2026 COMPANY OVERVIEW Table of Contents | SECTION | SLIDE NO. | | | --- | --- | --- | | History and Business Overview | | 4 | | Railcar Leasing Business Model | | 14 | | Rail North America | | 21 | | Rail International | | 39 | | Engine Leasing | | 49 | | Trifleet | | 54 | | Financial Highlights | | 57 | | Reconciliation of Non-GAAP Measures | | 63 | 2 Forward-Looking Statements Statements in this presentation not based on historical facts are "forward-looking statements" within the meaning of the Private S ...

Financial Data and Key Metrics Changes - In 2025, the company achieved revenues of $501 million, a 4.2% increase from 2024, with adjusted net income of $18.1 million or $0.50 per diluted share [18][19] - Gross margin expanded by over 260 basis points, and adjusted EBITDA rose approximately 10% year-over-year, reflecting improved operating leverage and cost discipline [5][12] - Free cash flow reached $31.4 million, up approximately 45% year-over-year, demonstrating strong cash generation capabilities [6][21] Business Line Data and Key Metrics Changes - The company gained delivery market share by nearly 300 basis points, despite total industry deliveries declining to approximately 31,000 railcars from 42,000 in the prior year [14] - The acquisition of Carli Railcar Components expanded aftermarket capabilities and is expected to contribute $13 million-$15 million in revenue for 2026 [9][30] - The company reported a backlog of 1,926 railcars valued at $137.5 million, providing visibility into 2026 production [10][16] Market Data and Key Metrics Changes - North American new railcar orders totaled approximately 20,000 units in 2025, down from roughly 25,000 in the prior year, indicating a moderation in industry orders [15] - The company expects industry deliveries in 2026 to be in the range of 25,000-30,000 railcars, with a corresponding market share increase to approximately 15%-16% [49][50] Company Strategy and Development Direction - The company aims to maintain consistent margin performance, generate strong free cash flow, and expand its aftermarket and tank capabilities [11][12] - The strategic roadmap includes building a more robust recurring revenue platform through acquisitions and enhancing customer relationships [9][12] - The company is focused on progressing tank car readiness for retrofit programs, which are expected to contribute to long-term goals [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging year for the North American rail market but emphasized strong underlying fundamentals and the company's resilience [4][11] - The company anticipates a normalization of demand as fleets age and replacement needs reassert themselves, positioning itself well to capitalize on emerging opportunities [11][12] - For 2026, the company forecasts revenues between $500 million and $550 million, reflecting a 4.8% year-over-year increase at the midpoint [27] Other Important Information - The company ended 2025 with $64.3 million in cash and low net debt, operating at the low end of its targeted leverage range [21][24] - Capital expenditures for 2026 are expected to be between $7 million and $10 million, focusing on maintenance and strategic investments [25] Q&A Session Summary Question: What is the revenue estimate for the aftermarket business in 2026? - The company expects approximately $40 million-$41 million for the aftermarket business in 2026 [30] Question: Will interest expense decline in 2026? - The company anticipates interest expense to decrease to around $14 million-$15 million due to debt repayments [31][32] Question: What drove margin expansion during the quarter? - Margin expansion was primarily driven by productivity and operational improvements rather than just a higher proportion of higher-margin cars [39] Question: What is the outlook for industry deliveries in 2026? - The company expects industry deliveries to be in the range of 25,000-30,000 railcars, with an increase in market share [49][50] Question: How long does it take for orders to convert into deliveries? - Order conversion can take anywhere from a year down to days, depending on customer needs and planning [72]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenues of $501 million on 4,125 units, reflecting a 4.2% improvement from 2024 [18] - Adjusted net income for the full year was $18.1 million or $0.50 per diluted share, influenced by a non-cash tax benefit of approximately $51.9 million [19] - Free cash flow increased by 44.8% year-over-year to $31.4 million, demonstrating strong cash generation capabilities [21][6] Business Line Data and Key Metrics Changes - The company expanded its aftermarket platform through the acquisition of Carli Railcar Components, which is expected to enhance revenue mix and capabilities [9] - The fourth quarter of 2025 saw consolidated revenues of $125.6 million with deliveries of 1,172 railcars, compared to $137.7 million on deliveries of 1,019 railcars in the fourth quarter of 2024 [21][22] - Adjusted EBITDA for the fourth quarter was $10.4 million, down from $13.9 million in the same quarter of 2024, primarily due to mix impacts [23] Market Data and Key Metrics Changes - The North American railcar market experienced a decline in new build activity, with total industry