
Trinity 1Q22: ‘Clear Line of Sight to Improved Conditions’
Trinity Industries, Inc. reported first-quarter results “highlighted by strong orders and deliveries,” according to President and CEO Jean Savage.
Trinity Industries, Inc. reported first-quarter results “highlighted by strong orders and deliveries,” according to President and CEO Jean Savage.
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.
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 has wrapped up the $375 million sale of its highway products business to Rush Hour Intermediate II LLC, which is owned by an affiliated investment fund of Monomoy Capital Partners.
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 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 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.
Trinity Industries, Inc., is “very pleased to build on the momentum growing in our business as railcar demand and the overall U.S. economy continue to recover,” President and CEO Jean Savage said during a second-quarter 2021 earnings announcement on July 22.
Trinity Industries’ two partially owned lease subsidiaries have entered into agreements to refinance more than $1.2 billion in outstanding debt.
Railcar demand is on the rise, but so is the price of steel, which Cowen and Company estimates has put a 15%-25% premium on newly built equipment.