- Company raises 2025 full-year earnings guidance to $8.50–$8.90 per diluted share
- Rail North America’s fleet utilization remains above 99%
- Demand for aircraft spare engines remains robust
- Investment volume was $219.0 million in the second quarter and totaled $515.3 million year to date
GATX Corporation (NYSE: GATX) today reported 2025 second-quarter net income of $75.5 million, or $2.06 per diluted share, compared to net income of $44.4 million, or $1.21 per diluted share, in the second quarter of 2024. The 2024 second-quarter results include a net negative impact of $8.0 million, or $0.22 per diluted share, from Tax Adjustments and Other Items.
Net income for the first six months of 2025 was $154.1 million, or $4.21 per diluted share, compared to $118.7 million, or $3.25 per diluted share, in the prior year period. The 2024 year-to-date results include a net negative impact of $7.4 million, or $0.20 per diluted share, from Tax Adjustments and Other Items. Details related to these items are provided in the attached Supplemental Information under Tax Adjustments and Other Items.
"Our strong second-quarter results reflect solid operating performance across our global businesses," said Robert C. Lyons, president and chief executive officer of GATX. "At GATX Rail North America, fleet utilization remained high at 99.2% at the end of the quarter and the renewal success rate was strong at 84.2%. Demand for our railcars remained stable during the quarter, and our commercial team continued to focus on improving renewal lease rates and lengthening lease terms on many car types. The renewal lease rate change of GATX’s Lease Price Index was 24.2% with an average renewal term of 60 months. In the second quarter, we capitalized on an active secondary market and generated remarketing income of over $34 million.
"Within Rail International, GATX Rail Europe’s fleet utilization decreased to 93.3% at the end of the second quarter. Slower economic growth, particularly in Germany, and global macroeconomic uncertainties have led customers in various sectors to take a more cautious approach with regard to railcar fleet planning. Forecasts point to improved economic growth in Europe over the next 12 months and beyond, and GATX Rail Europe is well positioned to capitalize on positive long-term trends in railcar demand. At GATX Rail India, demand for railcars remains robust and fleet utilization was stable at 99.6% at quarter end. Continued infrastructure development in India, along with generally strong economic conditions, is driving strong operating results and investment opportunities at GATX Rail India.
"Engine Leasing continues to perform well as demand for aircraft spare engines remains strong. Our joint venture with Rolls-Royce posted excellent operating results for the quarter and year-to-date periods, and the investment pipeline for engines is expected to remain robust for the remainder of the year."
Mr. Lyons added, "Investment volume totaled over $515 million on a year-to-date basis, and we continue to find attractive investment opportunities across our businesses. In addition, at the end of May, we announced a definitive agreement to form a joint venture with Brookfield Infrastructure to acquire Wells Fargo's rail assets. As previously disclosed, we are pursuing the customary regulatory approvals, and we continue to expect closing to occur in the first quarter of 2026 or sooner."
Mr. Lyons concluded, "Based on our financial results year to date, and incorporating our expectations for stronger performance from Engine Leasing in the second half of the year, we are increasing our 2025 full-year earnings estimate to be in the range of $8.50 to $8.90 per diluted share. This guidance excludes the impact of Tax Benefits and Other Items as well as any impacts from the acquisition of Wells Fargo's rail assets."
RAIL NORTH AMERICA
Rail North America reported segment profit of $96.6 million in the second quarter of 2025, compared to $78.8 million in the second quarter of 2024. Year to date 2025, Rail North America reported segment profit of $185.4 million, compared to $169.1 million in the same period of 2024. Higher 2025 second-quarter and year-to-date results were driven primarily by higher revenue and higher gains on asset dispositions, partly offset by higher interest and maintenance expenses.
As of June 30, 2025, Rail North America’s wholly owned fleet was composed of approximately 110,000 cars, including over 7,600 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.
Fleet utilization was 99.2% at the end of the second quarter of 2025, compared to 99.2% at the end of the prior quarter and 99.3% at the end of the second quarter of 2024. During the second quarter of 2025, the renewal lease rate change of the Lease Price Index (LPI) was positive 24.2%, compared to 24.5% in the prior quarter and 29.4% in the second quarter of 2024. The average lease renewal term for all cars included in the LPI during the second quarter of 2025 was 60 months, compared to 61 months in the prior quarter and 61 months in the second quarter of 2024. The 2025 second-quarter renewal success rate was 84.2%, compared to 85.1% in the prior quarter and 84.1% in the second quarter of 2024. Rail North America’s investment volume during the second quarter of 2025 was $132.2 million.
Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America’s business are provided in the attached Supplemental Information under Rail North America Statistics.
RAIL INTERNATIONAL
Rail International’s segment profit was $32.2 million in the second quarter of 2025, compared to $26.5 million in the second quarter of 2024. Year to date 2025, Rail International reported segment profit of $57.9 million, compared to $55.3 million in the same period of 2024. 2025 second-quarter and year-to-date results were favorably impacted by more railcars on lease and negatively impacted by higher interest expense.
