Trinity Industries(TRN) - 2024 Q4 - Annual Results

Financial Performance - Full year adjusted EPS of $1.82 represents a 32% increase over 2023, driven by higher lease rates and improved margin performance [3] - Full year total revenues increased to $3.1 billion, up from $2.98 billion in 2023 [4] - Quarterly total revenues were $629 million, with quarterly adjusted EPS of $0.39 [4] - Operating profit for the year ended December 31, 2024, was $491.5 million, up 17.8% from $417.0 million in 2023 [13] - Net income attributable to Trinity Industries, Inc. for Q4 2024 was $28.9 million, down 54.9% from $62.8 million in Q4 2023 [13] - Net income for Q4 2024 was $37.8 million, a decrease from $68.1 million in Q4 2023 [26] - Income from continuing operations decreased to $40.8 million in Q4 2024 from $73.4 million in Q4 2023 [26] - Net cash provided by operating activities for continuing operations was $588.1 million for the year ended December 31, 2024, compared to $309.0 million in 2023 [15] - EBITDA for the year ended December 31, 2024, increased to $804.1 million, compared to $720.1 million for the year ended December 31, 2023 [26] Cash Flow and Liquidity - Full year operating cash flow was $588 million, with net gains on lease portfolio sales of $57 million [3] - Total committed liquidity as of December 31, 2024, was $987 million [6] - Cash and cash equivalents increased to $228.2 million as of December 31, 2024, compared to $105.7 million in 2023 [14] Lease and Fleet Performance - Lease fleet utilization was 97.0% with a Future Lease Rate Differential (FLRD) of positive 24.3% at quarter-end [3] - The Railcar Leasing and Services Group reported a 10% year-over-year revenue increase [3] - The backlog value at year-end was $2.1 billion, down from $3.2 billion [5] - The company expects industry deliveries of approximately 35,000 railcars in 2025, a 20% decrease from 2024 [3] Guidance and Future Outlook - 2025 EPS guidance is set at $1.50 to $1.80, reflecting continued leasing revenue improvement and consistent operating margins [3] - Trinity Industries plans to continue focusing on operational efficiency and market expansion in the upcoming fiscal year [13] Expenses and Costs - Capital expenditures for the lease fleet were $541.9 million in 2024, a decrease from $668.8 million in 2023 [15] - Interest expense for the year ended December 31, 2024, was $288.5 million, compared to $277.9 million in 2023 [26] - Selling, engineering, and administrative expenses were recorded at $2.0 million for Q4 2024 [26] Income and Taxation - Income from continuing operations before income taxes for the year ended December 31, 2024, was $221.8 million, slightly up from $149.0 million in 2023, reflecting a growth of 48.7% [21] - The provision for income taxes for the year ended December 31, 2024, was $50.4 million, consistent with the previous year, indicating stable tax management [21] - Provision for income taxes increased to $50.4 million for the year ended December 31, 2024, from $9.0 million in 2023 [26] Shareholder Metrics - Diluted income from continuing operations per common share for the year ended December 31, 2024, was $1.81, compared to $1.43 for 2023, indicating a growth of 26.6% [21] - The diluted weighted average shares outstanding remained stable at 84.2 million for the year ended December 31, 2024, compared to 83.4 million in 2023 [21] Asset Management - Total assets decreased to $8,832.2 million as of December 31, 2024, from $8,906.5 million in 2023 [14] - The company had a total debt of $5,690.9 million as of December 31, 2024, compared to $5,754.2 million in 2023 [14] Other Financial Metrics - Adjusted Return on Equity for the year ended December 31, 2024, was 14.6%, compared to 11.2% in 2023, showing an improvement of 3.4 percentage points [21] - The company reported gains on dispositions of property of $2.1 million for the year ended December 31, 2024, compared to $4.7 million in 2023, indicating a decrease in asset sales [21] - The net gains on lease portfolio sales for the year ended December 31, 2024, were $57.3 million, down from $82.8 million in 2023, reflecting a decline in lease portfolio performance [24] Restructuring and Discontinued Operations - Loss from discontinued operations for Q4 2024 was $3.0 million, compared to $5.3 million in Q4 2023 [26] - Restructuring activities resulted in a net gain of $4.3 million for the year ended December 31, 2024 [26]