Trinity Industries(US:TRN)2025-10-30 15:41Financial Performance - Revenues for the nine months ended September 30, 2025, were $1,545.7 million, a decrease of 36.9% compared to $2,449.8 million for the same period in 2024[117] - Operating profit for the nine months ended September 30, 2025, was $313.8 million, down 17.3% from $379.5 million in the prior year[117] - Revenues for the three months ended September 30, 2025, were $454.1 million, a decrease of $344.7 million, or 43.2%, compared to the same period in 2024[128] - Operating profit for the three months ended September 30, 2025, totaled $118.6 million, a decrease of $3.8 million, or 3.1%, from the prior year period[132] - Rail Products Group revenues decreased by 53.8% to $278.8 million for the three months ended September 30, 2025, and by 47.9% to $992.8 million for the nine months ended September 30, 2025, primarily due to lower deliveries[145] Operational Metrics - The Leasing Group's lease fleet utilization was 96.8% as of September 30, 2025, compared to 96.6% for the same date in 2024[117] - The total value of the new railcar backlog at September 30, 2025, was $1.8 billion, down from $2.4 billion at the same time in 2024[117] - The Rail Products Group received orders for 3,355 railcars and delivered 6,555 railcars in the nine months ended September 30, 2025, compared to 6,185 orders and 13,810 deliveries in the same period of 2024[117] Investment and Financing - The company made a net fleet investment of approximately $387.4 million for the nine months ended September 30, 2025[117] - The company entered into an amended term loan agreement increasing the amount from $320.7 million to $1.05 billion and extending the maturity date to April 30, 2030[120] - On October 28, 2025, the company issued $535.2 million of Series 2025-1 Green Secured Railcar Equipment Notes with an interest rate of 5.11%[123] - Total borrowings during the nine months ended September 30, 2025, amounted to $1,284.1 million, with total debt repayments of $1,039.2 million, resulting in net proceeds of $244.9 million[161] Cash Flow and Liquidity - Net cash provided by operating activities from continuing operations for the nine months ended September 30, 2025, was $187.2 million, down from $383.5 million in 2024, a decrease of 51.2%[159] - Net cash used in investing activities for the nine months ended September 30, 2025, was $398.4 million, significantly higher than $105.2 million in 2024, reflecting increased fleet investments[160] - Total committed liquidity as of September 30, 2025, was $571.4 million, including $66.3 million in unrestricted cash and $502.7 million available under the revolving credit facility[154] Cost and Expenses - Cost of revenues for the three months ended September 30, 2025, was $312.7 million, a decrease of $316.6 million, or 50.3%, compared to the same period in 2024[129] - Selling, engineering, and administrative expenses for the three months ended September 30, 2025, were $45.2 million, a decrease of $15.3 million, or 25.3%, compared to the same period in 2024[130] - Cost of revenues increased by 6.9% to $180.5 million for the three months ended September 30, 2025, and by 7.1% to $531.3 million for the nine months ended September 30, 2025, primarily due to higher maintenance and compliance costs[141] Tax and Gains - The effective tax rate from continuing operations for the three months ended September 30, 2025, was an expense of 23.0%[135] - Gains on dispositions of property increased by $9.0 million for the three months ended September 30, 2025, primarily due to higher gains on lease portfolio sales[131] Future Outlook - The company anticipates a net fleet investment of between $250 million and $350 million for the full year 2025[163] - Cash flow from operations with net gains on lease portfolio sales for the nine months ended September 30, 2025, was $222.6 million, compared to $419.7 million in 2024, a decrease of 47.0%[169] - As of September 30, 2025, the company maintained a maximum leverage ratio of 2.19, well below the covenant limit of 3.75 to 1.00[162]