Yahoo Finance

• Adjusted EPS: $1.82 for the full year, a 32% year-over-year increase.

• Adjusted ROE: 14.6% for the full year.

• Cash Flow from Operations: $645 million, a 65% increase over 2023.

• Leasing and Services Revenue: $287 million in Q4; $1.1 billion for the full year.

• Leasing and Services Operating Profit: $121 million in Q4 with a margin of 42%.

• Lease Fleet Utilization Rate: 97%.

• Renewal Success Rate: 77% in Q4.

• Railcar Deliveries: 3,760 in Q4; 17,570 for the full year.

• Railcar Orders: 7,685 in 2024; year-end backlog of $2.1 billion.

• Net Lease Fleet Investment: $181 million for the full year.

• Dividend Payments: $93 million in 2024.

• Share Repurchases: $21 million in 2024.

• Dividend Increase: $0.02 increase to $0.30 per share.

• Consolidated Revenues: $629 million in Q4; $3.1 billion for the full year.

• Effective Tax Rate: 22.7% for the full year.

• 2025 EPS Guidance: $1.50 to $1.80 per share.

• 2025 Net Lease Fleet Investment Guidance: $300 million to $400 million.

• 2025 Manufacturing Capital Expenditures Guidance: $45 million to $55 million.

• Warning! GuruFocus has detected 7 Warning Signs with TRN.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Trinity Industries Inc (NYSE:TRN) reported a full year adjusted EPS of $1.82, representing a 32% year-over-year increase.

• The company achieved an adjusted ROE of 14.6%, within its target range, and a significant improvement from the previous year.

• Cash flow from operations, including net gains on lease portfolio sales, was $645 million, reflecting a 65% increase over 2023.

• The leasing and services segment generated a strong operating profit margin of 42% in the fourth quarter.

• Trinity Industries Inc (NYSE:TRN) maintained a high lease fleet utilization rate of 97% and a renewal success rate of 77% in the fourth quarter.

Negative Points

• The company expects a step down in industry deliveries for 2025, with a projected 20% decrease compared to 2024.

• Ongoing tariff uncertainties and macroeconomic pressures are causing delays in customer investment decisions.

• Higher maintenance costs due to compliance intervals are expected to persist, impacting leasing and services margins.

• The effective tax rate is anticipated to increase to approximately 25% to 27% for the full year 2025.

• Trinity Industries Inc (NYSE:TRN) faces potential risks to its 2025 guidance if tariff uncertainties continue, leading to further delays in railcar orders.

Q & A Highlights

Q: Can you discuss the backlog coverage for the year and how it might differ between the first and second halves of 2025? A: We expect industry deliveries for 2025 to be down about 20% to 35,000 units. The first half of the year may be slower due to macroeconomic uncertainties, including tariffs. However, we anticipate the second half to be better as clarity on these issues improves. (E. Jean Savage, CEO)