Financial Performance - Total revenues for the second quarter of 2024 reached $386.7 million, a 12.7% increase from $343.2 million in the same period of 2023[14] - Net income for the six months ended June 30, 2024, was $118.7 million, down 15.6% from $140.7 million in the prior year[16] - Basic earnings per share for the second quarter of 2024 were $1.22, a decrease from $1.74 in the same quarter of 2023[14] - The company reported a net cash provided by operating activities of $235.9 million for the first half of 2024, down from $258.4 million in the prior year[16] - Total lease revenue for the six months ended June 30, 2024, was $672.9 million, up 10.2% from $610.6 million in the same period of 2023[35] - Diluted earnings per share for the six months ended June 30, 2024, was $3.25, compared to $3.87 for the same period in 2023, indicating a decrease of about 16%[64] - Net income for the three months ended June 30, 2024, was $44.4 million, down from $63.3 million in the same period of 2023[209] Cash and Liquidity - Cash and cash equivalents increased to $823.6 million as of June 30, 2024, compared to $450.7 million at the end of 2023, reflecting a significant liquidity improvement[12] - As of June 30, 2024, the company had an unrestricted cash balance of $823.6 million and fully available credit facilities of $600 million and $350 million[178] - Net cash used in investing activities for the six months ended June 30, 2024, was $699.0 million, an increase from $544.6 million in the prior year[178] Assets and Liabilities - Operating assets and facilities rose to $13,675.9 million, up from $13,081.9 million at the end of 2023, indicating growth in operational capacity[12] - Total liabilities increased to $9,879.2 million from $9,053.0 million, primarily driven by an increase in recourse debt[12] - Shareholders' equity increased to $2,343.4 million as of June 30, 2024, from $2,273.0 million at the end of 2023, reflecting retained earnings growth[12] - The carrying amount of recourse fixed rate debt was $7,659.1 million as of June 30, 2024, with a fair value of $7,171.3 million[52] Segment Performance - For the three months ended June 30, 2024, total revenues were $386.7 million, with Rail North America contributing $270.4 million, Rail International $85.2 million, Engine Leasing $21.8 million, and Other segment $9.3 million[81] - Segment profit for Rail North America was $78.8 million, Rail International $26.5 million, Engine Leasing $18.4 million, while the Other segment reported a loss of $6.2 million, resulting in a consolidated segment profit of $117.5 million[81] - Rail North America segment revenues increased to $270.4 million for the three months ended June 30, 2024, compared to $240.4 million for the same period in 2023, reflecting a growth of 12.5%[93] Expenses and Costs - The company reported total depreciation expense of $203.5 million for the six months ended June 30, 2024, compared to $189.4 million for the same period in 2023[33] - Selling, general and administrative expenses for the three months ended June 30, 2024, were $58.6 million, compared to $52.0 million for the same period in 2023, an increase of 12.7%[93] - Maintenance expenses for the three months ended June 30, 2023, were $82.3 million, indicating ongoing operational costs associated with asset upkeep[82] Investments and Capital Expenditures - The company made portfolio investments and capital additions totaling $820.6 million during the first half of 2024, compared to $873.6 million in the same period of 2023[16] - Capital expenditures for the period amounted to $442.0 million, with Rail North America at $308.1 million, Rail International $59.6 million, Engine Leasing $71.3 million, and Other segment $3.0 million[81] Legal Matters - The company is currently involved in multiple lawsuits related to the Norfolk Southern train derailment, with a settlement of $600 million reached for claims from residents within a 20-mile radius[68] - The trial for the lawsuits against the company is currently scheduled for March 31, 2025[68] - The company has not established any accruals for potential liability related to ongoing lawsuits and cannot reasonably estimate the loss or range of loss[70] Tax and Compliance - The effective income tax rate for the six months ended June 30, 2024, was 25.1%, a decrease from 26.3% in the same period of 2023[59] - The company remains in compliance with all covenants and conditions of its credit agreements as of June 30, 2024[198]