As of June 30, 2025, GATX Rail Europe’s (GRE) fleet consisted of approximately 30,500 cars. Fleet utilization was 93.3%, compared to 95.1% at the end of the prior quarter and 95.8% at the end of the second quarter of 2024.
As of June 30, 2025, Rail India's fleet consisted of over 11,100 railcars. Fleet utilization was 99.6%, compared to 99.6% at the end of the prior quarter and 100.0% at the end of the second quarter of 2024.
Additional fleet statistics for GRE and Rail India are provided on the last page of this press release.
ENGINE LEASING
Engine Leasing reported segment profit of $27.3 million in the second quarter of 2025, compared to segment profit of $18.4 million in the second quarter of 2024. Year to date 2025, segment profit was $65.9 million, compared to segment profit of $44.1 million in the same period of 2024.
2024 year-to-date results include a net positive impact of $0.6 million from Tax Adjustments and Other Items. Additional details are provided in the attached Supplemental Information under Tax Adjustments and Other Items.
Higher 2025 second-quarter and year-to-date results were driven by strong performance at the Rolls-Royce and Partners Finance affiliates and more engines under ownership at GATX Engine Leasing, the Company’s wholly owned engine portfolio.
COMPANY DESCRIPTION
At GATX Corporation (NYSE: GATX), we empower our customers to propel the world forward. GATX leases transportation assets including railcars, aircraft spare engines and tank containers to customers worldwide. Our mission is to provide innovative, unparalleled service that enables our customers to transport what matters safely and sustainably while championing the well-being of our employees and communities. Headquartered in Chicago, Illinois since its founding in 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919.
TELECONFERENCE INFORMATION
GATX Corporation will host a teleconference to discuss its 2025 second-quarter results. Call details are as follows:
Tuesday, July 29, 2025|
11 a.m. Eastern Time
Domestic Dial-In: 1-800-715-9871
International Dial-In: 1-646-307-1963
Replay: 1-800-770-2030 (Domestic) or 1-609-800-9909 (International) / Access Code: 4187876
Call-in details, a copy of this press release and real-time audio access are available at www.gatx.com. Please access the call 15 minutes prior to the start time. A replay will be available on the same site starting at 2 p.m. (Eastern Time), July 29, 2025.
AVAILABILITY OF INFORMATION ON GATX'S WEBSITE
Investors and others should note that GATX routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the GATX Investor Relations website. While not all of the information that the Company posts to the GATX Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in GATX to review the information that it shares on www.gatx.com under the “Investor Relations” tab.
FORWARD-LOOKING STATEMENTS
Statements in this Earnings Release not based on historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and, accordingly, involve known and unknown risks and uncertainties that are difficult to predict and could cause our actual results, performance, or achievements to differ materially from those discussed. These include statements as to our future expectations, beliefs, plans, strategies, objectives, events, conditions, financial performance, prospects, or future events. In some cases, forward-looking statements can be identified by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “outlook,” “continue,” “likely,” “will,” “would”, and similar words and phrases. Forward-looking statements are necessarily based on estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of the date they are made, and are not guarantees of future performance. We do not undertake any obligation to publicly update or revise these forward-looking statements.
