Part I - Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents GATX Corporation's unaudited condensed consolidated financial statements for Q2 and YTD 2025, detailing balance sheets, income, cash flows, and equity Key Financial Statement Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenues** | $430.5M | $386.7M | | **Net Income** | $75.5M | $44.4M | | **Diluted EPS** | $2.06 | $1.21 | | **Total Assets (as of period end)** | $13,200.2M | N/A | | **Total Liabilities (as of period end)** | $10,530.5M | N/A | Key Financial Statement Highlights (YTD 2025 vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Total Revenues** | $852.1M | $766.6M | | **Net Income** | $154.1M | $118.7M | | **Diluted EPS** | $4.21 | $3.25 | | **Net cash provided by operating activities** | $285.5M | $235.9M | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Details accounting principles and practices, covering a major acquisition, revenue recognition, lease details, fair value measurements, and segment financial data - GATX entered into a definitive agreement to acquire approximately **105,000 railcars** from Wells Fargo for **$4.4 billion** through a new joint venture with Brookfield, with GATX's initial ownership at **30%**, expected to close in **Q1 2026** or sooner[20](index=20&type=chunk) - GATX is involved in multiple lawsuits related to the Norfolk Southern train derailment, with one case resulting in a jury verdict finding no negligence and **0% liability** for GATX, while other related lawsuits remain pending with no estimable potential loss[67](index=67&type=chunk)[69](index=69&type=chunk)[73](index=73&type=chunk) Segment Profit (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Rail North America | $96.6 | $78.8 | $185.4 | $169.1 | | Rail International | $32.2 | $26.5 | $57.9 | $55.3 | | Engine Leasing | $27.3 | $18.4 | $65.9 | $44.1 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results and condition, detailing segment performance, cash flows, liquidity, the Wells Fargo acquisition, and GAAP to non-GAAP reconciliations Consolidated Financial Highlights (YTD 2025 vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Income | $154.1M | $118.7M | | Diluted EPS | $4.21 | $3.25 | - The increase in net income was largely due to higher revenue and net gain on asset dispositions at Rail North America, higher revenue at Rail International, and higher earnings at the RRPF affiliates[93](index=93&type=chunk) - GATX announced a major acquisition of **~105,000 railcars** from Wells Fargo via a joint venture with Brookfield, which is expected to close in **Q1 2026**[91](index=91&type=chunk) [Segment Operations](index=29&type=section&id=Segment%20Operations) Details the operational and financial performance of GATX's primary business segments, including Rail North America, Rail International, and Engine Leasing - Rail North America: Segment profit increased **22.6%** in **Q2 2025** year-over-year, with fleet utilization at **99.2%** and a positive Lease Price Index renewal rate change of **24.2%**[99](index=99&type=chunk)[108](index=108&type=chunk)[119](index=119&type=chunk) - Rail International: Segment profit grew **21.5%** in **Q2 2025** year-over-year, despite a challenging European market where utilization fell to **93.3%**, while Rail India operations remained strong with **99.6%** utilization[124](index=124&type=chunk)[125](index=125&type=chunk)[145](index=145&type=chunk) - Engine Leasing: Segment profit surged **48.4%** in **Q2 2025** year-over-year, driven by higher earnings from the RRPF affiliates and strong demand for spare engines, with RRPF utilization at **98.4%**[150](index=150&type=chunk)[154](index=154&type=chunk)[164](index=164&type=chunk) [Cash Flow Discussion](index=43&type=section&id=Cash%20Flow%20Discussion) Analyzes cash flow activities for YTD 2025, showing increased operating cash, decreased investing cash usage, and significant financing inflows Cash Flow Summary (YTD 2025 vs YTD 2024, in millions) | Cash Flow Activity | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $285.5 | $235.9 | | Net cash used in investing activities | $(365.0) | $(699.0) | | Net cash provided by financing activities | $425.6 | $839.3 | - The decrease in cash used for investing was primarily due to fewer railcars, locomotives, and aircraft spare engines acquired compared to the prior year[184](index=184&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses GATX's strong liquidity, capital resources, available credit facilities, improved leverage ratio, and investment-grade credit ratings - As of **June 30, 2025**, GATX had two fully available