GATX(GATX) - 2025 Q2 - Quarterly Results

Financial Performance Overview GATX Corporation reported strong Q2 2025 results, with net income rising to $75.5 million, and raised its full-year guidance Q2 2025 Earnings Summary GATX Corporation reported strong Q2 2025 results, with net income rising to $75.5 million, driven by solid operating performance Key Financial Metrics (In millions, except EPS) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $75.5 million | $44.4 million | $154.1 million | $118.7 million | | Diluted EPS | $2.06 | $1.21 | $4.21 | $3.25 | - The strong Q2 results are attributed to solid operating performance across global businesses. Rail North America maintained high fleet utilization of 99.2% and achieved significant remarketing income of over $34 million[3] - Demand for aircraft spare engines remains strong, with the company's joint venture with Rolls-Royce posting excellent operating results[7] - Total investment volume was $219.0 million for the second quarter and $515.3 million year-to-date, indicating continued attractive investment opportunities[5][7] - The company announced a definitive agreement to form a joint venture with Brookfield Infrastructure to acquire Wells Fargo's rail assets, with the closing expected in Q1 2026 or sooner[7] Full-Year 2025 Guidance GATX raised its full-year 2025 earnings guidance to $8.50 to $8.90 per diluted share, based on strong year-to-date results - The company raised its 2025 full-year earnings guidance to a range of $8.50–$8.90 per diluted share[5][7] - This updated guidance explicitly excludes the impact of any Tax Benefits and Other Items, as well as any potential impacts from the pending acquisition of Wells Fargo's rail assets[7] Segment Performance GATX's segments showed mixed performance, with strong results in Rail North America and Engine Leasing, while Rail Europe faced economic headwinds Rail North America Rail North America's segment profit increased to $96.6 million in Q2 2025, driven by higher revenue and 99.2% fleet utilization Rail North America Segment Profit (In millions) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Segment Profit | $96.6 million | $78.8 million | $185.4 million | $169.1 million | Rail North America Operating Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Fleet Utilization (%) | 99.2% | 99.2% | 99.3% | | LPI Rate Change (%) | +24.2% | +24.5% | +29.4% | | Avg. Renewal Term (months) | 60 months | 61 months | 61 months | | Renewal Success Rate (%) | 84.2% | 85.1% | 84.1% | - The wholly owned fleet consisted of approximately 110,000 cars as of June 30, 2025[9] - Investment volume for the segment was $132.2 million during the second quarter[10] Rail International Rail International's segment profit grew to $32.2 million, with mixed performance as Rail Europe's utilization softened Rail International Segment Profit (In millions) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Segment Profit | $32.2 million | $26.5 million | $57.9 million | $55.3 million | GATX Rail Europe (GRE) GATX Rail Europe's fleet utilization decreased to 93.3% due to slower economic growth and cautious customer planning - GRE's fleet consisted of approximately 30,500 cars as of June 30, 2025[13] GATX Rail Europe Operating Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Fleet Utilization (%) | 93.3% | 95.1% | 95.8% | - Slower economic growth and macroeconomic uncertainties have led customers to adopt a more cautious approach to railcar fleet planning[4] GATX Rail India GATX Rail India shows robust performance with strong demand and 99.6% fleet utilization, supported by infrastructure development - Rail India's fleet consisted of over 11,100 railcars as of June 30, 2025[13] GATX Rail India Operating Statistics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Fleet Utilization (%) | 99.6% | 99.6% | 100.0% | - Strong operating results and investment opportunities are being driven by continued infrastructure development and strong economic conditions in India[6] Engine Leasing Engine Leasing segment profit significantly increased to $27.3 million in Q2 2025, driven by strong affiliate performance and portfolio growth Engine Leasing Segment Profit (In millions) | Metric ($) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Segment Profit | $27.3 million | $18.4 million | $65.9 million | $44.1 million | - Higher