Trinity Industries Inc 8-K, filed May 1, 2025
Trinity Industries Inc (TRN)
8-K
2025-05-01
For: 2025-05-01
View Original
Added on
April 07, 2026
About this 8-K
Trinity Industries Inc filed this 8-K on May 1, 2025.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of Earliest Event Reported): | ||||||||
_______________________________________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices, and Zip Code)
(214 ) 631-4420
Registrant's Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
______________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
Trinity Industries, Inc. ("Trinity") hereby furnishes the information set forth in its News Release, dated May 1, 2025, announcing operating results for the three month period ended March 31, 2025, a copy of which is furnished as Exhibit 99.1 and incorporated herein by reference. On May 1, 2025, Trinity held a conference call and webcast with respect to its financial results for the three month period ended March 31, 2025. The conference call scripts of Leigh Anne Mann, Vice President of Investor Relations; E. Jean Savage, Chief Executive Officer and President; and Eric R. Marchetto, Executive Vice President and Chief Financial Officer are furnished as Exhibit 99.2, and incorporated herein by reference.
The conference call, News Release, and Presentation Materials, described below, included references to Adjusted Operating Results and Adjusted Earnings Per Share, Adjusted Return on Equity, Cash Flow from Operations with Net Gains on Lease Portfolio Sales, EBITDA and Adjusted EBITDA, which are not calculations based on generally accepted accounting principles (“GAAP”). Reconciliations of each of these non-GAAP measures to the most directly comparable GAAP measures have been included in the News Release and/or the Presentation Materials. When forward-looking non-GAAP measures are provided, Trinity does not provide quantitative reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures because it cannot, without unreasonable effort, predict the timing and amounts of certain items included in the computations of each of these measures. These factors include, but are not limited to: the product mix of expected railcar deliveries; the timing and amount of significant transactions and investments, such as lease portfolio sales, capital expenditures, and returns of capital to shareholders; and the amount and timing of certain other items outside the normal course of our core business operations.
This information and the materials described in Item 7.01 are not "filed" pursuant to the Securities Exchange Act of 1934 and are not incorporated by reference into any Securities Act of 1933 registration statements. Additionally, the submission of the report on Form 8-K is not an admission of the materiality of any information in this report that is required to be disclosed solely by Regulation FD.
Item 7.01 Regulation FD Disclosure.
See "Item 2.02 – Results of Operations and Financial Condition." Additionally, Trinity posted its presentation for investors and interested parties to its website to accompany the conference call; a copy of these materials is furnished as Exhibit 99.3 and incorporated herein by reference.
Forward-Looking Statements
Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, future financial and operating performance, future opportunities and any other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “projected,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(a) - (c) Not applicable.
(d) Exhibits:
| NO. | DESCRIPTION | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
| 99.3 | ||||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document (filed electronically herewith). | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document (filed electronically herewith). | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed electronically herewith). | |||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Trinity Industries, Inc. | ||||||||
| May 1, 2025 | By: | /s/ Eric R. Marchetto | ||||||
| Name: Eric R. Marchetto | ||||||||
| Title: Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
| NEWS RELEASE |  | ||||
FOR IMMEDIATE RELEASE
Trinity Industries, Inc. Announces First Quarter 2025 Results
Reports quarterly earnings from continuing operations of $0.29 per diluted share
Generates operating cash flow of $78 million and net gains on lease portfolio sales of $6 million
Lease fleet utilization of 96.8% and Future Lease Rate Differential ("FLRD") of positive 17.9% at quarter-end
Delivered 3,060 railcars in the quarter; backlog of $1.9 billion at quarter-end
DALLAS, Texas – May 1, 2025 – Trinity Industries, Inc. (NYSE:TRN) today announced earnings results for the first quarter ended March 31, 2025.
Financial and Operational Highlights
•Quarterly total company revenues of $585 million
•Quarterly income from continuing operations per common diluted share ("EPS") of $0.29
•Lease fleet utilization of 96.8% and FLRD of positive 17.9% at quarter-end
•Railcar deliveries of 3,060 and new railcar orders of 695
•Cash flow from continuing operations of $78 million and net gains on lease portfolio sales of $6 million
•Last twelve months ("LTM") Return on Equity ("ROE") of 13.0% and Adjusted ROE of 14.2%
2025 Guidance
•Industry deliveries of approximately 28,000 to 33,000 railcars
•Net fleet investment of $300 million to $400 million
•Operating and administrative capital expenditures of $45 million to $55 million
•EPS of $1.40 to $1.60
◦Excludes items outside of our core business operations
Management Commentary
“Trinity’s first quarter results reflect the strength and resilience of our platform,” said Trinity’s Chief Executive Officer and President, Jean Savage. “Despite facing external challenges, we are achieving Adjusted ROE in our targeted range and generating favorable cash flow.”
“In our Railcar Leasing and Services segment, our fleet of 144,000 owned and managed railcars have robust demand reflected in strong renewal rates. Year-over-year improvement in the segment reflects this trend. Market dynamics are favorable, with a fleet utilization of 96.8% and an FLRD of 17.9%.”
“In the Rail Products Group, strong inquiries indicate pent-up demand.” Ms. Savage continued, “Although customers are taking longer to make ordering decisions, which will impact short-term performance, we remain confident in the long-term fundamentals of this business.”
Ms. Savage concluded, “Trinity’s platform is unparalleled, and we are continuously seeking opportunities to create value. We have implemented necessary changes to our business to ensure we can generate strong returns through this cycle.”
1
Consolidated Financial Summary
| Three Months Ended March 31, | |||||||||||||||||
| 2025 | 2024 | Year over Year – Comparison | |||||||||||||||
| ($ in millions, except per share amounts) | |||||||||||||||||
| Revenues | $ | 585.4 | $ | 809.6 | Lower external deliveries, including sustainable railcar conversions, in the Rail Products Group | ||||||||||||
Operating profit | $ | 99.8 | $ | 115.2 | Lower external deliveries and costs associated with workforce reductions in the Rail Products Group, partially offset by higher lease rates and higher gains on lease portfolio sales | ||||||||||||
| Interest expense, net | $ | 66.1 | $ | 69.1 | |||||||||||||
| Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 24.0 | $ | 28.0 | |||||||||||||
EBITDA (1) | $ | 179.5 | $ | 188.2 | |||||||||||||
| Effective tax expense rate | 20.3 | % | 25.8 | % | |||||||||||||
| Diluted EPS – GAAP | $ | 0.29 | $ | 0.33 | |||||||||||||
| Net cash provided by operating activities – continuing operations | $ | 78.4 | $ | 56.5 | Primarily working capital improvements | ||||||||||||
Cash flow from operations with net gains on lease portfolio sales (1) | $ | 84.3 | $ | 58.6 | |||||||||||||
| Net fleet investment | $ | 86.5 | $ | 123.3 | |||||||||||||
| Returns of capital to stockholders | $ | 32.8 | $ | 23.0 | |||||||||||||
(1) Non-GAAP financial measure. See the Reconciliations of Non-GAAP Measures section within this Press Release for a reconciliation to the most directly comparable GAAP measure and why management believes this measure is useful to management and investors.
Additional Business Items
•Total committed liquidity of $920 million as of March 31, 2025.
•On April 30, 2025, Trinity Rail Leasing 2023 LLC (“TRL-2023”), a limited purpose, indirect wholly-owned subsidiary of the Company owned through Trinity Industries Leasing Company (“TILC”), entered into an amended and restated term loan agreement to (i) increase the aggregate amount of the term loan from $320.7 million as of March 31, 2025 to $1.05 billion; (ii) extend the maturity date to April 30, 2030; and (iii) reduce the applicable interest rate to daily simple SOFR plus a facility margin of 1.50%. Net proceeds received from the transaction were used to redeem in full the outstanding borrowings of approximately $616.0 million under Trinity Rail Leasing 2017, LLC (“TRL-2017”); to repay approximately $75.8 million of borrowings under TILC's warehouse loan facility; and for general corporate purposes. The interest rate for the TRL-2017 promissory notes was at one-month term SOFR plus (1) a benchmark adjustment of 11 basis points and (2) a facility margin of 1.50%.