U.S. revolving credit facilities totaling **$1.0 billion**, and **€130 million** available under its European facility[195](index=195&type=chunk)[196](index=196&type=chunk) Recourse Leverage Ratio | Date | Ratio | | :--- | :--- | | June 30, 2025 | 3.1 | | June 30, 2024 | 3.3 | - The company holds investment-grade credit ratings: **BBB** from S&P, **Baa2** from Moody's, and **BBB+** from Fitch[204](index=204&type=chunk) [Non-GAAP Financial Measures](index=49&type=section&id=Non-GAAP%20Financial%20Measures) Reconciles GAAP to non-GAAP financial measures, used by management to analyze underlying business performance and provide comparable operational results Reconciliation of Diluted EPS (Q2 2024) | Metric | Amount (in dollars) | | :--- | :--- | | Diluted EPS (GAAP) | $1.21 | | Environmental reserves adjustment | $0.22 | | **Diluted EPS (non-GAAP)** | **$1.43** | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Reports no material changes in market risk exposures, including interest rate and foreign currency risks, or derivative instruments since December 31, 2024 - There have been no material changes in interest rate and foreign currency exposures or the types of derivative instruments used to hedge these exposures since year-end 2024[220](index=220&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of the end of the quarter, the company's disclosure controls and procedures were **effective**[221](index=221&type=chunk) - **No material changes** occurred in the company's internal control over financial reporting during the quarter ended June 30, 2025[222](index=222&type=chunk) Part II - Other Information [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates by reference information on litigation and other contingencies detailed in Note 13 of the financial statements - Information regarding legal proceedings is located in "Note 13. Legal Proceedings and Other Contingencies" in Part I of the report[225](index=225&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to the company's risk factors since December 31, 2024 - There have been **no material changes** in the company's risk factors since December 31, 2024[226](index=226&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details GATX's Q2 2025 share repurchases, including the number of shares, total cost, and remaining authorization under the program - In **Q2 2025**, GATX repurchased **103,891 shares** for **$15.2 million**[228](index=228&type=chunk) - As of **June 30, 2025**, **$48.1 million** remained available under the share repurchase authorization[228](index=228&type=chunk)

Core Viewpoint - GATX reported a significant increase in net income for the second quarter of 2025, indicating strong financial performance compared to the previous year [5]. Financial Performance - GATX's net income for the second quarter of 2025 was $75.5 million, or $2.06 per diluted share, which is an increase from $44.4 million, or $1.21 per diluted share, in the second quarter of 2024 [5].

Financial Data and Key Metrics Changes - GATX reported Q2 2025 net income of $75.5 million or $2.6 per diluted share, compared to $44.4 million or $1.21 per diluted share in Q2 2024, reflecting a significant increase [4] - Year-to-date 2025 net income was $154.1 million or $4.21 per diluted share, up from $118.7 million or $3.25 per diluted share for the same period in 2024 [5] Business Segment Data and Key Metrics Changes - GATX Rail North America experienced stable demand with fleet utilization at 99.2% and a renewal success rate of 84.2%. The renewal lease rate increased by 24.2% for the quarter [6] - GATX Rail Europe reported a utilization rate of 93.3%, facing challenges due to macroeconomic headwinds and slower GDP in Germany, impacting fleet utilization [8] - GATX Rail India maintained high fleet utilization at 99.6%, benefiting from ongoing infrastructure investments in the country [9] - The engine leasing segment, particularly the joint venture with Rolls Royce, showed strong demand driven by global air passenger volume [9] Market Data and Key Metrics Changes - The secondary market for railcars in North America remains robust, generating over $34 million in remarketing income during the quarter, totaling approximately $65 million year-to-date [7] - The European business environment is described as challenging, with some customers delaying fleet planning decisions [8] Company Strategy and Development Direction - GATX is optimistic about the long-term outlook for the European railcar leasing market despite current challenges and is actively seeking attractive investment opportunities [8] - The