Trinity Industries(US:TRN)2025-02-20 20:12Financial Performance - Total revenues for 2024 reached $3,079.2 million, a 3.2% increase from $2,983.3 million in 2023[260]. - Manufacturing revenues slightly decreased to $1,938.4 million in 2024 from $1,943.9 million in 2023, while Leasing & Services revenues increased to $1,140.8 million from $1,039.4 million, representing a 9.7% growth[260]. - Operating profit for 2024 was $491.5 million, up 17.8% from $417.0 million in 2023[260]. - Net income attributable to Trinity Industries, Inc. increased to $138.4 million in 2024, a 30.5% rise from $106.0 million in 2023[260]. - Basic earnings per share from continuing operations rose to $1.86 in 2024, compared to $1.47 in 2023, reflecting a 26.5% increase[260]. - Comprehensive income attributable to Trinity Industries, Inc. was $123.2 million in 2024, up from $97.3 million in 2023[261]. - Net income for 2024 increased to $157.1 million, up 24.1% from $126.6 million in 2023[264]. - Segment operating profit for the Railcar Leasing and Services Group was $464.0 million in 2024, up from $437.5 million in 2023, reflecting a year-over-year increase of 6.0%[338]. - The Rail Products Group reported an operating profit of $189.4 million in 2024, compared to $112.6 million in 2023, indicating a significant increase of 68.3%[338]. Cash Flow and Liquidity - Cash and cash equivalents increased significantly to $228.2 million in 2024 from $105.7 million in 2023[263]. - Net cash provided by operating activities for continuing operations reached $588.1 million, a significant increase from $309.0 million in 2023[264]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $374.4 million, up from $235.1 million in 2023[264]. - The company reported a net increase in cash of $139.3 million, contrasting with a decrease of $59.2 million in 2023[264]. - Payments to retire debt increased to $2,050.5 million, compared to $1,518.9 million in 2023, marking a 35% rise[264]. - Net cash used in investing activities for continuing operations was $214.6 million, down from $363.0 million in 2023[264]. Debt and Financing - The company’s total debt as of December 31, 2024, was $5,690.9 million, compared to $5,754.2 million in 2023[363]. - The company issued $200.0 million of additional 7.75% senior notes due July 2028 in June 2024, increasing the total from $400.0 million to $600.0 million[368]. - The revolving credit facility has a total borrowing capacity of $600.0 million, with $591.3 million available for borrowing as of December 31, 2024[365]. - The company redeemed $400.0 million of 4.55% senior notes due 2024 in June 2024, recognizing a loss on extinguishment of debt of $0.1 million[370]. - Total borrowings under the TILC warehouse loan facility for the year ended December 31, 2024, were $1,064.6 million, with total repayments of $1,009.3 million[371]. Taxation - The provision for income taxes from continuing operations for the year ended December 31, 2024, was $50.4 million, resulting in an effective tax rate of 22.7%[392]. - Total deferred tax assets increased to $209.3 million in 2024 from $180.0 million in 2023, resulting in net deferred tax liabilities of $1,074.0 million[396]. - The company had $19.0 million of tax-effected state loss carryforwards and $11.7 million of net federal and state credits remaining as of December 31, 2024[396]. - The total amount of unrecognized tax benefits, including interest and penalties, was $2.6 million for both 2024 and 2023[399]. Shareholder Actions - The board of directors has discretion over future dividend payments and share repurchases, which may vary from historical practices[111]. - Dividends paid to common shareholders rose to $93.2 million, compared to $86.0 million in 2023, reflecting an increase of 8.1%[264]. - The company repurchased 0.6 million shares at a cost of approximately $21.0 million during the year ended December 31, 2024, leaving a remaining authorization of $229.0 million[410]. Legal Matters - Multiple class action lawsuits have been filed against Norfolk Southern and its subsidiary TILC, with claims including negligence and strict liability related to the East Palestine train derailment[429]. - On April 9, 2024, a settlement in principle was announced between plaintiffs and Norfolk Southern, while third-party claims against TILC were preserved[429]. - The court granted a dismissal of all claims against TILC on June 3, 2024, including negligence and contribution claims[429]. - A new lawsuit was filed on December 8, 2023, against TILC and other defendants, asserting claims for negligence and public nuisance[430]. Organizational Changes - The company modified its organizational structure effective January 1, 2024, resulting in two reportable segments: Railcar Leasing and Services Group, and Rail Products Group[267]. - The company modified its organizational structure effective January 1, 2024, aligning maintenance services with the leasing business to enhance performance assessment[331]. Risk Management - The company uses derivative instruments to manage interest rate and foreign currency exchange rate risks[240][241]. - The company has foreign currency hedges with a notional amount of $131.1 million, resulting in an asset liability of $(9.5) million as of December 31, 2024[324]. - The company incurred a fee of $3.1 million related to the execution of back-to-back interest rate caps associated with the new TILC warehouse loan facility[325]. Asset Management - Total assets decreased slightly to $8,832.2 million in 2024 from $8,906.5 million in 2023[263]. - The carrying value of investments in affiliates totaled $133.0 million as of December 31, 2024[304]. - The net book value of finite-lived intangible assets was $87.8 million as of December 31, 2024, down from $95.5 million in 2023[301].