Trinity Industries, Inc. Announces $1.8B Multi-Year Railcar Order

Rhea-AI Summary

Trinity Industries, Inc. (NYSE:TRN) announced a significant long-term railcar supply agreement with GATX Corporation. The deal involves delivering 15,000 newly built tank and freight railcars over six years. Trinity will supply 6,000 tank cars from 2024 to 2028 and 9,000 additional cars over the same period. GATX has the option to order 500 extra railcars annually. CEO Jean Savage highlighted the strong partnership and the potential for robust returns for shareholders through this agreement.

Positive

• Long-term agreement with GATX includes delivery of 15,000 railcars, enhancing revenue visibility.
• Potential for additional orders of 500 railcars each year increases future revenue opportunities.
• CEO emphasizes strong partnership, suggesting stability and reliability in business operations.

Negative

• None.

DALLAS--(BUSINESS WIRE)-- Trinity Industries, Inc. (NYSE:TRN) (“Trinity”) announced that its subsidiary, Trinity Rail Group, LLC, has entered into a new long-term railcar supply agreement with GATX Corporation (“GATX”) to deliver a mix of 15,000 newly built tank and freight railcars over a six-year period. GATX has the option to order an additional 500 railcars in each order year. Under the terms of the agreement, Trinity will deliver 6,000 tank cars at a rate of 1,200 cars each year from 2024 through 2028. The remaining 9,000 cars, which can be a mix of freight and tank cars, will be ordered at a rate of 1,500 cars per order year from 2023 to 2028 and delivered under a schedule to be determined.

“This multi-year railcar order with GATX represents the extension of a strong partnership,” said Jean Savage, Trinity’s Chief Executive Officer and President. “We are proud of the relationship we have built with GATX and pleased that they have once again selected TrinityRail as the premier North American railcar manufacturer.”

Ms. Savage continued, “At Trinity, we continue to believe that our ability to provide railcars for shippers, railroads, and other leasing companies gives us the broadest view into trends and dynamics in the industry and, ultimately, drives strong returns for our shareholders.”

About Trinity Industries

Trinity Industries, Inc., headquartered in Dallas, Texas, owns businesses that are leading providers of rail transportation products and services in North America. Our businesses market their railcar products and services under the trade name TrinityRail®. The TrinityRail platform provides railcar leasing and management services, as well as railcar manufacturing, maintenance and modifications. Trinity reports its financial results in two reportable segments: the Railcar Leasing and Management Services Group and the Rail Products Group. For more information, visit: www.trin.net.

Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intentions or strategies for the future, and the assumptions underlying these forward-looking statements, including, but not limited to, future financial and operating performance, future opportunities and any other statements regarding events or developments that Trinity believes or anticipates will or may occur in the future, including the potential financial and operational impacts of the COVID-19 pandemic. Trinity uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “projected,” “outlook,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Trinity expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in Trinity’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to risks and uncertainties regarding economic, competitive, governmental, and technological factors affecting Trinity’s operations, markets, products, services and prices, and such forward-looking statements are not guarantees of future performance. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and “Forward-Looking Statements” in Trinity’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by Trinity’s Quarterly Reports on Form 10-Q, and Trinity’s Current Reports on Form 8-K.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221003005222/en/

Investor Contact:

Leigh Anne Mann

Vice President, Investor Relations

Trinity Industries, Inc.

(Investors) 214/631-4420



Media Contact:

Jack L. Todd

Vice President, Public Affairs

Trinity Industries, Inc.

(Media Line) 214/589-8909

Source: Trinity Industries, Inc.

FAQ

What is the new agreement announced by Trinity Industries with GATX Corporation?

Trinity Industries has entered into a long-term railcar supply agreement with GATX Corporation to deliver 15,000 railcars over six years.

How many tank cars will Trinity deliver under the new agreement with GATX?

Trinity will deliver 6,000 tank cars at a rate of 1,200 cars each year from 2024 through 2028.

What is the total number of railcars GATX can order from Trinity according to the agreement?

GATX can order a total of 15,000 railcars, with an option for an additional 500 railcars each year.

What is the stock symbol for Trinity Industries?

The stock symbol for Trinity Industries is TRN.

How does this agreement impact Trinity’s shareholders?

The new agreement is expected to drive strong returns for Trinity's shareholders by enhancing revenue visibility.