company is increasing its 2025 full-year earnings guidance to a range of $8.5 to $8.9 per diluted share, excluding tax adjustments and the Wells Fargo transaction impact [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the merger announcement's impact on the leasing business is difficult to assess at this stage, but long-term efficiency improvements in rail transport are expected to benefit railcar lessors [13] - The management team indicated that the current pricing environment for railcars remains strong, with expectations of flattish lease rates unless external catalysts emerge [14][15] Other Important Information - The pending Wells Fargo Rail transaction is undergoing regulatory reviews, and management is optimistic about the opportunities it presents [10][51] - The company expects to see healthy investment activity in the second half of the year, with a target of approximately $200 million in investment volume [28] Q&A Session Summary Question: Impact of potential transcontinental merger on leasing business - Management stated it is difficult to assess the immediate impact due to timing and uncertainty but noted long-term benefits for railcar lessors [13] Question: Continuation of high lease price renewal rates - Management indicated that the market remains strong, and lease rates are expected to remain flattish without external catalysts [14][15] Question: Update on Wells Fargo merger approval timeline - Management confirmed that everything is tracking as planned with no unusual developments in the regulatory review process [18] Question: Profit mix in engine leasing business - Management reported that operating income constituted about 85% of total income in Q2, with expectations for strong performance in the engine leasing business [22] Question: Investment volume in wholly owned portfolio - Management expects to see some investment volume in the second half of the year, with a target of around $200 million [28] Question: Changes in secondary market dynamics due to merger speculation - Management noted no slowdown in the secondary market, driven by strong capital demand for railcars [38][39] Question: Strong international performance and segment profit - Management explained that segment profit was impacted by exchange rates, with challenges in the intermodal market affecting overall expectations [46]

Financial Data and Key Metrics Changes - For Q2 2025, GATX reported net income of $75.5 million or $2.6 per diluted share, an increase from $44.4 million or $1.21 per diluted share in Q2 2024, which included a net negative impact of $8 million or $0.22 per diluted share from tax adjustments and other items [3][4] - Year-to-date 2025 net income was $154.1 million or $4.21 per diluted share, compared to $118.7 million or $3.25 per diluted share for the same period in 2024, which also included a net negative impact of $7.4 million or $0.20 per diluted share from tax adjustments and other items [4] Business Segment Data and Key Metrics Changes - In Rail North America, fleet utilization was 99.2% at quarter end, with a renewal success rate of 84.2% and a renewal rate change of 24.2% for the quarter [5][6] - GATX Rail Europe had a utilization rate of 93.3% at quarter end, facing challenges due to macroeconomic headwinds and slower GDP in Germany, impacting fleet utilization [7] - GATX Rail India maintained high fleet utilization at 99.6% at quarter end, benefiting from ongoing infrastructure investments [8] - The engine leasing joint venture with Rolls Royce produced strong results, driven by robust demand for aircraft spare engines [8] Market Data and Key Metrics Changes - The secondary market in North America remains robust, generating over $34 million in remarketing income during the quarter, totaling approximately $65 million year-to-date [6] - The European railcar leasing market is facing challenges, but the long-term outlook remains positive despite current conditions [7] Company Strategy and Development Direction - GATX is increasing its 2025 full-year earnings guidance to a range of $8.5 to $8.9 per diluted share, excluding the impact of tax adjustments and the Wells Fargo transaction [10] - The company is optimistic about the pending Wells Fargo Rail transaction, which is currently undergoing regulatory reviews [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the market for existing railcars remains strong, with no significant changes expected in lease rates without external catalysts [13][14] - The company does not anticipate any near-term impacts on demand from the recent merger announcement in the rail industry, as