[Financial and Operational Highlights](index=1&type=section&id=GATX%20CORPORATION%20REPORTS%202024%20FIRST-QUARTER%20RESULTS) [Overall Performance](index=1&type=section&id=Overall%20Performance) Net income slightly decreased, but strong operational metrics and full-year guidance were maintained Q1 2024 vs. Q1 2023 Financial Results | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income | $74.3 million | $77.4 million | | Diluted EPS | $2.03 | $2.16 | | Diluted EPS (Non-GAAP) | $2.01 | $2.20 | - The company continues to see solid global demand for most railcar types, with Rail North America's fleet utilization at a high of **99.4%** and a strong renewal success rate of **83.4%**[3](index=3&type=chunk) - The renewal lease rate change, as measured by the Lease Price Index (LPI), was a positive **33%** with an average renewal term of **64 months**[3](index=3&type=chunk) - The company's 2024 full-year earnings estimate remains unchanged at **$7.30–$7.70 per diluted share**, excluding certain adjustments[4](index=4&type=chunk) - First-quarter investment volume totaled **$378.6 million**, with favorable investment prospects for the remainder of 2024[4](index=4&type=chunk)[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) [Rail North America](index=2&type=section&id=RAIL%20NORTH%20AMERICA) Segment profit decreased due to lower asset disposition gains and higher interest expense, despite strong operational metrics Rail North America Segment Profit (in millions) | Period | Segment Profit | | :--- | :--- | | Q1 2024 | $90.3 | | Q1 2023 | $95.2 | Key Performance Indicators (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Fleet Utilization | 99.4% | 99.3% | | Lease Price Index (LPI) | +33.0% | +28.3% | | Avg. Renewal Term | 64 months | 55 months | | Renewal Success Rate | 83.4% | 77.9% | - The wholly owned fleet totaled approximately **111,400 cars** as of March 31, 2024, including **9,670 boxcars**[7](index=7&type=chunk) - Investment volume for the segment was **$321.7 million** during the first quarter[8](index=8&type=chunk) [Rail International](index=2&type=section&id=RAIL%20INTERNATIONAL) Segment profit increased due to more railcars on lease, with GATX Rail Europe's utilization slightly declining and Rail India maintaining 100% utilization amid fleet expansion Rail International Segment Profit (in millions) | Period | Segment Profit | | :--- | :--- | | Q1 2024 | $28.8 | | Q1 2023 | $23.5 | GATX Rail Europe (GRE) Fleet Statistics | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Fleet Size | >29,300 cars | ~28,461 cars | | Utilization | 95.3% | 98.5% | Rail India Fleet Statistics | Metric | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Fleet Size | >9,500 cars | ~6,351 cars | | Utilization | 100% | 100% | [Engine Leasing](index=2&type=section&id=ENGINE%20LEASING) The Engine Leasing segment reported a decrease in segment profit primarily due to lower earnings from RRPF affiliates, despite robust demand for aircraft spare engines - The business segment was renamed from "Portfolio Management" to "Engine Leasing" after the company sold all its marine assets as of December 31, 2023[13](index=13&type=chunk) Engine Leasing Segment Profit (in millions) | Period | Segment Profit | | :--- | :--- | | Q1 2024 | $25.7 | | Q1 2023 | $28.3 | - The lower segment profit in Q1 2024 was driven by reduced earnings at the RRPF affiliates, specifically from lower remarketing income[14](index=14&type=chunk) - Demand for aircraft spare engines remains robust, driven by strong global air passenger traffic, with plans to add new engines to the wholly owned portfolio at a level similar to 2023[4](index=4&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Consolidated Statements of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Total revenues increased, but higher operating expenses, interest costs, and lower asset disposition gains led to a decrease in net income for Q1 2024 Key Income Statement Items (in millions) | Line Item | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Revenues | $379.9 | $338.9 | | Total Expenses | $265.9 | $246.1 | | Net gain on asset dispositions | $36.2 | $47.1 | | Interest expense, net | $(77.8) | $(59.0) | | Net Income | $74.3 | $77.4 | [Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets and liabilities increased as of March 31, 2024, primarily driven by growth in operating assets and recourse debt, while shareholders' equity also grew Key Balance Sheet Items (in millions) | Line Item | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $11,579.1 | $11,326.0 | | Total Liabilities | $9,254.8 | $9,053.0 | | Total Shareholders' Equity | $2,324.3 | $2,273.0 | [Segment Data](index=9&type=section&id=SEGMENT%20DATA) Rail North America was the primary revenue