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Dec 31, 2023
Trinity Q4 2023 Earnings Report
Trinity reported a strong fourth quarter and full year in 2023, with revenue up 35% year over year for the quarter and lease fleet utilization remaining favorable.
Key Takeaways
Trinity Industries announced strong Q4 and full year 2023 results, with Q4 revenue up 35% year over year to $798 million. The company reported EPS of $0.81 and adjusted EPS of $0.82 for the quarter. Lease fleet utilization remained high at 97.5%.
Quarterly total company revenues increased to $798 million, a 35% improvement year over year.
The company reported quarterly income from continuing operations per common diluted share (EPS) of $0.81 and adjusted EPS of $0.82.
Lease fleet utilization remained high at 97.5% with a Future Lease Rate Differential (FLRD) of positive 23.7% at quarter-end.
The company delivered 4,000 railcars and secured new railcar orders of 840 during the quarter.
Trinity
Trinity
Trinity Revenue by Segment
Revenue by Segment
Railcar Leasing and Services Revenue
CapyFin.comRail Products Revenue
CapyFin.com Forward Guidance
Trinity Industries provided 2024 EPS guidance of $1.30 to $1.50, reflecting improving margins offset by lower railcar sales and a normalized tax provision.
Positive Outlook
- Industry deliveries of approximately 40,000 railcars
- Net investment in the lease fleet of $300 million to $400 million
- Manufacturing capital expenditures of $50 million to $60 million
- EPS of $1.30 to $1.50
- Improving margins in both segments
Challenges Ahead
- Excludes items outside of our core business operations
- Significantly lower planned railcar sales
- Higher elimination of profit from intercompany railcar sales
- A normalized tax provision as compared to 2023
- The Rail Products Group faced challenges in the fourth quarter with the border closure and related congestion impacting deliveries and margins in the segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income