Core Viewpoint - GATX Corporation has declared a quarterly dividend of $0.61 per common share, which remains unchanged from the previous quarter [1] Company Description - GATX Corporation leases transportation assets, including railcars, aircraft spare engines, and tank containers, to customers worldwide [1]

Financial Performance - Total revenues for Q3 2025 reached $439.3 million, a 8.5% increase from $405.4 million in Q3 2024[13] - Net income for the nine months ended September 30, 2025, was $236.3 million, compared to $207.7 million for the same period in 2024, reflecting an increase of 13.8%[14] - Basic earnings per share for Q3 2025 was $2.25, a decrease from $2.44 in Q3 2024[13] - Net income for the three months ended September 30, 2025, was $82.2 million, a decrease from $89.0 million in the same period of 2024, representing a decline of about 8.1%[18] - Basic earnings per share for the nine months ended September 30, 2025, was $6.47, compared to $5.70 in 2024[69] Revenue Breakdown - Lease revenue increased to $377.1 million in Q3 2025, up from $351.7 million in Q3 2024, representing a growth of 7.7%[13] - Total lease revenue for the nine months ended September 30, 2025, reached $1,105.5 million, up 7.9% from $1,024.6 million in the prior year[36] - Total operating lease revenue for the three months ended September 30, 2025, was $373.9 million, an increase of 7.9% from $348.4 million in the same period of 2024[36] - Additional revenue from customer repairs was $34.9 million for the three months ended September 30, 2025, compared to $29.7 million in the same period of 2024, reflecting an increase of 17.6%[36] Cash and Liquidity - Cash and cash equivalents rose to $696.1 million as of September 30, 2025, compared to $401.6 million at the end of 2024, marking a significant increase of 73.2%[12] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $503.8 million, compared to $396.1 million for the same period in 2024, an increase of 27.1%[14] - The company reported a net cash used in investing activities of $652.4 million for the nine months ended September 30, 2025, down from $1,131.4 million in 2024[14] - Unrestricted cash balance as of September 30, 2025, was $696.1 million, with additional available credit facilities totaling $1.3 billion[191] Assets and Liabilities - Total assets increased to $13,305.8 million as of September 30, 2025, up from $12,296.5 million at the end of 2024, indicating a growth of 8.2%[12] - Total liabilities rose to $10,586.9 million as of September 30, 2025, compared to $9,857.6 million at the end of 2024, an increase of 7.4%[12] - Shareholders' equity increased to $2,718.9 million as of September 30, 2025, compared to $2,438.9 million at the end of 2024, reflecting a growth of 11.5%[12] - The accumulated other comprehensive loss decreased to $103.5 million as of September 30, 2025, from $209.6 million at the end of 2024[70] Segment Performance - Segment profit for Rail North America was $70.7 million, while Rail International and Engine Leasing reported segment profits of $34.4 million and $60.4 million, respectively[86] - Segment profit for the nine months ended September 30, 2025, was $499.4 million, with significant contributions from various segments including Rail North America and Engine Leasing[89] - GATX's revenues from Engine Leasing increased to $91.1 million for the nine months ended September 30, 2025, up from $69.3 million in the same period of 2024, a growth of 31.5%[101] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, totaled $361.7 million, with portfolio investments and capital additions amounting to $142.6 million for Rail North America[86] - Capital expenditures for the nine months ended September 30, 2025, totaled $877.0 million, highlighting ongoing investments in portfolio and capital additions[89] - GATX's investment volume for the nine months ended September 30, 2025, was $877.0 million, down from $1,325.1 million in the same period of 2024, a decrease of 33.9%[101] Legal Proceedings - GATX is involved in ongoing legal proceedings related to environmental damages from a train derailment, with a court ruling in favor of GATX on March 6, 2024[73] - The company is involved in ongoing legal proceedings related to the Norfolk Southern train derailment, with a settlement of $600 million reached for claims within a 20-mile radius[74] - GATX has filed motions to dismiss multiple lawsuits related to the derailment, with some claims still pending[75][76] - The company will vigorously defend itself against remaining legal actions and has not established any accruals for potential liability related to these incidents[78] Debt and Financing - Total debt principal increased to $8.8 billion as of September 30, 2025, from $8.27 billion at the end of 2024[200] - Interest payments on recourse debt total $3,927.4 million, with $111.9 million due in 2025[205] - The company increased its unsecured revolving credit facility in the U.S. from $600 million to $632 million, maturing in May 2030[208] - A second unsecured revolving credit facility in the U.S. was increased from $350 million to $368 million, maturing in May 2028[208] Operational Metrics - The utilization rate for Rail North America was reported at 98.9% at the end of the current quarter, indicating strong demand stability despite macroeconomic uncertainties[105] - As of September 30, 2025, the ending balance of railcars was 101,288, with a utilization rate of 98.9%[107] - GATX Rail Europe (GRE) experienced a utilization rate of 93.7% at the end of Q3 2025, with total revenues of $99.4 million, up from $90.6 million in Q3 2024[131][134]