and profit driver in Q1 2024, contributing significantly to the total investment volume, while asset remarketing income decreased Q1 2024 Segment Profit and Investment Volume (in millions) | Segment | Segment Profit | Investment Volume | | :--- | :--- | :--- | | Rail North America | $90.3 | $321.7 | | Rail International | $28.8 | $49.9 | | Engine Leasing | $25.7 | $0.0 | | Other | $8.2 | $7.0 | | **Total** | **$153.0** | **$378.6** | Asset Remarketing Income (in millions) | Period | Asset Remarketing Income | | :--- | :--- | | Q1 2024 | $33.8 | | Q1 2023 | $44.9 | [Supplemental Information](index=11&type=section&id=SUPPLEMENTAL%20INFORMATION) [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides non-GAAP financial measures to offer a comparable view of its underlying operational performance, with Q1 2024 GAAP net income adjusted for a net positive impact from other items Reconciliation of Net Income (in millions) | Description | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income (GAAP) | $74.3 | $77.4 | | Adjustments | $(0.6) | $1.3 | | Net income, excluding items (non-GAAP) | $73.7 | $78.7 | - Adjustments in Q1 2024 relate to gains on the sale of Specialized Gas Vessels, while Q1 2023 adjustments related to losses on these vessels and a gain on the sale of the Rail Russia business[31](index=31&type=chunk) [Key Financial Metrics and Fleet Statistics](index=12&type=section&id=Key%20Financial%20Metrics%20and%20Fleet%20Statistics) This section provides detailed quarterly data on segment assets, debt, leverage, and specific operational statistics for the rail segments, offering a deeper view into the company's financial health and fleet dynamics [Assets, Debt, and Leverage](index=12&type=section&id=Assets%2C%20Debt%2C%20and%20Leverage) Total assets excluding cash increased as of Q1 2024, with Rail North America holding the largest portion, and recourse leverage remained stable Total Assets, Excluding Cash, by Segment (in millions) | Segment | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Rail North America | $7,214.1 | $6,610.8 | | Rail International | $2,142.1 | $1,801.2 | | Engine Leasing | $1,354.4 | $1,089.6 | | Other | $389.3 | $368.9 | | **Total** | **$11,099.9** | **$9,870.5** | - Recourse leverage, calculated as total recourse debt divided by shareholder's equity, was **3.2x** at the end of Q1 2024, stable with the prior quarter and up from **3.1x** at the end of Q1 2023[34](index=34&type=chunk)[35](index=35&type=chunk) [Rail North America Statistics](index=13&type=section&id=Rail%20North%20America%20Statistics) Key operational metrics for Rail North America showed continued strength in Q1 2024, with a strong Lease Price Index, high renewal success rate, and consistent fleet utilization Rail North America Key Metrics (Quarterly Trend) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | LPI | 33.0% | 33.5% | 28.3% | | Renewal Term (months) | 64 | 65 | 55 | | Renewal Success Rate | 83.4% | 87.1% | 77.9% | | Utilization | 99.4% | 99.3% | 99.3% | - The non-boxcar fleet grew by a net of **520 cars** during Q1 2024, ending the period at **101,687 railcars**[39](index=39&type=chunk) [Rail International Statistics](index=14&type=section&id=Rail%20International%20Statistics) GATX Rail Europe's fleet utilization decreased slightly despite fleet growth, while Rail India continued its impressive expansion and maintained 100% utilization Rail Europe Statistics | Metric | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Ending Fleet Size | 29,371 | 28,461 | | Utilization | 95.3% | 98.5% | Rail India Statistics | Metric | 3/31/2024 | 3/31/2023 | | :--- | :--- | :--- | | Ending Fleet Size | 9,501 | 6,351 | | Utilization | 100.0% | 100.0% | [Company Information and Forward-Looking Statements](index=4&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) [Company Description and Investor Information](index=4&type=section&id=Company%20Description%20and%20Investor%20Information) This section describes GATX's business of leasing transportation assets and includes investor details, along with a disclaimer about forward-looking statements and associated risks - GATX leases transportation assets including railcars, aircraft spare engines, and tank containers to customers worldwide[15](index=15&type=chunk) - The report contains forward-looking statements that involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those discussed[18](index=18&type=chunk) - Key risk factors include declines in customer demand, inability to lease assets at satisfactory rates, competitive factors, and risks related to international operations and cybersecurity[19](index=19&type=chunk)

Investors might want to bet on Gatx (GATX) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Since a chan ...

