Leaders in the railroad and logistics market continue to see a challenged intermodal market and holiday peak season. Service has been materially improved on both coasts and the Class Is have plenty of capacity to handle more volume. STB Chairman Oberman announced his departure, a surprise to us and all panelists, leaving the seat open until POTUS names his successor.
Despite “an increasingly volatile macro-economic environment,” Wabtec delivered a “strong” third quarter, as evidenced by increased growth in sales, margin, earnings and operating cash flow, Wabtec President and CEO Rafael Santana said during an Oct. 25 financial presentation. Sales were up 22.5% from the prior-year quarter, driven by the Freight and Transit segments, which experienced double-digit growth.
“During the fiscal year, Greenbrier met the evolving needs of our customers to maintain our market-leading position. At the same time, we advanced our strategy to drive operational improvements and realize margin enhancement,” said Greenbrier President and CEO Lorie L. Tekorius during a report on fourth-quarter 2023 and full year financials.
“Consistent with our initial outlook, the railcar leasing environment in North America remains robust,” GATX President and CEO Robert C. Lyons said during a report on third-quarter 2023 financials, which included Rail North America fleet utilization of 99.3% and a renewal success rate of 83.6%.
Railcar demand showed some resilience against a tough macro backdrop, although we view the results of our third-quarter 2023 Rail Equipment Survey as a slight incremental negative for manufacturing and possibly a slight positive for leasing. Our third-quarter 2023 Rail Survey showed that expected rate increases were +3.2%, declining sequentially and sitting below the survey’s long-term average. Business growth expectations remain unchanged, and economic confidence worsened.
At TD Cowen, we are lowering our rail estimates ahead of third-quarter earnings reports to reflect a very challenged environment. Leaders in the rail and logistics market who attended our latest Railroad Happy Hour” called the current outlook “bleak,” with growing uncertainty in 2025.
We hosted freight industry “fireside chats” and presentations on Day 1 of the TD Cowen 16th Annual Global Transportation Conference, being held Sept. 6-7 in Boston. While we heard that the rail
Wabtec “delivered another strong quarter” for the three months ending June 30, 2023, with double-digit earnings per share growth, said President and CEO Rafael Santana, who noted during a July 27 financial report that the “orders pipeline is expected to strengthen” in second-half 2023. The company also raised its full-year 2023 guidance.
Railcar demand showed some resilience against a tough macro backdrop, although we view the results of our Second Quarter 2023 Rail Equipment Survey as a slight incremental negative, similar to our 1Q23
GATX will report its Lease Price Index (LPI) based on a modified methodology beginning with second-quarter 2023. Weighing in on the move: David Nahass, Railway Age Financial Editor, and Matt Elkott, TD Cowen Transportation OEM Analyst and Vice President Equity Research.