Core Viewpoint - GATX Corporation is considered a relatively poor investment, with its shares returning approximately 11.85% over the past five months, underperforming the S&P 500's gain of about 15% [1] Company Performance - GATX Corporation has recently released its earnings report, which is a critical factor for assessing its investment potential [1] Investment Strategy - The analysis combines fundamental analysis with momentum research, utilizing software to track market sentiment and identify discrepancies between market expectations and likely outcomes [1] - The focus is on investing in companies that have a higher probability of delivering positive surprises in the near future [1]

Core Insights - The industrials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Group 1: Oversold Stocks - TaskUs (NYSE:TASK) has an RSI of 29.4, with a recent stock price of $13.65 after a 1.1% increase. The stock fell approximately 13% over the past month, reaching a 52-week low of $11.26 [5] - Lindsay Corp (NYSE:LNN) has an RSI of 29.3, with shares closing at $128.85 after a 0.2% increase. The stock has decreased around 8% in the last month, with a 52-week low of $112.14 [5] - GATX Corp (NYSE:GATX) has an RSI of 25.7, with shares closing at $163.02 after a 5.8% decline. The stock fell about 7% over the past five days, reaching a 52-week low of $134.01 [8] Group 2: Company Developments - TaskUs was upgraded from Neutral to Outperform by Baird analyst David Koning, maintaining a price target of $18 [5] - Lindsay Corp appointed Sam Hinrichsen as SVP and CFO, effective January 1, 2026, to support long-term growth initiatives [5] - GATX reported mixed quarterly results, with CEO Robert C. Lyons stating that market conditions remain consistent with expectations [8]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net income of $82.2 million or $2.25 per diluted share, compared to $89 million or $2.43 per diluted share in Q3 2024, reflecting a decrease in earnings [2][3] - Year-to-date 2025 net income was $236.3 million or $6.46 per diluted share, an increase from $207.7 million or $5.68 per diluted share for the same period in 2024 [3][4] - The 2025 results included a net positive impact of $5.3 million or $0.15 per diluted share from tax adjustments, while 2024 results had a net negative impact of $9.9 million or $0.27 per diluted share from tax adjustments [3][4] Business Segment Data and Key Metrics Changes - In North America, fleet utilization remained high at 98.9% with a renewal success rate of 87.1%, and renewal lease rates increased by 22.8% for the quarter [4][6] - GATX Rail Europe's fleet utilization was 93.7%, reflecting ongoing market challenges, but lease renewals were at rates higher than expiring leases [6][7] - In India, fleet utilization was maintained at 100% with strong demand for railcars, and the company took delivery of 600 new cars during the quarter [7][8] Market Data and Key Metrics Changes - The North American secondary market showed strong demand for GATX assets, generating over $60 million in remarketing income during the quarter [5][6] - The company expects to finish the year with a strong fourth quarter, supported by a robust pipeline of assets for sale [10][11] - The company anticipates closing the acquisition of Wells Fargo's rail operating lease assets in the first quarter of 2026 or sooner [6][8] Company Strategy and Development Direction - The company continues to focus on increasing renewal lease rates and extending lease terms, with a positive outlook on the secondary market [4][10] - The acquisition of DB Cargo's railcars is viewed as a long-term investment to grow the European fleet, with expectations for future opportunities across Europe [7][24] - The company plans to adjust sales incentives in North American Rail to maximize value, especially with the anticipated expansion from the Wells Fargo transaction [77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the North American railcar market despite macro uncertainties, with lease rates remaining healthy [28][29] - The company expects full-year earnings guidance for 2025 to be in the range of $8.50-$8.90 per diluted share, excluding impacts from tax adjustments and the Wells Fargo transaction [8] - Management noted that the supply side of the market has been rationalized, and they do not foresee a significant increase in new car builds without a spike in demand [45][46] Other Important Information - The company identified attractive opportunities to increase direct investment in aircraft spare engines, acquiring seven additional engines for $147.1 million during the quarter [7][8] - The RRPF affiliates