Group 1 - Trinity Industries (NYSE: TRN) is a company with a long-standing following and investment history, being one of the first five companies to receive shares [1] - The focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] Group 2 - Subscribers to Crude Value Insights benefit from a 50+ stock model account, detailed cash flow analyses of exploration and production firms, and live chat discussions about the sector [2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas industry [3]

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]

Core Viewpoint - Trinity Industries (TRN) is experiencing strong growth driven by its Railcar Leasing and Management Services Group and Rail Products segments, leading to impressive share performance and shareholder rewards through dividends and buybacks [1][5][6]. Financial Performance - TRN reported a 26% year-over-year increase in revenue for Q1 2024, supported by strong segment performance [5]. - The Zacks Consensus Estimate for earnings per share has been revised upward by 43.5% for the current quarter and by 8.7% for the current year [4]. Shareholder Returns - The company has consistently rewarded shareholders, paying out dividends of $86 million in 2023, $76.9 million in 2022, and $88.5 million in 2021, with $23 million in Q1 2024 [6]. - Share repurchases amounted to $51.8 million in 2022 and $833.4 million in 2021, enhancing investor confidence [6]. Investment Potential - TRN holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [2]. - The stock has risen 2.4% over the past 30 days, outperforming the industry growth of 1.8% [3]. Industry Context - The industry ranking for TRN is 55 out of 249, placing it in the top 22% of Zacks Industries, which is crucial for stock performance [7].