The following factors, in addition to those discussed in our press releases and filings with the U.S. Securities and Exchange Commission, could cause actual results to differ materially from our current expectations expressed in forward-looking statements:
|
|
|
GATX CORPORATION AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
|||||||||||||||
(In millions, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
Revenues |
|
|
|
|
|
|
|
||||||||
Lease revenue |
$ |
368.8 |
|
|
$ |
339.6 |
|
|
$ |
728.4 |
|
|
$ |
672.9 |
|
Non-dedicated engine revenue |
|
20.5 |
|
|
|
13.7 |
|
|
|
42.0 |
|
|
|
26.9 |
|
Other revenue |
|
41.2 |
|
|
|
33.4 |
|
|
|
81.7 |
|
|
|
66.8 |
|
Total Revenues |
|
430.5 |
|
|
|
386.7 |
|
|
|
852.1 |
|
|
|
766.6 |
|
Expenses |
|
|
|
|
|
|
|
||||||||
Maintenance expense |
|
104.5 |
|
|
|
96.6 |
|
|
|
208.0 |
|
|
|
188.0 |
|
Depreciation expense |
|
106.9 |
|
|
|
98.5 |
|
|
|
210.5 |
|
|
|
194.5 |
|
Operating lease expense |
|
7.1 |
|
|
|
9.0 |
|
|
|
14.7 |
|
|
|
18.0 |
|
Other operating expense |
|
16.5 |
|
|
|
13.8 |
|
|
|
32.5 |
|
|
|
27.4 |
|
Selling, general and administrative expense |
|
58.2 |
|
|
|
58.6 |
|
|
|
114.8 |
|
|
|
114.5 |
|
Total Expenses |
|
293.2 |
|
|
|
276.5 |
|
|
|
580.5 |
|
|
|
542.4 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
||||||||
Net gain on asset dispositions |
|
40.5 |
|
|
|
25.6 |
|
|
|
73.9 |
|
|
|
61.8 |
|
Interest expense, net |
|
(96.2 |
) |
|
|
(82.8 |
) |
|
|
(191.1 |
) |
|
|
(160.6 |
) |
Other expense |
|
(1.1 |
) |
|
|
(10.8 |
) |
|
|
(3.8 |
) |
|
|
(10.0 |
) |
Income before Income Taxes and Share of Affiliates’ Earnings |
|
80.5 |
|
|
|
42.2 |
|
|
|
150.6 |
|
|
|
115.4 |
|
Income taxes |
|
(21.0 |
) |
|
|
(10.4 |
) |
|
|
(37.6 |
) |
|
|
(29.0 |
) |
Share of affiliates’ earnings, net of taxes |
|
16.0 |
|
|
|
12.6 |
|
|
|
41.1 |
|
|
|
32.3 |
|
Net Income |
$ |
75.5 |
|
|
$ |
44.4 |
|
|
$ |
154.1 |
|
|
$ |
118.7 |
|
|
|
|
|
|
|
|
|
||||||||
Share Data |
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
2.07 |
|
|
$ |
1.22 |
|
|
$ |
4.22 |
|
|
$ |
3.25 |
|
Average number of common shares |
|
35.9 |
|
|
|
35.8 |
|
|
|
35.9 |
|
|
|
35.8 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share |
$ |
2.06 |
|
|
$ |
1.21 |
|
|
$ |
4.21 |
|
|
$ |
3.25 |
|
Average number of common shares and common share equivalents |
|
35.9 |
|
|
|
35.9 |
|
|
|
36.0 |
|
|
|
35.9 |
|
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share |
$ |
0.61 |
|
|
$ |
0.58 |
|
|
$ |
1.22 |
|
|
$ |
1.16 |
|
GATX CORPORATION AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
(In millions) |
|||||||
|
June 30 |
|
December 31 |
||||
|
2025 |
|
2024 |
||||
Assets |
|
|
|
||||
Cash and Cash Equivalents |
$ |
754.6 |
|
|
$ |
401.6 |
|
Restricted Cash |
|
0.6 |
|
|
|
0.2 |
|
Receivables |
|
|
|
||||
Rent and other receivables |
|
108.1 |
|
|
|
86.5 |
|
Finance leases (as lessor) |
|
124.3 |
|
|
|
118.3 |
|
Less: allowance for losses |
|
(5.9 |
) |
|
|
(5.7 |
) |
|
|
226.5 |
|
|
|
199.1 |
|
|
|
|
|
||||
Operating Assets and Facilities |
|
15,053.2 |
|
|
|
14,330.6 |
|
Less: allowance for depreciation |
|
(4,125.8 |
) |
|
|
(3,880.9 |
) |
|
|
10,927.4 |
|
|
|
10,449.7 |
|
Lease Assets (as lessee) |
|
|
|
||||
Right-of-use assets, net of accumulated depreciation |
|
150.8 |
|
|
|
165.4 |
|
|
|
|
|
||||
Investments in Affiliated Companies |
|
706.4 |
|
|
|
663.3 |
|
Goodwill |
|
126.6 |
|
|
|
114.1 |
|
Other Assets |
|
307.3 |
|
|
|
303.1 |
|
Total Assets |
$ |
13,200.2 |
|
|
$ |
12,296.5 |
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity |
|
|
|
||||
Accounts Payable and Accrued Expenses |
$ |
229.3 |
|
|
$ |
217.1 |
|
Debt |
|
|
|
||||
Borrowings under bank credit facilities |