deliveries dropping to approximately 31,000 railcars in 2025 from 42,000 in the prior year [14] - The company increased its delivery market share by nearly 300 basis points despite the overall decline in industry deliveries [14] - North American new railcar orders totaled approximately 20,000 units in 2025, down from roughly 25,000 in the prior year [15] Company Strategy and Development Direction - The company aims to maintain consistent margin performance, generate strong free cash flow, and expand its aftermarket and tank capabilities [11] - The acquisition of Carli Railcar Components is seen as a foundational step in building a more robust recurring revenue platform [9] - The company is focused on progressing tank car readiness for retrofit programs, with a backlog of 1,926 railcars valued at $137.5 million at year-end [10] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year for the North American rail market, but underlying fundamentals remain strong [4] - The company expects revenues for 2026 to be between $500 million and $550 million, reflecting a year-over-year increase at the midpoint of the range [27] - Management expressed confidence that normalization in demand will occur as fleets age and replacement needs reassert themselves [11] Other Important Information - The company ended 2025 with $64.3 million in cash and low net debt, operating at the low end of its targeted leverage range [24] - Capital expenditures for 2026 are expected to be between $7 million and $10 million, with a focus on maintenance and strategic investments [25] Q&A Session Summary Question: What is the expected revenue for the aftermarket business in 2026? - Management indicated that $40 million-$41 million is an appropriate estimate for the aftermarket business in 2026 [30] Question: What is the outlook for interest expense in 2026? - Management expects interest expense to decline to around $14 million-$15 million due to debt repayments [31][32] Question: What drove margin expansion during the quarter? - Management stated that productivity improvements were the primary driver of margin expansion, rather than mix changes [39] Question: What is the industry outlook for deliveries in 2026? - Management anticipates industry deliveries in the range of 25,000-30,000 railcars for 2026, with expectations for increased order activity in the second half of the year [49] Question: How long does it take for orders to convert into deliveries? - Management noted that order conversion can take anywhere from a year down to days, depending on customer needs [72]

Financial Data and Key Metrics Changes - In 2025, the company achieved revenues of $501 million on 4,125 units, reflecting a 4.2% improvement from 2024 [17] - Adjusted net income for the full year was $18.1 million or $0.50 per diluted share, influenced by a non-cash tax benefit of approximately $51.9 million [18] - Free cash flow increased by approximately 45% year-over-year to $31.4 million, demonstrating strong cash generation capabilities [5][19] Business Line Data and Key Metrics Changes - The company expanded its gross margin by over 260 basis points, with adjusted EBITDA rising approximately 10% year-over-year [5][11] - The acquisition of Carli Railcar Components enhanced aftermarket capabilities and diversified revenue streams [8] - The company maintained a balanced strategy with a mix of new car deliveries and specialized programs, securing approximately 3,250 total orders in 2025 [14][15] Market Data and Key Metrics Changes - The North American railcar market saw new build activity decline to approximately 31,000 railcars in 2025, down from 42,000 in the prior year [12] - The company increased its delivery market share by nearly 300 basis points despite the overall decline in industry deliveries [12][14] - The backlog at the end of 2025 was 1,926 railcars valued at $137.5 million, providing visibility into 2026 production [9][15] Company Strategy and Development Direction - The company aims to deliver consistent margin performance, generate strong free cash flow, and expand its aftermarket and tank capabilities [10][24] - The strategic roadmap includes building a more robust recurring revenue platform through acquisitions and enhancing customer relationships [8][11] - The company is positioned to capitalize on emerging opportunities as the railcar market normalizes [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year for the North American rail market, but underlying fundamentals remain strong [4][10] - The company expects industry deliveries in 2026 to be in the range of 25,000-30,000 railcars, with a corresponding market share increase to 15%-16% [46][48] - Management expressed confidence in the normalization of demand as fleets age and replacement needs arise [10][11] Other Important Information - The company ended 2025 with $64.3 million in cash and low net debt, operating at the low end of its targeted leverage range [22][19] - Capital expenditures for 2026 are expected to be between $7 million and $10 million, focusing on maintenance and strategic investments [22][23] Q&A Session Summary Question: Revenue estimate for the aftermarket business in 2026 - The company expects the aftermarket business to generate approximately $40 