Group 1 - Seeking Alpha's Quant system has assigned a Strong Buy rating to Trinity Industries, Inc. (NYSE: TRN) since June 27, 2024, which is a rare occurrence for the system [1]

Financial Performance - Revenues for the nine months ended September 30, 2024, were $2,449.8 million, a 12.1% increase compared to $2,185.5 million for the same period in 2023[126] - Operating profit for the nine months ended September 30, 2024, was $379.5 million, up from $268.3 million in the same period of 2023[126] - Revenues for Q3 2024 were $798.8 million, a decrease of $22.5 million or 2.7% compared to Q3 2023, primarily due to lower external deliveries in the Rail Products Group[141] - Revenues for the nine months ended September 30, 2024, were $2,449.8 million, an increase of $264.4 million or 12.1% compared to the same period in 2023, driven by higher external deliveries in the Rail Products Group[141] - Total operating profit for Q3 2024 was $122.4 million, an increase from $100.2 million in Q3 2023[140] - Income from continuing operations for Q3 2024 was $40.8 million, compared to $26.3 million in Q3 2023[141] Cost and Expenses - Cost of revenues for Q3 2024 was $629.3 million, a decrease of $50.2 million or 7.4% compared to Q3 2023, mainly due to lower external deliveries and improved efficiencies[141] - Cost of revenues for the nine months ended September 30, 2024, was $1,936.6 million, an increase of $117.4 million or 6.5% compared to the same period in 2023, primarily due to higher external deliveries[141] - Selling, engineering, and administrative expenses for Q3 2024 were $60.5 million, an increase of $11.4 million or 23.2% compared to Q3 2023, attributed to higher employee-related costs[141] - Selling, engineering, and administrative expenses for the nine months ended September 30, 2024, were $174.1 million, an increase of $20.8 million or 13.6% compared to the same period in 2023[141] Fleet and Backlog - The Leasing Group's lease fleet utilization was 96.6% as of September 30, 2024, down from 98.1% as of September 30, 2023[126] - The total value of the new railcar backlog at September 30, 2024, was $2.4 billion, a decrease from $3.6 billion at the same date in 2023[126] - The number of new railcars delivered increased to 620 units for the three months ended September 30, 2024, compared to 365 units in the prior year[153] - Total backlog dollars decreased by 34.3% to $2,364.5 million as of September 30, 2024, compared to $3,598.4 million in the prior year[150] Financing Activities - In March 2024, the company entered into a new $800.0 million warehouse loan facility, replacing a prior $1.0 billion facility[129] - In May 2024, the company issued $432.4 million of Series 2024-1 Class A Green Secured Railcar Equipment Notes at a fixed interest rate of 5.78%[129] - The company issued an additional $200.0 million of 7.75% senior notes due July 2028, increasing the total from $400.0 million to $600.0 million[129] - Total repayments during the nine months ended September 30, 2024 amounted to $1,831.0 million, while total borrowings were $1,762.4 million, resulting in net repayments of $68.6 million[159] - The company redeemed in full $400.0 million aggregate principal amount of its 4.55% senior notes due 2024 in June 2024[170] Operational Insights - The company actively monitors supply chain disruptions and has experienced shortages of materials impacting railcar manufacturing and repairs[122] - Maintenance services revenues increased by 70.1% to $66.5 million for the three months ended September 30, 2024, and by 59.1% to $180.7 million for the nine months[144] - Digital and logistics services revenues decreased by 44.7% to $9.9 million for the three months ended September 30, 2024, and by 31.9% to $31.4 million for the nine months[144] - Interest expense, net for the three months ended September 30, 2024 totaled $67.4 million, a decrease from $68.8 million in the prior year; for the nine months, it increased to $206.6 million from $197.8 million[142] Tax and Dividends - The effective tax rate from continuing operations for the three months ended September 30, 2024 was 27.7%, compared to 18.6% for the same period in 2023[142] - The company paid $70.1 million in dividends to common stockholders during the nine months ended September 30, 2024, compared to $64.7 million in the same period of 2023[159] Corporate Governance - The Company amended its Bylaws on September 4, 2024, changing the advance notice requirement for Stockholder Nominations to between 90 and 120 days prior to the annual meeting[180] - Gregory B. Mitchell, Executive Vice President, has a stock trading plan to sell up to 29,796 shares of common stock between November 15, 2024, and May 6, 2025[181] - The Amended Bylaws require additional disclosures from Nominating Stockholders regarding arrangements that may affect share price or voting power[180]

