approximately 16,000 professionals, V2X enables mission success by injecting AI and machine learning capabilities to meet today’s toughest challenges across all operational domains.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Hans Baldau, Associate Analyst, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Strategy Working. V2X’s unique full-lifecycle, mission-driven strategy is working, resulting in not only an expanded opportunity set but significantly larger individual opportunities than in the past. The Company’s focus on enhancing mission effectiveness, extending asset utilization, reducing costs, and improving security and mission outcomes dovetails nicely with the focus of the DoD and the current Administration.

1Q25 Results. Revenue came in at $1.015 billion compared to $1.01 billion in 1Q24 and our $1.04 billion estimate, with 10% y-o-y growth in Indopacom the driver. Adjusted EBITDA was $67 million, down slightly from $69 million last year and in-line with our estimate. Adjusted EPS was $0.98, up from $0.90 last year and our $0.89 estimate.


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

FreightCar America (RAIL) – RAIL Exceeds Our First Quarter Expectations; Investor Call at 11:00 am ET


Tuesday, May 06, 2025

Mark Reichman, Managing Director, Equity Research Analyst, Natural Resources, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

First quarter financial results. FreightCar America earned adjusted net income of $1.604 million or $0.05 per share compared to our estimate of $1.223 million or $0.03 per share. The variance to our estimates were largely revenue and margin driven. As expected, revenue and rail car deliveries declined to $96.3 million and 710, respectively, compared to $161.1 million and 1,223 during the first quarter of 2023. Our estimates were $82.5 million and 700. During the quarter, a portion of RAIL’s railcar production capacity was utilized to build spare parts for its Aftermarket segment. Management expected lower deliveries to be reflected in first quarter revenues. Gross profit and margin improved to $14.4 million and 14.9%, respectively, compared to $11.4 million and 7.1% during the prior year period. Adjusted EBITDA increased to $7.3 million compared to $6.1 million during the first quarter of 2023. RAIL generated free cash flow of $12.5 million and ended the quarter with $54.1 million in cash.

Favorable outlook. First quarter sales activity was strong with 1,250 railcars ordered. With a backlog of 3,337 units valued at $318 million, we expect deliveries to accelerate throughout the year.   


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Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

AMETEK Acquires FARO Technologies in $920 Million Deal to Expand Precision Measurement Capabilities

Key Points:
– AMETEK will acquire FARO Technologies for $920M, paying $44/share in cash—a 40% premium.
– FARO brings $340M in annual sales and advanced 3D metrology tools to AMETEK’s precision portfolio.
– The deal is expected to close in H2 2025, strengthening AMETEK’s presence in industrial and tech-driven sectors.

AMETEK, a global leader in electronic instruments and electromechanical devices, has announced it will acquire FARO Technologies in an all-cash deal valued at approximately $920 million. The acquisition is set to enhance AMETEK’s portfolio in precision measurement and 3D imaging, reinforcing its strategy of expanding into high-growth technology segments.

Under the terms of the agreement, AMETEK will pay $44 per share in cash for FARO, representing a roughly 40% premium to FARO’s previous closing price. The deal implies an equity value of $846 million and an enterprise value of $920 million. The acquisition is expected to close in the second half of 2025, pending customary closing conditions and regulatory approvals.

FARO Technologies, headquartered in Lake Mary, Florida, is a prominent provider of 3D measurement, imaging, and realization technology. Its suite of products includes portable measurement arms, laser scanners, and laser trackers used widely across manufacturing, engineering, construction, and public safety applications. The company reported approximately $340 million in sales for 2024, making it a valuable addition to AMETEK’s electronic instruments segment.

“This acquisition aligns well with our strategy of investing in differentiated technology businesses with strong market positions and attractive growth characteristics,” said David Zapico, Chairman and CEO of AMETEK. “FARO’s innovative 3D measurement and imaging solutions will strengthen our presence in precision metrology and expand our reach into new markets and applications.”

FARO’s technologies are used in sectors ranging from aerospace and automotive to architecture and law enforcement—markets that AMETEK sees as key growth areas. The deal reflects AMETEK’s broader aim to build out its capabilities in high-precision, high-performance technologies that deliver value across complex industrial environments.

While FARO shares jumped 36% in pre-market trading following the announcement, AMETEK shares remained flat, reflecting a neutral reaction from investors. However, analysts noted that the acquisition could offer long-term synergies, particularly as AMETEK integrates FARO’s product line and customer relationships into its existing operations.

AMETEK has a track record of strategic, bolt-on acquisitions that complement its core businesses. The company recently reported better-than-expected earnings for Q1 2025, driven by improved margins and resilient demand despite ongoing inflationary pressures and global trade uncertainties. CEO David Zapico noted that AMETEK’s strong U.S. manufacturing footprint positions it well to benefit from shifting supply chain dynamics and tariff-related opportunities.

“The current trade environment is creating strategic openings for manufacturers like AMETEK,” Zapico said last week. “This acquisition allows us to serve a broader range of customers looking for advanced measurement technologies built in America.”

FARO will operate under AMETEK’s Electronic Instruments Group, a division known for producing advanced monitoring, testing, and analytical equipment for industries that demand high accuracy and reliability.

The acquisition further solidifies AMETEK’s position as a leader in precision instrumentation, while giving FARO the resources and scale to accelerate innovation and expand its market reach. With both companies emphasizing long-term value and technical excellence, the deal appears well-aligned for success.

