Yahoo Finance

• a significant decline in customer demand for our transportation assets or services, including as a result of:

  • prolonged inflation or deflation

  • high interest rates

  • weak macroeconomic conditions and the impact of global trade disruptions on us and our customers, including the impact of tariffs on inflation, supply chains and consumer sentiment

  • weak market conditions in our customers' businesses

  • adverse changes in the price of, or demand for, commodities

  • changes in railroad operations, efficiency, pricing and service offerings, including those related to "precision scheduled railroading" or labor strikes or shortages

  • changes in, or disruptions to, supply chains

  • availability of pipelines, trucks, and other alternative modes of transportation

  • changes in conditions affecting the aviation industry, including global conflicts, geographic exposure and customer concentrations

  • customers' desire to buy, rather than lease, our transportation assets

  • other operational or commercial needs or decisions of our customers

• inability to maintain our transportation assets on lease at satisfactory rates and term length due to reduced demand or oversupply of transportation assets in the market or other changes in supply and demand

• competitive factors in our primary markets, including existing or new competitors with significantly greater financial resources, higher credit ratings or lower costs of capital

• higher costs associated with increased assignments of our transportation assets following non-renewal of leases, customer defaults, and compliance maintenance programs or other maintenance initiatives

• events having an adverse impact on assets, customers, or regions where we have a concentrated investment exposure

• financial and operational risks associated with long-term purchase commitments for transportation assets

• reduced opportunities to generate asset remarketing income

• inability to successfully consummate and manage ongoing acquisition and divestiture activities

• reliance on Rolls-Royce in connection with our aircraft spare engine leasing businesses, and the risks that certain factors that adversely affect Rolls-Royce could have an adverse effect on our businesses

• potential obsolescence of our assets

• risks related to our international operations and expansion into new geographic markets, including laws, regulations, tariffs, taxes, treaties or trade barriers affecting our activities in the countries where we do business

• failure to successfully negotiate collective bargaining agreements with the unions representing a substantial portion of our employees

• inability to attract, retain, and motivate qualified personnel, including key management personnel

• inability to maintain and secure our information technology infrastructure from cybersecurity threats and related disruption of our business

• exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets

• changes in, or failure to comply with, laws, rules, and regulations

• environmental liabilities and remediation costs

• operational, functional and regulatory risks associated with climate matters, severe weather events and natural disasters

• U.S. and global political conditions and the impact of increased geopolitical tension and wars on domestic and global economic conditions in general, including supply chain challenges and disruptions

• prolonged inflation or deflation

• fluctuations in foreign exchange rates

• deterioration of conditions in the capital markets, reductions in our credit ratings, or increases in our financing costs

• inability to obtain cost-effective insurance

• changes in assumptions, increases in funding requirements or investment losses in our pension and post-retirement plans

• inadequate allowances to cover credit losses in our portfolio

• asset impairment charges we may be required to recognize

• inability to maintain effective internal control over financial reporting and disclosure controls and procedures

• the occurrence of a widespread health crisis and the impact of measures taken in response

Three Months Ended

March 31

2025

2024

Revenues

Lease revenue

$

359.6

$

333.3

Non-dedicated engine revenue

21.5

13.2

Other revenue

40.5

33.4

Total Revenues

421.6

379.9

Expenses

Maintenance expense

103.5

91.4

Depreciation expense

103.6

96.0

Operating lease expense

7.6

9.0

Other operating expense

16.0

13.6

Selling, general and administrative expense

56.6

55.9

Total Expenses

287.3

265.9

Other Income (Expense)

Net gain on asset dispositions

33.4

36.2

Interest expense, net

(94.9

)

(77.8

)

Other (expense) income

(2.7

)

0.8

Income before Income Taxes and Share of Affiliates’ Earnings

70.1

73.2

Income taxes

(16.6

)

(18.6

)

Share of affiliates’ earnings, net of taxes

25.1

19.7

Net Income

$

78.6

$

74.3

Share Data

Basic earnings per share

$

2.15

$

2.04

Average number of common shares

35.9

35.8

Diluted earnings per share

$

2.15

$

2.03

Average number of common shares and common share equivalents

36.0

35.9

Dividends declared per common share

$

0.61

$

0.58

March 31

December 31

2025

2024

Assets

Cash and Cash Equivalents

$

757.2

$

401.6

Restricted Cash

0.4

0.2

Receivables

Rent and other receivables

101.4

86.5

Finance leases (as lessor)