2
Business Group Summary
| Three Months Ended March 31, | |||||||||||||||||
| 2025 | 2024 | Year over Year – Comparison | |||||||||||||||
| ($ in millions) | |||||||||||||||||
| Railcar Leasing and Services Group | |||||||||||||||||
| Revenues | $ | 287.4 | $ | 285.2 | Higher lease rates, partially offset by a lower volume of external repairs in the maintenance services business | ||||||||||||
| Operating profit | $ | 104.5 | $ | 100.3 | Higher lease rates and higher gains on lease portfolio sales, partially offset by a lower volume of external repairs in the maintenance services business | ||||||||||||
| Operating profit margin | 36.4 | % | 35.2 | % | |||||||||||||
| Gains on lease portfolio sales | $ | 5.9 | $ | 2.1 | |||||||||||||
Fleet utilization (1) | 96.8 | % | 97.5 | % | |||||||||||||
FLRD (2) | +17.9 | % | +34.7 | % | Continued strength in current lease rates | ||||||||||||
Owned lease fleet (in units) (1) | 110,150 | 110,205 | |||||||||||||||
| Investor-owned lease fleet (in units) | 34,215 | 32,995 | |||||||||||||||
| Rail Products Group | |||||||||||||||||
| Revenues | $ | 420.5 | $ | 667.4 | Lower deliveries, including sustainable railcar conversions | ||||||||||||
| Operating profit | $ | 25.9 | $ | 43.8 | Lower deliveries and costs associated with workforce reductions | ||||||||||||
| Operating profit margin | 6.2 | % | 6.6 | % | |||||||||||||
| New railcars: | |||||||||||||||||
| Deliveries (in units) | 3,060 | 4,695 | 2024 includes 1,200 railcars impacted by the Q4 2023 U.S.-Mexico border closure and congestion | ||||||||||||||
| Orders (in units) | 695 | 1,880 | |||||||||||||||
| Order value | $ | 109.3 | $ | 259.5 | |||||||||||||
| Backlog value | $ | 1,886.6 | $ | 2,938.9 | |||||||||||||
| Sustainable railcar conversions: | |||||||||||||||||
| Deliveries (in units) | — | 675 | |||||||||||||||
| Eliminations | |||||||||||||||||
| Eliminations – revenues | $ | (122.5) | $ | (143.0) | |||||||||||||
| Eliminations – operating profit | $ | (6.2) | $ | (2.4) | |||||||||||||
| Corporate and other | |||||||||||||||||
| Selling, engineering, and administrative expenses | $ | 24.4 | $ | 26.5 | |||||||||||||
| March 31, 2025 | December 31, 2024 | ||||||||||||||||
| Loan-to-value ratio | |||||||||||||||||
| Wholly-owned subsidiaries | 66.2 | % | 67.6 | % | |||||||||||||
(1) Includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.
(2) FLRD calculates the implied change in lease rates for railcar leases expiring over the next four quarters. The FLRD assumes that these expiring leases will be renewed at the most recent quarterly transacted lease rates for each railcar type. We believe the FLRD is useful to both management and investors as it provides insight into the near-term trend in lease rates.
3
Conference Call
Trinity will hold a conference call at 8:00 a.m. Eastern on May 1, 2025 to discuss its first quarter results. To listen to the call, please visit the Investor Relations section of the Company's website at www.trin.net and access the Events & Presentations webpage, or the live call can be accessed at 1-888-317-6003 with the conference passcode "6452454". Please call at least 10 minutes in advance to ensure a proper connection. An audio replay may be accessed through the Company’s website or by dialing 1-877-344-7529 with passcode "4832888" until 11:59 p.m. Eastern on May 8, 2025.
Additionally, the Company will provide a quarterly investor presentation that will be accessible both within the webcast and on Trinity's Investor Relations website under the Events and Presentations portion of the site along with the First Quarter Earnings Call event weblink.
Non-GAAP Financial Measures
We have included financial measures compiled in accordance with generally accepted accounting principles ("GAAP") and certain non-GAAP measures in this earnings press release to provide management and investors with additional information regarding our financial results. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. For each non-GAAP financial measure, a reconciliation to the most comparable GAAP measure has been included in the accompanying tables. When forward-looking non-GAAP measures are provided, quantitative reconciliations to the most directly comparable GAAP measures are not provided because management cannot, without unreasonable effort, predict the timing and amounts of certain items included in the computations of each of these measures. These factors include, but are not limited to: the product mix of expected railcar deliveries; the timing and amount of significant transactions and investments, such as lease portfolio sales, capital expenditures, and returns of capital to stockholders; and the amount and timing of certain other items outside the normal course of our core business operations.
4
About Trinity Industries
Trinity Industries, Inc., headquartered in Dallas, Texas, owns businesses that are leading providers of rail transportation products and services in North America. Our businesses market their railcar products and services under the trade name TrinityRail®. Our platform also includes the brands of RSI Logistics, a provider of software and logistics solutions, and Holden America, a supplier of railcar parts and components. Our platform provides railcar leasing and management services; railcar manufacturing; railcar maintenance and modifications; and other railcar logistics products and services. Trinity reports its financial results in two reportable business segments: (1) Railcar Leasing and Services Group and (2) Rail Products Group. For more information, visit: www.trin.net.
Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, future financial and operating performance, future opportunities and any other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “projected,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K.
| Investor Contact: | ||
| Leigh Anne Mann | ||
| Vice President, Investor Relations | ||
| Trinity Industries, Inc. | ||
| (Investors) 214/631-4420 | ||
| Media Contact: | ||
| Jack L. Todd | ||
| Vice President, Public Affairs | ||
| Trinity Industries, Inc. | ||
| (Media Line) 214/589-8909 | ||
- TABLES TO FOLLOW -
5
Trinity Industries, Inc.
Condensed Consolidated Statements of Operations
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Revenues | $ | 585.4 | $ | 809.6 | |||||||||||||||||||
| Operating costs: | |||||||||||||||||||||||
| Cost of revenues | 443.2 | 644.9 | |||||||||||||||||||||
| Selling, engineering, and administrative expenses | 50.0 | 52.3 | |||||||||||||||||||||
| Gains on dispositions of property: | |||||||||||||||||||||||
| Lease portfolio sales | 5.9 | 2.1 | |||||||||||||||||||||
| Other | 1.7 | 0.7 | |||||||||||||||||||||
| 485.6 | 694.4 | ||||||||||||||||||||||
| Operating profit | 99.8 | 115.2 | |||||||||||||||||||||
| Interest expense, net | 66.1 | 69.1 | |||||||||||||||||||||
| Other, net | (2.7) | 3.4 | |||||||||||||||||||||
| Income from continuing operations before income taxes | 36.4 | 42.7 | |||||||||||||||||||||
| Provision (benefit) for income taxes: | |||||||||||||||||||||||
| Current | 13.5 | 13.1 | |||||||||||||||||||||
| Deferred | (6.1) | (2.1) | |||||||||||||||||||||
| 7.4 | 11.0 | ||||||||||||||||||||||
| Income from continuing operations | 29.0 | 31.7 | |||||||||||||||||||||
| Loss from discontinued operations, net of income taxes | (1.9) | (4.3) | |||||||||||||||||||||
| Net income | 27.1 | 27.4 | |||||||||||||||||||||
| Net income attributable to noncontrolling interest | 5.0 | 3.7 | |||||||||||||||||||||
| Net income attributable to Trinity Industries, Inc. | $ | 22.1 | $ | 23.7 | |||||||||||||||||||
| Basic earnings per common share: | |||||||||||||||||||||||
| Income from continuing operations | $ | 0.29 | $ | 0.34 | |||||||||||||||||||
| Loss from discontinued operations | (0.02) | (0.05) | |||||||||||||||||||||
| Net income attributable to Trinity Industries, Inc. | $ | 0.27 | $ | 0.29 | |||||||||||||||||||
| Diluted earnings per common share: | |||||||||||||||||||||||
| Income from continuing operations | $ | 0.29 | $ | 0.33 | |||||||||||||||||||
| Loss from discontinued operations | (0.02) | (0.05) | |||||||||||||||||||||
| Net income attributable to Trinity Industries, Inc. | $ | 0.26 | $ | 0.28 | |||||||||||||||||||
| Weighted average number of shares outstanding: | |||||||||||||||||||||||
| Basic | 81.6 | 81.6 | |||||||||||||||||||||
| Diluted | 83.8 | 83.5 | |||||||||||||||||||||
Note: Earnings per common share is calculated independently for each component and may not sum to total net income attributable to Trinity Industries, Inc. per common share due to rounding.