capital continues to flow into the secondary market [39][42] Other Important Information - The company expects to see healthy investment activity in the engine leasing business in the second half of the year, with total investment volume anticipated to exceed $800 million [30] - The Rail International segment's profit is tracking at the lower end of expectations, primarily due to exchange rate impacts and challenges in the intermodal market [45] Q&A Session Summary Question: Impact of potential transcontinental merger on leasing business - Management stated it is difficult to assess the immediate impact due to timing and uncertainty, but long-term efficiency improvements could benefit railcar lessors [12] Question: Future lease renewal rates - Management indicated that the market remains strong, and absent any external stimulus, lease rates are expected to remain flattish [14][16] Question: Update on engine leasing profit mix - Operating income constituted about 85% of total income for the second quarter, with expectations for strong performance in the engine leasing business [22][23] Question: Investment volume in wholly owned portfolio - Management expects to see some investment volume in the second half of the year, with a target of around $200 million for the year [29] Question: Update on Wells Fargo transaction - Management confirmed that due diligence was largely completed prior to the announcement, and they remain positive about the transaction [51][52]

[Financial Performance Overview](index=1&type=section&id=Financial%20Performance%20Overview) GATX Corporation reported strong Q2 2025 results, with net income rising to **$75.5 million**, and raised its full-year guidance [Q2 2025 Earnings Summary](index=1&type=section&id=Q2%202025%20Earnings%20Summary) GATX Corporation reported strong Q2 2025 results, with net income rising to **$75.5 million**, driven by solid operating performance Key Financial Metrics (In millions, except EPS) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $75.5 million | $44.4 million | $154.1 million | $118.7 million | | **Diluted EPS** | $2.06 | $1.21 | $4.21 | $3.25 | - The strong Q2 results are attributed to solid operating performance across global businesses. Rail North America maintained high fleet utilization of **99.2%** and achieved significant remarketing income of over **$34 million**[3](index=3&type=chunk) - Demand for aircraft spare engines remains strong, with the company's joint venture with Rolls-Royce posting excellent operating results[7](index=7&type=chunk) - Total investment volume was **$219.0 million** for the second quarter and **$515.3 million** year-to-date, indicating continued attractive investment opportunities[5](index=5&type=chunk)[7](index=7&type=chunk) - The company announced a definitive agreement to form a joint venture with Brookfield Infrastructure to acquire Wells Fargo's rail assets, with the closing expected in Q1 2026 or sooner[7](index=7&type=chunk) [Full-Year 2025 Guidance](index=1&type=section&id=Full-Year%202025%20Guidance) GATX raised its full-year 2025 earnings guidance to **$8.50 to $8.90** per diluted share, based on strong year-to-date results - The company raised its 2025 full-year earnings guidance to a range of $8.50–$8.90 per diluted share[5](index=5&type=chunk)[7](index=7&type=chunk) - This updated guidance explicitly excludes the impact of any Tax Benefits and Other Items, as well as any potential impacts from the pending acquisition of Wells Fargo's rail assets[7](index=7&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) GATX's segments showed mixed performance, with strong results in Rail North America and Engine Leasing, while Rail Europe faced economic headwinds [Rail North America](index=2&type=section&id=Rail%20North%20America) Rail North America's segment profit increased to **$96.6 million** in Q2 2025, driven by higher revenue and **99.2%** fleet utilization Rail North America Segment Profit (In millions) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Segment Profit** | $96.6 million | $78.8 million | $185.4 million | $169.1 million | Rail North America Operating Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Fleet Utilization (%)** | 99.2% | 99.2% | 99.3% | | **LPI Rate Change (%)** | +24.2% | +24.5% | +29.4% | | **Avg. Renewal Term (months)** | 60 months | 61 months | 61 months | | **Renewal Success Rate (%)** | 84.2% | 85.1% | 84.1% | - The wholly owned fleet consisted of approximately **110,000 cars** as of June 30, 2025[9](index=9&type=chunk) - Investment volume for the segment was **$132.2 million** during the second