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GATX
🇺🇸 NYSE:GATX
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•
Dec 31, 2022

GATX Q4 2022 Earnings Report

GATX reported solid financial results in Q4 2022, with Rail North America exceeding segment profit expectations and Rail International performing well despite supply chain disruptions.

Key Takeaways

GATX Corporation reported Q4 2022 net income of $48.4 million, or $1.36 per diluted share. Full-year investment volume exceeded $1.0 billion for the third consecutive year. The company initiates 2023 earnings guidance of $6.50–$6.90 per diluted share.

Rail North America and Rail International fleet utilization remained above 99%.

Lease rates in North America increased sequentially for the tenth consecutive quarter.

Full-year investment volume exceeded $1.0 billion for the third consecutive year.

Company initiates 2023 earnings guidance of $6.50–$6.90 per diluted share.

Total Revenue
$323M
Previous year: $321M
+0.5%
EPS
$1.54
Previous year: $1.58
-2.5%
Rail NA Boxcar Utilization
99.9%
Previous year: 99.7%
+0.2%
Rail NA Avg Active Railcars
9.03K
Previous year: 100.66K
-91.0%
GRE Railcar Utilization
99.3%
Previous year: 98.7%
+0.6%
Gross Profit
$151M
Previous year: $143M
+5.3%
Cash and Equivalents
$304M
Previous year: $344M
-11.8%
Free Cash Flow
-$1.07B
Previous year: -$963M
+11.6%
Total Assets
$10.1B
Previous year: $9.54B
+5.6%

GATX

GATX

GATX Revenue by Segment

Forward Guidance

GATX expects the railcar leasing environment in North America to remain favorable in 2023. They project slightly higher segment profit at Rail North America. Rail International's 2023 segment profit is expected to increase. Earnings from RRPF driven by ongoing improvements in the operating environment for global air travel. Combined with increased earnings from GATX Engine Leasing, they expect Portfolio Management to generate higher segment profit in 2023.

Positive Outlook

  • Railcar leasing environment in North America to remain favorable.
  • Slightly higher segment profit at Rail North America.
  • Rail International's 2023 segment profit is expected to increase.
  • Higher earnings from RRPF driven by ongoing improvements in the operating environment for global air travel.
  • Increased earnings from GATX Engine Leasing

Challenges Ahead

  • Uncertain economic conditions in North America and Europe.
  • Continued global supply chain challenges.
  • A heightened interest rate environment.
  • Exposure to damages, fines, criminal and civil penalties, and reputational harm arising from a negative outcome in litigation, including claims arising from an accident involving transportation assets
  • Inability to maintain our transportation assets on lease at satisfactory rates due to oversupply of assets in the market or other changes in supply and demand

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View GATX