Financial Data and Key Metrics Changes - In Q2 2024, the company reported net income of $44.4 million, or $1.21 per diluted share, compared to $63.3 million, or $1.74 per diluted share in Q2 2023, reflecting a decrease in net income [35] - Year-to-date 2024 net income was $118.7 million, or $3.25 per diluted share, down from $140.7 million, or $3.87 per diluted share for the same period in 2023 [36] - The 2024 results included a net negative impact of $8 million, or $0.22 per diluted share, from tax adjustments and other items [35][36] Business Line Data and Key Metrics Changes - GATX Rail North America experienced stable demand for railcars with a fleet utilization rate of 99.3% and a renewal success rate of 84.1% [38] - The renewal rate change of GATX's lease price index was positive 29.4% for the quarter, with an average renewal term of 61 months [38] - In Engine Leasing, the company added three aircraft spare engines during Q2, bringing the total to 32 engines with a net book value exceeding $750 million [40] Market Data and Key Metrics Changes - The secondary market in North America remains robust, generating approximately $20 million in remarketing income during the quarter, totaling approximately $53 million year-to-date [3] - Rail International is performing well, with Rail Europe successfully increasing renewal lease rates across most car types [4] Company Strategy and Development Direction - The company anticipates that even if input costs moderate, the fundamental capacity in the North American railcar market will not return to previous highs, suggesting a stable pricing environment [8][13] - The company is focused on maintaining a disciplined investment approach while capitalizing on attractive opportunities across various business units [68] Management's Comments on Operating Environment and Future Outlook - Management noted that the first half of 2024 has largely aligned with expectations, with stable demand for existing railcars and successful rate increases [17][18] - The intermodal sector in Rail Europe is expected to recover later than initially anticipated, but overall market demand remains strong [23] - The company is optimistic about growth in India, having crossed the 10,000 wagon mark and seeing strong economic growth [24] Other Important Information - The company continues to find attractive ways to invest capital, with a year-to-date volume of just over $800 million, on track to meet the $1.6 billion target for the year [26] - The company emphasizes the importance of maintaining a balanced market without excess supply, which is favorable for its operations [62] Q&A Session Summary Question: How does the company plan to manage if upward pressures on asset prices and lease rates start to moderate? - Management acknowledged the potential impact of easing interest rates and steel prices on the railcar market but emphasized that fundamental capacity is unlikely to return to previous levels, reducing the risk of oversupply [6][8] Question: What are the demand drivers for the Rolls-Royce joint venture regarding remarketing income? - Management indicated that demand drivers are influenced by the market's valuation of assets and the right mix of assets in the portfolio, with gains being lumpy [87] Question: Is there any slowdown in the secondary market? - Management confirmed that the secondary market remains strong, with good breadth and depth of buyers for packages offered [82]