|
106.1 |
|
|
|
10.4 |
|
Recourse debt |
|
8,741.3 |
|
|
|
8,215.3 |
|
|
|
8,847.4 |
|
|
|
8,225.7 |
|
Lease Obligations (as lessee) |
|
|
|
||||
Operating leases |
|
168.4 |
|
|
|
180.0 |
|
|
|
|
|
||||
Deferred Income Taxes |
|
1,182.7 |
|
|
|
1,127.3 |
|
Other Liabilities |
|
102.7 |
|
|
|
107.5 |
|
Total Liabilities |
|
10,530.5 |
|
|
|
9,857.6 |
|
Total Shareholders’ Equity |
|
2,669.7 |
|
|
|
2,438.9 |
|
Total Liabilities and Shareholders’ Equity |
$ |
13,200.2 |
|
|
$ |
12,296.5 |
|
GATX CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
SEGMENT DATA (UNAUDITED) |
|||||||||||||||||||
Three Months Ended June 30, 2025 |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Lease revenue |
$ |
262.8 |
|
|
$ |
89.6 |
|
|
$ |
8.1 |
|
|
$ |
8.3 |
|
|
$ |
368.8 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
20.5 |
|
|
|
— |
|
|
|
20.5 |
|
Other revenue |
|
32.9 |
|
|
|
6.2 |
|
|
|
— |
|
|
|
2.1 |
|
|
|
41.2 |
|
Total Revenues |
|
295.7 |
|
|
|
95.8 |
|
|
|
28.6 |
|
|
|
10.4 |
|
|
|
430.5 |
|
Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Maintenance expense |
|
84.3 |
|
|
|
18.9 |
|
|
|
— |
|
|
|
1.3 |
|
|
|
104.5 |
|
Depreciation expense |
|
71.7 |
|
|
|
21.7 |
|
|
|
9.5 |
|
|
|
4.0 |
|
|
|
106.9 |
|
Operating lease expense |
|
7.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7.1 |
|
Other operating expense |
|
7.8 |
|
|
|
4.9 |
|
|
|
2.9 |
|
|
|
0.9 |
|
|
|
16.5 |
|
Total Expenses |
|
170.9 |
|
|
|
45.5 |
|
|
|
12.4 |
|
|
|
6.2 |
|
|
|
235.0 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
||||||||||
Net gain on asset dispositions |
|
39.1 |
|
|
|
1.4 |
|
|
|
— |
|
|
|
— |
|
|
|
40.5 |
|
Interest expense, net |
|
(64.4 |
) |
|
|
(20.0 |
) |
|
|
(11.6 |
) |
|
|
(0.2 |
) |
|
|
(96.2 |
) |
Other (expense) income |
|
(2.8 |
) |
|
|
0.5 |
|
|
|
0.1 |
|
|
|
1.1 |
|
|
|
(1.1 |
) |
Share of affiliates' pre-tax (losses) earnings |
|
(0.1 |
) |
|
|
— |
|
|
|
22.6 |
|
|
|
— |
|
|
|
22.5 |
|
Segment profit |
$ |
96.6 |
|
|
$ |
32.2 |
|
|
$ |
27.3 |
|
|
$ |
5.1 |
|
|
$ |
161.2 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expense |
|
58.2 |
|
||||||||||||||||
Income taxes (includes $6.5 related to affiliates' earnings) |
|
27.5 |
|
||||||||||||||||
Net income |
$ |
75.5 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment volume |
$ |
132.2 |
|
|
$ |
81.1 |
|
|
$ |
— |
|
|
$ |
5.7 |
|
|
$ |
219.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Gain on Asset Dispositions |
|
|
|
|
|
|
|
|
|
||||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
||||||||||
Net gains on disposition of owned assets |
$ |
34.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
34.1 |
|
Residual sharing income |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Non-remarketing net gains (1) |
|
4.8 |
|
|
|
1.4 |
|
|
|
— |
|
|
|
— |
|
|
|
6.2 |
|
|
$ |
39.1 |
|
|
$ |
1.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
40.5 |
|
_________ |
(1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
SEGMENT DATA (UNAUDITED) |
|||||||||||||||||||
Three Months Ended June 30, 2024 |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
|||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Lease revenue |
$ |
242.1 |
|
|
$ |
82.0 |
|
|
$ |
8.1 |
|
|
$ |
7.4 |
|
|
$ |
339.6 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
13.7 |
|
|
|
— |
|
|
|
13.7 |
|
Other revenue |
|
28.3 |
|
|
|
3.2 |
|
|
|
— |
|
|
|
1.9 |
|
|
|
33.4 |
|
Total Revenues |
|
270.4 |
|
|
|
85.2 |
|
|
|
21.8 |
|
|
|
9.3 |
|
|
|
386.7 |
|
Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Maintenance expense |
|
77.4 |
|
|
|
18.2 |
|
|
|
— |
|
|
|
1.0 |
|
|
|
96.6 |
|
Depreciation expense |
|
66.8 |
|
|
|
19.4 |
|
|
|
8.6 |
|
|
|
3.7 |
|
|
|
98.5 |
|
Operating lease expense |
|