have expanded their portfolios, with total investment exceeding $1 billion year-to-date [8][49] Q&A Session Summary Question: How does the company plan to close the gap on revenue and margin drivers for Q4? - Management indicated strong demand in the secondary market and expects solid remarketing income to be the biggest driver in Q4 [10][11] Question: Will remarketing levels remain elevated in the coming years? - Management expressed confidence that the secondary market will remain strong, supported by a balanced supply and demand dynamic [12][13] Question: Can you clarify the financial impact of the Wells Fargo deal? - Management explained that the pro forma historic financials do not account for synergies and management fees, which will be clarified post-transaction [18][20] Question: What is the outlook for the DB Cargo deal? - Management stated that it is a long-term investment and not expected to be materially accretive in the first year [24][25] Question: How are lease rates performing in the North American market? - Management noted that lease rates remain healthy, with only slight quarter-over-quarter changes, and the market is not overbuilt [28][29] Question: What is the outlook for maintenance expenses in North America? - Management indicated that maintenance expenses have increased due to volume and mix, but they are on track to control costs through in-house capabilities [35][36] Question: Is there any hesitancy from customers regarding engine leasing? - Management reported strong demand for engine leasing and no signs of hesitancy from customers [48][49]

Financial Data and Key Metrics Changes - For Q3 2025, GATX reported net income of $82.2 million or $2.25 per diluted share, a decrease from $89 million or $2.43 per diluted share in Q3 2024 [3] - Year-to-date 2025 net income was $236.3 million or $6.46 per diluted share, compared to $207.7 million or $5.68 per diluted share for the same period in 2024 [4] - The 2025 results included a net positive impact of $5.3 million or $0.15 per diluted share from tax adjustments, while 2024 results had a net negative impact of $9.9 million or $0.27 per diluted share from tax adjustments [4] Business Segment Data and Key Metrics Changes - In North America, GATX Rail's fleet utilization remained high at 98.9% with a renewal success rate of 87.1% [5] - The renewal rate change of GATX's lease price index was positive 22.8% for the quarter, with an average renewal term of 60 months [6] - GATX Rail Europe reported fleet utilization of 93.7%, facing ongoing market challenges but still renewing leases at higher rates than expiring leases [7] - In India, fleet utilization was maintained at 100% with strong demand for railcars [8] - Engine leasing performed well, driven by high demand for aircraft spare engines, with GATX acquiring seven additional engines for $147.1 million during the quarter [9] Market Data and Key Metrics Changes - The North American market showed strong demand for GATX assets, with over $60 million in remarketing income generated during the quarter [6] - The secondary market for railcars in North America remained strong, with a diverse buyer pool [6] - In Europe, GATX Rail faced challenges but continued to renew leases, indicating market resilience [7] Company Strategy and Development Direction - GATX expects to close the acquisition of Wells Fargo's rail operating lease assets in 2026 or sooner, which is anticipated to be modestly accretive in the first full year [7][21] - The company is focusing on increasing its direct investment in aircraft spare engines and expanding its portfolio, with total investment exceeding $1 billion year-to-date [9] - GATX is looking for opportunities to bring more maintenance work in-house post-acquisition of Wells Fargo's assets [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the North American railcar market despite macro uncertainties, with lease rates remaining healthy [32] - The company anticipates strong remarketing income in Q4 due to a robust pipeline of assets for sale [14] - Management noted that the supply side of the market has been rightsized, reducing the likelihood of overbuilding [52] Other Important Information - GATX continues to expect full-year earnings guidance for 2025 to be in the range of $8.5 to $8.9 per diluted share, excluding impacts from tax adjustments and the Wells Fargo transaction [9][10] Q&A Session Summary Question: How does GATX plan to close the gap on revenue and margin drivers to meet guidance? - Management indicated strong demand in the secondary market and expects solid remarketing income in Q4 to be the biggest driver [14] Question: Will remarketing levels remain elevated in the coming years? - Management believes the secondary market will remain strong, with no significant downward adjustments expected [17] Question: Can you clarify the expected financial impact of the Wells Fargo deal? - Management explained that the historical financials do not account for synergies and management fees, which will be clarified post-transaction [21][24] Question: What are the expectations for maintenance expenses in North America? - Management noted that maintenance expenses increased due to a higher volume of work and the need to outsource some tasks [39] Question: Is there any hesitancy from customers regarding engine leasing due to tariffs? - Management reported no hesitancy from customers, with strong demand for engines expected to continue [58] Question: How will GATX adjust sales incentives for the North American Rail segment? - Management confirmed that adjustments will be made annually to drive performance, especially with the anticipated acquisition of Wells Fargo's assets [88]