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Trinity Industries, Inc. for the three months ended March 31, 2024, including Statements of Operations, Comprehensive Income, Balance Sheets, Cash Flows, and Stockholders' Equity, along with detailed notes explaining accounting policies, segment information, debt, and contingencies [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2024, total revenues increased to $809.6 million from $641.7 million year-over-year, driving total operating profit up to $115.2 million from $69.0 million, with net income attributable to Trinity Industries, Inc. rising significantly to $23.7 million, or $0.28 per diluted share, compared to $4.4 million, or $0.05 per diluted share, in the prior-year period Consolidated Statements of Operations Highlights (Three Months Ended March 31) | Financial Metric | 2024 (in millions) | 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$809.6** | **$641.7** | **+26.2%** | | Manufacturing Revenues | $525.3 | $409.0 | +28.4% | | Leasing & Services Revenues | $284.3 | $232.7 | +22.2% | | **Total Operating Profit** | **$115.2** | **$69.0** | **+67.0%** | | Income from Continuing Operations | $31.7 | $16.8 | +88.7% | | **Net Income Attributable to Trinity** | **$23.7** | **$4.4** | **+438.6%** | | **Diluted EPS** | **$0.28** | **$0.05** | **+460.0%** | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets increased slightly to $9.08 billion from $8.91 billion at year-end 2023, primarily due to higher receivables, while total liabilities also increased to $7.79 billion, driven by a rise in total debt to $5.87 billion, with total stockholders' equity standing at $1.29 billion Consolidated Balance Sheet Summary | Account | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $118.8 | $105.7 | | Property, plant, and equipment, net | $7,059.6 | $7,004.8 | | **Total Assets** | **$9,079.8** | **$8,906.5** | | Total Debt | $5,867.0 | $5,754.2 | | **Total Liabilities** | **$7,791.3** | **$7,631.0** | | **Total Stockholders' Equity** | **$1,288.5** | **$1,275.5** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2024, net cash provided by operating activities was $52.2 million, a decrease from $99.4 million in the prior-year period, with net cash used in investing activities at $124.0 million, primarily for lease fleet capital expenditures, and net cash provided by financing activities at $71.8 million, reflecting net proceeds from debt issuance Consolidated Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $52.2 | $99.4 | | Net cash used in investing activities | $(124.0) | $(203.1) | | Net cash provided by financing activities | $71.8 | $72.4 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including a key change in reportable segments effective January 1, 2024, and cover acquisitions, discontinued operations, derivative instruments, segment performance, debt structure, income taxes, and legal contingencies, such as litigation related to former highway products and the East Palestine train derailment - Effective January 1, 2024, the company modified its organizational structure, moving the maintenance services business from the Rail Products Group to the newly named Railcar Leasing and Services Group to better leverage maintenance capabilities for lease fleet optimization, with prior period segment results recast for comparability[17](index=17&type=chunk)[60](index=60&type=chunk) - The company is involved in litigation related to the February 2023 East Palestine, OH train derailment, where its subsidiary TILC was named as a third-party defendant, owning one tank car involved in the incident, and the company believes it has substantial defenses and is vigorously defending itself[115](index=115&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - The company retains indemnification obligations for certain liabilities of its divested highway products business (THP), including ongoing state qui tam actions and product liability lawsuits related to the ET-Plus® System, with expenses of **$5.6 million** related to these obligations recorded in discontinued operations for Q1 2024[50](index=50&type=chunk)[110](index=110&type=chunk)[113](index=113&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for Q1 2024, highlighting a **26.2%** increase in consolidated revenues and a **67.0%** rise in operating profit year-over-year, covering segment performance, key business trends, liquidity, capital resources, and capital structure updates, noting strong performance in the Rail Products Group due to higher deliveries and improved lease rates in the Leasing Group [Consolidated Results of Operations](index=39&type=section&id=Consolidated%20Results%20of%20Operations) Consolidated revenues for Q1 2024 increased by **26.2%** to $809.6 million, driven by higher external deliveries in the Rail Products Group and improved lease rates and repair volumes in the Leasing Group, with operating profit growing **67.0%** to $115.2 million, reflecting this revenue growth and improved margins, despite a $12.5 million decrease in gains from property dispositions compared to the prior year - Revenues increased by **$167.9 million (26.2%)** YoY, primarily due to higher external deliveries in the Rail Products Group and improved lease rates and external repair volume in the Leasing Group[154](index=154&type=chunk) - Operating profit increased by **$46.2 million (67.0%)** YoY, driven by higher deliveries, improved lease rates, and increased external repair volume, partially offset by lower lease portfolio sales[158](index=158&type=chunk) - Interest expense, net, increased to **$69.1 million** from **$62.1 million** in the prior year period, primarily due to higher average debt levels[159](index=159&type=chunk) [Segment Discussion](index=42&type=section&id=Segment%20Discussion) The Railcar Leasing and Services Group saw revenues increase **22.5%** to $285.2 million, with operating profit up **18.6%** to $100.3 million, driven by better lease rates and a **121.8%** surge in maintenance services revenue, while the Rail Products Group reported a **13.6%** revenue increase to $667.4 million and an **81.7%** jump in operating profit to $43.8 million, benefiting from higher deliveries and improved operational efficiencies Segment Operating Profit (Three Months Ended March 31) | Segment | 2024 (in millions) | 2023 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Railcar Leasing and Services Group | $100.3 | $84.6 | +18.6% | | Rail Products Group | $43.8 | $24.1 | +81.7% | | **Consolidated Operating Profit** | **$115.2** | **$69.0** | **+67.0%** | - The Rail Products Group's new railcar backlog was valued at **$2.9 billion** as of March 31, 2024, with **23,075 units**, down from **$3.7 billion** and **30,915 units** a year prior, and the group delivered **4,695 railcars** in Q1 2024[144](index=144&type=chunk)[172](index=172&type=chunk) - The Leasing Group's company-owned lease fleet utilization was **97.5%** on **110,205 railcars** as of March 31, 2024, compared to **98.2%** on **108,865 railcars** a year earlier[144](index=144&type=chunk)[167](index=167&type=chunk) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company had total committed liquidity of $798.8 million, including $118.8 million in cash and significant availability under its credit facilities, and in March 2024, it entered into a new $800.0 million TILC warehouse loan facility, with net cash from operations at $56.5 million for the quarter, and plans to use cash and available liquidity to repay its **4.55%** senior notes due in 2024 - Total committed liquidity was **$798.8 million** as of March 31, 2024, comprising **$118.8 million** in cash, **$581.8 million** available under the revolving credit facility, and **$98.2 million** available under the TILC warehouse facility[177](index=177&type=chunk) - In March 2024, the company replaced its prior **$1.0 billion** warehouse loan facility with a new **$800.0 million** TILC warehouse loan facility, maturing in March 2028[146](index=146&type=chunk)[178](index=178&type=chunk) - For the full year 2024, the company anticipates a net investment in its lease fleet of **$300 million to $400 million** and capital expenditures for operating activities of **$50 million to $60 million**[189](index=189&type=chunk) - The company was in compliance with all financial covenants as of March 31, 2024, with a Maximum Leverage ratio of **2.01** (covenant: **<3.75**) and Minimum Interest Coverage ratio of **8.20** (covenant: **>2.25**)[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there has been no material change in its market risks since the end of the fiscal year 2023, as disclosed in its 2023 Annual Report on Form 10-K - There has been no material change in the company's market risks since December 31, 2023[200](index=200&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of the end of the period, with no material changes in internal controls over financial reporting during the quarter - The Chief Executive and Chief Financial Officers concluded that the company's disclosure controls and procedures were effective as of March 31, 2024[201](index=201&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[202](index=202&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information on legal contingencies detailed in Note 14 of the Consolidated Financial Statements, which covers litigation related to former highway products and the East Palestine train derailment - Information regarding legal proceedings is provided in Note 14 of the Consolidated Financial Statements and is incorporated by reference[205](index=205&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) The company reports that there have been no material changes to the risk factors previously disclosed in its 2023 Annual Report on Form 10-K - There have been no material changes from the risk factors previously disclosed in the 2023 Annual Report on Form 10-K[206](index=206&type=chunk) [Issuer Purchases of Equity Securities](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During the quarter ended March 31, 2024, the company did not repurchase any shares under its publicly announced share repurchase program, which has **$250.0 million** remaining, but acquired **9,754 shares** to satisfy tax withholding obligations related to vested employee stock awards - No shares were repurchased under the company's **$250.0 million** share repurchase program during the three months ended March 31, 2024[207](index=207&type=chunk) - The company acquired **9,754 shares** to satisfy tax withholding obligations in connection with the vesting of restricted stock for employees[207](index=207&type=chunk)