results were driven by strong performance at the Rolls-Royce and Partners Finance affiliates and more engines under ownership at GATX's wholly-owned portfolio[16] - Demand for aircraft spare engines remains strong, and the investment pipeline is expected to be robust for the rest of the year[7] Financial Statements GATX's financial statements reflect increased revenues and net income in Q2 2025, alongside growth in total assets and debt Consolidated Statements of Income GATX's total revenues increased to $430.5 million in Q2 2025, contributing to a significant rise in net income to $75.5 million Consolidated Statements of Income (In millions) | Metric ($) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $430.5 million | $386.7 million | | Net gain on asset dispositions | $40.5 million | $25.6 million | | Interest expense, net | $(96.2 million) | $(82.8 million) | | Income before Income Taxes | $80.5 million | $42.2 million | | Net Income | $75.5 million | $44.4 million | Consolidated Balance Sheets As of June 30, 2025, GATX's total assets increased to $13.2 billion, primarily financed by a rise in total debt to $8.85 billion Consolidated Balance Sheets (In millions) | Metric ($) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $13,200.2 million | $12,296.5 million | | Operating Assets and Facilities, net | $10,927.4 million | $10,449.7 million | | Total Liabilities | $10,530.5 million | $9,857.6 million | | Total Debt | $8,847.4 million | $8,225.7 million | | Total Shareholders' Equity | $2,669.7 million | $2,438.9 million | Supplemental Information Supplemental information provides reconciliation of GAAP to non-GAAP measures and detailed operating statistics for rail segments Reconciliation of GAAP to Non-GAAP Measures Provides reconciliation of GAAP to non-GAAP financial measures, with Q2 2024 adjustments resulting in $52.4 million non-GAAP net income Reconciliation of Net Income (In millions) | Metric ($) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (GAAP) | $75.5 million | $44.4 million | | Adjustments (pre-tax) ($) | $— | $10.7 million | | Net income, excluding items (non-GAAP) | $75.5 million | $52.4 million | - The adjustments in 2024 were related to reserves for environmental remediation costs and gains/losses from the sale of Specialized Gas Vessels[42] Key Operating Metrics and Statistics Operational statistics highlight differing conditions across GATX's rail segments, with strong performance in North America and India Rail North America Statistics Key metrics for Rail North America show sustained strength, with LPI indicating a 24.2% increase and 99.2% fleet utilization Rail North America Operating Statistics | Metric | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | LPI Rate Change (%) | 24.2% | 24.5% | 26.7% | 29.4% | | LPI Avg. Term (months) | 60 months | 61 months | 60 months | 61 months | | Renewal Success Rate (%) | 84.2% | 85.1% | 89.1% | 84.1% | | Utilization (%) | 99.2% | 99.2% | 99.1% | 99.3% | Rail International Statistics Rail Europe's utilization declined to 93.3%, while Rail India's fleet grew to 11,112 cars and maintained 99.6% utilization Rail International Operating Statistics | Rail Europe | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | Ending Fleet (cars) | 30,492 | 30,223 | 30,027 | 29,649 | | Utilization (%) | 93.3% | 95.1% | 96.1% | 95.8% | Rail International Operating Statistics | Rail India | 6/30/2025 | 3/31/2025 | 12/31/2024 | 6/30/2024 | | :--- | :--- | :--- | :--- | :--- | | Ending Fleet (cars) | 11,112 | 10,895 | 10,583 | 9,904 | | Utilization (%) | 99.6% | 99.6% | 100.0% | 100.0% | Other Information Provides standard corporate information, including GATX's role as a global lessor, dividend history, and forward-looking statements Company Description, Conference Call, and Forward-Looking Statements Provides standard corporate information, including GATX's role as a global lessor, dividend history, and forward-looking statements - GATX leases transportation assets such as railcars, aircraft spare engines, and tank containers to customers worldwide and has paid an uninterrupted quarterly dividend since 1919[17] - A teleconference to discuss Q2 2025 results is scheduled for Tuesday, July 29, 2025, at 11 a.m. Eastern Time[18] - The earnings release contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially from expectations[20]