NYSE$TRN

Trinity Industries Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Trinity's Q3 2023 performance reflected stronger results with revenue growth and improvements in key metrics.

Trinity Industries reported a strong third quarter in 2023, marked by a 65% increase in revenue compared to the previous year. The company saw improvements in lease rates, fleet utilization, and operating margins within its Rail Products Group. However, deliveries were impacted by border closures and congestion, leading to a revised full-year adjusted EPS guidance.

  • Total company revenues increased to $821 million, a 65% improvement year-over-year.
  • Lease fleet utilization remained high at 98.1%, with a Future Lease Rate Differential (FLRD) of positive 26.6%.
  • The company delivered 4,325 railcars and secured orders for 3,200 railcars, resulting in a backlog of $3.6 billion.
  • Adjusted EPS guidance for the full year was lowered to a range of $1.20 to $1.35 due to delivery impacts and supply chain issues.

Headline financials

Total Revenue

$821M

Previous: $497M+65.4%
EPS (adj)

$0.26

Previous: $0.34-23.5%
Fleet Utilization

98.1%

Previous: 97.9%+0.2%
Railcar Deliveries

4.3K

Previous: 3.9K+9.9%
New Railcar Orders

3.2K

Previous: 19.5K-83.6%
Capital Expenditures

-$29.4M

Previous: -$25.7M-14.4%
Free Cash Flow

-$7.6M

Previous: $100K-7700.0%
Net Income

$21.8M

Previous: $25.8M-15.5%
Operating Income

$100M

Previous: $92.7M+8.1%
Gross Profit

$142M

Previous: $101M+40.0%
Cash & Equivalents

$267M

Previous: $58.5M+355.9%
Total Assets

$8.97B

Previous: $8.6B+4.4%
Stock-Based Comp

$6.1M

Previous: $5.9M+3.4%

Revenue & EPS history

Trinity · Revenue · Quarterly

$821M

Q3 2023+65.4%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Trinity · $905M total across 2 segments · Q3 2023

  • Rail Products
    $682M+14.2%
  • Railcar Leasing and Services
    $223M+14.3%

Forward guidance

Trinity lowered its full year adjusted EPS guidance to a range of $1.20 to $1.35 due to missed deliveries in the third quarter and related supply chain and efficiency impacts caused by congestion at the Mexico border. This guidance reflects expected meaningful growth in the fourth quarter, and the company maintains conviction in its ability to execute and close the year with solid momentum.

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 Q3 2023

Historical avgQ3 2023

-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

Earnings price reactions
QuarterReport dateReaction (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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