Financial Data and Key Metrics Changes - For Q3 2025, GATX reported net income of $82.2 million or $2.25 per diluted share, compared to $89 million or $2.43 per diluted share in Q3 2024, reflecting a decrease in earnings [2][3] - Year-to-date 2025 net income was $236.3 million or $6.46 per diluted share, up from $207.7 million or $5.68 per diluted share for the same period in 2024 [3][4] - The 2025 results included a net positive impact of $5.3 million or $0.15 per diluted share from tax adjustments, while 2024 results had a net negative impact of $9.9 million or $0.27 per diluted share from tax adjustments [3][4] Business Segment Data and Key Metrics Changes - In North America, fleet utilization remained high at 98.9% with a renewal success rate of 87.1%, and renewal lease rates increased by 22.8% for the quarter [4][5] - GATX Rail Europe's fleet utilization was 93.7%, indicating ongoing market challenges, but lease renewals were at rates higher than expiring leases [5][6] - In India, fleet utilization was maintained at 100%, with strong demand for railcars and the delivery of 600 new cars during the quarter [6][7] Market Data and Key Metrics Changes - The North American secondary market showed strong demand for GATX assets, generating over $60 million in remarketing income during the quarter [5][6] - The company expects to finish the year with a strong fourth quarter, supported by a robust pipeline of assets for sale [10][11] - The overall North American railcar market is holding up well despite macro uncertainties, with lease rates remaining at healthy levels [25][26] Company Strategy and Development Direction - GATX continues to pursue the acquisition of Wells Fargo's rail operating lease assets, expecting to close in Q1 2026 or sooner, which is anticipated to be modestly accretive [5][6] - The company is focusing on increasing its direct investment in aircraft spare engines, acquiring seven additional engines for $147.1 million during the quarter [7][8] - GATX is exploring opportunities for similar transactions in Europe, as demonstrated by the agreement to acquire approximately 6,000 railcars from DB Cargo [6][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the secondary market and the resilience of demand for railcars, despite macroeconomic uncertainties [11][25] - The company expects full-year earnings guidance for 2025 to be in the range of $8.50 to $8.90 per diluted share, excluding impacts from tax adjustments and the Wells Fargo transaction [8][10] - Management noted that the North American railcar market remains balanced, with no significant changes expected in the cyclical backdrop [70][71] Other Important Information - The company has made substantial investments in its maintenance capabilities, which have resulted in a marginal cost advantage [29][30] - The operating income from the Rolls-Royce and Partners Finance joint venture was approximately 85% of total income for the quarter, with remarketing contributing about 15% [32][50] - GATX's investments in aircraft spare engines have exceeded $1 billion year-to-date, with strong returns expected [41][43] Q&A Session Summary Question: How does GATX plan to close the gap on revenue and margin drivers to meet EPS guidance? - Management indicated a strong pipeline of assets for sale in the secondary market, expecting solid remarketing income in Q4 to drive results [10][11] Question: Will the Wells Fargo deal be accretive or dilutive? - Management clarified that the deal is expected to be modestly accretive, with no SG&A synergies reflected in the initial financials [14][18] Question: What is the outlook for the DB Cargo deal in Europe? - Management stated that the DB Cargo deal is a long-term investment and not expected to be materially impactful in the first year [20] Question: Are lease rates in North America showing any signs of weakening? - Management noted that lease rates remain healthy, with only slight quarter-over-quarter changes, and the market is not overbuilt [25][26] Question: What is the expectation for maintenance expenses going forward? - Management indicated that maintenance expenses have increased due to volume and mix, but they are on track to control costs through in-house capabilities [29][30] Question: Is there any hesitancy from customers regarding engine leasing due to tariffs? - Management reported no hesitancy from customers, with strong demand for engines expected to continue [41][42] Question: How does the company view the balance of supply and demand in the railcar market? - Management expressed that the market remains balanced, with no significant overbuilding expected, and scrap rates are holding up well [38][39]