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Gatx (GATX) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.Gatx is one of 132 individual stocks in the Transportation sector. Collectively, these companies sit at #12 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 differe ...

United Parcel Service (UPS) gains momentum from e-commerce growth and shareholder rewards. However, elevated labor costs and weakened demand impact stock performance.Factors Favoring UPSUPS demonstrates financial strength with a robust $5.3 billion free cash flow in 2023. Shareholder-friendly actions, including a 15th consecutive annual dividend increase and a $5 billion share repurchase authorization, bode well. In 2024, UPS’ board of directors raised its quarterly cash dividend to $1.63 per share. For the ...

GATX Corporation (GATX) is benefiting from its shareholder-friendly initiatives through which it rewards its shareholders in the form of dividend payments and share repurchases.Against this backdrop, let’s look at the factors that make this stock an attractive pick.What Makes GATX an Attractive Pick?An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of GATX have gained 15.5% over the past three months.Image Source: ...

It has been about a month since the last earnings report for Gatx (GATX) . Shares have added about 1.8% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Gatx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Earnings Beat in Q4 at GATXGATX Corporation’s fourth-quar ...

The Zacks  Transportation - Equipment and Leasing industry currently stands to benefit from the solid investor-friendly steps. Notably, consistent shareholder-friendly initiatives in the form of dividend payouts or share buybacks imply solid financial strength of companies in the Equipment and Leasing industry. Such moves boost investors’ confidence and positively impact the bottom line.On the flip side, the industry continues to grapple withchallenges, ranging from raging inflation, higher interest rates, ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) GATX is a global railcar and aircraft spare engine lessor with $11.3 billion in assets, operating across North America, Europe, and India - GATX is a leading global railcar lessor with fleets in North America, Europe, and India, also owning one of the largest aircraft spare engine lease portfolios through wholly-owned businesses and joint ventures[15](index=15&type=chunk) Worldwide Rail Fleet as of December 31, 2023 | | Tank Railcars | Freight Railcars | Total Fleet | Managed Railcars | Total Railcars | Locomotives | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Rail North America** | 62,227 | 48,251 | 110,478 | 288 | 110,766 | 523 | | **Rail International** | 23,878 | 14,143 | 38,021 | 7 | 38,028 | — | | **Total** | 86,105 | 62,394 | 148,499 | 295 | 148,794 | 523 | - The company reports through three primary business segments: Rail North America, Rail International, and Portfolio Management, with Trifleet in the Other segment[15](index=15&type=chunk) - As of December 31, 2023, GATX had total assets of **$11.3 billion**, largely composed of railcars[17](index=17&type=chunk) [Rail North America](index=8&type=section&id=1.1%20Rail%20North%20America) This segment provides full-service railcar leases in North America, managing over 110,000 railcars with an average lease term of 38 months and extensive maintenance facilities - Rail North America serves approximately **840 customers**, with the top ten accounting for about **23% of lease revenue** in 2023[22](index=22&type=chunk) - The average remaining lease term for the North American fleet was approximately **38 months** as of December 31, 2023[22](index=22&type=chunk) - A new long-term supply agreement with Trinity was established in 2022 for **15,000 new railcars** through 2028, with options for an additional 500 cars annually[24](index=24&type=chunk) [Rail International](index=9&type=section&id=1.2%20Rail%20International) This segment includes operations in Europe and India, managing over 37,800 railcars with average lease terms of 21 and 67 months respectively, and completed its exit from the Russian market in 2023 - GATX Rail Europe (GRE) serves approximately **260 customers**, with the top ten accounting for **49% of total lease revenue** in 2023[34](index=34&type=chunk) - Rail India's fleet consists of **8,805 railcars** with an average remaining lease term of approximately **67 months** as of year-end 