NYSE$TRN
Trinity Industries Inc · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Trinity Industries reported mixed results for Q2 2020, with a GAAP loss but positive adjusted EPS, amidst challenging market conditions and strategic realignments.
Trinity Industries reported a GAAP loss of $(1.76) per share but an adjusted EPS of $0.02. The company faced headwinds from the COVID-19 pandemic and economic downturn, but maintained a lease fleet utilization of around 95%. Cost optimization initiatives are underway, expected to yield $70 million in annualized savings.
- Reported quarterly GAAP and Adjusted earnings (loss) from continuing operations of $(1.76) and $0.02 per diluted share, respectively.
- Generated year-to-date operating and free cash flow before leasing investment of $328 million and $372 million, respectively.
- Total committed liquidity of $709 million at the end of the second quarter.
- Pre-tax non-cash asset impairment charges of $369 million related to small cube covered hopper railcars.
Headline financials
Revenue & EPS history
Trinity · Revenue · Quarterly
$509M
Revenue by segment
Trinity · $598M total across 2 segments · Q2 2020
- Rail Products$406M-43.9%67.8%
- Railcar Leasing and Services$193M-30.4%32.2%
Forward guidance
Trinity anticipates that the structural and cyclical administrative cost reductions completed and identified as of the date of this release will generate approximately $70 million in future annualized cost savings. The Company expects to recognize a pre-tax pension settlement charge in the fourth quarter of 2020 totaling between $155 million to $185 million.
Tailwinds
- Annualized cost savings of $70 million underway, encompassing both structural and cyclical savings
- Expects $303 million in federal income tax refunds in 2020, and an additional $150 million in 2021, as a result of utilizing loss carryback provisions included in the CARES Act
- Expanded lease fleet borrowings by $225 million subsequent to quarter-end
- Trinity delivered second quarter cash flow from operations of $154 million
- Liquidity stayed strong at $709 million at quarter end, and has been further enhanced by the recent completion of the $225 million rail financing and amendments to our corporate revolver in the month of July.
Headwinds
- Businesses are facing challenging market dynamics resulting from the historic decline in railcar loadings and the resulting underutilized railcars in North America.
- Pricing pressure on lease rates
- The timeline for a recovery in the rail sector remains unclear as increasing COVID-19 cases in the U.S. potentially threaten the recent improvement in economic and rail market activity.
- Recorded a pre-tax non-cash impairment charge of $369.4 million during the second quarter ended June 30, 2020.
- Company expects to recognize a pre-tax pension settlement charge in the fourth quarter of 2020 totaling between $155 million to $185 million
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
-0.6%
Avg return
Earnings day
-1.6%
Avg return
5 days after
-0.2%
Avg return
30 days after
46%
31 / 67 earnings
Positive
+19.1%
Q2 2012
Best reaction
-25.4%
Q4 2015
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +6.0% | +16.6% | +5.2% | |
| Q3 2025 | -2.7% | -6.2% | -4.7% | |
| Q1 2025 | -2.9% | -1.9% | +2.5% | |
| Q4 2024 | -8.3% | -10.0% | -14.1% | |
| Q3 2024 | -8.8% | -5.4% | +5.5% | |
| Q2 2024 | +2.8% | +1.5% | -0.2% | |
| Q1 2024 | +15.5% | +17.3% | +20.9% | |
| Q4 2023 | -7.3% | -7.4% | -0.5% | |
| Q3 2023 | +15.9% | +13.7% | +23.8% | |
| Q2 2023 | +2.5% | -1.9% | -4.4% | |
| Q1 2023 | -8.7% | -9.7% | -9.9% | |
| Q4 2022 | -9.6% | -5.5% | -19.4% | |
| Q3 2022 | +7.4% | +20.1% | +30.1% | |
| Q2 2022 | +6.0% | +7.7% | +7.3% | |
| Q1 2022 | -7.0% | -11.1% | -18.4% | |
| Q4 2021 | -5.8% | -5.5% | +9.7% | |
| Q3 2021 | +0.5% | -2.1% | -6.0% | |
| Q2 2021 | -0.8% | +0.0% | +5.9% | |
| Q1 2021 | -2.9% | -1.8% | -0.5% | |
| Q4 2020 | -2.8% | +2.2% | -10.2% | |
| Q3 2020 | -5.7% | -7.3% | +0.8% | |
| Q2 2020 | -7.7% | -8.5% | -4.9% | |
| Q1 2020 | +10.4% | +4.1% | +14.3% | |
| Q4 2019 | +5.7% | -1.0% | -26.6% | |
| Q3 2019 | +1.1% | +6.2% | +15.0% | |
| Q2 2019 | -9.1% | -5.9% | -19.2% | |
| Q1 2019 | -11.5% | -9.5% | -13.9% | |
| Q4 2018 | -2.3% | -6.6% | -18.1% | |
| Q3 2018 | -18.3% | -23.3% | -13.8% | |
| Q2 2018 | +1.6% | +2.1% | -0.1% | |
| Q1 2018 | -0.1% | +0.4% | +11.0% | |
| Q4 2017 | -1.4% | -6.1% | -9.9% | |
| Q3 2017 | -8.2% | -7.8% | -1.0% | |
| Q2 2017 | -3.4% | -1.8% | +2.9% | |
| Q1 2017 | +3.0% | +0.5% | -2.6% | |
| Q4 2016 | +1.2% | -3.8% | -4.0% | |
| Q3 2016 | -2.4% | -4.8% | +22.0% | |
| Q2 2016 | +4.2% | +1.0% | +17.0% | |
| Q1 2016 | +4.0% | — | — | |
| Q4 2015 | -25.4% | — | — | |
| Q3 2015 | +4.6% | — | — | |
| Q2 2015 | +4.6% | — | — | |
| Q1 2015 | -12.5% | — | — | |
| Q4 2014 | +6.8% | — | — | |
| Q3 2014 | -2.1% | — | — | |
| Q2 2014 | +1.5% | — | — | |
| Q1 2014 | +4.8% | — | — | |
| Q4 2013 | +10.4% | — | — | |
| Q3 2013 | +7.3% | — | — | |
| Q2 2013 | +6.2% | — | — | |
| Q1 2013 | -3.3% | — | — | |
| Q4 2012 | -3.6% | — | — | |
| Q3 2012 | -3.9% | — | — | |
| Q2 2012 | +19.1% | — | — | |
| Q1 2012 | +1.6% | — | — | |
| Q4 2011 | +5.1% | — | — | |
| Q4 2010 | +4.2% | — | — | |
| Q3 2011 | +4.2% | — | — | |
| Q2 2011 | -13.8% | — | — | |
| Q1 2010 | -4.1% | — | — | |
| Q1 2011 | +6.6% | — | — | |
| Q4 2008 | +2.6% | — | — | |
| Q3 2009 | -3.2% | — | — | |
| Q3 2010 | -3.2% | — | — | |
| Q2 2010 | -1.7% | — | — | |
| Q4 2009 | -1.7% | — | — | |
| Q2 2009 | -1.7% | — | — |
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