Executive Summary & Financial Highlights [Third Quarter 2025 Financial Performance](index=1&type=section&id=1.1.%20Third%20Quarter%202025%20Financial%20Performance) GATX Corporation reported a decrease in net income and diluted EPS for Q3 2025 compared to Q3 2024, despite a positive impact from Tax Adjustments and Other Items in 2025 Q3 Financial Performance (2025 vs. 2024) | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | Change (YoY) | Notes | | :--- | :--- | :--- | :--- | :--- | | Net Income | $82.2 | $89.0 | -7.6% | | | Diluted EPS | $2.25 | $2.43 | -7.3% | | | Tax Adjustments & Other Items (Net Positive Impact) | $5.3 | -$2.5 | N/A | Positive impact of $0.15/share in 2025, negative impact of $0.07/share in 2024 | [Year-to-Date 2025 Financial Performance](index=1&type=section&id=1.2.%20Year-to-Date%202025%20Financial%20Performance) For the first nine months of 2025, GATX saw an increase in net income and diluted EPS compared to the prior year, influenced by a positive impact from Tax Adjustments and Other Items YTD Financial Performance (2025 vs. 2024) | Metric | YTD 2025 (Millions) | YTD 2024 (Millions) | Change (YoY) | | :--- | :--- | :--- | :--- | | Net Income | $236.3 | $207.7 | +13.8% | | Diluted EPS | $6.46 | $5.68 | +13.7% | | Tax Adjustments & Other Items (Net Positive Impact) | $5.3 | -$9.9 | N/A | [CEO Commentary & Business Outlook](index=1&type=section&id=1.3.%20CEO%20Commentary%20%26%20Business%20Outlook) CEO Robert C. Lyons noted stable global market conditions consistent with expectations, highlighting strong performance in Rail North America and Engine Leasing, ongoing macroeconomic headwinds in Rail Europe, and robust demand in Rail India, while reiterating 2025 full-year earnings guidance - Global market conditions remain largely consistent with original expectations[3](index=3&type=chunk) - Rail North America's fleet utilization was **98.9%** with a renewal success rate of **87.1%** and a positive renewal lease rate change of **22.8%**[3](index=3&type=chunk) - GATX Rail Europe's fleet utilization was **93.7%**, impacted by macroeconomic headwinds, but saw increases in renewal lease rates, and announced an agreement to acquire approximately **6,000 railcars** from DB Cargo AG[5](index=5&type=chunk) - GATX Rail India's fleet utilization was **100.0%** due to strong demand[5](index=5&type=chunk) - Engine Leasing delivered strong results driven by robust global passenger air travel and investments in engines[6](index=6&type=chunk) - The acquisition of Wells Fargo's rail operating lease assets is on track to close in Q1 2026 or sooner, with key regulatory approvals progressing[6](index=6&type=chunk) - Company reiterates 2025 full-year earnings guidance of **$8.50–$8.90 per diluted share**, excluding Tax Adjustments and Other Items[4](index=4&type=chunk)[6](index=6&type=chunk) Segment Performance Overview [Rail North America](index=2&type=section&id=2.1.%20Rail%20North%20America) Rail North America reported a decrease in segment profit for Q3 and YTD 2025, primarily due to lower gains on asset dispositions and higher expenses, partially offset by increased revenue, while fleet utilization remained high and renewal rates were strong Rail North America Segment Profit (2025 vs. 2024) | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | Change (YoY) | YTD 2025 (Millions) | YTD 2024 (Millions) | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Segment Profit | $70.7 | $102.4 | -30.9% | $256.1 | $271.5 | -5.7% | - Lower segment profit was driven by lower gains on asset dispositions and higher interest and maintenance expenses, partly offset by higher revenue[7](index=7&type=chunk) Rail North America Fleet Statistics (Q3 2025) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :--- | :--- | :--- | :--- | | Wholly owned fleet (cars) | ~109,000 | N/A | N/A | | Fleet utilization | 98.9% | 99.2% | 99.3% | | Renewal lease rate change (LPI) | +22.8% | +24.2% | +26.6% | | Average lease renewal term | 60 months | 60 months | 59 months | | Renewal success rate | 87.1% | 84.2% | 82.0% | | Investment volume | $142.6M | N/A | N/A | [Rail International](index=3&type=section&id=2.2.%20Rail%20International) Rail International experienced an increase in segment profit for both Q3 and YTD 2025, primarily due to a higher number of railcars on lease, with GATX Rail Europe's utilization slightly improving sequentially but down year-over-year, while Rail India maintained 100% utilization Rail International Segment Profit (2025 vs. 2024) | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | Change (YoY) | YTD 2025 (Millions) | YTD 2024 (Millions) | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Segment Profit | $34.4 | $33.9 | +1.5% | $92.3 | $89.2 | +3.5% | - Higher segment profit was driven by more railcars on lease[11](index=11&type=chunk) Rail International Fleet Statistics (Q3 2025) | Segment | Fleet Size (cars) | Utilization (Q3 2025) | Utilization (Q2 2025) | Utilization (Q3 2024) | | :--- | :--- | :--- | :--- | :--- | | GATX Rail Europe | ~30,600 | 93.7% | 93.3% | 95.9% | | GATX Rail India | >11,700 | 100.0% | 99.6% | 100.0% | [Engine Leasing](index=3&type=section&id=2.3.