Trinity Industries, Inc. has announced its fourth quarter and full year 2024 results, revealing several key financial and operational highlights. The company reported full year GAAP and adjusted earnings from continuing operations of $1.81 and $1.82 per diluted share, respectively, compared to the previous year. Trinity Industries also generated full year operating cash flow of $588 million and net gains on lease portfolio sales of $57 million. Notably, the lease fleet utilization stood at 97.0% and the future lease rate differential ("FLRD") was reported as positive 24.3% at quarter-end.
In terms of railcar deliveries, Trinity Industries delivered 17,570 railcars in the year, ending with a backlog of $2.1 billion at year-end. Looking at the financial and operational highlights for the fourth quarter, the company reported quarterly total revenues of $629 million, with quarterly income from continuing operations per common diluted share ("EPS") of $0.38 and adjusted EPS of $0.39. Additionally, Trinity Industries delivered 3,760 railcars in the quarter and received new railcar orders amounting to 1,500.
For the full year, Trinity Industries reported total revenues of $3.1 billion and a return on equity ("ROE") of 13.3%, with adjusted ROE coming in at 14.6%. The company's 2025 guidance includes industry deliveries of approximately 35,000 railcars and a net fleet investment ranging from $300 million to $400 million.
The company's management emphasized the 32% increase in adjusted EPS over 2023, driven by higher lease rates, improved margin performance, and a higher volume of external repairs. Furthermore, Trinity's cash flow from operations, including net gains on lease portfolio sales, saw a significant 65% increase over 2023, reaching $645 million.
In Trinity's railcar leasing and services group, the year ended with a 10% year-over-year revenue increase, with the company repricing over half of its fleet in a higher rate environment while maintaining a favorable utilization rate. In the rail products group, significant improvements in labor and operational efficiencies led to a 68% full-year improvement in profit despite relatively flat revenue performance.
Trinity Industries also provided a breakdown of its business groups, revealing that the railcar leasing and services group reported revenues of $287.1 million in the fourth quarter, while the rail products group reported revenues of $526.3 million. Looking at the loan-to-value ratio of wholly-owned subsidiaries, it increased from 64.4% in 2023 to 67.6% in 2024.
As a result of these announcements, the company's shares have moved -6.9% on the market, and are now trading at a price of $31.86. Check out the company's full 8-K submission here.
