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Mar 31, 2022

Trinity Q1 2022 Earnings Report

Reported mixed quarterly results with strong orders and deliveries offset by labor and supply chain challenges.

Key Takeaways

Trinity Industries reported first quarter results with revenues of $473 million and GAAP EPS of $0.09. The company received orders for 5,055 railcars and delivered 2,470 railcars. Lease fleet utilization stood at 96.5% with a Future Lease Rate Differential of positive 2.4%.

Total company revenues of $473 million

GAAP EPS of $0.09 and adjusted EPS of $0.03

Lease fleet utilization of 96.5% and FLRD of positive 2.4%

New railcar orders of 5,055 and railcar deliveries of 2,470

Total Revenue
$473M
Previous year: $399M
+18.5%
EPS
$0.03
Previous year: $0.07
-57.1%
Fleet Utilization
96.5%
Previous year: 94.5%
+2.1%
Railcar Deliveries
2.47K
Previous year: 1.9K
+30.3%
New Railcar Orders
5.06K
Previous year: 1.41K
+258.5%
Gross Profit
$74.2M
Previous year: $103M
-27.8%
Cash and Equivalents
$143M
Previous year: $178M
-19.6%
Free Cash Flow
$48M
Previous year: $90M
-46.7%
Total Assets
$8.29B
Previous year: $8.78B
-5.5%

Trinity

Trinity

Trinity Revenue by Segment

Forward Guidance

Trinity provided guidance for 2022 including industry deliveries of 40,000 to 50,000 railcars, net investment in the lease fleet of $450 million to $550 million, manufacturing capital expenditures of $35 million to $45 million, and EPS of $0.85 to $1.05.

Positive Outlook

  • Industry deliveries of 40,000 to 50,000 railcars
  • Net investment in the lease fleet of $450 million to $550 million
  • Manufacturing capital expenditures of $35 million to $45 million
  • EPS of $0.85 to $1.05
  • Confident that deliveries in 2022 will be strong

Challenges Ahead

  • Excludes gains on insurance recoveries and other items outside of our core business operations
  • Labor challenges persist
  • Supply chain challenges persist
  • Pressured near-term segment margin
  • Higher costs associated with external deliveries in the Rail Products Group

Revenue & Expenses

Visualization of income flow from segment revenue to net income