Trinity has certain unvested restricted stock awards that participate in dividends on a nonforfeitable basis and are therefore considered to be participating securities. Consequently, diluted net income attributable to Trinity Industries, Inc. per common share is calculated under both the two-class method and the treasury stock method, and the more dilutive of the two calculations is presented.
6
Trinity Industries, Inc.
Condensed Consolidated Balance Sheets
(in millions)
(unaudited)
| March 31, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 94.9 | $ | 228.2 | |||||||
| Receivables, net of allowance | 368.9 | 379.1 | |||||||||
| Income tax receivable | 2.5 | 2.4 | |||||||||
| Inventories | 449.7 | 476.2 | |||||||||
| Restricted cash | 140.2 | 146.2 | |||||||||
| Property, plant, and equipment, net: | |||||||||||
| Railcars in our lease fleet: | |||||||||||
| Wholly-owned subsidiaries | 5,987.3 | 5,948.1 | |||||||||
| Partially-owned subsidiaries | 1,404.2 | 1,416.0 | |||||||||
| Deferred profit on railcar products sold | (730.9) | (732.5) | |||||||||
| Operating and administrative assets | 354.8 | 356.5 | |||||||||
| 7,015.4 | 6,988.1 | ||||||||||
| Goodwill | 221.5 | 221.5 | |||||||||
| Other assets | 371.6 | 390.5 | |||||||||
| Total assets | $ | 8,664.7 | $ | 8,832.2 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Accounts payable | $ | 255.4 | $ | 251.7 | |||||||
| Accrued liabilities | 281.9 | 353.0 | |||||||||
| Debt: | |||||||||||
| Recourse | 598.0 | 597.8 | |||||||||
| Non-recourse: | |||||||||||
| Wholly-owned subsidiaries | 3,961.6 | 4,021.3 | |||||||||
| Partially-owned subsidiaries | 1,056.6 | 1,071.8 | |||||||||
| 5,616.2 | 5,690.9 | ||||||||||
| Deferred income taxes | 1,069.5 | 1,075.6 | |||||||||
| Other liabilities | 142.0 | 153.8 | |||||||||
| Stockholders' equity: | |||||||||||
| Trinity Industries, Inc. | 1,053.2 | 1,058.9 | |||||||||
| Noncontrolling interest | 246.5 | 248.3 | |||||||||
| 1,299.7 | 1,307.2 | ||||||||||
| Total liabilities and stockholders' equity | $ | 8,664.7 | $ | 8,832.2 | |||||||
7
Trinity Industries, Inc.
Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Operating activities: | |||||||||||
| Net cash provided by operating activities – continuing operations | $ | 78.4 | $ | 56.5 | |||||||
| Net cash used in operating activities – discontinued operations | (1.9) | (4.3) | |||||||||
| Net cash provided by operating activities | 76.5 | 52.2 | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures – lease fleet | (120.2) | (147.5) | |||||||||
| Proceeds from lease portfolio sales | 33.7 | 24.2 | |||||||||
| Capital expenditures – operating and administrative | (9.2) | (4.6) | |||||||||
| Other investing activities | 4.1 | 3.9 | |||||||||
| Net cash used in investing activities | (91.6) | (124.0) | |||||||||
| Financing activities: | |||||||||||
| Net proceeds from (repayments of) debt | (77.3) | 106.1 | |||||||||
| Shares repurchased | (8.2) | — | |||||||||
| Dividends paid to common shareholders | (24.6) | (23.0) | |||||||||
| Other financing activities | (14.1) | (11.3) | |||||||||
| Net cash provided by (used in) financing activities | (124.2) | 71.8 | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | (139.3) | — | |||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 374.4 | 235.1 | |||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 235.1 | $ | 235.1 | |||||||
8
Trinity Industries, Inc.
Reconciliations of Non-GAAP Measures
($ in millions, except per share amounts and percentages)
(unaudited)
Adjusted Operating Results
We have supplemented the presentation of our reported GAAP operating profit, income from continuing operations before income taxes, provision (benefit) for income taxes, income from continuing operations, net income from continuing operations attributable to Trinity Industries, Inc., and diluted income from continuing operations per common share attributable to Trinity Industries, Inc. with non-GAAP measures that adjust the GAAP measures to exclude the impact of certain interest expense, net; and certain other transactions or events (as applicable), described in the footnote to the table below. These non-GAAP measures are derived from amounts included in our GAAP financial statements and are reconciled to the most directly comparable GAAP financial measures in the table below. Management believes that these measures are useful to both management and investors for analyzing the performance of our business without the impact of certain items that are not indicative of our normal business operations. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.
| Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||
| GAAP | Interest expense, net (1) | Adjusted | |||||||||||||||||||||||||||||||||
| Operating profit | $ | 115.2 | $ | — | $ | 115.2 | |||||||||||||||||||||||||||||
| Income from continuing operations before income taxes | $ | 42.7 | $ | (0.4) | $ | 42.3 | |||||||||||||||||||||||||||||
| Provision (benefit) for income taxes | $ | 11.0 | $ | (0.1) | $ | 10.9 | |||||||||||||||||||||||||||||
| Income from continuing operations | $ | 31.7 | $ | (0.3) | $ | 31.4 | |||||||||||||||||||||||||||||
| Net income from continuing operations attributable to Trinity Industries, Inc. | $ | 28.0 | $ | (0.3) | $ | 27.7 | |||||||||||||||||||||||||||||
| Diluted weighted average shares outstanding | 83.5 | 83.5 | |||||||||||||||||||||||||||||||||
| Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. | $ | 0.33 | $ | 0.33 | |||||||||||||||||||||||||||||||
(1) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets.
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Adjusted Return on Equity
Adjusted Return on Equity (“Adjusted ROE”) is defined as a ratio for which (i) the numerator is calculated as income or loss from continuing operations, adjusted to exclude the effects of net income or loss attributable to noncontrolling interest, and certain other adjustments (net of income taxes), described in the footnotes to the table below, which include certain gains on dispositions of other property; restructuring activities, net; and interest expense, net; and (ii) the denominator is calculated as average Trinity stockholders’ equity (which excludes noncontrolling interest). In the following table, the numerator and denominator of our Adjusted ROE calculation are reconciled to income from continuing operations and total stockholders’ equity, respectively, which are the most directly comparable GAAP financial measures. Management believes that Adjusted ROE is a useful measure to both management and investors as it provides an indication of the economic return on the Company’s investments over time. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.
LTM March 31, 2025 | March 31, 2024 | ||||||||||||||||
| ($ in millions) | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Income from continuing operations | $ | 168.7 | |||||||||||||||
| Net income attributable to noncontrolling interest | (20.0) | ||||||||||||||||
| Net income from continuing operations attributable to Trinity Industries, Inc. | 148.7 | ||||||||||||||||
| Adjustments (net of income taxes): | |||||||||||||||||
Gains on dispositions of property – other (1) | (2.1) | ||||||||||||||||
| Restructuring activities, net | 3.4 | ||||||||||||||||
Interest expense, net (2) | (0.6) | ||||||||||||||||
| Adjusted Net Income | $ | 149.4 | |||||||||||||||
| Denominator: | |||||||||||||||||
| Total stockholders' equity | $ | 1,299.7 | $ | 1,288.5 | |||||||||||||
| Noncontrolling interest | (246.5) | (239.2) | |||||||||||||||
| Trinity stockholders' equity | $ | 1,053.2 | $ | 1,049.3 | |||||||||||||
| Average total stockholders' equity | $ | 1,294.1 | |||||||||||||||
Return on Equity (3) | 13.0 | % | |||||||||||||||
| Average Trinity stockholders' equity | $ | 1,051.3 | |||||||||||||||
Adjusted Return on Equity (4) | 14.2 | % | |||||||||||||||
(1) Represents insurance recoveries in excess of net book value for assets damaged by a fire at the Company’s facility in Cartersville, Georgia in the first quarter of 2024.
(2) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets.
(3) Return on Equity is calculated as income from continuing operations divided by average total stockholders' equity.
(4) Adjusted Return on Equity is calculated as adjusted net income divided by average Trinity stockholders' equity, each as defined and reconciled above.
