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Mar 31, 2023

Trinity Q1 2023 Earnings Report

Trinity Industries reported mixed results for Q1 2023, with revenue growth offset by increased costs.

Key Takeaways

Trinity Industries reported a 36% year-over-year increase in revenue to $642 million for Q1 2023. GAAP EPS was $0.09 and adjusted EPS was $0.07. The company delivered 4,045 railcars and received orders for 2,690 railcars. Lease fleet utilization remained high at 98.2%, and the Future Lease Rate Differential (FLRD) improved to 44.3%.

Total company revenues increased by 36% year-over-year to $642 million.

GAAP EPS was $0.09, and adjusted EPS was $0.07.

Lease fleet utilization was 98.2%, with a Future Lease Rate Differential (FLRD) of 44.3%.

The company reaffirms EPS guidance of $1.50 to $1.70 for the year.

Total Revenue
$642M
Previous year: $473M
+35.8%
EPS
$0.07
Previous year: $0.03
+133.3%
Fleet Utilization
98.2%
Previous year: 96.5%
+1.8%
Railcar Deliveries
4.05K
Previous year: 2.47K
+63.8%
New Railcar Orders
2.69K
Previous year: 5.06K
-46.8%
Gross Profit
$103M
Previous year: $74.2M
+39.1%
Cash and Equivalents
$81.9M
Previous year: $143M
-42.8%
Free Cash Flow
$36.2M
Previous year: $48M
-24.6%
Total Assets
$8.84B
Previous year: $8.29B
+6.6%

Trinity

Trinity

Trinity Revenue by Segment

Forward Guidance

Trinity Industries is maintaining its EPS guidance of $1.50 to $1.70, reflecting revenue and margin improvement through the year. The company feels optimistic about what Trinity can accomplish in 2023.

Positive Outlook

  • Industry deliveries of 40,000 to 45,000 railcars
  • Net investment in the lease fleet of $250 million to $350 million
  • Manufacturing capital expenditures of $40 million to $50 million
  • Confirming EPS of $1.50 to $1.70
  • Revenue and margin improvement through the year

Revenue & Expenses

Visualization of income flow from segment revenue to net income