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Jun 30, 2020

GATX Q2 2020 Earnings Report

GATX reported a net income of $37.0 million, or $1.05 per diluted share, for the second quarter of 2020, which was negatively impacted by COVID-19, but Rail North America maintained high fleet utilization.

Key Takeaways

GATX Corporation reported a decrease in net income from continuing operations for the second quarter of 2020, with earnings per diluted share at $1.05 compared to $1.65 in the same quarter of 2019. The results were impacted by COVID-19, but Rail North America maintained a high fleet utilization of 98.7%.

Second quarter net income from continuing operations was $37.0 million, or $1.05 per diluted share.

Rail North America's fleet utilization remained high at 98.7%.

The renewal lease rate change of GATX’s Lease Price Index was negative 28.0%.

GATX Rail Europe’s fleet utilization remains strong at 98.4%.

Total Revenue
$301M
Previous year: $359M
-16.4%
EPS
$1.05
Previous year: $1.78
-41.0%
Rail NA Boxcar Fleet
15K
Rail NA Boxcar Utilization
94.6%
Rail NA Avg Active Railcars
101.6K
Gross Profit
$121M
Previous year: $135M
-10.6%
Cash and Equivalents
$493M
Previous year: $287M
+72.0%
Free Cash Flow
-$64.2M
Previous year: -$72.6M
-11.6%
Total Assets
$8.51B
Previous year: $8.35B
+1.9%

GATX

GATX

GATX Revenue by Segment

Forward Guidance

Looking ahead, GATX expects pressure on lease rates, renewal activity, and asset utilization across its business segments as impacts from the COVID-19 pandemic continues, and the company is not reinstituting guidance for 2020 at this time due to the uncertain global outlook.

Challenges Ahead

  • Pressure on lease rates is expected.
  • Renewal activity is expected to be impacted.
  • Asset utilization is expected to be impacted.
  • Impacts from the COVID-19 pandemic are expected to continue.
  • There is a highly uncertain global outlook.

Revenue & Expenses

Visualization of income flow from segment revenue to net income