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Cash Flow from Operations with Net Gains on Lease Portfolio Sales
Cash flow from operations with net gains on lease portfolio sales is a non-GAAP financial measure. We believe this measure is useful to both management and investors as it provides a relevant measure of liquidity and a useful basis for assessing the breadth of the cash flow generation capabilities across our operating platform, as well as our ability to fund our operations and repay our debt. This measure is defined as net cash provided by operating activities from continuing operations as computed in accordance with GAAP, plus net gains on lease portfolio sales and is reconciled to net cash provided by operating activities from continuing operations, the most directly comparable GAAP financial measure, in the following table. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net cash provided by operating activities – continuing operations | $ | 78.4 | $ | 56.5 | |||||||
| Net gains on lease portfolio sales | 5.9 | 2.1 | |||||||||
Cash flow from operations with net gains on lease portfolio sales | $ | 84.3 | $ | 58.6 | |||||||
EBITDA and Adjusted EBITDA
“EBITDA” is defined as income from continuing operations plus interest expense, provision (benefit) for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA plus certain interest income. EBITDA and Adjusted EBITDA are non-GAAP financial measures; however, the amounts included in these calculations are derived from amounts included in our GAAP financial statements. EBITDA and Adjusted EBITDA are reconciled to net income, the most directly comparable GAAP financial measure, in the following table. This information is provided to assist management and investors in making meaningful comparisons of our operating performance between periods. We believe EBITDA is a useful measure for analyzing the performance of our business. We also believe that EBITDA is commonly reported and widely used by investors and other interested parties as a measure of a company’s operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to capital structure, depreciation or amortization (which can vary significantly depending on many factors). EBITDA and Adjusted EBITDA should not be considered as alternatives to net income as indicators of our operating performance, or as alternatives to operating cash flows as measures of liquidity. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Net income | $ | 27.1 | $ | 27.4 | |||||||||||||||||||
| Less: Loss from discontinued operations, net of income taxes | (1.9) | (4.3) | |||||||||||||||||||||
| Income from continuing operations | 29.0 | 31.7 | |||||||||||||||||||||
| Interest expense | 68.8 | 72.1 | |||||||||||||||||||||
| Provision (benefit) for income taxes | 7.4 | 11.0 | |||||||||||||||||||||
| Depreciation and amortization expense | 74.3 | 73.4 | |||||||||||||||||||||
EBITDA | 179.5 | 188.2 | |||||||||||||||||||||
| Interest income | — | (0.4) | |||||||||||||||||||||
| Adjusted EBITDA | $ | 179.5 | $ | 187.8 | |||||||||||||||||||
11
Exhibit 99.2
Trinity Industries, Inc.
Earnings Release Conference Call – Q1 2025
May 1, 2025
Leigh Anne Mann
Vice President, Investor Relations
Thank you, operator. Good morning everyone. We appreciate you joining us for the Company’s first quarter 2025 financial results conference call.
Our prepared remarks will include comments from Jean Savage, Trinity’s Chief Executive Officer and President, and Eric Marchetto, the Company’s Chief Financial Officer. We will hold a Q&A session following the prepared remarks from our leaders.
During the call today, we will reference certain non-GAAP financial metrics. The reconciliations of the non-GAAP metrics to comparable GAAP measures are provided in the appendix of the quarterly investor slides, which are accessible on our investor relations website at www.trin.net. These slides are under the Events and Presentations portion of the website, along with the First Quarter Earnings Conference Call event link.
A replay of today’s call will be available after 10:30 a.m. Eastern time through midnight on May 8, 2025. Replay information is available under the Events and Presentations page on our Investor Relations website.
It is now my pleasure to turn the call over to Jean.
E. Jean Savage
Chief Executive Officer and President
Thank you, Leigh Anne, and good morning everyone. Before we begin with financial and operational results, I would like to congratulate our Jonesboro maintenance facility on achieving a significant milestone in March. This facility has gone five years without a lost time incident. Safety is a core value at Trinity, and this achievement is certainly worth acknowledging.
As you may have heard from other companies this earnings cycle, 2025 is a year of uncertainty. While we are not immune to the current macroeconomic challenges, we are operating with agility and adaptability to respond to customers and market conditions appropriately. The railcar manufacturing industry has always had a cyclical element to it, and while we continue to believe the fundamentals of the industry have changed and this cycle is being led by the replacement-level demand, the current environment gives us the opportunity to prove the resiliency of our platform.
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In the first quarter, GAAP earnings per share for Trinity Industries were $0.29 on revenues of $585 million. Our work to lower the breakeven on our railcars and improve the Rail Products Group margins through the cycle is reflected in this environment. Despite 38% fewer external deliveries year-over-year, our EPS was only down 12%, highlighting the strength and resilience of our platform. I am proud of our team for that work. Furthermore, our last twelve months Adjusted Return on Equity was 14.2%, showing we continue efficiently deploying our capital to generate returns.
The current environment will benefit our lease fleet of 144,000 owned and managed railcars. Our customers need the railcars they have in their fleets, and higher costs and interest rates have been and continue to support lease rate expansion, improving our business’s overall returns. The forward-looking metrics for our lease fleet remain favorable, with fleet utilization at 96.8% and our Future Lease Rate Differential, or FLRD, at 17.9%.
In summary, we expect macroeconomic forces in 2025 to have some effect on us – whether through inflation, recession, or other economic conditions – but we also expect to continue to be opportunistic as a railcar lessor, disciplined as a railcar builder, and innovative with our customers.
Market Update
Moving to a market update, market uncertainty in the first quarter continued to slow conversions of inquiries to orders. Inquiry levels at the beginning of 2025 were the highest they have been in several years, but customers are taking longer to make capital decisions. We think industrial production is the best predictor of growth for our business, and while macro sentiment and confidence are trending negatively due to market uncertainty, industrial production remains positive. Over the next several quarters, decisions by our customers for new railcar orders will allow us to manage our production lines efficiently.
Our current expectations for industry railcar deliveries this year are 28,000 to 33,000 railcars. While we cannot control the volatility in the current market, as an organization we are focused on making prudent decisions to support the long-term investment in our fleet and growth of our business. Currently, we expect minimal direct cost pressures from current policy proposals. However, we have seen an impact to demand and, subsequently, revenue.
Based on industry data, we saw the North American railcar fleet contract for the first time in about two years. This is further evidence that builders and lessors are remaining disciplined, limiting speculative purchases and responding to replacement needs. We did see attrition outpace deliveries in Q1, and we would expect that to continue as long as customers delay buying decisions.
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Railcar activity stepped up in March with less than 19% of the fleet in storage. The relatively low level of railcars in storage is consistent with the healthy fleet utilization and renewal rate increases we have sustained.
Segment Performance
I would now like to provide some segment highlights for the quarter, beginning with the Railcar Leasing and Services segment, which includes our leasing, maintenance, and digital and logistics services businesses.
Leasing and Services
As noted at the top of the call, our leasing business continues to perform at or above our expectations. Our FLRD has been double-digit positive for twelve quarters, and in that time, we have repriced about 58% of our fleet. In the first quarter, renewal lease rates were 29.5% above expiring rates, and fleet utilization remained favorable at nearly 97% with a renewal success rate of 75%, demonstrating that customers are holding onto their existing equipment, and we continue to renew leases upward to market rates. We expect these positive trends to continue as lower railcar deliveries this year continues driving tightness in the market.
Looking at first quarter results, revenues were flat year over year as higher lease rates were partially offset by a lower volume of external repairs. Furthermore, weather impacted our first quarter results for the maintenance business with lost weeks in January and February. We are also in a heavy tank car compliance year, which increases maintenance costs to our fleet. In summary, leasing segment operating margin was up year over year due to higher lease rates and higher gains on lease portfolio sales, partially offset by a lower volume of external repairs in our maintenance services business.
In the quarter, we completed $34 million of lease portfolio sales and achieved gains of $6 million. Our quarterly net lease fleet investment was $87 million, in line with our full year guidance.
The hard assets of our leasing business provide stable returns, which makes for a compelling investment thesis in an uncertain market.