quarter[10](index=10&type=chunk) [Rail International](index=3&type=section&id=Rail%20International) Rail International's segment profit grew to **$32.2 million**, with mixed performance as Rail Europe's utilization softened Rail International Segment Profit (In millions) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Segment Profit** | $32.2 million | $26.5 million | $57.9 million | $55.3 million | [GATX Rail Europe (GRE)](index=1&type=section&id=GATX%20Rail%20Europe%20%28GRE%29) GATX Rail Europe's fleet utilization decreased to **93.3%** due to slower economic growth and cautious customer planning - GRE's fleet consisted of approximately **30,500 cars** as of June 30, 2025[13](index=13&type=chunk) GATX Rail Europe Operating Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Fleet Utilization (%)** | 93.3% | 95.1% | 95.8% | - Slower economic growth and macroeconomic uncertainties have led customers to adopt a more cautious approach to railcar fleet planning[4](index=4&type=chunk) [GATX Rail India](index=1&type=section&id=GATX%20Rail%20India) GATX Rail India shows robust performance with strong demand and **99.6%** fleet utilization, supported by infrastructure development - Rail India's fleet consisted of over **11,100 railcars** as of June 30, 2025[13](index=13&type=chunk) GATX Rail India Operating Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Fleet Utilization (%)** | 99.6% | 99.6% | 100.0% | - Strong operating results and investment opportunities are being driven by continued infrastructure development and strong economic conditions in India[6](index=6&type=chunk) [Engine Leasing](index=3&type=section&id=Engine%20Leasing) Engine Leasing segment profit significantly increased to **$27.3 million** in Q2 2025, driven by strong affiliate performance and portfolio growth Engine Leasing Segment Profit (In millions) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Segment Profit** | $27.3 million | $18.4 million | $65.9 million | $44.1 million | - Higher results were driven by strong performance at the Rolls-Royce and Partners Finance affiliates and more engines under ownership at GATX's wholly-owned portfolio[16](index=16&type=chunk) - Demand for aircraft spare engines remains strong, and the investment pipeline is expected to be robust for the rest of the year[7](index=7&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) GATX's financial statements reflect increased revenues and net income in Q2 2025, alongside growth in total assets and debt [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) GATX's total revenues increased to **$430.5 million** in Q2 2025, contributing to a significant rise in net income to **$75.5 million** Consolidated Statements of Income (In millions) | Metric ($) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenues** | $430.5 million | $386.7 million | | **Net gain on asset dispositions** | $40.5 million | $25.6 million | | **Interest expense, net** | $(96.2 million) | $(82.8 million) | | **Income before Income Taxes** | $80.5 million | $42.2 million | | **Net Income** | $75.5 million | $44.4 million | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, GATX's total assets increased to **$13.2 billion**, primarily financed by a rise in total debt to **$8.85 billion** Consolidated Balance Sheets (In millions) | Metric ($) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | $13,200.2 million | $12,296.5 million | | Operating Assets and Facilities, net | $10,927.4 million | $10,449.7 million | | **Total Liabilities** | $10,530.5 million | $9,857.6 million | | Total Debt | $8,847.4 million | $8,225.7 million | | **Total Shareholders' Equity** | $2,669.7 million | $2,438.9 million | [Supplemental Information](index=13&type=section&id=Supplemental%20Information) Supplemental information provides reconciliation of GAAP to non-GAAP measures and detailed operating statistics for rail segments [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Provides reconciliation of GAAP to non-GAAP financial measures, with Q2 2024 adjustments resulting in **$52.4 million** non-GAAP net income Reconciliation of Net Income (In millions) | Metric ($) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (GAAP)** | $75.5 million | $44.4 million | | Adjustments (pre-tax) ($) | $— | $10.7 million | | **Net income, excluding items (non-GAAP)** | $75.5 million | $52.4 million | - The adjustments in 2024 were related to reserves for environmental remediation costs and gains/losses from the sale of Specialized Gas Vessels[42](index=42&type=chunk) [Key Operating Metrics and