million-$41 million in 2026 [28] Question: Expected decline in interest expense - The company anticipates interest expense to decline to around $14 million-$15 million due to debt repayments [29][30] Question: Drivers of margin expansion - Margin expansion was primarily driven by productivity improvements rather than just a favorable mix [36] Question: Industry delivery outlook for 2026 - The company expects industry deliveries to be in the range of 25,000-30,000 railcars, with a potential increase in market share [46][48] Question: Demand for rebuilds and retrofits - There is increasing demand for conversions and retrofits due to cost savings and value for customers [55] Question: Backlog coverage for 2026 deliveries - The backlog entering 2026 is smaller compared to recent years, but the company has optimized operations to respond to market dynamics [56][58]

Core Insights - The acquisition of 101,000 railcars from Wells Fargo Rail effectively doubles GATX's North American fleet to 208,000 cars, enhancing customer service under a unified commercial structure [1] - Management projects an 11% EPS growth in 2025, driven by strong secondary market demand and record performance in the engine leasing segment, which has experienced its strongest growth to date [1] Industry Overview - The North American rail market is described as 'supply-led,' characterized by low new car production and steady scrapping, leading to net fleet shrinkage and high utilization rates [1] Strategic Initiatives - Strategic portfolio optimization is being accelerated by leveraging the expanded fleet size to target $200 million in asset disposition gains by 2026 [1] - Operational efficiencies are being achieved by consolidating maintenance providers for the acquired fleet, reducing the shop network from 80 to a smaller group of preferred third-party partners [1] Engine Leasing Dynamics - The strength in engine leasing is attributed to global supply chain constraints and limited repair capacity, which have increased the value and lease rates of the existing installed base of spare engines [1]

Financial Data and Key Metrics Changes - GATX reported fourth quarter 2025 net income of $97 million or $2.66 per diluted share, an increase from $76.5 million or $2.10 per diluted share in Q4 2024, reflecting an EPS growth of 11% over 2024 [3][4] - For the full year 2025, net income was $333.3 million or $9.12 per diluted share, compared to $284.2 million or $7.78 per diluted share in 2024, indicating a significant year-over-year increase [4] - The full year results for both 2025 and 2024 included impacts from tax adjustments, with a net positive impact of $0.37 per diluted share in 2025 and a net negative impact of $0.11 per diluted share in 2024 [4] Business Line Data and Key Metrics Changes - Rail North America maintained utilization at 99% and closed on over $640 million of new investments, optimizing the portfolio and generating substantial remarketing income [7] - Rail International faced challenges but managed to raise lease rates and maintain solid utilization levels, closing a significant transaction by acquiring nearly 6,000 rail cars from DB Cargo [8] - GATX India grew its portfolio to over 12,000 wagons, with robust demand for spare aircraft engines leading to strong earnings growth in engine leasing [8] Market Data and Key Metrics Changes - The economic environment in India was strong, contributing positively to GATX's results, while Rail International in Europe faced a challenging economic backdrop [17] - The secondary market for railcars remained robust, with strong demand for GATX leased assets, which allowed the company to capitalize on portfolio optimization [7] Company Strategy and Development Direction - GATX's strategy includes integrating the Wells Fargo rail acquisition, which added 101,000 rail cars to its portfolio, creating a consolidated fleet of 208,000 rail cars [10][12] - The company aims to maintain a conservatively structured balance sheet with leverage steady at 3.3 to 1 while continuing to find investment opportunities [6] - GATX plans to manage the combined fleet as a single entity, providing a unified commercial contact for customers [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong EPS growth in 2026, targeting a range of $9.50-$10.10 per diluted share, marking another year of record EPS [21] - The company anticipates a similar operating environment in North America as experienced in 2025, with expectations for lease revenue to reach approximately $1.6 billion in 2026 [14] - Management highlighted the importance of maintaining tight control over maintenance spending, which is projected to be around $500 million in 2026 [33] Other Important Information - The board approved an 8.2% increase in the quarterly dividend, reflecting confidence in the strength and quality of cash flow [25] - A new $300 million share repurchase authorization was also approved, indicating a commitment to returning capital to shareholders [26] Q&A Session Summary Question: Can you frame up the magnitude of gains on sales factored into the EPS guidance? - Management indicated targeting around $200 million for gains on sales, noting historical variability in these figures [31] Question: What areas of the business could