2025 COMPANY OVERVIEW The following factors, in addition to those discussed in our press releases and filings with the U.S. Securities and Exchange Commission, could cause actual results to differ materially from our current expectations expressed in forward-looking statements: 3 ▪ a significant decline in customer demand for our transportation assets or services, including as a result of: ▪ prolonged inflation or deflation ▪ high interest rates ▪ weak macroeconomic conditions and world trade policies ▪ wea ...

GATX Conference Call Summary Company Overview - GATX has been in operation for 127 years, originally starting as a railcar leasing company in 1898 and currently focusing on railcar leasing, aircraft engine leasing, and container leasing in the Netherlands [2][3] Competitive Advantages - GATX operates as a full-service operating lessor with over 800 customers in North America, providing a highly diversified fleet and maintenance services, which enhances asset knowledge and customer reliance [4] Recent Acquisition - GATX announced a joint venture with Brookfield Infrastructure Partners to acquire Wells Fargo Rail's assets, including 105,000 railcars and 400 locomotives, with GATX as the controlling partner [6][7] - The joint venture structure allows GATX to maintain financial flexibility while controlling the assets from day one [11] Financial Outlook - The acquisition is expected to be modestly accretive in the full year after closing, with more material contributions anticipated beyond that [15][17] - GATX aims to diversify its fleet further and enhance customer service through operational efficiencies [19] Market Trends - The North American railcar leasing market has seen a shift towards leasing, with class one railroads reducing ownership to about 14-15% of the total railcars [21][22] - In Europe, government initiatives are pushing for a shift from truck to rail, which is expected to drive demand for railcars [23] International Growth - India presents significant growth potential due to its industrialization and infrastructure needs, with expectations of adding 800-1,000 wagons annually [56][58] - GATX's European operations face challenges due to economic conditions, particularly in Germany, but opportunities for growth remain [52][60] Engine Leasing Business - The engine leasing segment has shown strong performance, with high utilization rates and substantial future demand for aircraft engines [62][64] - GATX plans to invest approximately $1 billion through its joint venture with Rolls Royce this year [64] Capital Allocation Strategy - GATX prioritizes capital deployment in the highest risk-adjusted return opportunities across all markets, maintaining a strong balance sheet and investment-grade credit rating [70][71] - The company has a history of returning excess capital to shareholders through dividends and share repurchases [72] Secondary Market Activity - The secondary market for railcars remains robust, with high demand and competitive bidding, allowing GATX to be selective in its purchases [38][41] Conclusion - GATX is well-positioned for growth through strategic acquisitions, a focus on operational efficiencies, and capitalizing on market trends in both North America and internationally [55][70]

Financial Data and Key Metrics Changes - GATX Corporation reported Q1 2025 net income of $78.6 million or $2.15 per diluted share, compared to Q1 2024 net income of $74.3 million or $2.03 per diluted share, reflecting a year-over-year increase [6] - The first quarter results were in line with expectations, with a renewal lease rate increase of 24.5% and fleet utilization in North America at 99.2% [7][8] Business Line Data and Key Metrics Changes - GATX Rail North America's fleet utilization remained high at 99.2%, with a strong renewal success rate of 85.1% [8] - The investment volume in North America during the quarter was over $227 million, with over $30 million generated in asset remarketing income [11] - In Rail International, GATX Rail Europe's fleet utilization remained stable, while GATX Rail India's fleet utilization was very high at 99.6% [12] Market Data and Key Metrics Changes - The European railcar leasing market remains stable, with GATX Rail Europe experiencing high utilization rates [12] - In India, the infrastructure development needs remain strong, mitigating the impact of tariffs or global turmoil on long-term investment outlook [29] Company Strategy and Development Direction - GATX Corporation continues to focus on long-term value, emphasizing the resilience of its assets through economic cycles [34] - The company is prepared for potential economic downturns and is actively seeking investment opportunities during uncertain times [25][35] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of recent tariff announcements has had little effect on business and financial results, although longer-term economic growth could be affected [16][17] - The company reiterated its full-year earnings guidance of $8.30 to $8.70 per diluted share, reflecting confidence in its operational performance [14][34] Other Important Information - The first quarter net maintenance expense was higher compared to the previous year due to increased tank compliance activity [12] - The company has a strong balance sheet and investment-grade rating, providing funding flexibility [86] Q&A Session Summary Question: Concerns about tariff impacts and guidance adjustments - Management indicated that GATX Corporation typically does not adjust earnings guidance in the first quarter and reiterated its annual guidance despite macroeconomic uncertainties [39][40] Question: Supply-side dynamics in railcar leasing - Management confirmed the supply-led market thesis, noting that new railcar production remains constrained, supporting the business [43][45] Question: Demand risks across different markets - Management ranked Europe as having the most uncertainty due to minimal GDP growth, while North America showed strong renewal rates despite customer concerns [48][54] Question: Macro volatility and customer sentiment - Management noted that customers are holding onto their assets despite uncertainty, indicating a preference to maintain their current fleets [56][58] Question: New railcar prices and pass-through ability - Management acknowledged that new car prices are at high levels, but the relationship between new car prices and existing fleet pricing is indirect [64][66] Question: Secondary market valuations and expectations - Management expressed optimism about the secondary market, expecting a healthy remarketing year with valuations holding up well [70][73]