%20Engine%20Leasing) Engine Leasing reported significant increases in segment profit for both Q3 and YTD 2025, driven by strong operating performance from affiliates and increased earnings from its wholly-owned portfolio, partly due to a positive impact from Tax Adjustments and Other Items Engine Leasing Segment Profit (2025 vs. 2024) | Metric | Q3 2025 (Millions) | Q3 2024 (Millions) | Change (YoY) | YTD 2025 (Millions) | YTD 2024 (Millions) | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Segment Profit | $60.4 | $37.5 | +61.1% | $126.3 | $81.6 | +54.8% | - 2025 Q3 and YTD results include a net positive impact of **$10.9 million** (**$8.2 million** after tax) from Tax Adjustments and Other Items[15](index=15&type=chunk) - Excluding these impacts, higher segment profit was driven by strong operating performance at Rolls-Royce and Partners Finance (RRPF) affiliates and increased earnings from GATX Engine Leasing due to more engines under ownership[16](index=16&type=chunk) Company Information & Disclosures [Company Description](index=4&type=section&id=3.1.%20Company%20Description) GATX Corporation, founded in 1898 and headquartered in Chicago, leases transportation assets globally, including railcars, aircraft spare engines, and tank containers, emphasizing innovative service, safety, sustainability, and employee well-being, and has paid uninterrupted quarterly dividends since 1919 - GATX Corporation leases transportation assets globally, including railcars, aircraft spare engines, and tank containers[17](index=17&type=chunk) - Headquartered in Chicago, Illinois since 1898, GATX has paid a quarterly dividend, uninterrupted, since 1919[17](index=17&type=chunk) [Teleconference & Investor Information](index=4&type=section&id=3.2.%20Teleconference%20%26%20Investor%20Information) GATX provided details for its Q3 2025 earnings teleconference and replay, along with information on how investors can access material information through SEC filings, press releases, public calls, webcasts, and the GATX Investor Relations website - GATX hosted a teleconference on October 21, 2025, to discuss Q3 2025 results, with replay information provided[18](index=18&type=chunk) - Investors can access material information via SEC filings, press releases, public conference calls, webcasts, and the GATX Investor Relations website (www.gatx.com)[19](index=19&type=chunk) [Forward-Looking Statements & Risk Factors](index=5&type=section&id=3.3.%20Forward-Looking%20Statements%20%26%20Risk%20Factors) The report includes forward-looking statements, which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially, with key risk factors including declines in customer demand, inability to maintain satisfactory lease rates, competitive factors, higher maintenance costs, acquisition/divestiture challenges, reliance on Rolls-Royce, international operation risks, and macroeconomic conditions - Statements not based on historical facts are forward-looking and involve known and unknown risks and uncertainties[20](index=20&type=chunk) - Factors that could cause actual results to differ include significant decline in customer demand, inability to maintain transportation assets on lease at satisfactory rates, competitive factors, higher costs associated with increased assignments, and inability to successfully consummate and manage acquisition and divestiture activities[21](index=21&type=chunk) - Other risks include reliance on Rolls-Royce for engine leasing, potential obsolescence of assets, risks related to international operations, cybersecurity threats, litigation, changes in laws/regulations, environmental liabilities, and global political/economic conditions[21](index=21&type=chunk) [Contact Information](index=6&type=section&id=3.4.%20Contact%20Information) Contact information for investor relations and corporate communications is provided for GATX Corporation - Shari Hellerman, Senior Director, Investor Relations and Corporate Communications, is the contact for further information[22](index=22&type=chunk) Consolidated Financial Statements [Consolidated Statements of Income](index=7&type=section&id=4.1.%20Consolidated%20Statements%20of%20Income) GATX's consolidated income statement shows an increase in total revenues for both Q3 and YTD 2025 compared to 2024, but Q3 net income decreased due to higher expenses and lower net gain on asset dispositions, while YTD net income increased, supported by higher share of affiliates' earnings Consolidated Statements of Income (Q3 and YTD, in millions) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $439.3 | $405.4 | $1,291.4 | $1,172.0 | | Total Expenses | $312.1 | $278.6 | $892.6 | $821.0 | | Net gain on asset dispositions | $23.1 | $48.5 | $97.0 | $110.3 | | Interest expense, net | $(98.2) | $(88.9) | $(289.3) | $(249.5) | | Share of affiliates' earnings, net of taxes | $40.0 | $26.4 | $81.1 | $58.7 | | Net Income | $82.2 | $89.0 | $236.3 | $207.7 | | Diluted earnings per share | $2.25 | $2.43 | $6.46 | $5.68 | | Dividends declared per common share | $0.61 | $0.58 | $1.83 | $1.74 | [Consolidated Balance Sheets](index=8&type=section&id=4.2.