see more variability in results for 2026? - Variability is expected primarily in remarketing gains and maintenance spending, which could significantly impact financial results [33] Question: Can you provide more detail on synergies from the Wells Fargo acquisition? - Initial guidance suggests $0.20-$0.30 accretion from the transaction, with further synergies expected to materialize over time [36] Question: Are there any potential railcar shortages being observed? - Management confirmed a stable and supportive market but did not report outright shortages, indicating a net fleet shrinkage in North America [48] Question: How do you expect the Wells Fargo fleet to impact remarketing income? - The Wells Fargo fleet is expected to contribute significantly to the $200 million target for remarketing income, with a focus on quality saleable deals [79][82]

Financial Data and Key Metrics Changes - GATX reported Q4 2025 net income of $97 million or $2.66 per diluted share, an increase from $76.5 million or $2.10 per diluted share in Q4 2024, representing a 27% increase in net income and a 27% increase in EPS [3][4] - For the full year 2025, net income was $333.3 million or $9.12 per diluted share, compared to $284.2 million or $7.78 per diluted share in 2024, marking a 17% increase in net income and a 17% increase in EPS [4] - The full year results included a net positive impact from tax adjustments of $0.37 per diluted share in 2025, compared to a net negative impact of $0.11 per diluted share in 2024 [4] Business Line Data and Key Metrics Changes - Rail North America maintained utilization at 99% and closed on over $640 million of new investments, with a strong secondary market for leased assets [7][8] - Rail International faced challenges but managed to raise lease rates and maintain solid utilization levels, with a significant acquisition of nearly 6,000 rail cars from DB Cargo [9] - GATX India grew its portfolio to over 12,000 wagons, benefiting from a strong economic environment, and saw robust demand for spare aircraft engines, leading to the strongest earnings growth among GATX businesses in 2025 [9] Market Data and Key Metrics Changes - The economic environment in North America is expected to remain stable, with a projected utilization rate of 98%-99% for the consolidated fleet by year-end 2026 [14] - The lease pricing index (LPI) is expected to be in the high teens to low 20% positive range, following a 21.9% posted in Q4 2025 [14] - The secondary market for railcars is expected to remain robust, with GATX anticipating approximately $200 million of net gains on asset dispositions in 2026, up from $130 million in 2025 [16] Company Strategy and Development Direction - GATX is focused on integrating the Wells Fargo rail portfolio and management activities into its operations, with a consolidated fleet of 208,000 rail cars [10][13] - The company aims to maintain a conservatively structured balance sheet with leverage steady at 3.3 to 1 while pursuing investment opportunities [6] - GATX's capital allocation strategy prioritizes acquiring hard assets at attractive valuations, managing the balance sheet prudently, and returning excess capital to shareholders through dividends and share repurchases [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong EPS growth in 2026, projecting EPS in the range of $9.50-$10.10 per diluted share, marking a 10% increase [21] - The integration of the Wells Fargo acquisition is progressing well, with expectations of capturing synergies and benefits over time [22][38] - Management highlighted the importance of maintaining tight control over maintenance spending and managing potential disruptions in the global economy [34] Other Important Information - The board approved an 8.2% increase in the quarterly dividend, reflecting confidence in cash flow strength and business outlook [26] - A new $300 million share repurchase authorization was also approved, indicating a commitment to returning capital to shareholders [27] Q&A Session Summary Question: EPS guidance and gains on sales - Management indicated that the $200 million target for gains on sales is subject to variability, with historical trends suggesting a potential range of $10 million to $15 million [30][31] Question: Variability across business segments - The biggest sources of variability in financial results are projected remarketing gains and maintenance spending, with management emphasizing the importance of managing these factors tightly [34] Question: Synergies from the Wells Fargo acquisition - Initial guidance for synergies from the acquisition is estimated at $0.20-$0.30 per share, with expectations for modest accretion in year two [36][37] Question: Engine leasing market conditions - The global aviation market remains strong, with supply constraints contributing to increased value in the existing engine portfolio [45][46] Question: Railcar shortages and market dynamics - Management confirmed a stable and supportive market for railcars, with no outright shortages but a net fleet shrinkage due to fewer new cars being produced [51][52]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported earnings per share (EPS) of $3.14, a 73% year-over-year increase, and an adjusted return on equity (ROE) of 24.4%, up 67% from the prior year [5][19] - Full-year revenue was $2.2 billion, reflecting a decrease due to lower external railcar deliveries [18] - The company ended the year with a cash flow from continuing operations of $367 million and returned $170 million to shareholders through dividends and share repurchases [20] Business Line Data and Key Metrics Changes - The Railcar Leasing and Services segment saw a 5.5% year-over-year revenue increase, driven by higher lease rates and net fleet growth [9] - Segment operating profit increased by 53% year-over-year, supported by a railcar partnership restructuring that recorded a $194 million non-cash gain [10] - Fleet utilization remained strong at 97.1%, with renewal success of 73% in the fourth quarter [10] Market Data and Key Metrics Changes - The North American railcar fleet experienced a net contraction in 2025, with approximately 31,000 railcars delivered and over 38,000 older cars retired [8] - The company expects industry deliveries of approximately 25,000 railcars in 2026, which is below replacement levels but reflective of current industry backlogs [7] - Inquiry levels and orders picked up in the fourth quarter, indicating potential demand recovery [8] Company Strategy and Development Direction - The company is focused on generating resilient earnings, strong cash flow, and attractive returns across various market conditions [5] - The introduction of AI into manufacturing, logistics, and financial workflows aims to optimize operations and improve margins [13][14] - The company plans to simplify its fleet structure further and expects to maintain historical market share despite lower new railcar deliveries [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of earnings and visibility of leasing cash flows, with guidance for 2026 EPS set between $1.85 and $2.10 [6][24] - The company anticipates solid operating margins driven by disciplined execution and cost actions, despite lower delivery volumes [7][21] - Management noted that while inquiry levels are improving, decision cycles remain longer, delaying orders [30] Other Important Information - The company raised its quarterly dividend to $0.31 per share, marking seven consecutive years of dividend growth [20] - The restructuring of railcar partnerships simplified ownership structures and improved earnings transparency [11][16] Q&A Session Summary Question: Demand and Inquiry Levels - Management noted that while inquiry levels are increasing, decision cycles are longer, delaying orders, but replacement demand fundamentals remain strong [30][31] Question: Margin Expectations - Management expects margins to remain in the 5%-6% range for 2026, with some pressure on margins due to competitive dynamics [32][50] Question: Leasing Consolidation - There has been consolidation in the leasing space, and while there is capital looking to enter, no immediate transactions are anticipated [38] Question: Guidance Clarification - The guidance range reflects expectations for customer demand and includes a significant range for gains from secondary market activities [48] Question: Customer Ordering Activity - Management believes 2026 may mark a bottom for customer ordering activity, with signs of stabilization in rail traffic and manufacturing hiring [62]

Financial Data and Key Metrics Changes - For the full year 2025, the company delivered earnings per share (EPS) of $3.14, a 73% year-over-year increase, and achieved an adjusted return on equity of 24.4%, up 67% from the prior year [7] - Full-year revenue was $2.2 billion, reflecting a decrease due to lower external railcar deliveries [25] - The fourth quarter revenue was $611 million, with EPS of $2.31, impacted by approximately $1.50 from the railcar partnership restructuring [26] Business Line Data and Key Metrics Changes - The Railcar Leasing and Services segment saw full-year revenues increase by 5.5% year-over-year, driven by higher lease rates and net fleet growth [13] - Segment operating profit increased by 53% year-over-year, supported by a $194 million non-cash gain from a railcar partnership restructuring [14] - Fleet utilization remained strong at 97.1%, with renewal success of 73% in the fourth quarter [14] Market Data and Key Metrics Changes - The North American railcar fleet experienced a net contraction in 2025, with approximately 31,000 railcars delivered and over 38,000 older cars retired [10] - Industry deliveries are expected to be approximately 25,000 railcars in 2026, well below replacement levels [9] - Rail network fluidity has improved, with railcars in storage rising above 21% for the first time since 2021 [10] Company Strategy and Development Direction - The company is focused on generating resilient earnings, strong cash flow, and attractive returns across various market conditions [6] - There is an emphasis on integrating new technologies, including AI, to optimize business operations and lower the break-even point [20] - The company plans to simplify its fleet structure further and contribute remaining partially owned railcars to its managed fleet [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of earnings and visibility of leasing cash flows, despite a moderated pace of growth in certain railcar categories [8] - There are signs of stabilization in demand, with expectations for a return to replacement level demand in 2027 [39][72] - The company anticipates maintaining a rail product segment operating margin of 5%-6% for the full year 2026 [29] Other Important Information - The company returned $170 million to shareholders in 2025 through dividends and share repurchases, with a quarterly dividend increase to $0.31 per share [27] - The company has liquidity of $1.1 billion, providing flexibility for capital deployment [28] - The restructuring of the railcar partnership is expected to simplify the ownership structure and improve earnings while maintaining economic value [17] Q&A Session Summary Question: Demand and Inquiry Levels - Management noted that while customers are engaged, decision cycles are longer, delaying orders, but replacement demand fundamentals remain strong [39] Question: Margin Expectations - Management expects margins to remain in the 5%-6% range for 2026, with a disciplined approach to order intake [41] Question: Leasing Consolidation - There has been consolidation in the leasing space, and while there is an appetite for growth from private capital, no immediate actions are anticipated [46] Question: Guidance Clarification - The guidance range reflects expectations for customer demand and potential gains from secondary market activities [57] Question: Customer Ordering Activity - Management believes 2026 may mark a bottom for customer ordering activity, with signs of stabilization in rail traffic [72]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported earnings per share (EPS) of $3.14, a 73% year-over-year increase, and an adjusted return on equity (ROE) of 24.4%, up 67% from the prior year [5][19] - Full year revenue was $2.2 billion, reflecting a decrease due to lower external railcar deliveries [18] - The company ended the year with a strong balance sheet, liquidity of $1.1 billion, and a loan-to-value ratio of 70.2% for the wholly owned lease fleet [20] Business Line Data and Key Metrics Changes - The Railcar Leasing and Services segment saw full-year revenues increase by 5.5% year-over-year, driven by higher lease rates and net fleet growth [9] - Segment operating profit increased by 53% year-over-year, supported by a railcar partnership restructuring that recorded a $194 million non-cash gain [10] - Fleet utilization remained strong at 97.1%, with renewal success of 73% in the fourth quarter [10] Market Data and Key Metrics Changes - The North American railcar fleet experienced a net contraction in 2025, with approximately 31,000 railcars delivered and over 38,000 older cars retired [7] - Rail network fluidity improved, with railcars in storage rising above 21% for the first time since 2021 [8] - The company expects industry deliveries of approximately 25,000 railcars in 2026, well below replacement levels [6] Company Strategy and Development Direction - The company is focused on generating resilient earnings, strong cash flow, and attractive returns across various market conditions [5] - There is an emphasis on integrating new technologies, including AI, to optimize business operations and lower the break-even point [13] - The company plans to simplify its fleet structure further and contribute remaining partially owned railcars to its managed fleet [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of earnings and visibility of leasing cash flows, despite a muted outlook for 2026 [6] - There are signs of stabilization in demand, with expectations for a return to replacement level demand in 2027 [30][63] - The company anticipates maintaining a rail product segment operating margin of 5%-6% for the full year 2026 [21] Other Important Information - The company returned $170 million to shareholders in 2025 through dividends and share repurchases, marking seven consecutive years of dividend growth [20] - The company has set three-year targets for net lease fleet investment, cash flow from operations, and adjusted ROE, with progress towards these targets being on track [25][26] Q&A Session Summary Question: Demand and Inquiry Levels - Management noted that while customer engagement is strong, decision cycles are longer, delaying orders, but replacement demand fundamentals remain intact [30] Question: Margin Expectations and Deliveries - Management expects a relatively even margin throughout the year, with a target of 5%-6% for the rail product segment [34] Question: Lease Rates and Renewal Rates - The future lease rate differential remains positive, with renewal rates significantly above expiring rates, indicating potential for continued lease rate upside [35] Question: Leasing Consolidation and Competitive Dynamics - There has been consolidation in the leasing space, with active trading expected to continue, although no immediate transactions are anticipated [37] Question: Guidance Range and Customer Demand - The guidance range reflects expectations for customer demand, with a focus on maintaining historical market share despite lower new railcar deliveries [47] Question: Confidence in 2026 - Management expressed optimism that 2026 may mark a bottom for customer ordering activity, with signs of stabilization in rail traffic and manufacturing hiring [63]