Financial Performance - GATX Corporation reported Q2 2024 net income of $44.4 million, or $1.21 per diluted share, down from $63.3 million, or $1.74 per diluted share in Q2 2023[2]. - Year-to-date net income for 2024 was $118.7 million, or $3.25 per diluted share, compared to $140.7 million, or $3.87 per diluted share in the same period of 2023[3]. - Net income for the first half of 2024 was $118.7 million, down 15.6% from $140.7 million in the first half of 2023[24]. - Basic earnings per share decreased to $1.22 in Q2 2024 from $1.74 in Q2 2023, reflecting a decline of 30%[24]. - GATX's net income for the first half of 2024 was $118.7 million, compared to $140.7 million in the same period of 2023, representing a decrease of approximately 15.6%[33][35]. - Diluted earnings per share (GAAP) for Q2 2024 was $1.21, a decrease from $1.74 in Q2 2023, with $3.25 for the first half of 2024 compared to $3.87 in the same period last year[40]. Revenue and Expenses - Total revenues for Q2 2024 increased to $386.7 million, up 12.7% from $343.2 million in Q2 2023[24]. - Lease revenue rose to $339.6 million, a 10.1% increase compared to $308.6 million in the same period last year[24]. - For the six months ended June 30, 2024, total revenues increased to $766.6 million, up from $682.1 million in the same period last year, reflecting a growth of approximately 12.4%[33][35]. - Lease revenue for the first half of 2024 was $672.9 million, compared to $610.6 million in the prior year, marking an increase of about 10.2%[33][35]. - The company reported a total expense of $427.9 million for the first half of 2024, up from $392.5 million in the same period of 2023, which is an increase of approximately 9.0%[33][35]. Segment Performance - Rail North America achieved fleet utilization of 99.3% and a renewal success rate of 84.1% in Q2 2024, with a renewal lease rate change of 29.4%[4][9]. - Rail International's fleet utilization was 95.8% at the end of Q2 2024, with a segment profit of $26.5 million, down from $27.3 million in Q2 2023[11][12]. - Engine Leasing reported segment profit of $18.4 million in Q2 2024, compared to $26.6 million in Q2 2023, with year-to-date profit of $44.1 million[15]. - Segment profit for Rail North America was $78.8 million, while Rail International reported a profit of $26.5 million[27]. - GATX's segment profit for the first half of 2024 was $270.5 million, compared to $294.1 million in the same period of 2023, reflecting a decline of approximately 8.0%[33][35]. Investments and Acquisitions - GATX's investment volume in Q2 2024 was $442.0 million, totaling $820.6 million year-to-date[5]. - GATX acquired over 600 railcars in the secondary and spot markets during the quarter, reflecting ongoing market expansion efforts[4]. - Investment volume for Q2 2024 was $442.0 million, reflecting strong capital deployment across segments[27]. - Investment volume for the quarter was $486.6 million, indicating strong capital deployment across the business[30]. Balance Sheet and Cash Flow - Cash and cash equivalents increased significantly to $823.6 million as of June 30, 2024, compared to $450.7 million at the end of 2023[25]. - Total assets grew to $12,222.6 million, up from $11,326.0 million at the end of 2023, indicating a 7.9% increase[25]. - Total liabilities increased to $9,879.2 million, compared to $9,053.0 million at the end of 2023, representing an increase of 9.1%[25]. - Total debt and lease obligations, net of unrestricted cash, rose to $7,632.1 million as of June 30, 2024, from $6,720.1 million a year earlier[45]. Market and Operational Highlights - Rail India celebrated the delivery of its 10,000th railcar, indicating strong growth in the Indian freight rail market[5]. - Railcars added in Rail North America totaled 1,337 in Q2 2024, compared to 358 in Q2 2023, indicating a significant increase in fleet expansion[50]. - The ending balance of railcars in Rail North America was 102,086 as of June 30, 2024, up from 100,585 a year earlier[50]. - Rail Europe utilization was reported at 95.8% in Q2 2024, compared to 96.9% in Q2 2023[54]. - Rail India reported a fleet increase to 9,904 railcars as of June 30, 2024, from 6,927 a year earlier, reflecting strong growth in the region[54]. Challenges and Outlook - The company continues to face challenges from higher interest expenses and maintenance costs, impacting overall profitability[12][17]. - The company anticipates full-year earnings guidance of $7.30–$7.70 per diluted share, excluding the impact of Tax Adjustments and Other Items[6]. - The company incurred interest expense of $160.6 million in the first half of 2024, compared to $122.7 million in the same period last year, indicating an increase of about 31%[33][35].

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? By taking a look at the stock's yearto-date performance in comparison to its Transportation peers, we might be able to answer that question. Gatx is a member of our Transportation group, which includes 132 different companies and currently sits at #10 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different g ...

The company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 10.3%. Shares of Kirby have climbed 59.8% in the past year. Other Stocks to Consider Let's take a look at the factors that make the stock a solid investment pick at the moment. Image Source: Zacks Investment Research Northward Estimate Revision: The Zacks Consensus Estimate for earnings per share has been revised upward by ...

A month has gone by since the last earnings report for Gatx (GATX) . Shares have added about 9.8% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important drivers. The Engine Leasing unit (earlier known as Portfolio Management) re ...

The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Gatx (GATX) been one of those stocks this year? 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 a member of the Transportation sector. This group includes 132 individual stocks and currently holds a Zacks Sector Rank of #12. The Zacks Sector Rank considers 1 ...

shaunl/iStock via Getty Images Thesis In the eight years since 2016, the shares of GATX Corporation (NYSE:GATX) have roughly tripled: Data by YCharts It has been a bumpy ride at times, but shareholders with a long-term perspective have been well rewarded. In addition, the company has grown its dividend every year for the past 13 years. An analysis of its fundamental data suggests those capital gains will continue, with GATX enjoying strong utilization rates and pricing growth. At the same time, it is a rela ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-Q __________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-2328 GATX Corporation (Exact name of registrant as specified in its charter) New York 36-1 ...

[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)