Rail Products
Moving to the Rail Products Group, which includes our railcar manufacturing and our railcar parts businesses, our results in this segment reflect the current operating environment. We delivered 3,060 new railcars in the quarter and received orders for 695 railcars, evidence of the delayed investment decisions I have previously acknowledged and the lumpiness of orders quarter to quarter. As a result,
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quarterly revenue was down due to lower deliveries. Operating margin of 6.2% is down both sequentially and year over year. This margin includes costs associated with workforce rationalization.
Our backlog at the end of the quarter was $1.9 billion, and we have seen order activity improve in the second quarter.
Conclusion
In a few minutes, Eric will provide updated guidance for the full year, but I want to acknowledge our guidance assumes that some of the inquiries we are seeing begin to convert to orders in the next few months, which will allow us to efficiently run our production lines.
We believe in the power of our leasing business and in the competitive and economic advantages our manufacturing and services businesses give to our lease fleet. Although short-term volatility is outside our control, we are focused on making decisions that support the generation of long-term economic value. I’ll now turn the call over to Eric to talk through financial results, as well as our updated guidance for 2025.
Eric R. Marchetto
Executive Vice President and Chief Financial Officer
Thank you, Jean, and good morning everyone. I will begin by discussing our first quarter financial statements, starting with the income statement.
Income Statement
In the first quarter, we generated revenues of $585 million, reflecting lower external deliveries. Furthermore, 29% of our Rail Products Group revenues were eliminated as they went into our internal lease fleet. Our GAAP EPS from continuing operations was $0.29 in the quarter. We benefited in the quarter from lower corporate, interest, and tax expenses.
Cash Flow Statement
Moving to the cash flow statement, our quarterly cash from continuing operations was $78 million, and our net gains on lease portfolio sales were $6 million in the quarter. We invested $9 million in operating and administrative capital expenditures. We returned $33 million to shareholders in the quarter, $25 million through our quarterly dividend and $8 million in share repurchases.
Our balance sheet is positioned for value creation and provides flexibility in an uncertain market. We have $920 million of liquidity through our cash, revolver, and warehouse availability. Our loan-to-value of 66.2% on our wholly-owned fleet is within our target range of 60% to 70%.
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Guidance
Now I want to talk about the expectations for the rest of 2025. As Jean noted, there is uncertainty in the market. We know the demand for railcars is out there given the aging profile of the fleet and solid inquiries we continue to receive from our customers. The pace at which these inquiries are converting to orders is slower than expected. We are lowering our full year industry delivery guidance to approximately 28,000 to 33,000 railcars. Our full year guidance assumes additional orders are received for delivery this year. Based on what is currently in our backlog and being manufactured, we expect the second quarter to be a low point for the year but expect production, deliveries, and subsequently earnings to pick up as we move into the back half of the year. Rail Products Group margins will be impacted by lower volumes and margin compression on new orders. Our current view is segment operating margin will be between 5-6% for the year.
We are leaving our capital expenditure guidance for the year unchanged – $45 million to $55 million for operating and administrative capex and $300 million to $400 million for net fleet investment. Net fleet investment guidance assumes a pickup in demand in the near term.
The operating performance and cash flow generation of the lease fleet remains strong. We see opportunities for lease fleet investments and expect continued strength in our fleet utilization. Lease rates are driven by many factors, but the most important is a balanced fleet, meaning there is not an excess of supply. This allows for rational and higher lease rates. In the current environment, the North American railcar fleet is in balance, evidenced by fleet utilization, rising lease rates, and renewal success rates. Furthermore, general inflationary pressure will drive new railcar prices upward, which will allow lessors to raise lease rates.
And finally, we are refining our full year EPS guidance to a range of $1.40 to $1.60 per share. Our lease fleet continues to perform favorably, and our customers are holding onto their existing fleets as they continue to need the railcars in their fleets. This provides a predictable base load of cash flow and earnings.
The long-term fundamentals of our franchise remain intact. Our platform has the ability to generate significant cash and above average shareholder returns based on the strength of the hard assets in our lease fleet and a value proposition to our customers that is unmatched.
Operator, we are now ready to take our first question.
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(after Q&A)
E. Jean Savage
Chief Executive Officer and President
Well, thank you for joining us today. As we stated today, although customers are taking longer to make ordering decisions, which will impact short-term performance, we remain confident in the long-term fundamentals of the business. Our platform is unparalleled, and we have implemented necessary changes to our business to ensure we can generate strong returns through the cycle. We look forward to sharing our progress with you next quarter.
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Q1 2025 Investor Presentation Exhibit 99.3 May 1, 2025 – based on financial results as of March 31, 2025
2Investor Presentation 2 Forward Looking Statements Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, future financial and operating performance, future opportunities and any other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “projected,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this material, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K. This presentation also includes references to calculations that are not based on generally accepted accounting principles (“GAAP”). Reconciliations of each of these non-GAAP measures to the most directly comparable GAAP measures have been included in the Appendix. When forward-looking non-GAAP measures are provided, Trinity does not provide quantitative reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures because it cannot, without unreasonable effort, predict the timing and amounts of certain items included in the computations of each of these measures. These factors include, but are not limited to: the product mix of expected railcar deliveries; the timing and amount of significant transactions and investments, such as lease portfolio sales, capital expenditures, and returns of capital to shareholders; and the amount and timing of certain other items outside the normal course of our core business operations. Except where noted, financial data is presented as of the Company’s most recent fiscal quarter ending March 31, 2025. “LTM” represents Last Twelve Months(1) financial information from April 1, 2024 to March 31, 2025. See appendix for footnotes
3Investor Presentation I. Quarter Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 II. Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 III. Financial Positioning and Strategic Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 IV. Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Investor Presentation – Q1 2025
4Investor Presentation Quarter Results
5Investor Presentation Key Takeaways from Q1 2025 Quarterly EPS from continuing operations of $0.29 Continued strength in lease rates; FLRD +17.9%, utilization 96.8% LTM Adjusted Return on Equity (ROE) of 14.2%* Expect 2025 EPS in the range of $1.40 to $1.60 reflecting delayed capital decisions driving lower external deliveries * See appendix for reconciliation of non-GAAP measures
6Investor Presentation Financial Results Highlights Cash Flow from Cont. Operations $78M $+22M Revenues $585M (28)% EPS $0.29 $(0.04) Q1 2025 – Year over Year Adjusted ROE* 14.2% LTM Q1-25 * See appendix for reconciliation of non-GAAP measures
7Investor Presentation North American Railcar Market In Balance C ha ng e in N or th A m er ic an R ai lc ar F le et (r ai lc ar s Y /Y ) S hare of R ailcars in S torage (M onthly % ) Change in Fleet Size (Y/Y) Percent in storage 1/1/2021 1/1/2022 1/1/2023 1/1/2024 1/1/2025 -30,000 -20,000 -10,000 0 10,000 20,000 —% 5% 10% 15% 20% 25% North American Railcar Fleet and Railcars in Storage Source: Association of American Railroads (“AAR”) RAILCAR FLEET After two years of fleet growth, the North American fleet contracted slightly in April driven by lower industry builds, an aging fleet, and attractive scrap rates. We expect to see this trend continue this year as fleet attrition will outpace industry builds. RAILCARS IN STORAGE Railcars in storage are below 19% as railcar owners are utilizing their equipment.