2023[37](index=37&type=chunk) - GATX completed its exit from the Rail Russia business in the first quarter of 2023 due to the Russia/Ukraine conflict[38](index=38&type=chunk) [Portfolio Management](index=11&type=section&id=1.3%20Portfolio%20Management) This segment primarily manages aircraft spare engine leasing through RRPF joint ventures and wholly-owned GEL, owning 399 and 29 engines respectively, and completed the sale of its Specialized Gas Vessels in 2023 - The RRPF affiliates, a 50% joint venture with Rolls-Royce, owned **399 aircraft spare engines** as of December 31, 2023[44](index=44&type=chunk) - GATX's wholly-owned entity, GEL, owned **29 aircraft spare engines** as of December 31, 2023[45](index=45&type=chunk) - The company completed its exit from the marine asset business by selling the remaining three Specialized Gas Vessels in 2023[48](index=48&type=chunk) [Human Capital and Sustainability](index=13&type=section&id=1.4%20Human%20Capital%20and%20Sustainability) GATX employed 2,020 people globally as of year-end 2023, emphasizing diversity, talent development, competitive compensation, employee safety, and Board-level oversight of ESG efforts - As of December 31, 2023, GATX employed **2,020 people globally**, with approximately **36% being union workers**[57](index=57&type=chunk) - The company is committed to diversity and inclusion, implementing diverse candidate slates, annual pay equity analysis, and supporting employee resource groups[59](index=59&type=chunk)[62](index=62&type=chunk) - The Governance Committee of the Board of Directors has primary oversight responsibility for the company's ESG efforts, and GATX publishes an annual SASB report[65](index=65&type=chunk) [Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) GATX faces diverse risks including business and operational challenges, cybersecurity threats, legal and regulatory exposures, economic volatility, and factors related to its common stock and general business operations - Business risks include dependence on customer demand, competition from larger firms, and operational changes like 'precision scheduled railroading' (PSR) impacting railcar demand[75](index=75&type=chunk)[81](index=81&type=chunk)[82](index=82&type=chunk) - The company relies heavily on Rolls-Royce as a major customer and critical supplier for its aircraft spare engine leasing businesses, making it vulnerable to adverse factors affecting Rolls-Royce[89](index=89&type=chunk) - Cybersecurity threats to the company's IT infrastructure pose a significant risk, potentially leading to business disruptions, data theft, and legal liabilities[94](index=94&type=chunk) - Economic risks include adverse effects of geopolitical tensions, prolonged inflation, rising interest rates, and deterioration in global capital markets[100](index=100&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk)[107](index=107&type=chunk) - Six shareholders collectively control over **60% of the company's outstanding common stock**, allowing significant influence on shareholder approval matters[110](index=110&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) GATX integrates cybersecurity into its ERM program with Board oversight, focusing on governance, technical safeguards, incident response, and employee education, with no identified material threats - The Board of Directors, through its Audit Committee, oversees the company's Enterprise Risk Management (ERM) program, including cybersecurity risk[122](index=122&type=chunk) - The company's cybersecurity program is managed by a dedicated group led by the Global Head of IT Security, who has over **15 years of experience**[123](index=123&type=chunk) - GATX has not identified any risks from known cybersecurity threats or previous incidents reasonably likely to materially affect the company[121](index=121&type=chunk) [Properties](index=33&type=section&id=Item%202.