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Dec 31, 2020
Trinity Q4 2020 Earnings Report
Trinity's Q4 2020 earnings reflected a decline in railcar demand due to the COVID-19 pandemic, with leasing operations performing well but offset by headwinds from lower lease portfolio sales and railcar deliveries. The company responded with strong management of fleet maintenance costs and significant reductions in headcount and SE&A.
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
Trinity
Trinity Revenue by Segment
Revenue by Segment
Railcar Leasing and Services Revenue
CapyFin.comRail Products Revenue
CapyFin.com 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