Statistics](index=15&type=section&id=Key%20Operating%20Metrics%20and%20Statistics) Operational statistics highlight differing conditions across GATX's rail segments, with strong performance in North America and India [Rail North America Statistics](index=16&type=section&id=Rail%20North%20America%20Statistics) Key metrics for Rail North America show sustained strength, with LPI indicating a **24.2%** increase and **99.2%** fleet utilization Rail North America Operating Statistics | Metric | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | **LPI Rate Change (%)** | 24.2% | 24.5% | 26.7% | 29.4% | | **LPI Avg. Term (months)** | 60 months | 61 months | 60 months | 61 months | | **Renewal Success Rate (%)** | 84.2% | 85.1% | 89.1% | 84.1% | | **Utilization (%)** | 99.2% | 99.2% | 99.1% | 99.3% | [Rail International Statistics](index=17&type=section&id=Rail%20International%20Statistics) Rail Europe's utilization declined to **93.3%**, while Rail India's fleet grew to **11,112 cars** and maintained **99.6%** utilization Rail International Operating Statistics | Rail Europe | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | **Ending Fleet (cars)** | 30,492 | 30,223 | 30,027 | 29,649 | | **Utilization (%)** | 93.3% | 95.1% | 96.1% | 95.8% | Rail International Operating Statistics | Rail India | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | **Ending Fleet (cars)** | 11,112 | 10,895 | 10,583 | 9,904 | | **Utilization (%)** | 99.6% | 99.6% | 100.0% | 100.0% | [Other Information](index=4&type=section&id=Other%20Information) Provides standard corporate information, including GATX's role as a global lessor, dividend history, and forward-looking statements [Company Description, Conference Call, and Forward-Looking Statements](index=4&type=section&id=Company%20Description%2C%20Conference%20Call%2C%20and%20Forward-Looking%20Statements) Provides standard corporate information, including GATX's role as a global lessor, dividend history, and forward-looking statements - GATX leases transportation assets such as railcars, aircraft spare engines, and tank containers to customers worldwide and has paid an uninterrupted quarterly dividend since **1919**[17](index=17&type=chunk) - A teleconference to discuss Q2 2025 results is scheduled for Tuesday, **July 29, 2025**, at **11 a.m. Eastern Time**[18](index=18&type=chunk) - The earnings release contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from expectations[20](index=20&type=chunk)

Business Overview - GATX has a long history of over 125 years in the railcar leasing business [8, 9] - As of December 31, 2024, GATX's assets totaled $123 billion, including approximately 152,000 wholly-owned railcars worldwide [9] - GATX operates through four main business segments: Rail North America, Rail International, Engine Leasing, and Trifleet [11] - GATX's Rail North America manages a fleet of over 111,300 railcars [12] - GATX Rail Europe (GRE) manages over 30,000 railcars [12] - GATX Rail India manages over 10,500 railcars [12] - RRPF owns 427 aircraft spare engines [12] - GEL owns 39 aircraft spare engines [12] - Trifleet manages over 25,000 tank containers [12] Financial Highlights - Over the past decade, GATX has returned more than $14 billion to shareholders through dividends and share repurchases [23] - GATX's Income Per Diluted Share, excluding tax adjustments and other items (non-GAAP) was $789 in 2024 [25] - GATX's Return on Equity, excluding tax adjustments and other items (non-GAAP) was 12% in 2024 [27] - GATX invested $1674 million in 2024 [29]

GATX Conference Call Summary Company Overview - GATX has been in operation for 127 years, originally starting as a railcar leasing company in 1898 and currently focusing on railcar leasing, aircraft engine leasing, and container leasing in the Netherlands [2][3] Competitive Advantages - GATX operates as a full-service operating lessor with over 800 customers in North America, providing a highly diversified fleet and maintenance services, which enhances asset knowledge and customer reliance [4] Recent Acquisition - GATX announced a joint venture with Brookfield Infrastructure Partners to acquire Wells Fargo Rail's assets, including 105,000 railcars and 400 locomotives, with GATX as the controlling partner [6][7] - The joint venture structure allows GATX to maintain financial flexibility while controlling the assets from day one [11] Financial Outlook - The acquisition is expected to be modestly accretive in the full year after closing, with more material contributions anticipated beyond that [15][17] - GATX aims to diversify its fleet further and enhance customer service through operational efficiencies [19] Market Trends - The North American railcar leasing market has seen a shift towards leasing, with class one railroads reducing ownership to about 14-15% of the total railcars [21][22] - In Europe, government initiatives are pushing for a shift from truck to rail, which is expected to drive demand for railcars [23] International Growth - India presents significant growth potential due to its industrialization and infrastructure needs, with expectations of adding 800-1,000 wagons annually [56][58] - GATX's European operations face challenges due to economic conditions, particularly in Germany, but opportunities for growth remain [52][60] Engine Leasing Business - The engine leasing segment has shown strong performance, with high utilization rates and substantial future demand for aircraft engines [62][64] - GATX plans to invest approximately $1 billion through its joint venture with Rolls Royce this year [64] Capital Allocation Strategy - GATX prioritizes capital deployment in the highest risk-adjusted return opportunities across all markets, maintaining a strong balance sheet and investment-grade credit rating [70][71] - The company has a history of returning excess capital to shareholders through dividends and share repurchases [72] Secondary Market Activity - The secondary market for railcars remains robust, with high demand and competitive bidding, allowing GATX to be selective in its purchases [38][41] Conclusion - GATX is well-positioned for growth through strategic acquisitions, a focus on operational efficiencies, and capitalizing on market trends in both North America and internationally [55][70]

GATX Investor Meeting Summary Company Overview - **Company**: GATX Corporation - **Event**: Investor Meeting on May 30, 2025 - **Key Participants**: Bob Lyons (CEO), Tom Ellman (CFO), Paul Kitterton (President of Rail North America) Core Points and Arguments 1. **Acquisition Announcement**: GATX is acquiring the Wells Fargo Rail operating lease portfolio, which includes 105,000 railcars, in partnership with Brookfield Infrastructure Partners [6][9] 2. **Joint Venture Structure**: GATX will hold a 30% equity stake in the joint venture, with the option to acquire up to 100% of Brookfield's interest over time, allowing for phased investment [8][22] 3. **Financial Position**: GATX has arranged $3.45 billion in committed unsecured financing, maintaining a strong capital structure and investment-grade credit ratings [9][62] 4. **Market Leadership**: This acquisition positions GATX as the leader in the North American railcar leasing market, enhancing its ability to serve customers with a more diversified fleet [14][16] 5. **Fleet Diversification**: The acquisition will balance GATX's fleet across various car types and commodities, moving beyond its historical focus on tank cars [15][16] 6. **Revenue Opportunities**: The transaction is expected to generate significant leasing revenue and management fees, contributing to GATX's bottom line [19][20] 7. **Operational Control**: GATX will manage 100% of the assets in the joint venture, ensuring operational efficiency and leveraging its existing maintenance network [22][50] 8. **EPS Accretion**: Modest EPS accretion is expected in the first full year post-acquisition, with more significant contributions anticipated thereafter [30][32] 9. **Regulatory Approval**: The acquisition is subject to standard regulatory filings, with no unique antitrust concerns anticipated due to the diversified nature of the fleet [34][36] Additional Important Insights 1. **Market Dynamics**: The railcar leasing market remains competitive, and GATX does not expect to gain significant pricing power post-acquisition [38][39] 2. **Wells Fargo Fleet Characteristics**: Specific details about the average age and contract composition of the Wells Fargo fleet were not disclosed, but it is noted to be a well-managed and diversified portfolio [44][46] 3. **Management Fee Structure**: GATX will earn management fees from the joint venture, enhancing its revenue streams [19][50] 4. **Investment Strategy**: The acquisition aligns with GATX's long-term strategy of deploying capital in the secondary market, with a focus on generating attractive returns [17][70] 5. **Future Guidance**: GATX plans to provide more detailed financial guidance and insights into the portfolio's performance as the transaction progresses [32][85] This summary encapsulates the key points discussed during the GATX investor meeting, highlighting the strategic acquisition and its implications for the company's future growth and market position.