8Investor Presentation8 Leasing & Services Revenue and Operating Profit Margin (1) (in m ill io ns ) Leasing & Management Revenue Maintenance Services Revenue Digital & Logistics Services Revenue OP Margin (1) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $— $120 $240 $360 20% 40% 60%Leasing & Services Segment Revenue Drivers • Revenues were flat year over year due to higher lease rates, partially offset by a lower volume of external repairs Leasing & Services Margin Performance Drivers • Margin up year over year due to higher lease rates and higher gains on lease portfolio sales, partially offset by a lower volume of external repairs in our maintenance services business • Completed $34M of lease portfolio sales in the quarter, resulting in gains of $6M • Segment margin includes gains from insurance recoveries in Q4 2024 Leasing & Services Business Highlights • Quarterly net fleet investment of $87 million • Owned fleet of 110,150 railcars • Total owned and investor-owned fleet of 144,365 railcars • Fleet utilization of 96.8% • Renewal success rate of 75% for Q1 2025 • FLRD remains strong at +17.9% See appendix for footnotes Segment Performance: Railcar Leasing & Services Group Fl ee t U til iz at io n FLR D Fleet Utilization FLRD (2) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 80% 90% 100% —% 25% 50% FLRD and Utilization Remain Favorable
9Investor Presentation9 Rail Products Segment Revenue Drivers • Quarterly revenues down year over year due to lower deliveries, including sustainable railcar conversions Rail Products Margin Performance Drivers • Operating margin of 6.2% in the quarter is down year over year driven by lower deliveries and costs associated with workforce reductions Rail Products Business Highlights • 3,060 new railcar deliveries in the quarter • 695 new railcar orders in the quarter • Backlog of $1.9 billion at quarter-end Rail Products Revenue and Operating Profit Margin (in m ill io ns ) Rail Products Revenue Parts & Components Revenue OP Margin Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $— $250 $500 $750 4% 6% 8% 10% Segment Performance: Rail Products Group Orders Deliveries Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 0 2,500 5,000 Order Volume Reflects Market Uncertainty
10Investor Presentation Q1 Revenue Reflects Lower External Deliveries Q1 2025 Financial Summary: Income Statement: • Total revenues of $585M reflect lower external deliveries, including sustainable railcar conversions • GAAP EPS from continuing operations of $0.29 • Lease portfolio sales proceeds of $34M in the quarter 10 Cash Flow Generation Remains Favorable * See appendix for reconciliation of non-GAAP measures (in m ill io ns ) Leasing & Services Rail Products Adj EPS, Cont Ops (Diluted) * Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $— $450 $900 $— $0.50 $1.00 (in m ill io ns ) Cash Flow from Cont Ops Net Gains on Lease Portfolio Sales Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $— $100.0 $200.0 $300.0 Total Company Results Cash Flow: • Cash flow from continuing operations of $78M • Net gains on lease portfolio sales of $6M • Net fleet investment of $87M • Investment of $9M in operating and administrative capex • Shareholder returns of $33M through dividends paid and share repurchases
11Investor Presentation Unencumbered Railcars $445M LTV of 66.2% for the wholly-owned lease portfolio as of Q1-25 Pledge to warehouse and additional assets can be sold or financed CAPITAL LEVERS Recourse Debt $598M @ ~7.8%(1) Non-recourse Debt $5.0B @ ~4.1%(1) Favorable average cost of debt with flexible term structures DEBT STRUCTURE Cash & Equivalents $95M Revolver Availability $591M Warehouse Availability $234M LIQUIDITY Solid Liquidity of $920M(1) Attractive Debt Structures Conservative Capitalization See appendix for footnotes Balance Sheet Positioning Strategically Positioned for Value Creation
12Investor Presentation C ap ita l A llo ca tio n FY 2025 Summary Detail Industry Deliveries Approximately 28K – 33K Does not include sustainable railcar conversions Net Fleet Investment $300M – $400M Includes deliveries to our lease fleet, sustainable railcar conversions, railcar modifications and betterments, and secondary market purchases; offset by proceeds from lease portfolio sales Operating and Administrative Capital Expenditures $45M – $55M Investments in automation, technology, and modernization of facilities and processes EPS from Continuing Operations $1.40 – $1.60 Excludes items outside of our normal business operations Any forward-looking statements made by the Company speak only as of the date on which they are made. Except as required by federal securities law, the Company is under no obligation to update or alter its forward-looking statements, whether as a result of new information, subsequent events or otherwise. Management Outlook for Business Performance
13Investor Presentation Company Overview
14Investor Presentation Trinity Industries, Inc. is a market leading railcar leasing business that provides rail transportation products and services in North America – Top 5 Leasing company ~ 110,150 railcars under ownership ~ 34,215 additional investor-owned railcars – Leading railcar manufacturer with 41% of industry deliveries in FY 2024 – Railcar maintenance network and growing railcar logistics products and services Unique rail platform provides single source for comprehensive rail transportation solutions • LTM Q1-25 total revenues of $2.9 billion • LTM Q1-25 Adjusted EBITDA* of $796 million • Current dividend yield of 4.3%(1) – 244 consecutive quarterly dividend payments External Revenue by Business Segment(2) *All specified data as of March 31, 2025; See appendix for footnotes and reconciliation of non-GAAP measures $7.8 billion* Enterprise Value $124 million* LTM Q1-25 Stockholder Returns $610 million* LTM Q1-25 Cash Flow from Cont. Ops $2.3 billion* Market Cap Leasing & Services Rail Products Adj EPS, Cont Ops (Diluted) * 2023 2024 LTM Q1-25 $— $1,750 $3,500 $1.35 $1.50 $1.65 $1.80 $1.95 (in $mms) Trinity Industries, Inc. Overview
15Investor Presentation Optimize customers’ ownership and usage of railcar equipment Cross-sell to deliver innovative solutions and differentiated experience Create an unmatched rail platform that provides a full suite of customer solutions to make a Trinity leased railcar the “railcar of choice” for our shipper customers for higher fleet utilization, more value streams per railcar, and higher shareholder returns Trinity’s Platform Built for Superior Performance
16Investor Presentation Platform Capabilities Support Optimized Lease Fleet Returns Lease Originations Captive Maintenance Parts and Services Manufacturing excellence and new product development Market data and leading market view Asset Management / RIV Partnerships Dual role as owner and builder creates a feedback loop reinforcing asset differentiation Complementary lines of business give us a broad industry view and early visibility to industry trends Lease origination capabilities give customer flexibility and unlock multiple monetization options for each asset Fee income from Rail Investment Vehicle partnerships worth an average of 100bp to Adjusted ROE over last 5 years Captive maintenance and Mobile Repair Units allow for more time on rent Parts and services reduce cyclicality of earnings stream and enhance customer experience
17Investor Presentation Establishing New Value Streams Across Railcar Life Cycle
18Investor Presentation Diversified Portfolio of Railcar Equipment ~ 900 Different Commodities ~ 270 Different Railcar Designs Refined Products & Chemicals Energy Agriculture Construction & Metals Consumer Products Fr ei gh t C ar s 52 % Open Hoppers & Gondolas Coal Aggregates, Steel and Metals 11% Small Covered Hopper (< 5k cu/ft) Frac Sand Fertilizer Cement, Construction Materials, Steel and Metals 11% Large Covered Hopper (< 5k cu/ft) Other Chemical (Soda Ash) DDG and Feeds, Grain Mill Products, Grains, Food and Other Ag, Fertilizer Lumber (Wood Chips) 12% Specialty Covered Hopper Plastics Coal (Fly Ash) Grain Mill Products Aggregates, Cement 7% Other Freight Other Chemicals Food Lumber, Steel and Metals, Cement Autos, Paper, Intermodal 11% Ta nk C ar s 48 % Pressure Tank Cars NGL, Chlor Alkali, Petro- chemical, Other Chemicals Fertilizer 10% Gen. Service Tank Cars (< 20k. Gal) Sulfur Products, Chlor Alkali, Other Chemicals Grain Mill Products Aggregates (Clay Slurry) 3% Gen. Service Tank Cars (20k. - 25k Gal.) Refined Products, Petro- chemicals, Other Chemicals Fertilizer, Food, Animal Feed 5% Gen. Service Tank Cars (25k. - 30k Gal.) Refined Products, Petro- chemicals, Other Chemicals Crude Oil, Biofuels Grain Mill Products, Food 12% Gen. Service Tank Cars (> 30k. Gal) Refined Products, Petrochemicals, Other Chemicals, NGL's Biofuels, Crude Oil 13% Specialty Tank Chlor Alkali, Other Chemicals, Sulfur Products Fertilizer 5% 34% 27% 20% 10% 9% Commercial End Markets / Commodities M aj or R ai lc ar C at eg or y r l ll r r (< 5k cu/ft) Large overed opper (> 5k cu/ft) i lt r r t r r i t r r r . r i r (< 20k. Gal) . r i r (20k. - 25k Gal.) . r i r (25k. - 30k Gal.) . r i r (> 30k. Gal) i lt *All percentage information reflects Company-owned fleet assets as of December 31, 2024