%20Consolidated%20Balance%20Sheets) GATX's balance sheet as of September 30, 2025, shows an increase in total assets and total liabilities compared to December 31, 2024, with operating assets and facilities, cash, and investments in affiliated companies growing, while debt also increased Consolidated Balance Sheets (in millions) | Metric | Sep 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $696.1 | $401.6 | | Operating Assets and Facilities (net) | $11,079.7 | $10,449.7 | | Investments in Affiliated Companies | $746.1 | $663.3 | | Total Assets | $13,305.8 | $12,296.5 | | Total Debt | $8,868.6 | $8,225.7 | | Total Liabilities | $10,586.9 | $9,857.6 | | Total Shareholders' Equity | $2,718.9 | $2,438.9 | Segment Financial Data [Three Months Ended September 30, 2025](index=9&type=section&id=5.1.%20Three%20Months%20Ended%20September%2030,%202025) For Q3 2025, Rail North America generated the highest segment profit, followed by Engine Leasing and Rail International, with Engine Leasing showing strong share of affiliates' pre-tax earnings Segment Data (Q3 2025, in millions) | Segment | Total Revenues | Segment Profit | Investment Volume | | :--- | :--- | :--- | :--- | | Rail North America | $296.5 | $70.7 | $142.6 | | Rail International | $99.4 | $34.4 | $66.1 | | Engine Leasing | $32.9 | $60.4 | $147.1 | | Other | $10.5 | $12.6 | $5.9 | | Consolidated | $439.3 | $178.1 | $361.7 | - Engine Leasing's segment profit was significantly boosted by **$53.4 million** in share of affiliates' pre-tax earnings[28](index=28&type=chunk) [Three Months Ended September 30, 2024](index=10&type=section&id=5.2.%20Three%20Months%20Ended%20September%2030,%202024) In Q3 2024, Rail North America was the largest contributor to segment profit, with Engine Leasing also showing substantial profit, including a significant share from affiliates Segment Data (Q3 2024, in millions) | Segment | Total Revenues | Segment Profit | Investment Volume | | :--- | :--- | :--- | :--- | | Rail North America | $278.5 | $102.4 | $325.9 | | Rail International | $90.6 | $33.9 | $80.6 | | Engine Leasing | $26.2 | $37.5 | $94.8 | | Other | $10.1 | $4.2 | $3.2 | | Consolidated | $405.4 | $178.0 | $504.5 | - Engine Leasing's segment profit included **$35.2 million** from share of affiliates' pre-tax earnings[31](index=31&type=chunk) [Nine Months Ended September 30, 2025](index=11&type=section&id=5.3.%20Nine%20Months%20Ended%20September%2030,%202025) For the first nine months of 2025, Rail North America remained the largest segment by revenue and profit, followed by Engine Leasing which benefited significantly from affiliates' earnings, with total investment volume reaching **$877.0 million** Segment Data (YTD 2025, in millions) | Segment | Total Revenues | Segment Profit | Investment Volume | | :--- | :--- | :--- | :--- | | Rail North America | $885.5 | $256.1 | $502.5 | | Rail International | $283.7 | $92.3 | $209.9 | | Engine Leasing | $91.1 | $126.3 | $147.1 | | Other | $31.1 | $24.7 | $17.5 | | Consolidated | $1,291.4 | $499.4 | $877.0 | - Engine Leasing's segment profit included **$109.4 million** from share of affiliates' pre-tax earnings[34](index=34&type=chunk) [Nine Months Ended September 30, 2024](index=12&type=section&id=5.4.%20Nine%20Months%20Ended%20September%2030,%202024) In the first nine months of 2024, Rail North America was the dominant segment in terms of revenue and profit, with Engine Leasing also contributing significantly, including a substantial portion from affiliates' earnings, and total investment volume was **$1,325.1 million** Segment Data (YTD 2024, in millions) | Segment | Total Revenues | Segment Profit | Investment Volume | | :--- | :--- | :--- | :--- | | Rail North America | $813.9 | $271.5 | $955.7 | | Rail International | $259.5 | $89.2 | $190.1 | | Engine Leasing | $69.3 | $81.6 | $166.1 | | Other | $29.3 | $6.2 | $13.2 | | Consolidated | $1,172.0 | $448.5 | $1,325.1 | - Engine Leasing's segment profit included **$75.8 million** from share of affiliates' pre-tax earnings[37](index=37&type=chunk) Supplemental Financial Information [Impact of Tax Adjustments and Other Items](index=13&type=section&id=6.1.%20Impact%20of%20Tax%20Adjustments%20and%20Other%20Items) GATX provides non-GAAP financial measures by excluding certain tax adjustments and other items to offer a clearer view of underlying operating results, with these adjustments including acquisition-related expenses and insurance proceeds, significantly impacting reported net income and diluted EPS Impact of Tax Adjustments and Other Items on Net Income (in millions) | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (GAAP) | $82.2 | $89.0 | $236.3 | $207.7 | | Total adjustments attributable to consolidated pre-tax income | $3.8 | $3.3 | $3.8 | $13.4 | | Total adjustments attributable to affiliates' earnings, net of taxes | $(8.2) | $0.0 | $(8.2) | $0.0 | | Net income, excluding tax adjustments and other items (non-GAAP) | $76.9 | $91.5 | $231.0 | $217.6 | Impact of Tax Adjustments and Other Items on Diluted EPS | Metric | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Diluted earnings per share (GAAP) | $2.25 | $2.43 | $6.46 | $5.68 | | Diluted earnings per share, excluding tax adjustments and other items (non-GAAP) | $2.10 | $2.50 | $6.31 | $5.95 | - Adjustments include acquisition-related expenses, litigation claims settlements, environmental reserves, net gain on Specialized Gas Vessels, and insurance proceeds related to aircraft spare engines[41](index=41&type=chunk) [Assets, Debt, and Leverage](index=15&type=section&id=6.2.