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GATX
🇺🇸 NYSE:GATX
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•
Dec 31, 2020

GATX Q4 2020 Earnings Report

GATX's Q4 2020 earnings were impacted by challenging market conditions in Rail North America and the pandemic's effect on Portfolio Management, but the company maintained high fleet utilization and controlled costs.

Key Takeaways

GATX reported a net income from continuing operations of $17.8 million, or $0.50 per diluted share, for the fourth quarter of 2020. Despite challenges in Rail North America and Portfolio Management, the company maintained high fleet utilization and focused on cost control. Full-year investment volume was over $1.0 billion, reflecting strategic investments in attractively priced assets.

Net income from continuing operations was $17.8 million or $0.50 per diluted share in Q4 2020.

Rail North America maintained high fleet utilization at 98.1% despite difficult market conditions.

Rail International experienced strong demand and increased profitability due to growth in Europe and India.

GATX invested over $1.0 billion in 2020, including the acquisition of Trifleet and investments in aircraft spare engines.

Total Revenue
$305M
Previous year: $357M
-14.5%
EPS
$0.5
Previous year: $1.36
-63.2%
Rail NA Boxcar Fleet
14.32K
Previous year: 15.26K
-6.2%
Rail NA Boxcar Utilization
95.8%
Previous year: 95%
+0.8%
Rail NA Avg Active Railcars
101.72K
Gross Profit
$129M
Previous year: $131M
-1.3%
Cash and Equivalents
$292M
Previous year: $151M
+93.5%
Free Cash Flow
-$84.7M
Previous year: -$53.7M
+57.7%
Total Assets
$8.94B
Previous year: $8.29B
+7.9%

GATX

GATX

GATX Revenue by Segment

Forward Guidance

GATX expects 2021 earnings to be in the range of $4.00 to $4.30 per diluted share.

Positive Outlook

  • Initial signs of recovery in North America railcar leasing.
  • Lower lease revenue is expected to be offset by higher asset disposition gains and cost control in Rail North America.
  • Rail International is expected to produce higher profitability due to continued strong demand in Europe and India.
  • Continued strong demand for new and existing railcars in Europe and India.
  • Higher asset disposition gains and cost control in Rail North America.

Challenges Ahead

  • Uncertainty in earnings estimates due to difficulty in predicting the timing of the COVID-19 pandemic's easing and an economic recovery.
  • Fleet utilization and lease rates are expected to remain under pressure from an ongoing market oversupply of railcars in North America.
  • RRPF expects to realize lower gains from asset sales.
  • Continued pressure on RRPF's customer base due to the severe reduction in global air travel.
  • Significantly lower 2021 segment profit is projected at Portfolio Management.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View GATX