Trinity Industries

Cowen Insight: 1Q22 Shipper Surveys Say …

Cowen and Company transportation analysts Jason Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Elliott Alper recently conducted their first-quarter 2022 rail equipment and shipper surveys. Following are the results, plus insights on The Greenbrier Companies Inc. (GBX), Trinity Industries Inc. (TRN), GATX Corporation, and the Class I railroads, ahead of earnings.

Trinity Industries President and CEO Jean Savage

Trinity: ‘Strong 4Q21 Highlights Improving Market Conditions’

For Trinity Industries’ Rail Products Group, “margins were positive, and railcar orders and deliveries were strong” in fourth-quarter 2021, President and CEO Jean Savage reported during a Feb. 17 earnings announcement. “The labor and supply chain challenges that have affected performance continued in the fourth quarter, but the company is seeing improvement as market conditions start to normalize.”

Trinity Industries’ highway products business “works with state highway departments and contractors to provide highway guardrails, crash cushions, truck-mounted attenuators, flexible post delineators, traffic control barriers and a variety of proprietary roadside products.”
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Trinity to Shed Highway Products Business

Trinity Industries on Nov. 3 reported entering into a definitive agreement to sell its highway products business to Monomoy Capital Partners for $375 million in cash; the move will allow Trinity to “fully focus” on its rail-related business.

“While market activity continues to improve, Trinity's third-quarter results were negatively impacted by labor shortages and turnover as well as supply chain disruptions, diluting the impact of margin improvement initiatives in the Rail Products Group,” President and CEO Jean Savage said during a Oct. 21 earnings announcement.

Trinity: Challenging 3Q21, Improving Railcar Market Outlook (Updated, Cowen)

While Trinity Industries’ Rail Products Group was “challenged” in third-quarter 2021, the Railcar Leasing and Management Service Group had “another quarter of strong performance, and we maintain our view that market fundamentals for railcar leasing should continue to ramp up into 2022,” President and CEO Jean Savage said on Oct. 21.

Trinity, Wafra Form Investment Partnership

Trinity Industries, Inc., and global alternative investment manager Wafra, Inc., have teamed on a new program that will invest in “diversified portfolios of leased railcars originated by Trinity Industries Leasing Company.” It will target up to $1 billion in total acquisitions over a three-year period, the companies reported.