Trinity Q4 2020 Earnings Report
Key Takeaways
Trinity Industries reported Q4 2020 revenues of $416 million and a GAAP loss per share of $(1.13), with an adjusted EPS of $0.04. The full year saw operating cash flow of $652 million and free cash flow of $113 million after dividends and investments. The company returned $285 million to stockholders during the year.
Quarterly total company revenues were $416 million.
Quarterly GAAP EPS was $(1.13) and adjusted EPS was $0.04.
Lease fleet utilization was 94.5% at year-end.
Railcar deliveries totaled 2,235, with new railcar orders of 1,170.
Trinity
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Trinity Revenue by Segment
Forward Guidance
Market uncertainty related to COVID-19 remains the predominant story on the economic and rail industry outlook. The company expects cash flow from operations to range between $625 million to $675 million for the 2021 year.
Positive Outlook
- Early indicators of a recovery with improving year over year railcar traffic volumes.
- Slowing train speeds.
- Higher overall cycle times for shippers, which require more railcars to return to service.
- Lease fleet utilization has remained stable through the beginning of the year.
- Seeing some improvement in lease rates.
Challenges Ahead
- Customers are hesitant in their long-term planning for railcar assets.
- Industry forecasts currently suggest a recovery in the second half of 2021.
- Challenging year for deliveries.
- Renewing lease rates create headwinds.
- Challenging market environment in 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income