GATX(US:GATX)2025-01-23 13:30Financial Performance - Fourth-quarter 2024 net income was $76.5 million or $2.10 per diluted share, compared to $66.0 million or $1.81 per diluted share in Q4 2023[2] - Full-year 2024 net income was $284.2 million or $7.78 per diluted share, compared to $259.2 million or $7.12 per diluted share in 2023[3] - Total revenues for the three months ended December 31, 2024, increased to $413.5 million, up 12.1% from $368.7 million in the same period of 2023[25] - Basic earnings per share for the three months ended December 31, 2024, were $2.10, up from $1.82 in the same period of 2023, representing a growth of 15.4%[25] - The net income for the year was reported at $284.2 million, compared to $259.2 million in the prior year, reflecting a growth of approximately 9.7%[35] - Net income for Q4 2024 was $76.5 million, up 15.2% from $66.0 million in Q4 2023, and total net income for the twelve months ended December 31, 2024, reached $284.2 million, a 9.5% increase from $259.2 million in 2023[41] - Diluted earnings per share (GAAP) for Q4 2024 increased to $2.10, compared to $1.81 in Q4 2023, while the twelve-month diluted earnings per share rose to $7.78 from $7.12[42] Revenue and Lease Performance - Lease revenue rose to $356.5 million for the three months ended December 31, 2024, compared to $323.6 million in the prior year, reflecting a growth of 10.2%[25] - Lease revenue contributed $1,381.1 million, up from $1,251.4 million, indicating a year-over-year increase of about 10.4%[35] - Rail North America reported segment profit of $84.5 million in Q4 2024, compared to $66.7 million in Q4 2023, driven by higher lease revenue[8] - Rail International's full-year segment profit was $119.8 million in 2024, compared to $113.4 million in 2023, supported by more railcars on lease[12] - Engine Leasing reported segment profit of $35.7 million in Q4 2024, compared to $31.3 million in Q4 2023, driven by strong demand for aircraft engines[15] Investment and Asset Management - Full-year investment volume exceeded $1.6 billion, with over $1.1 billion invested in the North American rail business in 2024[4][5] - Total investment volume at Rail International was $232.9 million for the full year 2024[14] - Investment volume for the three months ended December 31, 2024, was $349.3 million, reflecting a significant increase from the previous year[29] - The company reported a net gain on asset dispositions of $28.0 million for the three months ended December 31, 2024, compared to $25.2 million in the same period of 2023[25] - The company reported a net gain on asset dispositions of $138.3 million, up from $130.3 million, indicating a growth of approximately 6.1%[35] Expenses and Liabilities - Total expenses increased to $875.6 million from $810.2 million, marking a rise of about 8.1%[35] - Selling, general and administrative expenses for the twelve months ended December 31, 2024, totaled $236.3 million, up from $212.7 million in 2023, indicating an increase of 11.1%[25] - Total liabilities increased to $9,857.6 million as of December 31, 2024, compared to $9,053.0 million in the previous year, marking a rise of 8.9%[27] - Total debt and lease obligations, net of unrestricted cash, stood at $8,004.1 million as of December 31, 2024, compared to $7,175.2 million in the previous year, representing an increase of 11.5%[46] Fleet and Utilization - Rail North America's fleet utilization remained above 99% with a Lease Price Index (LPI) at 26.7% for Q4 2024[5] - As of Dec. 31, 2024, Rail North America's wholly owned fleet was approximately 111,400 cars, with a fleet utilization of 99.1%[9] - The average active railcars in Rail North America increased to 102,150 in Q4 2024, compared to 100,197 in Q4 2023, showing a growth in fleet utilization[51] - Railcars added in Rail North America for the year totaled 1,126 in Q4 2024, down from 1,688 in Q4 2023, indicating a slowdown in fleet expansion[51] - The ending balance of railcars in Rail Europe was 30,027 as of December 31, 2024, up from 29,216 a year earlier, reflecting a growth in the European fleet[53] Guidance and Future Outlook - The company initiates 2025 earnings guidance of $8.30–$8.70 per diluted share, expecting stable railcar leasing market conditions[5][7] - The average renewal lease rate change for Rail North America was 26.7% in Q4 2024, compared to 33.5% in Q4 2023, indicating a decrease in lease rate growth[51] - The renewal success rate for Rail North America improved to 89.1% in Q4 2024, up from 87.1% in Q4 2023[51] - Return on equity (GAAP) for the twelve months ended December 31, 2024, was 12.1%, slightly up from 12.0% in 2023, and the non-GAAP return on equity also increased to 12.2% from 12.0%[44] Asset Growth - Total assets as of December 31, 2024, reached $12,296.5 million, a 8.6% increase from $11,326.0 million in 2023[27] - Total assets, excluding cash, increased to $11,894.7 million as of December 31, 2024, from $10,875.2 million a year earlier, reflecting a growth of 9.4%[46]