Group 1 - Wells Fargo (WFC.US) has agreed to sell its rail equipment leasing assets to a joint venture formed by Brookfield Infrastructure (BIP.US) and GATX Corp (GATX.US), refocusing on its core lending and advisory business [1] - The sale includes a rail operating lease asset portfolio with a book value of approximately $4.4 billion and a rail finance lease asset portfolio, expected to be completed by early next year [1][2] - GATX will acquire about 105,000 railcars from Wells Fargo, with Brookfield initially holding 70% and GATX 30% of the joint venture, which GATX can eventually buy out [1][3] Group 2 - GATX will have commercial and operational control over the joint venture's assets and will manage them [3] - The rail leasing business of Wells Fargo, which includes assets acquired from General Electric in 2015, has over 135,000 railcars and 850 locomotives used for transporting various goods [3] - Financing for the joint venture is provided by Wells Fargo Securities, Bank of America Securities, MUFG, and Sumitomo Mitsui Banking Corporation, totaling $3.2 billion in unsecured term loans and $250 million in unsecured revolving credit [3]

Financial Performance - Total revenues for Q1 2025 increased to $421.6 million, up 10.9% from $379.9 million in Q1 2024[13] - Net income for Q1 2025 was $78.6 million, reflecting a 5.8% increase from $74.3 million in Q1 2024[13] - Basic earnings per share for Q1 2025 were $2.15, compared to $2.04 in Q1 2024, indicating a 5.4% increase[13] - The net income for the three months ended March 31, 2025, was $78.6 million, compared to $74.3 million for the same period in 2024, representing an increase of 4.6%[79] - Diluted earnings per share (EPS) for the first quarter of 2025 was $2.15, up from $2.03 in the first quarter of 2024, representing a growth of 5.9%[186] Revenue Breakdown - Lease revenue rose to $359.6 million, a 7.9% increase compared to $333.3 million in the same period last year[13] - Total lease revenue for the three months ended March 31, 2025, was $359.6 million, an increase of 7.9% from $333.3 million in the same period of 2024[31] - Rail North America segment revenues increased by $28.3 million, or 10.7%, to $293.3 million in Q1 2025 compared to $265.0 million in Q1 2024[92] - Rail International's total revenues increased to $88.5 million in Q1 2025, up 5.7% from $83.7 million in Q1 2024, driven by a $3.0 million increase in lease revenue[113] Cash Flow and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $757.6 million, up 58.1% from $479.2 million at the end of Q1 2024[14] - Net cash provided by operating activities was $124.2 million, up from $97.6 million in Q1 2024, reflecting a 27.2% increase[14] - The company reported a net cash used in investing activities of $234.7 million, a decrease from $311.6 million in Q1 2024, indicating improved cash management[14] - Net cash provided by financing activities increased to $461.6 million in Q1 2025 from $245.0 million in Q1 2024, with significant debt issuance[159] Assets and Liabilities - Total assets increased to $12,966.3 million as of March 31, 2025, compared to $12,296.5 million at the end of 2024, marking a 5.4% growth[12] - Total liabilities rose to $10,416.9 million, an increase of 5.7% from $9,857.6 million at the end of 2024[12] - Shareholders' equity increased to $2,549.4 million, up from $2,438.9 million at the end of 2024, representing a 4.5% increase[12] Segment Performance - Segment profit for Rail North America was $88.8 million, for Rail International was $25.7 million, and for Engine Leasing was $38.6 million, contributing to a consolidated segment profit of $160.1 million[79] - Engine Leasing segment profit rose to $38.6 million in Q1 2025, compared to $25.7 million in Q1 2024, benefiting from robust demand for aircraft spare engines[131] Expenses - Total depreciation expense for Q1 2025 was $108.4 million, compared to $100.5 million in Q1 2024, representing an increase of 7.8%[29] - Maintenance expenses for the three months ended March 31, 2025, were $103.5 million, compared to $91.4 million in the same period of 2024, showing an increase of 13.0%[79] - Total interest expense for Q1 2025 was $94.9 million, compared to $77.8 million in Q1 2024, reflecting an increase of 22.9%[44] Shareholder Information - The company granted 198,300 non-qualified employee stock options during the three months ended March 31, 2025[53] - During the first quarter of 2025, the company repurchased 12,046 shares of common stock for $1.9 million, compared to 36,744 shares for $4.6 million in the same period of 2024[180] - As of March 31, 2025, $63.2 million remained available under the company's share repurchase authorization[198] Legal Matters - The company is actively defending against multiple lawsuits but cannot estimate potential liabilities at this time[69] - The company has not established any accruals for potential liability related to ongoing legal matters[69] Other Financial Metrics - The effective income tax rate decreased to 23.6% for the three months ended March 31, 2025, from 25.4% in 2024, primarily due to an increase in benefits associated with equity awards[55] - The company's recourse leverage ratio as of March 31, 2025, was 3.2, slightly down from 3.3 in the previous quarter[177] - The return on equity (ROE) for the trailing 12 months ended March 31, 2025, was 11.8%, up from 11.6% in the previous year[189] Reporting and Compliance - GATX Corporation's quarterly report for the period ended March 31, 2025, includes condensed consolidated financial statements[101] - The report features condensed consolidated balance sheets comparing March 31, 2025, and December 31, 2024[101] - The report includes certifications from the CEO and CFO as per Exchange Act rules[31.1][31.2]