Financial Data and Key Metrics Changes - The company reported a first quarter GAAP EPS of $0.33, reflecting a $0.26 improvement from the previous year [5][26] - Total revenues for the first quarter were $810 million, up 26% year-over-year, driven by higher external railcar deliveries and improved lease rates [35][62] - The adjusted free cash flow after investments and dividends was $12 million, with cash flow from continuing operations at $57 million [61] Business Line Data and Key Metrics Changes - The Leasing and Services segment achieved a fleet utilization rate of 97.5%, with renewal rates up 30% over expiring rates [30] - Revenue from Maintenance Services increased by 122% year-over-year, driven by higher external maintenance work and improved lease rates [9][30] - The Rail Product segment saw an operating margin of 6.6%, reflecting improvements in operational and labor efficiencies [11][37] Market Data and Key Metrics Changes - The company noted significant improvement in the chemicals market and strong automotive demand, particularly for SUVs [28] - Inquiry levels for orders have improved, particularly in tank cars, which typically have higher margins than freight cars [70] - The new railcar backlog remains healthy at $2.9 billion, supporting the company's views on replacement-driven demand [34] Company Strategy and Development Direction - The company is optimistic about the current cycle, viewing it as more diversified with stabilized production levels supporting a balanced lease fleet [7] - The company plans to continue focusing on price discipline and returns, even if it means lower market share [81] - The company is raising its full-year EPS guidance to a range of $1.35 to $1.55, reflecting confidence in revenue and margin improvements [62] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about service levels improving in the industry, which enhances supply chain efficiency [6] - The company expects utilization rates to remain consistent as it continues to renew railcars and assign non-renewing railcars into other services [10] - Management highlighted that the operating environment fundamentals are strong, supporting the company's long-term views [17] Other Important Information - The company completed 675 railcar conversions in the quarter and anticipates a full-year net investment in the lease fleet of between $300 million and $400 million [33][37] - A new warehouse loan facility was established with a total commitment amount of $800 million, replacing a prior $1 billion facility [16] Q&A Session Summary Question: What is the outlook for rail car sales activity? - Management indicated that rail car sales activity was modest in the first quarter, with a $2 million gain, but expects activity to pick up in the second quarter [20] Question: Can you provide insights on order flow and backlog improvement? - Management noted that inquiry levels continue to improve and that orders received are within the normal range, supporting replacement-level demand [42] Question: How does the company view the secondary market for railcars? - Management expressed encouragement regarding the secondary market, noting that lessors are focusing on known deals rather than speculative orders, which is a healthier indication for the market [74]

Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE Trinity Industries, Inc. Announces First Quarter 2024 Results Reports both quarterly GAAP and adjusted earnings from continuing operations of $0.33 per diluted share Lease fleet utilization of 97.5% and Future Lease Rate Differential ("FLRD") of positive 34.7% at quarter-end Generates operating and adjusted free cash flow of $57 million and $12 million, respectively Delivered 4,695 railcars in the quarter; backlog of $2.9 billion at quarter-end DALLAS, Texas – ...

Trinity Industries, Inc. (NYSE:TRN) Q4 2023 Earnings Conference Call February 22, 2024 8:00 AM ET Company Participants Leigh Anne Mann - VP, IR Jean Savage - CEO and President Eric Marchetto - CFO Conference Call Participants Allison Poliniak - Wells Fargo Justin Long - Stephens Inc. Matt Elkott - TD Cowen Christian Zyla - KeyBanc Capital Markets Operator Good day, and welcome to the Trinity Industries' Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions] Please note, today's e ...