9.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9.0 |
|
Other operating expense |
|
6.4 |
|
|
|
3.6 |
|
|
|
1.9 |
|
|
|
1.9 |
|
|
|
13.8 |
|
Total Expenses |
|
159.6 |
|
|
|
41.2 |
|
|
|
10.5 |
|
|
|
6.6 |
|
|
|
217.9 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
||||||||||
Net gain on asset dispositions |
|
24.9 |
|
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
25.6 |
|
Interest (expense) income, net |
|
(56.4 |
) |
|
|
(17.5 |
) |
|
|
(9.7 |
) |
|
|
0.8 |
|
|
|
(82.8 |
) |
Other expense |
|
(0.3 |
) |
|
|
(0.7 |
) |
|
|
(0.1 |
) |
|
|
(9.7 |
) |
|
|
(10.8 |
) |
Share of affiliates' pre-tax (losses) earnings |
|
(0.2 |
) |
|
|
— |
|
|
|
16.9 |
|
|
|
— |
|
|
|
16.7 |
|
Segment profit |
$ |
78.8 |
|
|
$ |
26.5 |
|
|
$ |
18.4 |
|
|
$ |
(6.2 |
) |
|
$ |
117.5 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expense |
|
58.6 |
|
||||||||||||||||
Income taxes (includes $4.1 related to affiliates' earnings) |
|
14.5 |
|
||||||||||||||||
Net income |
$ |
44.4 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment volume |
$ |
308.1 |
|
|
$ |
59.6 |
|
|
$ |
71.3 |
|
|
$ |
3.0 |
|
|
$ |
442.0 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Gain on Asset Dispositions |
|
|
|
|
|
|
|
|
|
||||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
||||||||||
Net gains on disposition of owned assets |
$ |
19.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
19.8 |
|
Residual sharing income |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Non-remarketing net gains (1) |
|
5.0 |
|
|
|
0.7 |
|
|
|
— |
|
|
|
— |
|
|
|
5.7 |
|
|
$ |
24.9 |
|
|
$ |
0.7 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
25.6 |
|
__________ |
(1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES |
||||||||||||||||||
SEGMENT DATA (UNAUDITED) |
||||||||||||||||||
Six Months Ended June 30, 2025 |
||||||||||||||||||
(In millions) |
||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
|||||||||
Revenues |
|
|
|
|
|
|
|
|
|
|||||||||
Lease revenue |
$ |
522.8 |
|
|
$ |
173.2 |
|
|
$ |
16.2 |
|
|
$ |
16.2 |
|
$ |
728.4 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
42.0 |
|
|
|
— |
|
|
42.0 |
|
Other revenue |
|
66.2 |
|
|
|
11.1 |
|
|
|
— |
|
|
|
4.4 |
|
|
81.7 |
|
Total Revenues |
|
589.0 |
|
|
|
184.3 |
|
|
|
58.2 |
|
|
|
20.6 |
|
|
852.1 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|||||||||
Maintenance expense |
|
168.0 |
|
|
|
37.4 |
|
|
|
— |
|
|
|
2.6 |
|
|
208.0 |
|
Depreciation expense |
|
142.1 |
|
|
|
41.8 |
|
|
|
18.9 |
|
|
|
7.7 |
|
|
210.5 |
|
Operating lease expense |
|
14.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
14.7 |
|
Other operating expense |
|
15.3 |
|
|
|
9.5 |
|
|
|
5.7 |
|
|
|
2.0 |
|
|
32.5 |
|
Total Expenses |
|
340.1 |
|
|
|
88.7 |
|
|
|
24.6 |
|
|
|
12.3 |
|
|
465.7 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|||||||||
Net gain on asset dispositions |
|
71.2 |
|
|
|
2.7 |
|
|
|
— |
|
|
|
— |
|
|
73.9 |
|
Interest (expense) income, net |
|
(129.1 |
) |
|
|
(39.1 |
) |
|
|
(23.8 |
) |
|
|
0.9 |
|
|
(191.1 |
) |
Other (expense) income |
|
(5.5 |
) |
|
|
(1.3 |
) |
|
|
0.1 |
|
|
|
2.9 |
|
|
(3.8 |
) |
Share of affiliates' pre-tax (losses) earnings |
|
(0.1 |
) |
|
|
— |
|
|
|
56.0 |
|
|
|
— |
|
|
55.9 |
|
Segment profit |
$ |
185.4 |
|
|
$ |
57.9 |
|
|
$ |
65.9 |
|
|
$ |
12.1 |
|
$ |
321.3 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||||||||
Selling, general and administrative expense |
|
114.8 |
|
|||||||||||||||
Income taxes (includes 14.8 related to affiliates' earnings) |
|
52.4 |
|
|||||||||||||||
Net income |
$ |
154.1 |
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
|||||||||
Investment volume |
$ |
359.9 |
|
|
$ |
143.8 |
|
|
$ |
— |
|
|
$ |
11.6 |
|
$ |
515.3 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net Gain on Asset Dispositions |
