Trinity Industries, Inc. (TRN) Bundle
A Brief History of Trinity Industries, Inc.
Company Overview
Trinity Industries, Inc. is a diversified industrial company based in Dallas, Texas, primarily engaged in the manufacture and leasing of railcars and other products and services. As of September 30, 2024, the company has a total asset value of approximately $8.84 billion, down from $8.91 billion at the end of 2023.
Financial Performance
For the nine months ended September 30, 2024, Trinity reported revenues of $2.45 billion, which represents a 12.1% increase compared to $2.18 billion for the same period in 2023. The operating profit for the same period was $379.5 million, up from $268.3 million year-over-year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Revenue | $2.45 billion | $2.18 billion |
| Operating Profit | $379.5 million | $268.3 million |
| Net Income | $119.3 million | $58.5 million |
| Earnings per Share (Diluted) | $1.31 | $0.52 |
Stockholder Equity and Dividends
As of September 30, 2024, Trinity's total stockholders' equity stood at approximately $1.29 billion. The company declared cash dividends totaling $70.1 million for the nine months ended September 30, 2024, compared to $64.7 million during the same period in 2023.
Debt Structure
Trinity Industries maintains a diversified debt portfolio. As of September 30, 2024, the company had total debt of approximately $5.7 billion. This includes:
- $600 million in senior notes due 2028.
- $432.4 million in secured railcar equipment notes due 2054.
- $800 million warehouse loan facility with a maturity date of March 15, 2028.
Operational Highlights
The company's railcar leasing fleet as of September 30, 2024, consisted of 109,555 company-owned railcars, with a utilization rate of 96.6%. This is a slight decrease from a 98.1% utilization rate with a fleet of 109,055 railcars as of September 30, 2023.
Market Activity
In the first nine months of 2024, Trinity received orders for 6,185 railcars while delivering 13,810 railcars, compared to 10,660 orders and 13,355 deliveries in the same period of 2023. The total value of the new railcar backlog was approximately $2.4 billion as of September 30, 2024, down from $3.6 billion a year earlier.
Capital Expenditures
Trinity anticipates a net fleet investment of between $200 million and $300 million for the full year 2024. For the nine months ended September 30, 2024, the company made a net fleet investment of approximately $86.5 million, compared to $237.5 million in the same period of 2023.
| Capital Expenditure Metric | 2024 (Projected) | 2023 (Actual) |
|---|---|---|
| Net Fleet Investment | $200 - $300 million | $237.5 million |
| New Railcar Orders | 6,185 | 10,660 |
| Railcar Deliveries | 13,810 | 13,355 |
Conclusion of Financial Overview
Trinity Industries continues to show resilience and growth amid market fluctuations, focusing on strategic investments and maintaining a solid financial foundation.
A Who Owns Trinity Industries, Inc. (TRN)
Major Shareholders
As of 2024, Trinity Industries, Inc. (TRN) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders include:
| Shareholder Type | Shareholder Name | Percentage Ownership |
|---|---|---|
| Institutional Investor | BlackRock, Inc. | 8.1% |
| Institutional Investor | Vanguard Group, Inc. | 7.5% |
| Institutional Investor | State Street Corporation | 5.4% |
| Insider | Timothy A. Wallace (CEO) | 2.2% |
| Insider | Other executives and directors | 1.8% |
| Public Float | Various Individual Investors | 75.0% |
Stock Performance and Trading Information
As of September 30, 2024, Trinity Industries, Inc. has shown fluctuations in its stock performance. The stock price has exhibited the following metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $39.24 |
| Market Capitalization | $3.23 billion |
| 52-Week High | $42.85 |
| 52-Week Low | $28.15 |
| Dividend Yield | 0.28 |
| P/E Ratio | 29.2 |
Recent Financial Highlights
The financial performance of Trinity Industries for the nine months ended September 30, 2024, includes:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenues | $2,449.8 |
| Net Income | $119.3 |
| Operating Profit | $379.5 |
| Cash Dividends Paid | $70.1 |
| Total Assets | $5,587.4 |
| Total Liabilities | $4,298.9 |
Ownership of Subsidiaries
Trinity Industries has interests in partially-owned subsidiaries related to railcar leasing:
| Subsidiary Name | Ownership Percentage | Carrying Value (in millions) |
|---|---|---|
| TRIP Holdings | 42.6% | $125.3 |
| RIV 2013 | 30.5% | $125.3 |
Debt and Financing Structure
As of September 30, 2024, Trinity Industries has established a solid financing structure:
| Debt Type | Amount (in millions) |
|---|---|
| TILC Warehouse Loan Facility | $800.0 |
| Senior Notes due 2028 | $600.0 |
| Secured Railcar Equipment Notes | $432.4 |
| Total Debt | $4,298.9 |
Recent Changes in Ownership
In recent months, there has been notable activity in the ownership structure:
- Increased institutional ownership from major investment firms.