121.6

118.3

Less: allowance for losses

(5.7

)

(5.7

)

217.3

199.1

Operating Assets and Facilities

14,711.1

14,330.6

Less: allowance for depreciation

(3,989.9

)

(3,880.9

)

10,721.2

10,449.7

Lease Assets (as lessee)

Right-of-use assets, net of accumulated depreciation

156.6

165.4

Investments in Affiliated Companies

688.9

663.3

Goodwill

118.1

114.1

Other Assets

306.6

303.1

Total Assets

$

12,966.3

$

12,296.5

Liabilities and Shareholders’ Equity

Accounts Payable and Accrued Expenses

$

235.6

$

217.1

Debt

Borrowings under bank credit facilities

101.5

10.4

Recourse

8,653.1

8,215.3

8,754.6

8,225.7

Lease Obligations (as lessee)

Operating leases

174.4

180.0

Deferred Income Taxes

1,150.1

1,127.3

Other Liabilities

102.2

107.5

Total Liabilities

10,416.9

9,857.6

Total Shareholders’ Equity

2,549.4

2,438.9

Total Liabilities and Shareholders’ Equity

$

12,966.3

$

12,296.5

Rail North America

Rail
International

Engine
Leasing

Other

GATX

Consolidated

Revenues

Lease revenue

$

260.0

$

83.6

$

8.1

$

7.9

$

359.6

Non-dedicated engine revenue

—

—

21.5

—

21.5

Other revenue

33.3

4.9

—

2.3

40.5

Total Revenues

293.3

88.5

29.6

10.2

421.6

Expenses

Maintenance expense

83.7

18.5

—

1.3

103.5

Depreciation expense

70.4

20.1

9.4

3.7

103.6

Operating lease expense

7.6

—

—

—

7.6

Other operating expense

7.5

4.6

2.8

1.1

16.0

Total Expenses

169.2

43.2

12.2

6.1

230.7

Other Income (Expense)

Net gain on asset dispositions

32.1

1.3

—

—

33.4

Interest (expense) income, net

(64.7

)

(19.1

)

(12.2

)

1.1

(94.9

)

Other (expense) income

(2.7

)

(1.8

)

—

1.8

(2.7

)

Share of affiliates' pre-tax earnings

—

—

33.4

—

33.4

Segment profit

$

88.8

$

25.7

$

38.6

$

7.0

$

160.1

Less:

Selling, general and administrative expense

56.6

Income taxes (includes $8.3 related to affiliates' earnings)

24.9

Net income

$

78.6

Selected Data:

Investment volume

$

227.7

$

62.7

$

—

$

5.9

$

296.3

Net Gain on Asset Dispositions

Asset Remarketing Income:

Net gains on disposition of owned assets

$

30.5

$

0.6

$

—

$

—

$

31.1

Residual sharing income

0.1

—

—

—

0.1

Non-remarketing net gains (1)

5.1

0.7

—

—

5.8

Asset impairments

(3.6

)

—

—

—

(3.6

)

$

32.1

$

1.3

$

—

$

—

$

33.4

_________

(1)

Includes net gains from scrapping of railcars.

Rail North America

Rail
International

Engine
Leasing

Other

GATX Consolidated

Revenues

Lease revenue

$

236.5

$

80.6

$

8.1

$

8.1

$

333.3

Non-dedicated engine revenue

—

—

13.2

—

13.2

Other revenue

28.5

3.1

—

1.8

33.4

Total Revenues

265.0

83.7

21.3

9.9

379.9

Expenses

Maintenance expense

72.9

17.5

—

1.0

91.4

Depreciation expense

65.1

18.9

8.4

3.6

96.0

Operating lease expense

9.0

—

—

—

9.0

Other operating expense

6.7

3.5

2.5

0.9

13.6

Total Expenses

153.7

39.9

10.9

5.5

210.0

Other Income (Expense)

Net gain on asset dispositions

34.2

1.3

0.6

0.1

36.2

Interest (expense) income, net

(53.3

)

(16.7

)

(9.3

)

1.5

(77.8

)

Other (expense) income

(2.1

)

0.4

0.3

2.2

0.8

Share of affiliates' pre-tax earnings

0.2

—

23.7

—

23.9

Segment profit

$

90.3

$

28.8

$

25.7

$

8.2

$

153.0

Less:

Selling, general and administrative expense

55.9

Income taxes (includes $4.2 related to affiliates' earnings)

22.8

Net income

$

74.3

Selected Data:

Investment volume

$

321.7

$

49.9

$

—

$

7.0

$

378.6

Net Gain on Asset Dispositions

Asset Remarketing Income:

Net gains on disposition of owned assets

$

32.9

$

0.1

$

0.6

$

0.1

$

33.7

Residual sharing income

0.1

—

—

—

0.1

Non-remarketing net gains (1)

1.2

1.2

—

—

2.4

$

34.2

$

1.3

$

0.6

$

0.1

$

36.2

__________

(1)

Includes net gains from scrapping of railcars.

Three Months Ended

March 31

2025

2024

Net income (GAAP)

$

78.6

$

74.3

Adjustments attributable to consolidated pre-tax income:

Net gain on Specialized Gas Vessels at Engine Leasing (2)

—

(0.6

)

Total adjustments attributable to consolidated pre-tax income

$

—

$

(0.6

)

Net income, excluding tax adjustments and other items (non-GAAP)

$

78.6

$

73.7

Three Months Ended

March 31

2025

2024

Diluted earnings per share (GAAP)

$

2.15

$

2.03

Diluted earnings per share, excluding tax adjustments and other items (non-GAAP)

$

2.15

$

2.01

_________

(1)

In addition to financial results reported in accordance with GAAP, we compute certain financial measures using non-GAAP components. Specifically, we exclude the effects of certain tax adjustments and other items for purposes of presenting net income and diluted earnings per share because we believe these items are not attributable to our business operations. Management utilizes net income, excluding tax adjustments and other items, when analyzing financial performance because such amounts reflect the underlying operating results that are within management’s ability to influence. Accordingly, we believe presenting this information provides investors and other users of our financial statements with meaningful supplemental information for purposes of analyzing year-to-year financial performance on a comparable basis and assessing trends.

(2)

In 2022, we made the decision to sell the Specialized Gas Vessels. We have recorded gains and losses associated with the subsequent impairments and sales of these assets. As of December 31, 2023, all vessels had been sold.

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Total Assets, Excluding Cash, by Segment

Rail North America

$

7,888.3

$

7,741.1

$

7,643.7

$

7,416.0

$

7,214.1

Rail International

2,304.3

2,169.0

2,298.6

2,168.3

2,142.1

Engine Leasing

1,619.8

1,603.9

1,544.7

1,431.7

1,354.4

Other

396.3

380.7

389.1

382.8

389.3

Total Assets, excluding cash

$

12,208.7

$

11,894.7

$

11,876.1

$

11,398.8

$

11,099.9

Debt and Lease Obligations, Net of Unrestricted Cash

Unrestricted cash

$

(757.2

)

$

(401.6

)

$

(503.7

)

$

(823.6

)

$

(479.1

)

Borrowings under bank credit facilities

101.5

10.4

11.1

10.7

10.8

Recourse debt

8,653.1

8,215.3

8,293.5

8,235.7

7,624.5

Operating lease obligations

174.4

180.0

187.5

209.3

215.2

Total debt and lease obligations, net of unrestricted cash

$

8,171.8

$

8,004.1

$

7,988.4

$

7,632.1

$

7,371.4

Total recourse debt (1)

$

8,171.8

$

8,004.1

$

7,988.4

$

7,632.1

$

7,371.4

Shareholders’ Equity

$

2,549.4

$

2,438.9

$

2,436.7

$

2,343.4

$

2,324.3

Recourse Leverage (2)

3.2

3.3

3.3

3.3

3.2

_________

(1)

Includes recourse debt, borrowings under bank credit facilities, and operating lease obligations, net of unrestricted cash.

(2)

Calculated as total recourse debt / shareholder's equity.

