FreightCar America : Investor Presentation

Investor Presentation

May 2024

Disclosures

Forward-Looking Statements

This presentation 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 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, 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 presentation, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

This presentation includes measures not derived in accordance with generally accepted accounting principles ("GAAP"), such as EBITDA, Adjusted EBITDA, Adjusted net loss and Adjusted EPS. 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 "Appendix."

2

Company Overview

3

Re-engineered Business Model Built to Achieve Profitable Growth

INDUSTRY-LEADING PURE PLAY MANUFACTURER OF HIGH-QUALITY RAILCARS

LTM as of 3/31/2024	10.4%	$6,875
$438M
Revenue	Gross Margin	Adj. EBITDA1 / Railcar
Up 24.3% YoY	Up 380 bps YoY	Up 200% YoY

3,507	175K+	5,000+
Railcar Deliveries	Railcars in Service Today	Capacity

4 1. See appendix for reconciliation of non-GAAP measures

Transitioning From Over a Century of

Coal Car Industry Dominance

To address industry-wide challenges, the new management team

initiated a multi-year product, footprint, and cost transformation

1900s - 2000s

Established

Leadership Capturing

Coal Car Demand

• 80% market share in coal car manufacturing for more than a century
• Johnstown America changes name to FreightCar America ("FCA")
• In 2005, FCA completed IPO

2010s - 2020s

Pivot to a New

Company

• Major declines in coal production significantly impacted FCA's primary business and resulted in a reduction in coal car revenue from 92% to 1% between 2012-2016
• COVID-19and an industry downturn impacted demand for new railcars of all types and further challenged FCA's business and U.S. based multi-plant footprint

2020 - 2024

Product, Footprint and Cost Transformation

Completed closures	1000th railcar	5000th railcar	Achieving industry
of all legacy, US	produced at Castaños,	produced at Castaños,	leading margins
manufacturing plants	Mexico facility	Mexico facility
	Refinanced company	Exited from leasing business to
	and 'greenfielded' a	align FCA with key customers
	state-of-the-art	as a pure manufacturer

manufacturing campus	Completed buildout of the lower cost,
in Castaños, Mexico
	vertically integrated Castaños campus with
	capacity of 5,000+ units / year and flexibility
	to produce most freight car types

5

Company Leadership

Nicholas Randall

Chief Executive Officer

• Joined FCA in 2023 to prepare Company for its next phase of development
• Technical expertise in manufacturing excellence and supply chain management
• 20+ years of expertise in leading automotive and aerospace companies

Michael Riordan

Chief Financial Officer

• Joined FCA in 2020 as part of turn-around team
• Focused on strategic planning and capital management
• 17+ years in finance, accounting and operations

Matthew Tonn

Chief Commercial Officer

• Joined FCA in 2019 to lead Company's realignment in the broader freight and third- party lessor markets
• Proven track record for business development, growth and start-ups
• 30+ years of experience in the rail equipment markets

Celia Perez

General Counsel

• Joined FCA in 2022 to lead Legal and Compliance
• Business-mindedattorney with deep commercial and
  M&A experience
• 15+ years in the legal industry, with a mix of private practice, in-house and government experience

80+ years of industrial manufacturing experience

6

Evolution of Enhanced Earnings Quality

Historical Company: FY19

2 manufacturing locations

10,000+ railcar capacity

2,276 railcar deliveries

($18,020)

Adj. EBITDA1 / Railcar

Transformed FCA: FY23

1 manufacturing location

5,000+ railcar capacity

3,022 railcar deliveries

$6,658

Adj. EBITDA1 / Railcar

7 1. See appendix for reconciliation of non-GAAP measures

Executing Strategic Pivot to

Drive Profitable Growth

WORLD-CLASS MANUFACTURER OF RAIL EQUIPMENT, GENERATING INDUSTRY LEADING MARGINS WITH SIGNIFICANT OPPORTUNITY FOR FURTHER EXPANSION

2024 & Beyond

Strategic focus - scaling the business at a higher margin

Manufacturing Footprint / Cost

• Minimized fixed costs to provide agility during cyclical downturns
• Breakeven Adj. EBITDA at extremely low volumes
• Fast changeovers / reduced downtime
• Vertically integrated
• Ample ability to source lower cost skilled labor

Commercialization Strategy

• Pure play manufacturer, fully committed to serving leasing customers that represent the majority of industry purchases
• Well-positionedto respond to customer delivery requirements by achieving fast and efficient order-to-fulfillment times
• State of the art manufacturing and industry-respected technical team able to efficiently deliver customized product requirements

Pillars for Value Creation

Drive Profitable Growth in Railcar Manufacturing

Recapitalize Debt Structure

Future Product Expansion

8

Manufacturing Campus Positioned to Scale

Castaños, Mexico Facility:

Castaños Railcar Capacity |

Timing of Ramping Facility

6000

5000	Line 4

4000

3000
Line 3
2000
Line 2

1000

2023

completion

4

Production lines

9

0.7M

Sq. ft.

5K+

Annual car capacity

2K

employees

Vertically integrated paint, fabrication, wheel & axle shops

Plant designed for efficient future expansion

Line 1

0

FY20 FY21 FY22 FY23 FY24E

Vertically-Integrated Facility Driving

Significant Margin Improvement

Gross Profit / RAILCAR

Optimized operational efficiency and cost-effectiveness

Ability to effectively manage supply chain challenges due to consolidated footprint and vertical integration

Proximity to low-cost regional supply base

$20,000

$10,000

$0

Access to a skilled labor force in MX with higher retention than domestic labor force

Early stages of realizing benefits of operational efficiencies:

($10,000)

($20,000)

FY20

FY21

FY22

FY23

Achieved $6,658 in Adj. EBITDA / Railcar1 at ~60% capacity

10	1. FY 2023 as of 12/31/23; See appendix for reconciliation of non-GAAP measures