%20Properties) GATX's properties include its Chicago headquarters, extensive rail maintenance facilities and offices across North America, Europe, and India, and additional office locations for Portfolio Management and Trifleet - GATX headquarters is located in Chicago, Illinois[126](index=126&type=chunk) - Rail North America operates **six major maintenance facilities** in locations including Colton, CA; Hearne, TX; and Waycross, GA, supplemented by smaller facilities and mobile units[30](index=30&type=chunk)[127](index=127&type=chunk) - Rail International operates a major maintenance facility in Ostróda, Poland, and has business offices across Europe and India[128](index=128&type=chunk) [Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from Note 23 of the financial statements - Details concerning litigation and other contingencies are described in "Note 23. Legal Proceedings and Other Contingencies" in Part II, Item 8 of this Form 10-K[129](index=129&type=chunk) [Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company reports no mine safety disclosures - None Part II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) GATX common stock trades on NYSE and Chicago Stock Exchange, with the company repurchasing **$2.6 million** in 2023, and its five-year cumulative return outperforming the S&P MidCap 400 Index - In 2023, the company repurchased **24,520 shares** for **$2.6 million**, with **$87.1 million** remaining available under the share repurchase authorization as of December 31, 2023[134](index=134&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | | :--- | :--- | :--- | :--- | :--- | | Oct 1 - Oct 31, 2023 | 24,420 | $104.68 | 24,420 | $87.1 | | Nov 1 - Nov 30, 2023 | 100 | $109.03 | 100 | $87.1 | | **Total** | **24,520** | **$104.70** | **24,520** | | Five-Year Cumulative Total Shareholder Return | | 12/31/18 | 12/31/19 | 12/31/20 | 12/31/21 | 12/31/22 | 12/31/23 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **GATX** | $100.00 | $119.75 | $123.60 | $158.13 | $164.72 | $189.73 | | **S&P 500** | $100.00 | $131.47 | $155.65 | $200.29 | $163.98 | $207.04 | | **S&P MidCap 400** | $100.00 | $126.17 | $143.39 | $178.85 | $155.42 | $180.90 | | **Russell 3000** | $100.00 | $131.01 | $158.36 | $198.96 | $160.71 | $202.38 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, GATX reported **$259.2 million** net income, with total investment volume rising to **$1.67 billion**, maintaining strong liquidity and a positive outlook for 2024 Consolidated Financial Highlights (2023 vs 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Net Income (GAAP)** | $259.2 M | $155.9 M | | **Diluted EPS (GAAP)** | $7.12 | $4.35 | | **Net Income (Non-GAAP)** | $257.6 M | $217.7 M | | **Diluted EPS (Non-GAAP)** | $7.07 | $6.07 | | **Total Revenues** | $1,410.9 M | $1,273.0 M | | **Total Segment Profit** | $556.3 M | $418.0 M | | **Investment Volume** | $1,665.0 M | $1,255.8 M | - The 2024 outlook is favorable, with strong conditions expected in the North American railcar leasing market, solid demand in Europe and India, and a strong operating environment for engine leasing businesses[147](index=147&type=chunk) - The company completed the sale of its Russian rail business and the remaining three Specialized Gas Vessels in 2023[140](index=140&type=chunk) [Discussion of Operating Results](index=37&type=section&id=7.1%20Discussion%20of%20Operating%20Results) In 2023, total segment profit increased to **$556.3 million**, driven by significant growth in Rail International and Portfolio Management, while Rail North America's profit slightly declined Segment Profit (Loss) (in millions) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Rail North America | $307.3 | $321.3 | | Rail International | $113.4 | $85.9 | | Portfolio Management | $106.4 | $14.7 | | Other | $29.2 | $(3.9) | | **Total Segment Profit** | **$556.3** | **$418.0** | - Rail North America's segment profit decreased **4.4%** to **$307.3 million**, primarily due to higher interest and maintenance expenses, despite a **7.6% increase in lease revenue**[169](index=169&type=chunk)[170](index=170&type=chunk) - Rail International's segment profit rose **32.0%** to **$113.4 million**, largely due to the absence of a **$14.6 million impairment** on the Rail Russia business in 2022[188](index=188&type=chunk) - Portfolio Management's segment profit increased dramatically to **$106.4 million** from **$14.7 million** in 2022, driven by higher RRPF affiliate earnings and absence of 2022 impairments[203](index=203&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=7.2%20Liquidity%20and%20Capital%20Resources) GATX maintains strong liquidity with **$450.7 million** cash and **$850 million** in credit facilities, with recourse leverage at **3.2x** and 2024 cash obligations estimated at **$1.84 billion** - As of December 31, 2023, GATX had **$450.7 million** in unrestricted cash and two fully available revolving credit facilities totaling **$850 million**[220](index=220&type=chunk)[242](index=242&type=chunk) Material Cash Obligations by Period (in millions) | | Total | 