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Dec 31, 2022

Trinity Q4 2022 Earnings Report

Trinity Industries reported Q4 2022 earnings, with revenue of $591 million and EPS of $0.46.

Key Takeaways

Trinity Industries announced Q4 2022 results, featuring revenue of $591 million and EPS of $0.46. The company received orders for 3,015 railcars and delivered 4,400, ending the year with a backlog of $3.9 billion.

Reported quarterly GAAP earnings from continuing operations of $0.46 per diluted share.

Adjusted earnings from continuing operations of $0.44 per diluted share.

Received orders for 3,015 railcars and delivered 4,400 railcars.

Raised quarterly dividend by 13% to $0.26 per share.

Total Revenue
$591M
Previous year: $472M
+25.2%
EPS
$0.44
Previous year: $0.08
+450.0%
Fleet Utilization
97.9%
Previous year: 95.7%
+2.3%
Railcar Deliveries
4.4K
Previous year: 2.81K
+56.9%
New Railcar Orders
3.02K
Previous year: 5.36K
-43.8%
Gross Profit
$101M
Previous year: $96.5M
+4.7%
Cash and Equivalents
$79.6M
Previous year: $167M
-52.4%
Free Cash Flow
$138M
Previous year: $183M
-24.2%
Total Assets
$8.72B
Previous year: $8.24B
+5.9%

Trinity

Trinity

Trinity Revenue by Segment

Forward Guidance

Trinity Industries provided its 2023 guidance, including industry deliveries of 40,000 to 45,000 railcars and EPS of $1.50 to $1.70.

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
  • EPS of $1.50 to $1.70
  • Expect both revenue and margin improvement in 2023.

Challenges Ahead

  • Excludes items outside of our core business operations
  • Rail Products Group faced labor and supply chain challenges, impacting deliveries and margins in the segment
  • Unexpected headwinds in 2022
  • Elevated working capital related to higher volumes of railcar deliveries
  • Continued supply chain challenges.

Revenue & Expenses

Visualization of income flow from segment revenue to net income