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]

Group 1 - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It mentions that users with ad-blockers may face restrictions when trying to access content [1]

Analyst Ratings Overview - Jefferies analyst Jonathan Petersen initiated coverage on Iron Mountain Incorporated (IRM) with a Buy rating and a price target of $120, while shares closed at $99.89 [6] - Citigroup analyst Ben Mohr initiated coverage on GATX Corporation (GATX) with a Buy rating and a price target of $201, with shares closing at $172.07 [6] - Evercore ISI Group analyst Elizabeth Suzuki initiated coverage on Humana Inc. (HUM) with an In-Line rating and a price target of $295, while shares closed at $252.66 [6] - Goldman Sachs analyst Salveen Richter initiated coverage on Immunome, Inc. (IMNM) with a Buy rating and a price target of $26, with shares closing at $9.39 [6] - GLJ Research analyst Austin Wang initiated coverage on Argan, Inc. (AGX) with a Hold rating and a price target of $251, while shares closed at $260.64 [6]

Core Insights - Robert F. Abbott has been managing family investments since 1995 and incorporated options trading in 2010, focusing on covered calls and collars with long stocks [1] Group 1 - Robert F. Abbott is a freelance writer and operates a website aimed at new and intermediate-level mutual fund investors [1] - He holds a Bachelor of Arts and a Master of Business Administration (MBA) degree [1] - Abbott resides in Airdrie, Alberta, Canada [1]

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]