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Dec 31, 2021
GATX Q4 2021 Earnings Report
GATX reported Q4 2021 earnings, with net income from continuing operations at $61.0 million or $1.69 per diluted share.
Key Takeaways
GATX Corporation reported a strong fourth quarter and full-year results for 2021. Rail North America's performance was driven by improving market conditions and strong execution, leading to higher fleet utilization and renewal success rates. Rail International also performed well with high fleet utilization and increasing renewal lease rates. Portfolio Management's results were in line with expectations, while full-year investment volume exceeded $1.0 billion for the second consecutive year.
Fourth-quarter net income from continuing operations was $61.0 million or $1.69 per diluted share.
Rail North America's fleet utilization remained high at 99.2%.
Full-year investment volume exceeded $1.0 billion.
GATX expects 2022 earnings to be in the range of $5.50 to $5.80 per diluted share.
GATX
GATX
GATX Revenue by Segment
Revenue by Segment
Rail North America Revenue
CapyFin.comRail International Revenue
CapyFin.comEngine Leasing Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
GATX expects continued improvement in the North American railcar leasing market and attractive investments across its global businesses to drive earnings growth. The company currently expects 2022 earnings to be in the range of $5.50 to $5.80 per diluted share.
Positive Outlook
- Market lease rates are expected to increase above average expiring rates for railcars renewing during the year.
- Higher asset disposition gains are anticipated.
- Rail North America is expected to produce higher segment profit in 2022.
- Rail International’s 2022 segment profit is also expected to increase as strong demand for new and existing railcars continues in Europe and India.
- Higher Trifleet earnings are anticipated in 2022 as demand for tank containers worldwide remains strong.
Challenges Ahead
- Global aviation market continues to experience significant uncertainty.
- Portfolio Management projects a decrease in earnings from the Rolls-Royce and Partners Finance affiliates.
- Potential impacts from the global COVID-19 pandemic.
- Risks associated with litigation and potential damages.
- Inability to maintain transportation assets on lease at satisfactory rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income