|
|
|
|
|
|
|
|
|
|||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
|||||||||
Net gains on disposition of owned assets |
$ |
64.6 |
|
|
$ |
0.6 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
65.2 |
|
Residual sharing income |
|
0.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
0.3 |
|
Non-remarketing net gains (1) |
|
9.9 |
|
|
|
2.1 |
|
|
|
— |
|
|
|
— |
|
|
12.0 |
|
Asset impairments |
|
(3.6 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
(3.6 |
) |
|
$ |
71.2 |
|
|
$ |
2.7 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
73.9 |
|
_________ |
(1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
SEGMENT DATA (UNAUDITED) |
|||||||||||||||||||
Six Months Ended June 30, 2024 |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||
|
Rail North
|
|
Rail
|
|
Engine
|
|
Other |
|
GATX
|
||||||||||
Revenues |
|
|
|
|
|
|
|
|
|
||||||||||
Lease revenue |
$ |
478.6 |
|
|
$ |
162.6 |
|
|
$ |
16.2 |
|
|
$ |
15.5 |
|
|
$ |
672.9 |
|
Non-dedicated engine revenue |
|
— |
|
|
|
— |
|
|
|
26.9 |
|
|
|
— |
|
|
|
26.9 |
|
Other revenue |
|
56.8 |
|
|
|
6.3 |
|
|
|
— |
|
|
|
3.7 |
|
|
|
66.8 |
|
Total Revenues |
|
535.4 |
|
|
|
168.9 |
|
|
|
43.1 |
|
|
|
19.2 |
|
|
|
766.6 |
|
Expenses |
|
|
|
|
|
|
|
|
|
||||||||||
Maintenance expense |
|
150.3 |
|
|
|
35.7 |
|
|
|
— |
|
|
|
2.0 |
|
|
|
188.0 |
|
Depreciation expense |
|
131.9 |
|
|
|
38.3 |
|
|
|
17.0 |
|
|
|
7.3 |
|
|
|
194.5 |
|
Operating lease expense |
|
18.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
18.0 |
|
Other operating expense |
|
13.1 |
|
|
|
7.1 |
|
|
|
4.4 |
|
|
|
2.8 |
|
|
|
27.4 |
|
Total Expenses |
|
313.3 |
|
|
|
81.1 |
|
|
|
21.4 |
|
|
|
12.1 |
|
|
|
427.9 |
|
Other Income (Expense) |
|
|
|
|
|
|
|
|
|
||||||||||
Net gain on asset dispositions |
|
59.1 |
|
|
|
2.0 |
|
|
|
0.6 |
|
|
|
0.1 |
|
|
|
61.8 |
|
Interest (expense) income, net |
|
(109.7 |
) |
|
|
(34.2 |
) |
|
|
(19.0 |
) |
|
|
2.3 |
|
|
|
(160.6 |
) |
Other (expense) income |
|
(2.4 |
) |
|
|
(0.3 |
) |
|
|
0.2 |
|
|
|
(7.5 |
) |
|
|
(10.0 |
) |
Share of affiliates' pre-tax earnings |
|
— |
|
|
|
— |
|
|
|
40.6 |
|
|
|
— |
|
|
|
40.6 |
|
Segment profit |
$ |
169.1 |
|
|
$ |
55.3 |
|
|
$ |
44.1 |
|
|
$ |
2.0 |
|
|
$ |
270.5 |
|
Less: |
|
|
|
|
|
|
|
|
|
||||||||||
Selling, general and administrative expense |
|
114.5 |
|
||||||||||||||||
Income taxes (includes $8.3 related to affiliates' earnings) |
|
37.3 |
|
||||||||||||||||
Net income |
$ |
118.7 |
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Data: |
|
|
|
|
|
|
|
|
|
||||||||||
Investment volume |
$ |
629.8 |
|
|
$ |
109.5 |
|
|
$ |
71.3 |
|
|
$ |
10.0 |
|
|
$ |
820.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Gain on Asset Dispositions |
|
|
|
|
|
|
|
|
|
||||||||||
Asset Remarketing Income: |
|
|
|
|
|
|
|
|
|
||||||||||
Net gains on disposition of owned assets |
$ |
52.7 |
|
|
$ |
0.1 |
|
|
$ |
0.6 |
|
|
$ |
0.1 |
|
|
$ |
53.5 |
|
Residual sharing income |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Non-remarketing net gains (1) |
|
6.2 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
|
|
8.1 |
|
|
$ |
59.1 |
|
|
$ |
2.0 |
|
|
$ |
0.6 |
|
|
$ |
0.1 |
|
|
$ |
61.8 |
|
_________ |
(1) Includes net gains from scrapping of railcars. |
GATX CORPORATION AND SUBSIDIARIES |
|||||||||||||
SUPPLEMENTAL INFORMATION (UNAUDITED) |
|||||||||||||
(In millions, except per share data) |
|||||||||||||
Impact of Tax Adjustments and Other Items on Net Income(1) |
|||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||
Net income (GAAP) |
$ |
75.5 |
|
$ |
44.4 |
|
|
$ |
154.1 |
|
$ |
118.7 |
|
Adjustments attributable to consolidated pre-tax income: |
|
|
|
|
|
|
|
||||||
Environmental reserves (2) |
$ |
— |
|
$ |
10.7 |
|