Reconciliation of Total Assets to Total Assets, Excluding Cash

Total Assets

$

12,966.3

$

12,296.5

$

12,379.9

$

12,222.6

$

11,579.1

Less: cash

(757.6

)

(401.8

)

(503.8

)

(823.8

)

(479.2

)

Total Assets, excluding cash

$

12,208.7

$

11,894.7

$

11,876.1

$

11,398.8

$

11,099.9

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Rail North America Statistics

Lease Price Index (LPI) (1)

Average renewal lease rate change

24.5

%

26.7

%

26.6

%

29.4

%

33.0

%

Average renewal term (months)

61

60

59

61

64

Renewal Success Rate (2)

85.1

%

89.1

%

82.0

%

84.1

%

83.4

%

Fleet Rollforward (3)

Beginning balance

102,966

102,697

102,086

101,687

101,167

Railcars added

1,464

1,126

1,474

1,337

1,422

Railcars scrapped

(316

)

(309

)

(360

)

(389

)

(375

)

Railcars sold

(804

)

(548

)

(503

)

(549

)

(527

)

Ending balance

103,310

102,966

102,697

102,086

101,687

Utilization

99.2

%

99.1

%

99.3

%

99.3

%

99.4

%

Average active railcars

102,367

102,150

101,629

101,181

100,677

Boxcar Fleet Rollforward

Beginning balance

8,395

8,779

8,990

9,670

9,311

Railcars added

—

—

—

—

587

Railcars scrapped

(405

)

(349

)

(211

)

(555

)

(228

)

Railcars sold

—

(35

)

—

(125

)

—

Ending balance

7,990

8,395

8,779

8,990

9,670

Utilization

99.8

%

99.8

%

99.8

%

99.8

%

99.8

%

Average active railcars

8,163

8,552

8,848

9,304

9,583

Rail North America Industry Statistics

Manufacturing Capacity Utilization Index (4)

77.8

%

77.6

%

77.5

%

78.2

%

77.8

%

Year-over-year Change in U.S. Carloadings (excl. intermodal) (5)

0.1

%

(2.9

)%

(3.3

)%

(4.5

)%

(4.2

)%

Year-over-year Change in U.S. Carloadings (chemical) (5)

2.0

%

4.1

%

4.2

%

4.3

%

4.5

%

Year-over-year Change in U.S. Carloadings (petroleum) (5)

1.9

%

9.6

%

10.4

%

11.1

%

7.7

%

Production Backlog at Railcar Manufacturers (6)

n/a (7)

34,273

39,652

44,238

46,413

_________

(1)

GATX's Lease Price Index (LPI) is an internally-generated business indicator that measures renewal activity for our North American railcar fleet, excluding boxcars. The LPI calculation includes all renewal activity based on a 12-month trailing average, and the renewals are weighted by the count of all renewals over the 12 month period. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate. The average renewal lease term is reported in months and reflects the average renewal lease term in the LPI.

(2)

The renewal success rate represents the percentage of railcars on expiring leases that were renewed with the existing lessee. The renewal success rate is an important metric because railcars returned by our customers may remain idle or incur additional maintenance and freight costs prior to being leased to new customers.

(3)

Excludes boxcar fleet.

(4)

As reported and revised by the Federal Reserve.

(5)

As reported by the Association of American Railroads (AAR).

(6)

As reported by the Railway Supply Institute (RSI).

(7)

Not available, not published as of the date of this release.

3/31/2025

12/31/2024

9/30/2024

6/30/2024

3/31/2024

Rail Europe Statistics

Fleet Rollforward

Beginning balance

30,027

29,953

29,649

29,371

29,216

Railcars added

446

196

410

388

322

Railcars scrapped or sold

(250

)

(122

)

(106

)

(110

)

(167

)

Ending balance

30,223

30,027

29,953

29,649

29,371

Utilization

95.1

%

96.1

%

95.9

%

95.8

%

95.3

%

Average active railcars

28,823

28,812

28,626

28,198

27,984

Rail India Statistics

Fleet Rollforward

Beginning balance

10,583

10,361

9,904

9,501

8,805

Railcars added

312

222

457

408

696

Railcars scrapped or sold

—

—

—

(5

)

—

Ending balance

10,895

10,583

10,361

9,904

9,501

Utilization

99.6

%

100.0

%

100.0

%

100.0

%

100.0

%

Average active railcars

10,711

10,460

10,165

9,711

9,089