Release – FreightCar America, Inc. Reports First Quarter 2025 Results

Research News and Market Data on RAIL

05/05/2025

Gross Profit Increased 26% with Gross Margin Expanding 780 Basis Points

Generates Quarterly Operating Cash Flow of $13 million and Adjusted Free Cash Flow of $12 million

Strong Order Intake Supports Reaffirmed Full Year Guidance

CHICAGO, May 05, 2025 (GLOBE NEWSWIRE) — FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar America” or the “Company”), a diversified manufacturer and supplier of railroad freight cars, railcar parts and components, today reported results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights

  • Revenues of $96.3 million, consistent with expectations, decreased 40.2% from $161.1 million in the first quarter of 2024, with planned railcar deliveries of 710 units compared to 1,223 units in the prior-year period
  • Gross margin of 14.9% with gross profit of $14.4 million, compared to gross margin of 7.1% with gross profit of $11.4 million in the first quarter of 2024
  • Net income of $50.4 million, or $1.52 per share and Adjusted net income of $1.6 million, or $0.05 per share, primarily reflecting a $52.9 million non-cash adjustment due to change in warrant liability
  • Adjusted EBITDA of $7.3 million, compared to Adjusted EBITDA of $6.1 million in the first quarter of 2024, up 20.5%
  • Generated Operating Cash Flow of $12.8 million, compared to $25.3 million of cash used in the first quarter of 2024, a $38.1 million increase year over year
  • Generated Adjusted Free Cash Flow of $12.5 million, compared to $30.5 million of cash used in the first quarter of 2024, a $43.0 million increase year over year
  • Ended the quarter with a backlog of 3,337 units valued at $318 million

“We continued to solidify our position as the fastest-growing railcar manufacturer in North America, driven by strong commercial execution and operational discipline. In line with our expectations for the first quarter, we achieved robust margins, once again outperforming our industry peers, reflecting our commitment to differentiated product offerings and exceptional commercial discipline. Order activity remained strong, with 1,250 railcars ordered during the quarter valued at approximately $141 million, underscoring our ongoing momentum and expanding market share,” commented Nick Randall, President and Chief Executive Officer of FreightCar America.

Randall continued, “Looking forward, our healthy backlog and growing inquiry pipeline position us for a meaningful ramp up in deliveries for the remainder of the year. While the industry has experienced some delays in order placements, we have continued to capture significant market share through our agility and superior responsiveness to customer needs. We reaffirm our previously announced full-year guidance and remain confident in our ability to deliver profitable growth and increased market share, further strengthening our long-term competitive position.”

Fiscal Year 2025 Outlook

The Company has reaffirmed outlook for fiscal year 2025 as follows:

 Fiscal 2025 OutlookYear-over-Year
Growth at Midpoint
Railcar Deliveries4,500 – 4,900 Railcars7.7%
Revenue$530 – $595 million0.6%
Adjusted EBITDA1$43 – $49 million7.0%

1. The Company does not provide a reconciliation of forward-looking Adjusted EBITDA guidance due to the inherent difficulty in forecasting and quantifying adjustments necessary to calculate such non-GAAP measure without unreasonable effort. Material changes to such adjustments, including warrant liability and non-core operating items, could affect future GAAP results.

Mike Riordan, Chief Financial Officer of FreightCar America, added, “We remain in a strong financial position, generating consistent operating and free cash flow, marking our fourth consecutive quarter of positive operating cash flow, while ending the quarter with over $50 million in cash on hand. Our disciplined approach continues to drive margin strength and consistent cash generation, reinforcing our balance sheet and providing significant financial flexibility. We are firmly on track to achieve our full year guidance targets and remain committed to sustainable value creation through continued operational efficiency, commercial execution and delivering positive free cash flow for the year.”

First Quarter 2025 Conference Call & Webcast Information

The Company will host a conference call and live webcast on Tuesday, May 6, at 11:00 a.m. (Eastern Time) to discuss its first quarter 2025 financial results. FreightCar America invites shareholders and other interested parties to listen to its financial results conference call.

Teleconference details are as follows:

About FreightCar America

FreightCar America, headquartered in Chicago, Illinois, is a leading designer, producer and supplier of railroad freight cars, railcar parts and components. We also specialize in railcar repairs, complete railcar rebody services and railcar conversions that repurpose idled rail assets back into revenue service. Since 1901, our customers have trusted us to build quality railcars that are critical to economic growth and instrumental to the North American supply chain. To learn more about FreightCar America, visit www.freightcaramerica.com.

Forward-Looking Statements

This press release contains statements relating to our expected financial performance, financial condition, and/or future business prospects, events and/or plans that are “forward-looking statements” as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. These risks and uncertainties relate to, among other things, the cyclical nature of our business; adverse geopolitical, economic and market conditions, including inflation; material disruption in the movement of rail traffic for deliveries; fluctuating costs of raw materials, including steel and aluminum; delays in the delivery of raw materials; our ability to maintain relationships with our suppliers of railcar components; our reliance upon a small number of customers that represent a large percentage of our sales; the variable purchase patterns of our customers and the timing of completion; delivery and customer acceptance of orders; the highly competitive nature of our industry; the risk of lack of acceptance of our new railcar offerings; potential unexpected changes in laws, rules, and regulatory requirements, including tariffs and trade barriers (including recent United States tariffs imposed or threatened to be imposed on China, Canada, Mexico and other countries and any retaliatory actions taken by such countries); and other competitive factors. The factors listed above are not exhaustive. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This press release includes measures not derived in accordance with generally accepted accounting principles (“GAAP”), such as EBITDA, Adjusted EBITDA, Adjusted net income (loss), Adjusted EPS, Free cash flow and Adjusted free cash flow. These non-GAAP measures should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP and may also be inconsistent with similar measures presented by other companies. Reconciliations of these measures to the applicable most closely comparable GAAP measures, and reasons for the Company’s use of these measures, are presented in the attached pages.

Investor Contact:RAILIR@Riveron.com

View full release here.