Financial Data and Key Metrics Changes - The company reported an adjusted EPS of $0.43, a $0.17 increase year-over-year, with operating profit rising by 22% compared to the previous year [7][8] - Revenues for the quarter were $799 million, with a GAAP EPS of 44% [22] - The last 12-month adjusted ROE was 18.3%, above the target range introduced at the Investor Day [21] Business Segment Data and Key Metrics Changes - In the Railcar Leasing and Services Group, revenues increased by approximately 11% year-over-year, driven by favorable pricing and higher volume of external repairs [12] - The Rail Products Group reported revenues of $603 million, with an operating margin of 8.1%, reflecting improvements in labor and operational efficiencies [17] - The leasing segment's operating profit was 20% higher than a year ago, with a fleet utilization rate of 96.6% [13] Market Data and Key Metrics Changes - Carloads increased in the third quarter compared to the previous year, primarily driven by agriculture and chemical end markets [9] - The company expects approximately 40,000 industry deliveries in 2024, with a backlog of $2.4 billion at the end of the quarter [19] Company Strategy and Development Direction - The company is raising and tightening its full-year EPS guidance to a range of $1.70 to $1.80, reflecting confidence in continued performance [8] - The strategy includes aligning leasing and maintenance businesses to improve performance and reduce costs [12] - The company anticipates a continued focus on optimizing its lease fleet and capitalizing on favorable market conditions [24][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market conditions, noting improvements in rail service and a positive outlook for carload growth [10][9] - The management highlighted that customer inquiries are increasing, although order decisions are being delayed due to external factors such as the election [41] - The company expects to conclude 2024 on a positive note, with a focus on maintaining operational efficiencies and strong demand for railcars [32] Other Important Information - The company completed $67 million of lease portfolio sales in the quarter, resulting in gains of $11 million [13] - Year-to-date cash flow from continued operations was $384 million, with liquidity of $924 million [23] - The company has returned $77 million through dividends and share repurchases, reflecting a commitment to returning capital to shareholders [24] Q&A Session Summary Question: OEM margin guidance and production rates - Management indicated that the margin guidance is tied to the range for the year, suggesting a potential for higher margins in the fourth quarter [33][34] Question: Order activity and production management - Management remains confident in industry deliveries and replacement demand, despite recent order deferrals [36][39] Question: Customer hesitance in placing orders - Management noted that external factors, including the election, have caused customers to delay capital decisions, but inquiry levels remain strong [41] Question: Secondary market dynamics - The company has seen strong performance in the secondary market, leading to raised guidance for gains on lease portfolio sales [43][44] Question: Pricing power and lease rates - Management confirmed that lease rates continue to improve, supported by a balanced fleet and supply-demand dynamics [46]