19Investor Presentation 13% 13% 9% 26% 12% 13% TRN, 14% TRN UnionTank GATX All other * ITE CIT Wells Fargo The TrinityRail platform has grown at a 10% CAGR since 2003 Lessors Make Up A Growing Share of the North American Fleet Railcar Lessor Ownership Profile Presents Consolidation Opportunity Operating Lessors *Over 90 lessors own 252K railcars in “All other” 19 Financial Lessors 55% 18% 17% 10% Lessor Railroad Shipper TTX See appendix for source information Capitalizing on Structural Change in the Rail Market
20Investor Presentation20 Operating our business in a way that minimizes impact on natural resources and the environment • Leveraged Green Financing Framework, for financing of green-eligible railcars assets, supported by Sustainalytics • Sustainable railcar conversions allow for re-use of railcar components while still addressing a changing demand environment • Innovative products and services that enhance the rail modal supply chain advantage and reduce GHG emissions Attracting and retaining a diverse and empowered workforce • Fostering an inclusive and collaborative workplace • Hiring and retaining the best talent and providing opportunities for continuing professional development • Improving the well being of our employees and stakeholders • Contributing to the communities in which we operate Promoting the long-term interests of stakeholders, strengthening accountability and inspiring trust • Independent Chairman and Board of Directors with diverse backgrounds and experienced oversight • Incentive compensation programs aligned with shareholder interests • Board of Directors and Executive Leadership Team oversight of sustainability initiatives Strong track record of operational excellence • All Trinity Rail manufacturing facilities and Trinity HQ achieved ISO 14001 (Environmental) and ISO 45001 (Safety) certification, the only railcar manufacturer in North America certified to both rigorous standards • Actively engage stakeholders in environmental, health, and safety (EHS) initiatives and continually improve EHS processes, practices, and operational performance Commitment to Premier Performance and Sustainability Environmental Commitment Social Responsibility Governance Excellence Risk Management
21Investor Presentation • 1.7 million railcars in North America(1) • 1.4 trillion ton miles moved by rail in 2024(2) • 3,500+ commodities moved by rail(3) • Annual railcar loadings of 17 million in 2024(4), highly correlated to U.S. GDP U.S. Freight Ton Miles by Mode of Transportation(2) See appendix for footnotes 21 Truck, 49% Rail, 26% Water, 9% Pipe, 16% 5.4 trillion total ton miles Integral Part of North American Supply Chain 26% of U.S. Freight Ton Miles move by rail
22Investor Presentation Financial Positioning and Strategic Initiatives
23Investor Presentation Fleet investment generates highest returns for Trinity Strong FLRD and growing end market demand supports our conviction in the return opportunities from fleet investment Requires diligence, but strategic M&A around Parts and Services can drive meaningful returns Committed to dividend growth and will be opportunistic around share repurchases Current debt profile supports ROE outlook Committed to maintaining appropriate liquidity Capital Allocation Strategy Focused on Returns HIGHER RETURNS LOWER RETURNS Fleet InvestmentCapital Investments and M&AReturn of CapitalDebt RepaymentHold Cash
24Investor Presentation • Long-term leases • High renewal success rates • Low credit defaults and bad debt expense • Active secondary market Stable and Predictable Cash Flows • 35-50 year useful life • Positive yield relationship to inflation • Low volatility for residuals • Low technological obsolescence Hard Asset Value with Inflation Benefits • Integral component of North American supply chain • Multiple market sectors with varying demand drivers Strong Correlation with GDP • Rent yields highly correlate to interest rates Natural Interest Rate Hedge • Accelerated depreciation for tax purposes • Bonus depreciation allowed under current tax law • Superior risk-adjusted returns Tax-advantaged Investment • Accounts for 1/3 of U.S. freight, but only 0.5% of greenhouse emissions • Up to 95% recyclable through scrap and salvage Environmental Profile* *See appendix for source information 24 Railcars are Sustainable Long-Term Investments
25Investor Presentation Trinity’s Operating Model and Company Purpose
26Investor Presentation Appendix
27Investor Presentation 27 Reconciliation: Adjusted Operating Results (1) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets. We have supplemented the presentation of our reported GAAP operating profit, income from continuing operations before income taxes, provision (benefit) for income taxes, income from continuing operations, net income from continuing operations attributable to Trinity Industries, Inc., and diluted income from continuing operations per common share attributable to Trinity Industries, Inc. with non-GAAP measures that adjust the GAAP measures to exclude the impact of certain interest expense, net; and certain other transactions or events (as applicable), described in the footnote to the table above. These non-GAAP measures are derived from amounts included in our GAAP financial statements and are reconciled to the most directly comparable GAAP financial measures in the table above. Management believes that these measures are useful to both management and investors for analyzing the performance of our business without the impact of certain items that are not indicative of our normal business operations. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. Three Months Ended March 31, 2024 (in millions, except per share amounts) GAAP Interest expense, net (1) Adjusted Operating profit $ 115.2 $ — $ 115.2 Income from continuing operations before income taxes $ 42.7 $ (0.4) $ 42.3 Provision (benefit) for income taxes $ 11.0 $ (0.1) $ 10.9 Income from continuing operations $ 31.7 $ (0.3) $ 31.4 Net income from continuing operations attributable to Trinity Industries, Inc. $ 28.0 $ (0.3) $ 27.7 Diluted weighted average shares outstanding 83.5 83.5 Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. $ 0.33 $ 0.33
28Investor Presentation 28 Year Ended December 31, 2024 (in millions, except per share amounts) GAAP Gains on dispositions of property – other (1) Restructuring activities, net Interest expense, net (2) Adjusted Operating profit $ 491.5 $ (2.7) $ 4.3 $ — $ 493.1 Income from continuing operations before income taxes $ 221.8 $ (2.7) $ 4.3 $ (1.2) $ 222.2 Provision (benefit) for income taxes $ 50.4 $ (0.6) $ 0.9 $ (0.3) $ 50.4 Income from continuing operations $ 171.4 $ (2.1) $ 3.4 $ (0.9) $ 171.8 Net income from continuing operations attributable to Trinity Industries, Inc. $ 152.7 $ (2.1) $ 3.4 $ (0.9) $ 153.1 . Diluted weighted average shares outstanding 84.2 84.2 Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. $ 1.81 $ 1.82 Reconciliation: Adjusted Operating Results (1) Represents insurance recoveries in excess of net book value for assets damaged by a fire at the Company’s facility in Cartersville, Georgia in the first quarter of 2024. (2) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets. We have supplemented the presentation of our reported GAAP operating profit, income from continuing operations before income taxes, provision (benefit) for income taxes, income from continuing operations, net income from continuing operations attributable to Trinity Industries, Inc., and diluted income from continuing operations per common share attributable to Trinity Industries, Inc. with non-GAAP measures that adjust the GAAP measures to exclude the impact of certain gains on dispositions of other property; restructuring activities, net; interest expense, net; and certain other transactions or events (as applicable), described in the footnotes to the table above. These non-GAAP measures are derived from amounts included in our GAAP financial statements and are reconciled to the most directly comparable GAAP financial measures in the table above. Management believes that these measures are useful to both management and investors for analyzing the performance of our business without the impact of certain items that are not indicative of our normal business operations. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.
29Investor Presentation 29 (1) Represents the change in estimated fair value of additional contingent consideration associated with an acquisition. (2) Represents insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021. (3) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets. We have supplemented the presentation of our reported GAAP operating profit, income from continuing operations before income taxes, provision (benefit) for income taxes, income from continuing operations, net income from continuing operations attributable to Trinity Industries, Inc., and diluted income from continuing operations per common share attributable to Trinity Industries, Inc. with non-GAAP measures that adjust the GAAP measures to exclude the impact of certain selling, engineering, and administrative expenses; gains on dispositions of other property; restructuring activities, net; interest expense, net; and certain other transactions or events (as applicable), described in the footnotes to the table above. These non-GAAP measures are derived from amounts included in our GAAP financial statements and are reconciled to the most directly comparable GAAP financial measures in the table above. Management believes that these measures are useful to both management and investors for analyzing the performance of our business without the impact of certain items that are not indicative of our normal business operations. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. Year Ended December 31, 2023 (in millions, except per share amounts) GAAP Selling, engineering, and administrative expenses (1) Gains on dispositions of property – other (2) Restructuring activities, net Interest expense, net (3) Adjusted Operating profit $ 417.0 $ 4.0 $ (6.3) $ (2.2) $ — $ 412.5 Income from continuing operations before income taxes $ 149.0 $ 4.0 $ (6.3) $ (2.2) $ (1.5) $ 143.0 Provision (benefit) for income taxes $ 9.0 $ 1.0 $ (1.6) $ (0.6) $ (0.4) $ 7.4 Income from continuing operations $ 140.0 $ 3.0 $ (4.7) $ (1.6) $ (1.1) $ 135.6 Net income from continuing operations attributable to Trinity Industries, Inc. $ 119.4 $ 3.0 $ (4.7) $ (1.6) $ (1.1) $ 115.0 Diluted weighted average shares outstanding 83.4 83.4 Diluted income from continuing operations per common share attributable to Trinity Industries, Inc. $ 1.43 $ 1.38 Reconciliation: Adjusted Operating Results
30Investor Presentation Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 (in millions) Net cash provided by operating activities – continuing operations $ 56.5 $ 243.2 $ 83.8 $ 204.6 $ 78.4 Net gains on lease portfolio sales 2.1 22.7 11.4 21.1 5.9 Cash flow from operations with net gains on lease portfolio sales $ 58.6 $ 265.9 $ 95.2 $ 225.7 $ 84.3 Reconciliation: Cash Flow from Operations with Net Gains on Lease Portfolio Sales Cash flow from operations with net gains on lease portfolio sales is a non-GAAP financial measure. We believe this measure is useful to both management and investors as it provides a relevant measure of liquidity and a useful basis for assessing the breadth of the cash flow generation capabilities across our operating platform, as well as our ability to fund our operations and repay our debt. This measure is defined as net cash provided by operating activities from continuing operations as computed in accordance with GAAP, plus net gains on lease portfolio sales and is reconciled to net cash provided by operating activities from continuing operations, the most directly comparable GAAP financial measure, in the table above. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies.
31Investor Presentation (1) Represents insurance recoveries in excess of net book value for assets damaged by a fire at the Company’s facility in Cartersville, Georgia in the first quarter of 2024. (2) Represents interest income accretion related to a seller-financing agreement associated with the sale of certain non-operating assets. (3) Return on Equity is calculated as income from continuing operations divided by average total stockholders' equity. (4) Adjusted Return on Equity is calculated as adjusted net income divided by average Trinity stockholders' equity, each as defined below and reconciled above. Adjusted Return on Equity (“Adjusted ROE”) is a non-GAAP measure that is derived from amounts included in our GAAP financial statements. We define Adjusted ROE as a ratio for which (i) the numerator is calculated as income or loss from continuing operations, adjusted to exclude the effects of net income or loss attributable to noncontrolling interest, and certain other adjustments (net of income taxes), described in the footnotes to the table above, which include certain gains on dispositions of other property; restructuring activities, net; and interest expense, net; and (ii) the denominator is calculated as average Trinity stockholders’ equity (which excludes noncontrolling interest). In the table above, the numerator and denominator of our Adjusted ROE calculation are reconciled to income from continuing operations and total stockholders’ equity, respectively, which are the GAAP financial measures used in the computation of ROE. Management believes that Adjusted ROE is a useful measure to both management and investors as it provides an indication of the economic return on the Company’s investments over time. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. LTM March 31, 2025 March 31, 2024 ($ in millions) Numerator: Income from continuing operations $ 168.7 Net income attributable to noncontrolling interest (20.0) Net income from continuing operations attributable to Trinity Industries, Inc. 148.7 Adjustments (net of income taxes): Gains on dispositions of property – other (1) (2.1) Restructuring activities, net 3.4 Interest expense, net (2) (0.6) Adjusted Net Income $ 149.4 Denominator: Total stockholders' equity $ 1,299.7 $ 1,288.5 Noncontrolling interest (246.5) (239.2) Trinity stockholders' equity $ 1,053.2 $ 1,049.3 Average total stockholders' equity $ 1,294.1 Return on Equity (3) 13.0 % Average Trinity stockholders' equity $ 1,051.3 Adjusted Return on Equity (4) 14.2 % Reconciliation: Adjusted Return on Equity
32Investor Presentation “EBITDA” is defined as income from continuing operations plus interest expense, provision (benefit) for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA plus certain gains on dispositions of other property; restructuring activities, net; and interest income. EBITDA and Adjusted EBITDA are non-GAAP financial measures; however, the amounts included in these calculations are derived from amounts included in our GAAP financial statements. EBITDA and Adjusted EBITDA are reconciled to net income, the most directly comparable GAAP financial measure, in the table above. This information is provided to assist management and investors in making meaningful comparisons of our operating performance between periods. We believe EBITDA is a useful measure for analyzing the performance of our business. We also believe that EBITDA is commonly reported and widely used by investors and other interested parties as a measure of a company’s operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to capital structure, depreciation or amortization (which can vary significantly depending on many factors). EBITDA and Adjusted EBITDA should not be considered as alternatives to net income as indicators of our operating performance, or as alternatives to operating cash flows as measures of liquidity. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures for other companies. LTM March 31, 2025 (in millions) Net income $ 156.8 Less: Loss from discontinued operations, net of income taxes (11.9) Income from continuing operations 168.7 Interest expense 285.2 Provision (benefit) for income taxes 46.8 Depreciation and amortization expense 294.7 EBITDA 795.4 Gains on dispositions of property – other (2.7) Restructuring activities, net 4.3 Interest income (0.8) Adjusted EBITDA $ 796.2 Reconciliation: EBITDA and Adjusted EBITDA
33Investor Presentation Slide 2 – Forward Looking Statements (1) LTM is calculated as the year ended December 31, 2024, less the three months ended March 31, 2024, plus the three months ended March 31, 2025, representing the financial information from April 1, 2024 to March 31, 2025. Slide 8 – Segment Performance: Railcar Leasing & Services Group (1) OP margin for the Railcar Leasing and Services Group includes gains from insurance recoveries of $2.7M in Q4-24. (2) Future Lease Rate Differential (FLRD) calculates the implied change in lease rates for railcar leases expiring over the next four quarters. The FLRD assumes that these expiring leases will be renewed at the most recent quarterly transacted lease rates for each railcar type. We believe the FLRD is useful to both management and investors as it provides insight into the near-term trend in lease rates. The FLRD is calculated as follows: (New Lease Rates – Expiring Lease Rates) x Expiring Railcar Leases (Expiring Lease Rates x Expiring Railcar Leases) Slide 10 – Total Company Results Adjusted EPS includes the following adjustments reported by the Company (each per common diluted share): • Reported Q1-24 GAAP EPS and Adjusted EPS were both $0.33. • Reported Q2-24 GAAP EPS was $0.67; Adjusted EPS excludes $0.01 related to interest income accretion related to a seller-financing agreement associated with the sale of certain non- operating assets. • Reported Q3-24 GAAP EPS was $0.44; Adjusted EPS excludes $0.01 related to interest income accretion related to a seller-financing agreement associated with the sale of certain non- operating assets. • Reported Q4-24 GAAP EPS was $0.38; Adjusted EPS excludes $0.04 related to restructuring activities and $0.03 related to the insurance recoveries in excess of net book value for assets damaged by a fire at the Company’s facility in Cartersville, Georgia in the first quarter of 2024. • Reported Q1-25 GAAP EPS was $0.29. There were no adjustments to GAAP EPS in Q1-25. Slide 11 – Balance Sheet Positioning (1) Balances and blended average interest rate (including the effect of interest rate hedges, as applicable) as of March 31, 2025 Slide 14 – Trinity Industries, Inc. Overview (1) Current dividend yield represents the Company’s most recent quarterly dividend, annualized, and the stock price (NYSE: TRN) as of March 31, 2025. (2) Intersegment revenues are eliminated. Slide 19 – Capitalizing on Structural Change in the Rail Market Umler® North American fleet ownership data as of January 1, 2025 Slide 21 – Integral Part of North American Supply Chain (1) Umler® source data, January 1, 2025 report (2) FTR Associates 11/15/2024 (3) Association of American Railroads (“AAR”), accessed on March 1, 2022 with data as of February 20, 2022 (4) Association of American Railroads (“AAR”) 1/1/2025 Slide 24 – Railcars are Sustainable Long-Term Investments https://www.aar.org/wp-content/uploads/2023/06/AAR-Climate-Change-Fact-Sheet.pdf Presentation Footnotes
34Investor Presentation Leigh Anne Mann, Vice President of Investor Relations 214-631-4420 TrinityInvestorRelations@trin.net Investor Website: www.trin.net/investor-relations Contact Information