- Insider purchases by executives reflecting confidence in company performance.
- Public float remains high, indicating strong interest from retail investors.
Trinity Industries, Inc. (TRN) Mission Statement
Trinity Industries, Inc. (TRN) is committed to providing comprehensive railcar leasing and manufacturing solutions that drive customer success while enhancing the safety and efficiency of rail transportation. The company seeks to innovate continuously through advanced technology and operational excellence, ensuring sustainable growth and value creation for stakeholders.
Financial Overview
As of September 30, 2024, Trinity Industries reported total revenues of $2,449.8 million, marking a 12.1% increase compared to the same period in 2023. Operating profit reached $379.5 million, a significant rise of 41.4% year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $798.8 million | $821.3 million | -2.7% |
| Operating Profit | $122.4 million | $100.2 million | 22.2% |
| Net Income | $35.5 million | $23.6 million | 50.8% |
| Operating Profit Margin | 15.3% | 12.2% | 25.4% |
Segment Performance
The performance of Trinity's segments is critical to understanding its mission effectiveness. The Railcar Leasing and Services Group generated revenues of $856.1 million for the nine months ended September 30, 2024, up 12.2% from the previous year. The Rail Products Group reported revenues of $1,904.8 million, reflecting a 2.0% increase.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Railcar Leasing and Services Group | $289.5 million | $261.7 million | 10.6% |
| Rail Products Group | $603.2 million | $624.1 million | -3.3% |
Backlog and Production
As of September 30, 2024, Trinity's total backlog for new railcars was valued at $2.4 billion, down from $3.6 billion in the previous year, indicating a 34.3% decrease. The company delivered 13,810 railcars in the nine months ended September 30, 2024, compared to 13,355 railcars in the same period in 2023.
Operational Efficiency
The company reported a lease fleet utilization rate of 96.6% as of September 30, 2024, a decline from 98.1% in the previous year. This indicates a need for improved operational strategies to maintain high utilization levels amidst fluctuating market demands.
| Operational Metric | As of September 30, 2024 | As of September 30, 2023 |
|---|---|---|
| Lease Fleet Utilization | 96.6% | 98.1% |
| Number of Railcars in Fleet | 109,555 | 109,055 |
Capital Investments
For the full year 2024, Trinity anticipates a net fleet investment of between $200 million and $300 million, with capital expenditures related to operations projected between $50 million and $60 million.
Debt and Liquidity
As of September 30, 2024, Trinity Industries had total committed liquidity of $924.2 million, comprising $222.4 million in unrestricted cash and equivalents, $595.6 million unused under its revolving credit facility, and $106.2 million available under the TILC warehouse loan facility.
| Liquidity Metric | Amount (in millions) |
|---|---|
| Unrestricted Cash and Cash Equivalents | $222.4 |
| Available Revolving Credit Facility | $595.6 |
| Available TILC Warehouse Facility | $106.2 |
Dividend Policy
Trinity Industries declared dividends of $70.1 million during the nine months ended September 30, 2024, compared to $64.7 million in the same period in 2023.
How Trinity Industries, Inc. (TRN) Works
Business Overview
Trinity Industries, Inc. operates primarily in the rail transportation sector, providing products and services related to railcars, railcar leasing, and other rail-related services. The company is segmented into two main divisions: Railcar Leasing and Services Group, and Rail Products Group.
Financial Performance
For the nine months ended September 30, 2024, Trinity reported total revenues of $2,449.8 million, marking a 12.1% increase compared to the same period in 2023. The operating profit for the same period was $379.5 million, up from $268.3 million a year earlier.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $798.8 million | $821.3 million | -2.7% |
| Operating Profit | $122.4 million | $100.2 million | 22.2% |
| Net Income | $31.4 million | $21.8 million | 44.1% |
| Basic Earnings per Share | $0.38 | $0.27 | 40.7% |
Railcar Leasing and Services Group
This division focuses on leasing railcars and providing related services. As of September 30, 2024, the leasing fleet consisted of 109,555 company-owned railcars, with a utilization rate of 96.6%.
For the nine months ended September 30, 2024, the Railcar Leasing and Services Group reported operating profit of $343.5 million, an increase from $296.5 million in the previous year.
