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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.
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 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