|
$ |
— |
|
$ |
10.7 |
|
Net gain on Specialized Gas Vessels at Engine Leasing (3) |
|
— |
|
|
— |
|
|
|
— |
|
|
(0.6 |
) |
Total adjustments attributable to consolidated pre-tax income |
$ |
— |
|
$ |
10.7 |
|
|
$ |
— |
|
$ |
10.1 |
|
Income taxes thereon, based on applicable effective tax rate |
$ |
— |
|
$ |
(2.7 |
) |
|
$ |
— |
|
$ |
(2.7 |
) |
Net income, excluding tax adjustments and other items (non-GAAP) |
$ |
75.5 |
|
$ |
52.4 |
|
|
$ |
154.1 |
|
$ |
126.1 |
|
Impact of Tax Adjustments and Other Items on Diluted Earnings per Share(1) |
|||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
Diluted earnings per share (GAAP) |
$ |
2.06 |
|
$ |
1.21 |
|
$ |
4.21 |
|
$ |
3.25 |
Diluted earnings per share, excluding tax adjustments and other items (non-GAAP) |
$ |
2.06 |
|
$ |
1.43 |
|
$ |
4.21 |
|
$ |
3.45 |
| _________ | ||
(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) |
Reserves recorded for our share of anticipated environmental remediation costs arising out of prior operations and legacy businesses. |
|
(3) |
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. |
|
GATX CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
SUPPLEMENTAL INFORMATION (UNAUDITED) |
|||||||||||||||||||
(In millions, except leverage) |
|||||||||||||||||||
(Continued) |
|||||||||||||||||||
|
6/30/2025 |
|
3/31/2025 |
|
12/31/2024 |
|
9/30/2024 |
|
6/30/2024 |
||||||||||
Total Assets, Excluding Cash, by Segment |
|||||||||||||||||||
Rail North America |
$ |
7,886.8 |
|
|
$ |
7,888.3 |
|
|
$ |
7,741.1 |
|
|
$ |
7,643.7 |
|
|
$ |
7,416.0 |
|
Rail International |
|
2,514.9 |
|
|
|
2,304.3 |
|
|
|
2,169.0 |
|
|
|
2,298.6 |
|
|
|
2,168.3 |
|
Engine Leasing |
|
1,626.5 |
|
|
|
1,619.8 |
|
|
|
1,603.9 |
|
|
|
1,544.7 |
|
|
|
1,431.7 |
|
Other |
|
416.8 |
|
|
|
396.3 |
|
|
|
380.7 |
|
|
|
389.1 |
|
|
|
382.8 |
|
Total Assets, excluding cash |
$ |
12,445.0 |
|
|
$ |
12,208.7 |
|
|
$ |
11,894.7 |
|
|
$ |
11,876.1 |
|
|
$ |
11,398.8 |
|
Debt and Lease Obligations, Net of Unrestricted Cash |
|||||||||||||||||||
Unrestricted cash |
$ |
(754.6 |
) |
|
$ |
(757.2 |
) |
|
$ |
(401.6 |
) |
|
$ |
(503.7 |
) |
|
$ |
(823.6 |
) |
Borrowings under bank credit facilities |
|
106.1 |
|
|
|
101.5 |
|
|
|
10.4 |
|
|
|
11.1 |
|
|
|
10.7 |
|
Recourse debt |
|
8,741.3 |
|
|
|
8,653.1 |
|
|
|
8,215.3 |
|
|
|
8,293.5 |
|
|
|
8,235.7 |
|
Operating lease obligations |
|
168.4 |
|
|
|
174.4 |
|
|
|
180.0 |
|
|
|
187.5 |
|
|
|
209.3 |
|
Total debt and lease obligations, net of unrestricted cash |
$ |
8,261.2 |
|
|
$ |
8,171.8 |
|
|
$ |
8,004.1 |
|
|
$ |
7,988.4 |
|
|
$ |
7,632.1 |
|
Total recourse debt (1) |
$ |
8,261.2 |
|
|
$ |
8,171.8 |
|
|
$ |
8,004.1 |
|
|
$ |
7,988.4 |
|
|
$ |
7,632.1 |
|
Shareholders’ Equity |
$ |
2,669.7 |
|
|
$ |
2,549.4 |
|
|
$ |
2,438.9 |
|
|
$ |
2,436.7 |
|
|
$ |
2,343.4 |
|
Recourse Leverage (2) |
|
3.1 |
|
|
|
3.2 |
|
|
|
3.3 |
|
|
|
3.3 |
|
|
|
3.3 |
|
| _________ | ||
(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 |
$ |
13,200.2 |
|
|
$ |
12,966.3 |
|
|
$ |
12,296.5 |
|
|
$ |
12,379.9 |
|
|
$ |
12,222.6 |
|
Less: cash |
|
(755.2 |
) |
|
|
(757.6 |
) |
|
|
(401.8 |
) |
|
|
(503.8 |
) |
|
|
(823.8 |
) |
Total Assets, excluding cash |
$ |
12,445.0 |
|
|
$ |
12,208.7 |
|
|
$ |
11,894.7 |
|
|
$ |
11,876.1 |
|
|
$ |
11,398.8 |
|
GATX CORPORATION AND SUBSIDIARIES |
||||||||||||||
SUPPLEMENTAL INFORMATION (UNAUDITED) |
||||||||||||||
(Continued) |
||||||||||||||
|
6/30/2025 |
|
3/31/2025 |
|
12/31/2024 |
|
9/30/2024 |
|
6/30/2024 |
|||||
Rail North America Statistics |
|
|
|
|
|
|
|
|
|
|||||
Lease Price Index (LPI) (1) |
|
|
|
|
|
|
|
|
|
|||||
Average renewal lease rate change |
24.2 |
% |
|
24.5 |
% |
|
26.7 |
% |
|
26.6 |
% |
|
29.4 |
% |
Average renewal term (months) |
60 |
|
|
61 |