Rail Products Group
The Rail Products Group manufactures railcars and components. For the same nine-month period, this segment achieved an operating profit of $143.1 million, significantly up from $77.8 million in the prior year.
| Backlog Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Backlog Value | $2.4 billion | $3.6 billion |
| Orders Received | 6,185 railcars | 10,660 railcars |
| Deliveries | 13,810 railcars | 13,355 railcars |
Cost Management
For the nine months ended September 30, 2024, the cost of revenues was $1,936.6 million, up 6.5% from the previous year. The company has effectively managed costs, with a decrease in operating costs in the Rail Products Group attributed to improved labor efficiencies and reduced supply chain disruptions.
Debt and Liquidity
As of September 30, 2024, Trinity had total committed liquidity of $924.2 million, comprised of $222.4 million in cash and cash equivalents and $701.8 million in unused credit facilities.
The company issued $432.4 million of secured railcar equipment notes in May 2024, with an interest rate of 5.78%, and redeemed $94.1 million of outstanding debt.
| Debt Metrics | Amount |
|---|---|
| Outstanding Debt (as of September 30, 2024) | $1,831.0 million |
| Total Repayments (2024) | $1,762.4 million |
| Net Debt Investment | $86.5 million |
Dividend Policy
Trinity Industries declared a cash dividend of $0.28 per common share for 2024, totaling $70.1 million paid to shareholders during the nine months ended September 30, 2024.
Market Position and Outlook
The company continues to enhance its market position through strategic fleet investments and operational efficiencies. The outlook for 2024 includes anticipated net fleet investments between $200 million and $300 million and capital expenditures for administrative activities ranging from $50 million to $60 million.
How Trinity Industries, Inc. (TRN) Makes Money
Revenue Streams
Trinity Industries, Inc. generates revenue primarily through two main segments: the Rail Products Group and the Railcar Leasing and Services Group.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) | YTD 2024 Revenue (in millions) | YTD 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|---|---|---|
| Rail Products Group | $603.2 | $624.1 | (3.3) | $1,904.8 | $1,867.1 | 2.0 |
| Railcar Leasing and Services Group | $289.2 | $261.3 | 10.6 | $854.0 | $761.8 | 12.1 |
| Total Revenue | $798.8 | $821.3 | (2.7) | $2,449.8 | $2,185.4 | 12.1 |
Rail Products Group
The Rail Products Group focuses on manufacturing railcars, including new railcars and sustainable railcar conversions. For the three months ended September 30, 2024, the operating profit for this group was $48.9 million, a significant increase from $29.4 million in the same quarter of 2023, marking a 66.3% improvement.
The group's revenue from sustainable railcar conversions was $12.8 million for Q3 2024, representing 170 railcars, and $77.4 million for the nine months ended September 30, 2024, representing 1,040 railcars.
Railcar Leasing and Services Group
This segment provides leasing services for railcars and related services. For Q3 2024, the Railcar Leasing and Services Group reported an operating profit of $115.2 million, up from $95.8 million in Q3 2023, reflecting a 20.3% increase.
The Leasing Group's revenue for the three months ended September 30, 2024, was $289.2 million, compared to $261.3 million in Q3 2023. The group experienced improved lease rates and gains on lease portfolio sales, leading to higher profitability.
Operating Costs
Operating costs for the Rail Products Group decreased by 7.1% for Q3 2024, totaling $545.7 million compared to $587.4 million in Q3 2023. This reduction was attributed to improved labor efficiencies and operational efficiencies.
The Leasing and Services Group's operating costs were $168.6 million in Q3 2024, up from $156.5 million in Q3 2023. This increase was primarily due to higher maintenance and compliance expenses.
Profit Margins
The operating profit margin for the Rail Products Group increased to 8.1% in Q3 2024 from 4.7% in Q3 2023. For the Leasing and Services Group, the profit margin was notably higher, reflecting the improved lease rates and operational efficiencies.
Future Outlook
As of September 30, 2024, Trinity Industries had a backlog of new railcars valued at $2.4 billion, down from $3.6 billion in the previous year. The company anticipates delivering approximately 19.9% of its railcar backlog value during the remaining months of 2024.
Financial Performance Summary
For the three months ended September 30, 2024, Trinity Industries reported a net income of $35.5 million, compared to $23.6 million in Q3 2023. For the nine months ended September 30, 2024, the net income was $119.3 million.
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income (in millions) | $35.5 | $23.6 | $119.3 | $58.5 |
| Operating Profit (in millions) | $122.4 | $100.2 | $379.5 | $268.3 |
Overall, Trinity Industries, Inc. continues to leverage its strengths in both manufacturing and leasing to generate revenue, while maintaining a focus on operational efficiency and profitability.
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Article updated on 8 Nov 2024
Resources:
- Trinity Industries, Inc. (TRN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Trinity Industries, Inc. (TRN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Trinity Industries, Inc. (TRN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.