GATX(US:GATX)2025-07-29 18:27Part I - Financial Information Financial Statements Presents GATX Corporation's unaudited condensed consolidated financial statements for Q2 and YTD 2025, detailing balance sheets, income, cash flows, and equity Key Financial Statement Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $430.5M | $386.7M | | Net Income | $75.5M | $44.4M | | Diluted EPS | $2.06 | $1.21 | | Total Assets (as of period end) | $13,200.2M | N/A | | Total Liabilities (as of period end) | $10,530.5M | N/A | Key Financial Statement Highlights (YTD 2025 vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Total Revenues | $852.1M | $766.6M | | Net Income | $154.1M | $118.7M | | Diluted EPS | $4.21 | $3.25 | | Net cash provided by operating activities | $285.5M | $235.9M | Notes to Condensed Consolidated Financial Statements Details accounting principles and practices, covering a major acquisition, revenue recognition, lease details, fair value measurements, and segment financial data - GATX entered into a definitive agreement to acquire approximately 105,000 railcars from Wells Fargo for $4.4 billion through a new joint venture with Brookfield, with GATX's initial ownership at 30%, expected to close in Q1 2026 or sooner20 - GATX is involved in multiple lawsuits related to the Norfolk Southern train derailment, with one case resulting in a jury verdict finding no negligence and 0% liability for GATX, while other related lawsuits remain pending with no estimable potential loss676973 Segment Profit (in millions) | Segment | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Rail North America | $96.6 | $78.8 | $185.4 | $169.1 | | Rail International | $32.2 | $26.5 | $57.9 | $55.3 | | Engine Leasing | $27.3 | $18.4 | $65.9 | $44.1 | Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses financial results and condition, detailing segment performance, cash flows, liquidity, the Wells Fargo acquisition, and GAAP to non-GAAP reconciliations Consolidated Financial Highlights (YTD 2025 vs YTD 2024) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net Income | $154.1M | $118.7M | | Diluted EPS | $4.21 | $3.25 | - The increase in net income was largely due to higher revenue and net gain on asset dispositions at Rail North America, higher revenue at Rail International, and higher earnings at the RRPF affiliates93 - GATX announced a major acquisition of ~105,000 railcars from Wells Fargo via a joint venture with Brookfield, which is expected to close in Q1 202691 Segment Operations Details the operational and financial performance of GATX's primary business segments, including Rail North America, Rail International, and Engine Leasing - Rail North America: Segment profit increased 22.6% in Q2 2025 year-over-year, with fleet utilization at 99.2% and a positive Lease Price Index renewal rate change of 24.2%99108119 - Rail International: Segment profit grew 21.5% in Q2 2025 year-over-year, despite a challenging European market where utilization fell to 93.3%, while Rail India operations remained strong with 99.6% utilization124125145 - Engine Leasing: Segment profit surged 48.4% in Q2 2025 year-over-year, driven by higher earnings from the RRPF affiliates and strong demand for spare engines, with RRPF utilization at 98.4%150154164 Cash Flow Discussion Analyzes cash flow activities for YTD 2025, showing increased operating cash, decreased investing cash usage, and significant financing inflows Cash Flow Summary (YTD 2025 vs YTD 2024, in millions) | Cash Flow Activity | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $285.5 | $235.9 | | Net cash used in investing activities | $(365.0) | $(699.0) | | Net cash provided by financing activities | $425.6 | $839.3 | - The decrease in cash used for investing was primarily due to fewer railcars, locomotives, and aircraft spare engines acquired compared to the prior year184 Liquidity and Capital Resources Discusses GATX's strong liquidity, capital resources, available credit facilities, improved leverage ratio, and investment-grade credit ratings - As of June 30, 2025, GATX had two fully available U.S. revolving credit facilities totaling $1.0 billion, and €130 million available under its European facility195196 Recourse Leverage Ratio | Date | Ratio | | :--- | :--- | | June 30, 2025 | 3.1 | | June 30, 2024 | 3.3 | - The company holds investment-grade credit ratings: BBB from S&P, Baa2 from Moody's, and BBB+ from Fitch204 Non-GAAP Financial Measures Reconciles GAAP to non-GAAP financial measures, used by management to analyze underlying business performance and provide comparable operational results Reconciliation of Diluted EPS (Q2 2024) | Metric | Amount (in dollars) | | :--- | :--- | | Diluted EPS (GAAP) | $1.21 | | Environmental reserves adjustment | $0.22 | | Diluted EPS (non-GAAP) | $1.43 | Quantitative and Qualitative Disclosures About Market Risk Reports no material changes in market risk exposures, including interest rate and foreign currency risks, or derivative instruments since December 31, 2024 - There have been no material changes in interest rate and foreign currency exposures or the types of derivative instruments used to hedge these exposures since year-end 2024220 Controls and Procedures Management concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of the end of the quarter, the company's disclosure controls and procedures were effective221 - No material changes occurred in the company's internal control over financial reporting during the quarter ended June 30, 2025222 Part II - Other Information Legal Proceedings Incorporates by reference information on litigation and other contingencies detailed in Note 13 of the financial statements - Information regarding legal proceedings is located in "Note 13. Legal Proceedings and Other Contingencies" in Part I of the report225 Risk Factors Reports no material changes to the company's risk factors since December 31, 2024 - There have been no material changes in the company's risk factors since December 31, 2024226 Unregistered Sales of Equity Securities and Use of Proceeds Details GATX's Q2 2025 share repurchases, including the number of shares, total cost, and remaining authorization under the program - In Q2 2025, GATX repurchased 103,891 shares for $15.2 million228 - As of June 30, 2025, $48.1 million remained available under the share repurchase authorization228