|
|
60 |
|
|
59 |
|
|
61 |
|
Renewal Success Rate (2) |
84.2 |
% |
|
85.1 |
% |
|
89.1 |
% |
|
82.0 |
% |
|
84.1 |
% |
Fleet Rollforward (3) |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
103,310 |
|
|
102,966 |
|
|
102,697 |
|
|
102,086 |
|
|
101,687 |
|
Railcars added |
595 |
|
|
1,464 |
|
|
1,126 |
|
|
1,474 |
|
|
1,337 |
|
Railcars scrapped |
(614 |
) |
|
(316 |
) |
|
(309 |
) |
|
(360 |
) |
|
(389 |
) |
Railcars sold |
(974 |
) |
|
(804 |
) |
|
(548 |
) |
|
(503 |
) |
|
(549 |
) |
Ending balance |
102,317 |
|
|
103,310 |
|
|
102,966 |
|
|
102,697 |
|
|
102,086 |
|
Utilization |
99.2 |
% |
|
99.2 |
% |
|
99.1 |
% |
|
99.3 |
% |
|
99.3 |
% |
Average active railcars |
102,073 |
|
|
102,367 |
|
|
102,150 |
|
|
101,629 |
|
|
101,181 |
|
Boxcar Fleet Rollforward |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
7,990 |
|
|
8,395 |
|
|
8,779 |
|
|
8,990 |
|
|
9,670 |
|
Railcars added |
27 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Railcars scrapped |
(396 |
) |
|
(405 |
) |
|
(349 |
) |
|
(211 |
) |
|
(555 |
) |
Railcars sold |
— |
|
|
— |
|
|
(35 |
) |
|
— |
|
|
(125 |
) |
Ending balance |
7,621 |
|
|
7,990 |
|
|
8,395 |
|
|
8,779 |
|
|
8,990 |
|
Utilization |
98.7 |
% |
|
99.8 |
% |
|
99.8 |
% |
|
99.8 |
% |
|
99.8 |
% |
Average active railcars |
7,773 |
|
|
8,163 |
|
|
8,552 |
|
|
8,848 |
|
|
9,304 |
|
Rail North America Industry Statistics |
|
|
|
|
|
|
|
|
|
|||||
Manufacturing Capacity Utilization Index (4) |
77.6 |
% |
|
77.7 |
% |
|
77.6 |
% |
|
77.5 |
% |
|
78.2 |
% |
Year-over-year Change in U.S. Carloadings (excl. intermodal) (5) |
2.4 |
% |
|
0.1 |
% |
|
(2.9 |
)% |
|
(3.3 |
)% |
|
(4.5 |
)% |
Year-over-year Change in U.S. Carloadings (chemical) (5) |
1.6 |
% |
|
2.0 |
% |
|
4.1 |
% |
|
4.2 |
% |
|
4.3 |
% |
Year-over-year Change in U.S. Carloadings (petroleum) (5) |
(0.9 |
)% |
|
1.9 |
% |
|
9.6 |
% |
|
10.4 |
% |
|
11.1 |
% |
Production Backlog at Railcar Manufacturers (6) |
29,871 |
|
|
31,548 |
|
|
34,273 |
|
|
39,652 |
|
|
44,238 |
|
| _________ | ||
(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). |
|
GATX CORPORATION AND SUBSIDIARIES |
||||||||||||||
SUPPLEMENTAL INFORMATION (UNAUDITED) |
||||||||||||||
(Continued) |
||||||||||||||
|
6/30/2025 |
|
3/31/2025 |
|
12/31/2024 |
|
9/30/2024 |
|
6/30/2024 |
|||||
Rail Europe Statistics |
|
|
|
|
|
|
|
|
|
|||||
Fleet Rollforward |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
30,223 |
|
|
30,027 |
|
|
29,953 |
|
|
29,649 |
|
|
29,371 |
|
Railcars added |
579 |
|
|
446 |
|
|
196 |
|
|
410 |
|
|
388 |
|
Railcars scrapped or sold |
(310 |
) |
|
(250 |
) |
|
(122 |
) |
|
(106 |
) |
|
(110 |
) |
Ending balance |
30,492 |
|
|
30,223 |
|
|
30,027 |
|
|
29,953 |
|
|
29,649 |
|
Utilization |
93.3 |
% |
|
95.1 |
% |
|
96.1 |
% |
|
95.9 |
% |
|
95.8 |
% |
Average active railcars |
28,572 |
|
|
28,823 |
|
|
28,812 |
|
|
28,626 |
|
|
28,198 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Rail India Statistics |
|
|
|
|
|
|
|
|
|
|||||
Fleet Rollforward |
|
|
|
|
|
|
|
|
|
|||||
Beginning balance |
10,895 |
|
|
10,583 |
|
|
10,361 |
|
|
9,904 |
|
|
9,501 |
|
Railcars added |
217 |
|
|
312 |
|
|
222 |
|
|
457 |
|
|
408 |
|
Railcars scrapped or sold |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(5 |
) |
Ending balance |
11,112 |
|
|
10,895 |
|
|
10,583 |
|
|
10,361 |
|
|
9,904 |
|
Utilization |
99.6 |
% |
|
99.6 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
Average active railcars |
10,945 |
|
|
10,711 |
|
|
10,460 |
|
|
10,165 |
|
|
9,711 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250729565786/en/
Contacts
FOR FURTHER INFORMATION CONTACT:
GATX Corporation
Shari Hellerman
Senior Director, Investor Relations and Corporate Communications
312-621-4285
shari.hellerman@gatx.com
