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Trinity Industries, Inc. Announces Third Quarter 2023 Results
Company Release – 11/2/2023
Generates year-to-date operating and adjusted free cash flow of $216 million and $50 million, respectively

Reports quarterly GAAP and adjusted earnings from continuing operations of $0.29 and $0.26 per diluted share, respectively

Lease fleet utilization of 98.1% and Future Lease Rate Differential (“FLRD”) of positive 26.6% at quarter-end

Delivered 4,325 railcars and received orders for 3,200 railcars in the quarter; backlog of $3.6 billion at quarter-end

DALLAS–(BUSINESS WIRE)– Trinity Industries, Inc. (NYSE:TRN) today announced earnings results for the third quarter ended September 30, 2023.

Financial and Operational Highlights

Quarterly total company revenues of $821 million; 65% improvement year over year
Quarterly income from continuing operations per common diluted share (“EPS”) of $0.29 and quarterly adjusted EPS of $0.26
Lease fleet utilization of 98.1% and FLRD of positive 26.6% at quarter-end
Railcar deliveries of 4,325 and new railcar orders of 3,200
Year-to-date cash flow from continuing operations and adjusted free cash flow after investments and dividends (“Adjusted Free Cash Flow”) were $216 million and $50 million, respectively
2023 Guidance

Industry deliveries of approximately 45,000 railcars
Net investment in the lease fleet of $250 million to $350 million
Manufacturing capital expenditures of $40 million to $50 million
EPS of $1.20 to $1.35
Excludes items outside of our core business operations
Management Commentary

“Trinity’s third quarter results reflect significantly stronger performance, with revenue growth of 65% as compared to a year ago,” stated Trinity’s Chief Executive Officer and President, Jean Savage. “We believe we are on a good path to end 2023 with favorable financial performance and continued improvement.”

“In our Railcar Leasing and Management Services Group, revenues are up 14% year over year, reflecting six quarters of beneficial re-pricing, as well as contributions from our recently acquired businesses in the segment. Our forward-looking metrics continue to point toward consistent strength in lease rates, with an FLRD of 26.6% and lease fleet utilization of 98.1%.”

“As previously disclosed, deliveries in the quarter of 4,325 railcars were about 14% below our internal expectations as a result of the border closures and continued congestion,” Ms. Savage continued. “Despite this meaningful impact, operating margins improved in the Rail Products Group segment to 5.2%, excluding gains from insurance recoveries. We expect fourth quarter segment margins to improve sequentially again due to continued efficiency improvement and delivery growth.”

Ms. Savage concluded, “We are proud of our third quarter results and the improvement we are seeing in our business. Due to the missed deliveries in the third quarter and related supply chain and efficiency impacts caused by congestion at the Mexico border, we are lowering our full year adjusted EPS guidance to a range of $1.20 to $1.35. This guidance reflects expected meaningful growth in the fourth quarter, and we maintain our conviction in our ability to execute and close the year with solid momentum.”

Consolidated Financial Summary

Three Months Ended

September 30,



Year over Year – Comparison

($ in millions, except per share amounts)




Higher volume of external deliveries in the Rail Products Group

Operating profit



Higher external deliveries in the Rail Products Group and improved lease rates in the Leasing Group, partially offset by lower lease portfolio sales volume and increased employee-related and other operating costs

Interest expense, net

(1) Includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.

(2) FLRD calculates the implied change in lease rates for railcar leases expiring over the next four quarters. The FLRD assumes that these expiring leases will be renewed at the most recent quarterly transacted lease rates for each railcar type. We believe the FLRD is useful to both management and investors as it provides insight into the near-term trend in lease rates.

Conference Call

Trinity will hold a conference call at 8:00 a.m. Eastern on November 2, 2023 to discuss its third quarter results. To listen to the call, please visit the Investor Relations section of the Company’s website at and access the Events & Presentations webpage, or the live call can be accessed at 1-888-317-6003 with the conference passcode “0847113”. Please call at least 10 minutes in advance to ensure a timely connection. An audio replay may be accessed through the Company’s website or by dialing 1-877-344-7529 with passcode “3695080” until 11:59 p.m. Eastern on November 7, 2023.

Additionally, the Company will provide Supplemental Materials to accompany the earnings conference call. The materials will be accessible both within the webcast and on Trinity’s Investor Relations website under the Events and Presentations portion of the site along with the Third Quarter Earnings Call event weblink.

Non-GAAP Financial Measures

We have included financial measures compiled in accordance with generally accepted accounting principles (“GAAP”) and certain non-GAAP measures in this earnings press release to provide management and investors with additional information regarding our financial results. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. For each non-GAAP financial measure, a reconciliation to the most comparable GAAP measure has been included in the accompanying tables. When forward-looking non-GAAP measures are provided, quantitative reconciliations to the most directly comparable GAAP measures are not provided because management cannot, without unreasonable effort, predict the timing and amounts of certain items included in the computations of each of these measures. These factors include, but are not limited to: the product mix of expected railcar deliveries; the timing and amount of significant transactions and investments, such as lease portfolio sales, capital expenditures, and returns of capital to stockholders; and the amount and timing of certain other items outside the normal course of our core business operations.

About Trinity Industries

Trinity Industries, Inc., headquartered in Dallas, Texas, owns businesses that are leading providers of rail transportation products and services in North America. Our businesses market their railcar products and services under the trade name TrinityRail®. The TrinityRail platform provides railcar leasing and management services; railcar manufacturing, maintenance and modifications; and other railcar logistics products and services. Trinity reports its financial results in two reportable segments: the Railcar Leasing and Management Services Group and the Rail Products Group. For more information, visit:

Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity’s estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, future financial and operating performance, future opportunities and any other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “projected,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K.

EBITDA and Adjusted EBITDA

“EBITDA” is defined as income from continuing operations plus interest expense, income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA plus certain selling, engineering, and administrative expenses; gains on dispositions of other property; restructuring activities, net; and interest income. EBITDA and Adjusted EBITDA are non-GAAP financial measures; however, the amounts included in these calculations are derived from amounts included in our GAAP financial statements. EBITDA and Adjusted EBITDA are reconciled to net income, the most directly comparable GAAP financial measure, in the following table. This information is provided to assist management and investors in making meaningful comparisons of our operating performance between periods. We believe EBITDA is a useful measure for analyzing the performance of our business. We also believe that EBITDA is commonly reported and widely used by investors and other interested parties as a measure of a company’s operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to capital structure, depreciation or amortization (which can vary significantly depending on many factors). EBITDA and Adjusted EBITDA should not be considered as alternatives to net income as indicators of our operating performance, or as alternatives to operating cash flows as measures of liquidity. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.