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Jun 30, 2021
Trinity Q2 2021 Earnings Report
Trinity's Q2 2021 earnings were announced, with the company reporting GAAP and adjusted earnings per diluted share of $0.12 and $0.15, respectively.
Key Takeaways
Trinity Industries reported Q2 2021 revenues of $372 million, with GAAP EPS of $0.12 and adjusted EPS of $0.15. The company generated $335 million in year-to-date operating cash flow and $359 million in free cash flow. It returned $375 million of capital to stockholders year-to-date through dividends and share repurchases.
Total company revenues reached $372 million for the quarter.
GAAP EPS was $0.12 and adjusted EPS was $0.15 for the quarter.
Lease fleet utilization stood at 94.3% with a Future Lease Rate Differential (FLRD) of negative 2.5% at quarter end.
The company secured new railcar orders of 4,570 and delivered 1,765 railcars.
Trinity
Trinity
Trinity Revenue by Segment
Revenue by Segment
Railcar Leasing and Services Revenue
CapyFin.comRail Products Revenue
CapyFin.com Forward Guidance
The company is encouraged by the continued recovery in the U.S. rail markets and the economy broadly.
Positive Outlook
- Railcar demand is growing.
- The overall U.S. economy continues to recover.
- Lease revenue improved modestly.
- Secondary market liquidity remains strong as demand continues to rise.
- Renewal success rate for the quarter improved to 81%.
Challenges Ahead
- Utilization was slightly lower compared to a year ago as energy markets have lagged in the recovery.
- Future Lease Rate Differential compared to a year ago is still negative.
- Lower deliveries in the Rail Products Group.
- Higher fleet management operating costs in the Leasing Group.
- Inflation in input costs remains a concern.
Revenue & Expenses
Visualization of income flow from segment revenue to net income