Wabtec Corporation employees gathered this week to celebrate 60 years of locomotive production in Brazil. (Photo Collage Courtesy of Wabtec, via Twitter)
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Supply Side: Greenbrier, Wabtec

The Greenbrier Companies’ leasing subsidiary has entered into a new term loan to finance the continued growth of its fleet. Also, Wabtec Corporation is celebrating 60 years of locomotive production in Brazil.

(Photograph by William C. Vantuono)

ARCI: Railcar Backlog Rising

Newly released data from the Railway Supply Institute (RSI) American Railway Car Institute (ARCI) Committee shows second-quarter 2022 orders are down 13% and deliveries are up 20% sequentially. Total backlog was up 3%, to 47,461, from first-quarter 2022, and up 27% from the same period last year.

Trinity 2Q22: ‘Improvement and Momentum’

Trinity Industries on July 27 reported second-quarter 2022 GAAP and adjusted earnings that “reflect improvement and momentum and reinforce our optimism for the back half of the year,” according to President and CEO Jean Savage.

“Demand for the majority of railcar types in our fleet remains robust, and absolute lease rates increased sequentially for the eighth consecutive quarter,” GATX President and CEO Robert C. Lyons said during a second-quarter 2022 financials report. (Photograph Courtesy of GATX)

GATX Ups 2022 Earnings Expectations on Global Rail Market ‘Strength’

“Despite ongoing macroeconomic uncertainty, the operating environment remains strong across our global railcar leasing markets,” GATX President and CEO Robert C. Lyons said during a report on second-quarter 2022 financials, which included Rail North America fleet utilization of 99.4% and a renewal success rate of 87.7%.

Counting on Rail Congestion as a Rail Equipment Demand Driver is Not a Sustainable Long-Term Strategy

Our July 12 rail equipment expert call takeaways are consistent with J.B. Hunt Transport’s (JBHT) recent comments on about sub-optimal 2Q22 rail service (below). This solidifies our expectation of an eighth consecutive lease rate improvement for GATX, which reports on July 21. We continue to favor the shares into the print as detailed in our July 7 machinery and transportation OEM preview, “Revisions Into the Print.”

Greenbrier 3Q22: $3.6B Backlog, 97.5% Lease Utilization (UPDATED July 13, Cowen)

While The Greenbrier Companies posted “strong operating results” in the third fiscal-quarter ending May 31, 2022—with lease fleet utilization at 97.5%, deliveries at 5,200 units and a $3.6 billion backlog—the “performance was partially offset by inflation and the impact of the war in Ukraine,” President and CEO Lorie Tekorius said during a July 11 report.