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Recourse debt | $7,450.6 | $526.3 | $520.8 | $611.9 | $458.4 | $735.0 | $4,598.2 | | Interest on recourse debt | $2,720.2 | $301.9 | $286.7 | $273.2 | $250.5 | $226.4 | $1,381.5 | | Purchase commitments | $2,677.9 | $958.0 | $417.5 | $527.5 | $396.2 | $378.7 | — | | **Total (selected)** | **$12,848.7** | **$1,786.2** | **$1,225.0** | **$1,412.6** | **$1,105.1** | **$1,340.1** | **$5,979.7** | Recourse Leverage Ratio | | 2023 | 2022 | | :--- | :--- | :--- | | Total recourse debt (net) | $7,175.2 M | $6,254.5 M | | Shareholders' Equity | $2,273.0 M | $2,029.6 M | | **Recourse Leverage** | **3.2x** | **3.1x** | [Critical Accounting Policies and Estimates](index=59&type=section&id=7.3%20Critical%20Accounting%20Policies%20and%20Estimates) Critical accounting policies involve significant judgment and estimates for depreciation, lease classification, impairment assessments of assets and investments, pension benefits, share-based compensation, and income tax liabilities - Operating assets are depreciated over estimated economic useful lives (e.g., **15-45 years** for railcars) to an estimated residual value, requiring significant judgment[255](index=255&type=chunk)[328](index=328&type=chunk) - Long-lived assets, investments in affiliates, and goodwill are reviewed for impairment annually or when indicators are present, using estimates of future cash flows and fair value[257](index=257&type=chunk)[258](index=258&type=chunk)[260](index=260&type=chunk) - Pension and post-retirement benefit calculations rely on actuarial assumptions such as discount rates and expected return on plan assets, which are evaluated annually[261](index=261&type=chunk) [Non-GAAP Financial Measures](index=61&type=section&id=7.4%20Non-GAAP%20Financial%20Measures) GATX provides non-GAAP financial measures for comparable operating results, with 2023 GAAP net income of **$259.2 million** adjusted to **$257.6 million** non-GAAP, reflecting specific adjustments Reconciliation of GAAP to Non-GAAP Net Income (in millions) | | 2023 | 2022 | | :--- | :--- | :--- | | **Net income (GAAP)** | **$259.2** | **$155.9** | | Loss on Specialized Gas Vessels | $4.0 | $34.3 | | Net (gain) loss on Rail Russia | $(0.3) | $14.6 | | Environmental remediation costs | — | $5.9 | | Aircraft spare engine impairment at RRPF (net) | — | $11.5 | | Other tax adjustments | $(5.3) | $(3.0) | | Other adjustments | — | $(1.5) | | **Net income, excluding items (non-GAAP)** | **$257.6** | **$217.7** | Reconciliation of GAAP to Non-GAAP Diluted EPS | | 2023 | 2022 | | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$7.12** | **$4.35** | | Adjustments (per share) | $(0.05) | $1.72 | | **Diluted EPS, excluding items (non-GAAP)** | **$7.07** | **$6.07** | [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) GATX is exposed to interest rate and foreign currency risks, using derivatives for hedging, with a 100 basis point interest rate increase impacting 2024 after-tax interest expense by **$4.2 million** - A hypothetical **100 basis point increase** in market interest rates would cause an estimated increase in after-tax interest expense of **$4.2 million** in 2024[276](index=276&type=chunk) - A hypothetical **10% strengthening** in the U.S. dollar versus foreign currencies would decrease estimated after-tax income in 2024 by **$9.7 million**[277](index=277&type=chunk) [Financial Statements and Supplementary Data](index=65&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated financial statements for 2023 show total assets increased to **$11.3 billion**, total revenues to **$1.41 billion**, and net income to **$259.2 million**, with detailed disclosures in accompanying notes Consolidated Balance Sheet Highlights (as of Dec 31) | (in millions) | 2023 | 2022 | | :--- | :--- | :--- | | Total Assets | $11,326.0 | $10,072.0 | | Total Liabilities | $9,053.0 | $8,042.4 | | Total Shareholders' Equity | $2,273.0 | $2,029.6 | Consolidated Income Statement Highlights (Year Ended Dec 31) | (in millions) | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenues | $1,410.9 | $1,273.0 | | Net Income | $259.2 | $155.9 | | Diluted EPS | $7.12 | $4.35 | - The company is involved in litigation related to the Norfolk Southern train derailment in East Palestine, Ohio, but cannot reasonably estimate the potential loss[496](index=496&type=chunk)[497](index=497&type=chunk)[499](index=499&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=117&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None [Controls and Procedures](index=117&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with an unqualified auditor opinion - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period[522](index=522&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023[526](index=526&type=chunk) - Ernst & Young LLP issued an unqualified opinion on the company's internal control over financial reporting as of December 31, 2023[528](index=528&type=chunk) [Other Information](index=119&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q4 2023 - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q4 2023[537](index=537&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=119&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not Applicable Part III [Directors, Executive Officers and Corporate Governance](index=119&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the definitive Proxy Statement, to be filed on or about March 15, 2024 - Required information is incorporated by reference from the definitive Proxy Statement to be filed on or about March 15, 2024[540](index=540&type=chunk) - Information regarding executive officers is also available in Part I of this Form 10-K[541](index=541&type=chunk) [Executive Compensation](index=119&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding director and executive officer compensation is incorporated by reference from the definitive Proxy Statement, to be filed on or about March 15, 2024 - Required information is incorporated by reference from the definitive Proxy Statement to be filed on or about March 15, 2024[542](index=542&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=120&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of December 31, 2023, **1,491,160 securities** were issuable under equity compensation plans at a weighted-average exercise price of **$106.75**, with **2,035,353** available for future issuance Equity Compensation Plan Information as of December 31, 2023 | Plan Category | Number of Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price of Outstanding Options (b) | Number of Securities Remaining Available for Future Issuance (c) | | :--- | :--- | :--- | :--- | | Equity Compensation Plans Approved by Shareholders | 1,491,160 | $106.75 | 2,035,353 | | Equity Compensation Plans Not Approved by Shareholders | — | | — | | **Total** | **1,491,160** | | **2,035,353** | - Other information regarding security ownership is incorporated by reference from the definitive Proxy Statement to be filed on or about March 15, 2024[544](index=544&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=120&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the definitive Proxy Statement, to be filed on or about March 15, 2024 - Required information is incorporated by reference from the definitive Proxy Statement to be filed on or about March 15, 2024[545](index=545&type=chunk) [Principal Accountant Fees and Services](index=120&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to the principal accountant, Ernst & Young, is incorporated by reference from the definitive Proxy Statement, to be filed on or about March 15, 2024 - Required information is incorporated by reference from the definitive Proxy Statement to be filed on or about March 15, 2024[546](index=546&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=121&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists filed financial statements, notes omitted schedules, and provides an index of all exhibits filed with or incorporated by reference into the Form 10-K - This section contains the list of financial statements, financial statement schedules (omitted as inapplicable), and exhibits filed with the report[548](index=548&type=chunk)[549](index=549&type=chunk)[550](index=550&type=chunk) [Form 10-K Summary](index=124&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not Applicable

Gatx (GATX) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changin ...

CHICAGO--(BUSINESS WIRE)--Thomas A. Ellman, executive vice president and chief financial officer, GATX Corporation (NYSE: GATX), will present at the Stifel 2024 Transportation & Logistics Conference on Feb. 13, 2024. GATX’s presentation will begin at 10 a.m. ET. To listen to a live webcast of the event, please access the appropriate link at www.gatx.com at least 15 minutes prior to the start time. The webcast will be archived for 90 days. COMPANY DESCRIPTION At GATX Corporation (NYSE: GATX), we empower o ...