%20Assets,%20Debt,%20and%20Leverage) GATX's total assets (excluding cash) increased across all segments from Q3 2024 to Q3 2025, with Rail North America holding the largest share, while total debt and lease obligations, net of unrestricted cash, also increased, and recourse leverage slightly improved Total Assets, Excluding Cash, by Segment (in millions) | Segment | Sep 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | | Rail North America | $7,865.3 | $7,643.7 | | Rail International | $2,522.9 | $2,298.6 | | Engine Leasing | $1,805.9 | $1,544.7 | | Other | $415.3 | $389.1 | | Total | $12,609.4 | $11,876.1 | Debt and Lease Obligations, Net of Unrestricted Cash (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | | Total debt and lease obligations, net of unrestricted cash | $8,333.2 | $7,988.4 | | Shareholders' Equity | $2,718.9 | $2,436.7 | | Recourse Leverage | 3.1 | 3.3 | [Rail North America Statistics](index=16&type=section&id=6.3.%20Rail%20North%20America%20Statistics) Rail North America maintained high fleet utilization and strong renewal success rates in Q3 2025, despite a slight decrease in the average renewal lease rate change compared to previous quarters, and the fleet size saw a net decrease due to more cars scrapped and sold than added Rail North America Key Statistics | Metric | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Average renewal lease rate change | 22.8 % | 24.2 % | 24.5 % | 26.7 % | 26.6 % | | Average renewal term (months) | 60 | 60 | 61 | 60 | 59 | | Renewal Success Rate | 87.1 % | 84.2 % | 85.1 % | 89.1 % | 82.0 % | | Ending balance (excl. boxcar) | 101,288 | 102,317 | 103,310 | 102,966 | 102,697 | | Utilization (excl. boxcar) | 98.9 % | 99.2 % | 99.2 % | 99.1 % | 99.3 % | | Boxcar Fleet Ending balance | 7,478 | 7,621 | 7,990 | 8,395 | 8,779 | | Boxcar Fleet Utilization | 96.9 % | 98.7 % | 99.8 % | 99.8 % | 99.8 % | - The Lease Price Index (LPI) measures renewal activity for the North American railcar fleet (excluding boxcars), weighted by a 12-month trailing average[47](index=47&type=chunk) - Industry statistics show a year-over-year change in U.S. Carloadings (excl. intermodal) of **2.1%** and (chemical) of **1.5%** for Q3 2025[47](index=47&type=chunk) [Rail Europe Statistics](index=17&type=section&id=6.4.%20Rail%20Europe%20Statistics) GATX Rail Europe's fleet size slightly increased in Q3 2025, but utilization saw a year-over-year decline, reflecting ongoing macroeconomic headwinds in the region Rail Europe Fleet Statistics | Metric | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning balance | 30,492 | 30,223 | 30,027 | 29,953 | 29,649 | | Railcars added | 328 | 579 | 446 | 196 | 410 | | Railcars scrapped or sold | (248) | (310) | (250) | (122) | (106) | | Ending balance | 30,572 | 30,492 | 30,223 | 30,027 | 29,953 | | Utilization | 93.7 % | 93.3 % | 95.1 % | 96.1 % | 95.9 % | [Rail India Statistics](index=17&type=section&id=6.5.%20Rail%20India%20Statistics) GATX Rail India continued to demonstrate strong performance with **100%** fleet utilization in Q3 2025, driven by robust demand and ongoing additions of new railcars to its fleet Rail India Fleet Statistics | Metric | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Beginning balance | 11,112 | 10,895 | 10,583 | 10,361 | 9,904 | | Railcars added | 600 | 217 | 312 | 222 | 457 | | Railcars scrapped or sold | — | — | — | — | — | | Ending balance | 11,712 | 11,112 | 10,895 | 10,583 | 10,361 | | Utilization | 100.0 % | 99.6 % | 99.6 % | 100.0 % | 100.0 % |

Core Insights - GATX Corporation is a leading player in the freight railcar leasing industry, focusing on leasing railcars to various industries and providing essential transportation solutions [1] - The company has announced the acquisition of approximately 6,000 freight railcars from DB Cargo AG, which is expected to enhance its fleet and strengthen its market position [2] - Citigroup initiated coverage on GATX with a "Buy" rating, indicating a positive outlook on the company's future and confidence in its strategic decisions [3] Financial Performance - GATX's current stock price is $174.51, reflecting a slight decrease of 1.28% or $2.26, with trading occurring between $174.14 and $177.82 [4] - Over the past year, GATX's stock has experienced a high of $178.26 and a low of $127.70, indicating volatility in its market performance [4] - The company's market capitalization is approximately $6.22 billion, with a trading volume of 60,926 shares, reflecting substantial presence and active investor interest [5]

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