Trinity Industries(US:TRN)2025-05-01 18:06Financial Performance - Revenues for the three months ended March 31, 2025, were $585.4 million, a decrease of 27.7% compared to $809.6 million for the same period in 2024[120]. - Operating profit for the three months ended March 31, 2025, was $99.8 million, a decrease of 13.4% from $115.2 million for the same period in 2024[120]. - Revenues for the three months ended March 31, 2025, were $585.4 million, a decrease of $224.2 million, or 27.7%, compared to the prior year period due to lower external deliveries in the Rail Products Group[127]. - Operating profit for the three months ended March 31, 2025, totaled $99.8 million, a decrease of $15.4 million, or 13.4%, from the prior year period[131]. - The Rail Products Group's revenues were $420.5 million for the three months ended March 31, 2025, a decrease of 37.0% compared to the same period in 2024[124]. - The Rail Products Group experienced a 37.0% decrease in total revenues, from $667.4 million in 2024 to $420.5 million in 2025, primarily due to lower deliveries[142]. Cost and Expenses - The cost of revenues for the three months ended March 31, 2025, was $443.2 million, down from $644.9 million in the same period of 2024[123]. - Cost of revenues for the same period was $443.2 million, representing a decrease of $201.7 million, or 31.3%, primarily due to lower external deliveries in the Rail Products Group[128]. - Operating costs for selling, engineering, and administrative expenses decreased by 7.9% to $24.4 million in Q1 2025 compared to $26.5 million in Q1 2024[146]. Leasing and Fleet Utilization - The Leasing Group's lease fleet utilization was 96.8% as of March 31, 2025, down from 97.5% on March 31, 2024[120]. - The Railcar Leasing and Services Group generated revenues of $287.4 million for the three months ended March 31, 2025, reflecting a 0.8% increase from the previous year[124]. - Operating profit margin for the Railcar Leasing and Services Group improved to 36.4% in 2025 from 35.2% in 2024[137]. Orders and Deliveries - The Rail Products Group received orders for 695 railcars and delivered 3,060 railcars in the three months ended March 31, 2025, compared to orders for 1,880 railcars and deliveries of 4,695 railcars in the same period of 2024[120]. - Revenues from new railcars decreased to $113.8 million in Q1 2025 from $135.2 million in Q1 2024, a decline of 15.5%[145]. Cash Flow and Investments - Net cash provided by operating activities from continuing operations increased to $78.4 million in Q1 2025 from $56.5 million in Q1 2024, a growth of 38.5%[150]. - Net cash used in investing activities decreased to $91.6 million in Q1 2025 from $124.0 million in Q1 2024, a reduction of 26.2%[151]. - Net cash used in financing activities was $124.2 million in Q1 2025, compared to a net cash provided of $71.8 million in Q1 2024[152]. - The company anticipates a net fleet investment of between $300 million and $400 million for the full year 2025[153]. Debt and Liquidity - Total committed liquidity as of March 31, 2025, was $920.2 million, including $94.9 million in unrestricted cash[149]. - As of March 31, 2025, the company had total debt repayments of $77.3 million related to normal amortization activity[156]. - The company maintained compliance with all financial covenants, with a maximum leverage ratio of 1.36 against a covenant of no greater than 3.75 to 1.00[152]. Interest and Tax - Interest expense, net, for the three months ended March 31, 2025, was $66.1 million, compared to $69.1 million for the same period in 2024[123]. - Interest expense, net for the three months ended March 31, 2025, was $66.1 million, down from $69.1 million in the prior year, due to lower average debt and interest rates[132]. - The effective tax rate from continuing operations for the three months ended March 31, 2025, was 20.3%, compared to 25.8% in the prior year[134][135]. Gains and Backlog - Gains on dispositions of property increased by $4.8 million for the three months ended March 31, 2025, primarily due to higher gains on lease portfolio sales[130]. - The total value of the new railcar backlog at March 31, 2025, was $1.9 billion, compared to $2.9 billion at March 31, 2024[120]. - The average selling price in the ending backlog for the Rail Products Group increased by 8.6% from $127,363 in 2024 to $138,314 in 2025[144].