Financial Performance - Quarterly total revenues of $799 million, with a year-over-year adjusted EPS improvement of $0.17 to $0.43[2] - Operating profit increased to $122.4 million, up from $100.2 million year-over-year[5] - Revenues for the three months ended September 30, 2024, were $798.8 million, a decrease of 2.9% from $821.3 million in the same period last year[18] - Operating profit increased to $122.4 million for the three months ended September 30, 2024, compared to $100.2 million in the prior year, representing a 22.0% increase[18] - Net income attributable to Trinity Industries, Inc. was $31.4 million, up from $21.8 million, reflecting a 44.0% increase year-over-year[18] - Basic earnings per share from continuing operations rose to $0.45, compared to $0.30 in the same quarter last year, marking a 50.0% increase[18] - Operating profit for the three months ended September 30, 2023, was $100.2 million, with an adjusted profit of $96.5 million[28] - Income from continuing operations before income taxes for the nine months ended September 30, 2023, was $68.5 million, down from $62.3 million in the previous year[29] - Net income from continuing operations attributable to Trinity Industries, Inc. for the nine months ended September 30, 2023, was $51.3 million, compared to $46.7 million in the prior year[29] - Diluted income from continuing operations per common share for the three months ended September 30, 2023, was $0.29, down from $0.26 in the previous year[28] Cash Flow and Liquidity - Year-to-date operating cash flow from continuing operations totaled $384 million, with net gains on lease portfolio sales of $36 million[2] - Cash and cash equivalents increased to $222.4 million as of September 30, 2024, from $105.7 million at the end of December 2023[20] - Net cash provided by operating activities for continuing operations was $383.5 million, significantly higher than $215.8 million in the prior year[22] - Proceeds from lease portfolio sales amounted to $253.7 million, compared to $245.8 million in the same period last year[22] - The company reported a net cash increase of $97.3 million during the period, contrasting with a decrease of $27.6 million in the previous year[22] - Cash flow from operations with net gains on lease portfolio sales for the nine months ended September 30, 2024, was $419.7 million, compared to $262.2 million for the same period in 2023[36] - Total committed liquidity as of September 30, 2024, was $924 million[9] Operational Efficiency - Lease fleet utilization reached 96.6% and Future Lease Rate Differential (FLRD) was positive at 28.4%[2] - Railcar Leasing and Services segment revenues rose by 11% year-over-year, with operating profit margin improving to 39.8%[11] - Operating profit margin for the Rail Products Group improved to 8.1%, driven by enhanced labor and operational efficiencies[11] - Trinity Industries plans to continue focusing on operational efficiency and strategic investments to drive future growth[24] Orders and Backlog - Delivered 4,360 railcars in the quarter, with a backlog valued at $2.4 billion[1] - New railcar orders totaled 1,810, down from 3,200 in the previous year[11] Equity and Valuation - Total stockholders' equity as of September 30, 2023, was $1,298.5 million, an increase from $1,253.4 million in the previous year[32] - Adjusted Return on Equity for the year ending September 30, 2024, was 16.0%, up from 18.3% in the previous year[32] EBITDA - EBITDA for the three months ended September 30, 2024, was $200.9 million, compared to $177.5 million in the previous year[38] - Adjusted EBITDA for the nine months ended September 30, 2024, was $611.8 million, compared to $488.7 million in the previous year[38] Guidance - Full year EPS guidance raised to a range of $1.70 to $1.80, excluding items outside core operations[3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-------------------------------------------------------------------------------|-------------------------------------------| | For the transition period from _________ Commiss ...

Exhibit 99.3 Q2 2024 Investor Presentation August 1, 2024 – based on financial results as of June 30, 2024 Forward Looking Statements Some statements in this presentation, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, inclu ...

Trinity Industries, Inc. (NYSE:TRN) Q2 2024 Earnings Conference Call August 1, 2024 8:00 AM ET Company Participants Leigh Anne Mann - Vice President, Investor Relations Jean Savage - President and CEO Eric Marchetto - Chief Financial Officer Conference Call Participants Bascome Majors – Susquehanna Steve Barger - KeyBanc Capital Markets Operator Good day. And welcome to the Trinity Industries Second Quarter Ended June 30, 2024 Results Conference Call. All participants will be in a listen-only mode. [Operato ...

Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE Trinity Industries, Inc. Announces Second Quarter 2024 Results Reports quarterly GAAP and adjusted earnings from continuing operations of $0.67 and $0.66 per diluted share, respectively Lease fleet utilization of 96.9% and Future Lease Rate Differential ("FLRD") of positive 28.3% at quarter-end Generates year-to-date operating cash flow of $300 million and net gains on lease portfolio sales of $25 million Delivered 4,755 railcars in the quarter; backlog of $2. ...

Trinity Industries' (TRN) top line is being boosted by the strong performances of its Railcar Leasing and Management Services Group and Rail Products segments. The company's efforts to reward its shareholders through dividends and buybacks are also commendable. Owing to the tailwinds, shares of TRN have performed impressively on the bourse. If you have not taken advantage of its share price appreciation yet, it's time to do so. Let's take a look at the factors that make Trinity stock a strong investment pic ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR Dallas, Texas 75254-2957 (Address of principal executive offices) (Zip Code) (214) 631-4420 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHA ...