GATX CORP

Previous wording

In the first quarter of 2024, we changed the name of our Portfolio Management business segment to Engine Leasing to reflect the prospective operations of this business segment. Historically, this business segment included marine operations from our liquefied gas-carrying vessels (the "Specialized Gas Vessels"). As of December 31, 2023, we had sold all of our marine assets and no longer have any marine operations. The segment is now almost entirely comprised of our engine leasing operations, which include our ownership interest in the RRPF affiliates, a group of joint ventures with Rolls-Royce plc (or affiliates thereof, collectively "Rolls-Royce") that lease aircraft spare engines, and GATX Engine Leasing ("GEL"), our business that directly owns aircraft spare engines that are leased to airline customers or employed in an engine capacity agreement.

Current wording

In the first quarter of 2024, we changed the name of our Portfolio Management business segment to Engine Leasing to reflect the prospective operations of this business segment. Historically, this business segment included marine operations from our liquefied gas-carrying vessels (the "Specialized Gas Vessels"). As of December 31, 2023, we had sold all of our marine assets and no longer have any marine operations. The segment is now almost entirely composed of our engine leasing operations, which include our ownership interest in the RRPF affiliates, a group of joint ventures with Rolls-Royce plc (or affiliates thereof, collectively "Rolls-Royce") that lease aircraft spare engines, and GATX Engine Leasing ("GEL"), our business that directly owns aircraft spare engines that are leased to airline customers or employed in an engine capacity agreement.

Previous wording

Operating results for the six months ended June 30, 2024 are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2024. In particular, asset remarketing income does not occur evenly throughout the year. For more information, refer to the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2023.

Current wording

Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2024. In particular, asset remarketing income does not occur evenly throughout the year. For more information, refer to the consolidated financial statements and footnotes in our Annual Report on Form 10-K for the year ended December 31, 2023.

Previous wording

Net income for the six months ended June 30, 2024 was $118.7 million, or $3.25 per diluted share, compared to $140.7 million, or $3.87 per diluted share, for the same period in 2023. Results for the six months ended June 30, 2024 included a net negative impact of $7.4 million ($0.20 per diluted share) from tax adjustments and other items, compared to a net negative impact of $1.1 million ($0.03 per diluted share) from tax adjustments and other items for the six months ended June 30, 2023. See "Non-GAAP Financial Measures" at the end of this item for further details. Excluding the impact of these items, net income decreased $15.7 million compared to the prior year, largely due to lower asset disposition gains at Rail North America, the absence of the sale of natural gas holdings in the prior year, lower share of affiliates' earnings at the RRPF affiliates, and higher interest expense, partially offset by higher revenue at Rail North America and Rail International and higher non-dedicated engine revenue at Engine Leasing.

Current wording

Net income for the nine months ended September 30, 2024 was $207.7 million, or $5.68 per diluted share, compared to $193.2 million, or $5.30 per diluted share, for the same period in 2023. Results for the nine months ended September 30, 2024 included a net negative impact of $9.9 million ($0.27 per diluted share) from tax adjustments and other items, compared to a net negative impact of $1.1 million ($0.03 per diluted share) from tax adjustments and other items for the nine months ended September 30, 2023. See "Non-GAAP Financial Measures" at the end of this item for further details. Excluding the impact of these items, net income increased $23.3 million compared to the prior year, largely due to higher revenue at Rail North America and Rail International, higher non-dedicated engine revenue at Engine Leasing, higher asset disposition gains at Rail North America, and higher share of affiliates' earnings at the RRPF affiliates, partially offset by higher maintenance and interest expense and the absence of the sale of natural gas holdings in the prior year.

Previous wording

Net income for the three months ended June 30, 2024 was $44.4 million, or $1.21 per diluted share, compared to $63.3 million, or $1.74 per diluted share, for the same period in 2023. Results for the three months ended June 30, 2024 included a net negative impact of $8.0 million ($0.22 per diluted share), compared to a net positive impact of $0.2 million ($0.01 per diluted share) from tax adjustments and other items. See "Non-GAAP Financial Measures" at the end of this item for further details. Excluding the impact of these items, net income decreased $10.7 million compared to the prior year, largely due to lower asset disposition gains at Rail North America, the absence of the sale of natural gas holdings in the prior year, lower share of affiliates' earnings at the RRPF affiliates, and higher interest expense, partially offset by higher revenue at Rail North America and Rail International and higher non-dedicated engine revenue at Engine Leasing.

Current wording

Net income for the three months ended September 30, 2024 was $89.0 million, or $2.43 per diluted share, compared to $52.5 million, or $1.44 per diluted share, for the same period in 2023. Results for the three months ended September 30, 2024 included a net negative impact of $2.5 million ($0.07 per diluted share) from tax adjustments and other items. See "Non-GAAP Financial Measures" at the end of this item for further details. Excluding the impact of these items, net income increased $39.0 million compared to the prior year, largely due to higher revenue at Rail North America and Rail International, higher non-dedicated engine revenue at Engine Leasing, higher asset disposition gains at Rail North America, and higher share of affiliates' earnings at the RRPF affiliates, partially offset by higher maintenance and interest expense and the absence of the sale of natural gas holdings in the prior year.

Previous wording

Supply of existing railcars remained tight for most railcar types, and Rail North America continued to capitalize on current market conditions for both lease rates and lease terms. Utilization was 99.3% at the end of the current quarter.

Current wording

The railcar leasing market remained relatively strong and the supply of existing railcars remained tight for most railcar types. Rail North America continued to capitalize on current market conditions for both lease rates and lease terms. Utilization was 99.3% at the end of the current quarter.

Previous wording

As of June 30, 2024, leases for approximately 11,700 tank and freight cars and approximately 1,400 boxcars were scheduled to expire over the remainder of 2024. These amounts exclude railcars on leases expiring in 2024 that have already been renewed or assigned to a new lessee.

Current wording

As of September 30, 2024, leases for approximately 7,200 tank and freight cars and approximately 1,000 boxcars were scheduled to expire over the remainder of 2024. These amounts exclude railcars on leases expiring in 2024 that have already been renewed or assigned to a new lessee.

Previous wording

In 2022, we entered into a new long-term railcar supply agreement with a subsidiary of Trinity Industries, Inc. ("Trinity") to purchase 15,000 newly built railcars through 2028, with an option to order up to an additional 500 railcars each year from 2023 to 2028. The agreement enables us to order a broad mix of tank and freight cars. Trinity will deliver 6,000 tank cars (1,200 per year) from 2024 through 2028. The remaining 9,000 railcars, which can be a mix of freight and tank cars, will be ordered at a rate of 1,500 railcars per order year from 2023 to 2028 and delivered under a schedule to be determined. At June 30, 2024, 4,319 railcars have been ordered pursuant to the terms of the agreement, of which 2,312 railcars have been delivered.

Current wording

In 2022, we entered into a new long-term railcar supply agreement with a subsidiary of Trinity Industries, Inc. ("Trinity") to purchase 15,000 newly built railcars through 2028, with an option to order up to an additional 500 railcars each year from 2023 to 2028. The agreement enables us to order a broad mix of tank and freight cars. Trinity will deliver 6,000 tank cars (1,200 per year) from 2024 through 2028. The remaining 9,000 railcars, which can be a mix of freight and tank cars, are expected to be ordered at a rate of 1,500 railcars per order year from 2023 to 2028 and delivered under a schedule to be determined. At September 30, 2024, 5,014 railcars have been ordered pursuant to the terms of the agreement, of which 2,833 railcars have been delivered.

Previous wording

Our Lease Price Index ("LPI") is an internally-generated business indicator that measures renewal activity for our North American railcar fleet, excluding boxcars. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate. The average renewal lease term is reported in months and reflects the average renewal lease term in the LPI.

Current wording

Our Lease Price Index ("LPI") is an internally-generated business indicator that measures renewal activity for our North American railcar fleet, excluding boxcars. The LPI calculation includes all renewal activity based on a 12-month trailing average, and the renewals are weighted by the count of all renewals over the 12-month period. The average renewal lease rate change is reported as the percentage change between the average renewal lease rate and the average expiring lease rate. The average renewal lease term is reported in months and reflects the average renewal lease term in the LPI.

Previous wording

During the second quarter of 2024, the renewal rate change of the LPI was positive 29.4%, compared to positive 33.0% in the prior quarter, and positive 33.1% in the second quarter of 2023. Lease terms on renewals for railcars in the LPI averaged 61 months in the current quarter, compared to 64 months in the prior quarter, and 61 months in the second quarter of 2023.

Current wording

During the third quarter of 2024, the renewal rate change of the LPI was positive 26.6%, compared to positive 29.4% in the prior quarter, and positive 33.4% in the third quarter of 2023. Lease terms on renewals for railcars in the LPI averaged 59 months in the current quarter, compared to 61 months in the prior quarter, and 65 months in the third quarter of 2023.

Previous wording

In the three months ended June 30, 2024, segment profit of $78.8 million decreased 0.6% compared to $79.3 million for the same period in the prior year. The decrease was primarily due to lower net gain on asset dispositions, higher interest expense, and higher maintenance expense, largely offset by higher lease revenue. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period.

Current wording

In the nine months ended September 30, 2024, segment profit of $271.5 million increased 12.8% compared to $240.6 million for the same period in the prior year. The increase was primarily due to higher lease revenue and higher net gain on asset dispositions, partially offset by higher interest expense and higher maintenance expense. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period.

Previous wording

In the six months ended June 30, 2024, lease revenue increased $44.6 million, or 10.3%, driven by higher lease rates and more railcars on lease. Other revenue increased $11.5 million due to higher repair revenue.

Current wording

In the nine months ended September 30, 2024, lease revenue increased $68.6 million, or 10.4%, driven by higher lease rates and more railcars on lease. Other revenue increased $18.1 million, primarily due to higher repair revenue.

Previous wording

In the six months ended June 30, 2024, maintenance expense increased $16.6 million, driven by higher costs of repairs, more regulatory compliance events, and more repairs performed by the railroads. Depreciation expense increased $0.3 million due to the timing of new railcar investments and dispositions, offset by a change in the useful lives of certain railcars. Other operating expense decreased $0.6 million primarily due to lower switching and freight costs.

Current wording

In the nine months ended September 30, 2024, maintenance expense increased $24.9 million, driven by higher costs of repairs, more regulatory compliance events, and more repairs performed by the railroads. Depreciation expense increased $2.6 million, due to the timing of new railcar investments and dispositions, partially offset by a change in the useful lives of certain railcars.

Previous wording

In the six months ended June 30, 2024, net gain on asset dispositions decreased $22.8 million due to fewer railcars sold, lower gains on railcars converted to finance leases, and lower net scrapping gains. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period. Net interest expense increased $22.9 million, driven by a higher average interest rate and a higher average debt balance.

Current wording

In the nine months ended September 30, 2024, net gain on asset dispositions increased $8.4 million, driven by higher net gains on railcars sold and higher net scrapping gains. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period. Net interest expense increased $36.5 million, due to a higher average interest rate and a higher average debt balance.

Previous wording

In the six months ended June 30, 2024, segment profit of $169.1 million decreased 3.1% compared to $174.5 million for the same period in the prior year. The decrease was primarily due to lower net gain on asset dispositions and higher interest expense, largely offset by higher lease revenue. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period.

Current wording

In the three months ended September 30, 2024, segment profit of $102.4 million increased 54.9% compared to $66.1 million for the same period in the prior year. The increase was primarily due to higher net gain on asset dispositions and higher lease revenue, partially offset by higher interest and maintenance expense. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period.

Previous wording

In the three months ended June 30, 2024, lease revenue increased $23.2 million, or 10.6%, driven by higher lease rates and more railcars on lease. Other revenue increased $6.8 million due to higher repair revenue.

Current wording

In the three months ended September 30, 2024, lease revenue increased $24.0 million, or 10.7%, driven by more railcars on lease and higher lease rates. Other revenue increased $6.6 million, primarily due to higher repair revenue.

Previous wording

In the three months ended June 30, 2024, maintenance expense increased $10.6 million, driven by higher costs of repairs, more regulatory compliance events, and more repairs performed by the railroads. Depreciation expense increased $0.7 million due to the timing of new railcar investments and dispositions, offset by a change in the useful lives of certain railcars. Other operating expense decreased $0.3 million primarily due to lower switching and freight costs.

Current wording

In the three months ended September 30, 2024, maintenance expense increased $8.3 million, driven by more repair events, including more repairs performed by the railroads, and higher costs of repairs. Depreciation expense increased $2.3 million, due to the timing of new railcar investments and dispositions, partially offset by a change in the useful lives of certain railcars.

Previous wording

In the three months ended June 30, 2024, net gain on asset dispositions decreased $9.2 million due primarily to lower net gains on railcars sold in the current year, partially offset by higher net scrapping gains. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period. Net interest expense increased $11.9 million, driven by a higher average interest rate and a higher average debt balance.

Current wording

In the three months ended September 30, 2024, net gain on asset dispositions increased $31.2 million, driven by higher net gains on railcars sold in the current year and higher net scrapping gains. The amount and timing of disposition gains is dependent on a number of factors and may vary materially from period to period. Net interest expense increased $13.6 million, due to a higher average debt balance and higher average interest rate.

Previous wording

Rail International, composed primarily of GATX Rail Europe ("GRE"), produced solid operating results in the six months of 2024 and continued to grow its fleet. GRE experienced renewal lease rate increases for most railcar types in the period. Utilization was 95.8% at the end of the current quarter.

Current wording

Rail International, composed primarily of GATX Rail Europe ("GRE"), produced solid operating results in the nine months of 2024 and continued to grow its fleet. GRE experienced renewal lease rate increases for a majority of railcar types in the period. Utilization was 95.9% at the end of the current quarter.

Previous wording

Our rail business in India ("Rail India") increased its fleet size in the first six months of 2024 and continued to focus on investment opportunities, diversification of its fleet, and developing relationships with customers, suppliers and the Indian Railways. Demand for railcars in India remained robust, driven by continued growth in the economy and infrastructure development. Utilization was 100.0% at the end of the current quarter.

Current wording

The fleet size of our rail business in India ("Rail India") surpassed 10,000 railcars during the current quarter, and Rail India continued to focus on investment opportunities, diversification of its fleet, and developing relationships with customers, suppliers and the Indian Railways. Demand for railcars in India remained robust, driven by continued growth in the economy and infrastructure development. Utilization was 100.0% at the end of the current quarter.

Previous wording

As of June 30, 2024, leases for approximately 5,969 railcars were scheduled to expire over the remainder of 2024. This amount excludes railcars on leases expiring in 2024 that have already been renewed or assigned to a new lessee.

Current wording

As of September 30, 2024, leases for approximately 5,000 railcars were scheduled to expire over the remainder of 2024. This amount excludes railcars on leases expiring in 2024 that have already been renewed or assigned to a new lessee.

Previous wording

Rail International's reported results of operations are impacted by fluctuations in the exchange rates of the U.S. dollar against the foreign currencies in which it conducts business, primarily the euro. In the six months ended June 30, 2024, fluctuations in the value of the euro, relative to the U.S. dollar, positively impacted lease revenue by approximately $0.3 million and negatively impacted segment profit, excluding other income (expense), by approximately $1.1 million compared to the same period in 2023.

Current wording

Rail International's reported results of operations are impacted by fluctuations in the exchange rates of the U.S. dollar against the foreign currencies in which it conducts business, primarily the euro. In the nine months ended September 30, 2024, fluctuations in the value of the euro, relative to the U.S. dollar, positively impacted lease revenue by approximately $1.1 million and negatively impacted segment profit, excluding other income (expense), by approximately $1.1 million compared to the same period in 2023.

Previous wording

In the six months ended June 30, 2024, segment profit of $55.3 million increased 8.9% compared to $50.8 million for the same period in the prior year. Segment profit in 2023 included a $0.3 million disposition gain recorded as a result of the decision to exit the Rail Russia business. Excluding these items, results for Rail International were $4.8 million higher compared to the same period in the prior year. The increase was primarily due to more railcars on lease and higher lease rates at both GRE and Rail India, partially offset by higher maintenance expense at GRE and higher interest expense.

Current wording

In the nine months ended September 30, 2024, segment profit of $89.2 million increased 12.9% compared to $79.0 million for the same period in the prior year. Segment profit in 2023 included a $0.3 million disposition gain recorded as a result of the decision to exit the Rail Russia business. Excluding this item, results for Rail International were $10.5 million higher compared to the same period in the prior year. The increase was primarily due to more railcars on lease and higher lease rates at both GRE and Rail India, partially offset by higher maintenance expense at GRE and higher interest expense.

Previous wording

In the six months ended June 30, 2024, lease revenue increased $19.1 million, or 13.3%, due to more railcars on lease and higher lease rates at GRE and Rail India and the impact of foreign exchange rates. Other revenue increased $0.3 million, driven by higher line haul revenue, partially offset by lower repair revenue.

Current wording

In the nine months ended September 30, 2024, lease revenue increased $29.8 million, or 13.6%, due to more railcars on lease and higher lease rates at GRE and Rail India and the impact of foreign exchange rates.

Previous wording

In the six months ended June 30, 2024, maintenance expense increased $5.2 million, primarily due to more repairs performed, higher costs for repairs, higher wheelset costs, and the impact of foreign exchange rates. Depreciation expense increased $6.0 million, due the impact of new railcars added to the fleet.

Current wording

In the nine months ended September 30, 2024, maintenance expense increased $5.1 million, primarily due to more repairs performed, higher costs for repairs, higher wheelset costs, and the impact of foreign exchange rates. Depreciation expense increased $8.8 million, due the impact of new railcars added to the fleet.

Previous wording

In the six months ended June 30, 2024, net gain on asset dispositions increased $0.5 million, driven by higher net scrapping gains due to more railcars scrapped at a higher scrap price per ton. Net interest expense increased $8.2 million, due to a higher average debt balance and a higher average interest rate. Other expense was favorable by $6.6 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.

Current wording

In the nine months ended September 30, 2024, net gain on asset dispositions increased $1.3 million, driven by more railcars sold and higher net scrapping gains due to more railcars scrapped at a higher scrap price per ton. Net interest expense increased $12.2 million, due to a higher average debt balance and a higher average interest rate. Other income (expense) was favorable by $7.8 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.

Previous wording

During the six months ended June 30, 2024, investment volume was $109.5 million compared to $158.4 million in the same period in 2023. In the six months ended June 30, 2024, GRE acquired 710 newly built railcars compared to 878 newly built railcars for the same period in 2023, and Rail India acquired 1,104 newly built railcars in the current year compared to 1,055 newly built railcars for the same period in 2023.

Current wording

During the nine months ended September 30, 2024, investment volume was $190.1 million compared to $288.0 million in the same period in 2023. In the nine months ended September 30, 2024, GRE acquired 1,120 newly built railcars compared to 1,324 newly built railcars for the same period in 2023, and Rail India acquired 1,561 newly built railcars in the current year compared to 2,012 newly built railcars for the same period in 2023.

Previous wording

Rail International's reported results of operations are impacted by fluctuations in the exchange rates of the U.S. dollar against the foreign currencies in which it conducts business, primarily the euro. In the three months ended June 30, 2024, fluctuations in the value of the euro, relative to the U.S. dollar, negatively impacted lease revenue by approximately $0.7 million and negatively impacted segment profit, excluding other income (expense), by approximately $1.1 million compared to the same period in 2023.

Current wording

Rail International's reported results of operations are impacted by fluctuations in the exchange rates of the U.S. dollar against the foreign currencies in which it conducts business, primarily the euro. In the three months ended September 30, 2024, fluctuations in the value of the euro, relative to the U.S. dollar, positively impacted lease revenue by approximately $0.8 million and had an immaterial impact on segment profit, excluding other income (expense), compared to the same period in 2023.

Previous wording

In the three months ended June 30, 2024, segment profit of $26.5 million decreased 2.9% compared to $27.3 million for the same period in the prior year. The decrease was primarily due to higher maintenance expense at GRE and higher interest expense, offset by more railcars on lease and higher lease rates at both GRE and Rail India.

Current wording

In the three months ended September 30, 2024, segment profit of $33.9 million increased 20.2% compared to $28.2 million for the same period in the prior year. The increase was primarily due to more railcars on lease and higher lease rates at both GRE and Rail India, partially offset by higher interest and depreciation expense.

Previous wording

In the three months ended June 30, 2024, maintenance expense increased $3.6 million, primarily due to more repairs performed, higher costs for repairs, higher wheelset costs, and the impact of foreign exchange rates. Depreciation expense increased $2.8 million, due the impact of new railcars added to the fleet.

Current wording

In the three months ended September 30, 2024, maintenance expense was comparable to the same period in the prior year, as lower wheelset costs were offset by higher costs for repairs and the impact of foreign exchange rates. Depreciation expense increased $2.8 million, due the impact of new railcars added to the fleet.

Previous wording

In the three months ended June 30, 2024, net gain on asset dispositions was comparable to the same period in the prior year. Net interest expense increased $4.0 million, due to a higher average debt balance and a higher average interest rate. Other expense was favorable by $1.9 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.

Current wording

In the three months ended September 30, 2024, net gain on asset dispositions increased $0.8 million, driven by more railcars sold, offset by lower net scrapping gains due to fewer railcars scrapped at a higher scrap price per ton. Net interest expense increased $4.0 million, due to a higher average interest rate and a higher average debt balance. Other income (expense) was favorable by $1.2 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.

Previous wording

As disclosed previously, as of December 31, 2023, we have sold all of our marine assets and no longer have any marine operations. As a result, we have changed the name of this business segment from Portfolio Management to Engine Leasing to reflect the prospective operations of the segment.

Current wording

As disclosed previously, we had sold all of our marine assets as of December 31, 2023 and no longer have any marine operations. As a result, we have changed the name of this business segment from Portfolio Management to Engine Leasing to reflect the prospective operations of the segment.

Previous wording

Engine Leasing's segment profit is attributable primarily to income from the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce, a leading manufacturer of commercial aircraft jet engines. Segment profit included earnings from the RRPF affiliates of $40.6 million and $16.9 million for the six months and three months ended June 30, 2024, compared to $48.3 million and $20.3 million for the same periods in 2023. The operating environment for the RRPF affiliates was robust, and demand for international air passenger travel remained strong.

Current wording

Engine Leasing's segment profit is attributable primarily to income from the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce, a leading manufacturer of commercial aircraft jet engines. Segment profit included earnings from the RRPF affiliates of $75.8 million and $35.2 million for the nine months and three months ended September 30, 2024, compared to $66.3 million and $18.0 million for the same periods in 2023. The operating environment for the RRPF affiliates was robust, and demand for international air passenger travel remained strong.

Previous wording

Engine Leasing also includes GEL, our wholly owned entity that invests directly in aircraft spare engines. In the second quarter of 2024, GEL acquired three aircraft spare engines for $71.3 million. As of June 30, 2024, GEL owned 32 aircraft spare engines, with 14 on long-term leases with airline customers and 18 that are employed in an engine capacity agreement with Rolls-Royce for use in its engine maintenance programs. All engines at GEL are managed by the RRPF affiliates, for which we paid them a fee of $1.8 million and $0.9 million for the six months and three months ended June 30, 2024 and $1.0 million and $0.5 million for the same periods in 2023.

Current wording

Engine Leasing also includes GEL, our wholly owned entity that invests directly in aircraft spare engines. GEL acquired four aircraft spare engines for $94.8 million in the third quarter of 2024. As of September 30, 2024, GEL owned 36 aircraft spare engines, with 14 on long-term leases with airline customers and 22 that are employed in an engine capacity agreement with Rolls-Royce for use in its engine maintenance programs. All engines at GEL are managed by the RRPF affiliates, for which we paid them a fee of $2.9 million and $1.1 million for the nine months and three months ended September 30, 2024 and $1.9 million and $0.9 million for the same periods in 2023.

Previous wording

In the six months ended June 30, 2024, segment profit was $44.1 million, compared to segment profit of $54.9 million for the same period in the prior year. Segment profit included $0.6 million of gains in 2024 and $1.4 million of losses in 2023 associated with the Specialized Gas Vessels. Excluding the impact of these items, results for Engine Leasing were $12.8 million lower than 2023. Lower earnings at the RRPF affiliates, resulting from lower remarketing income, and the absence of the gain on the sale of natural gas holdings recorded in the prior year, were partially offset by higher earnings from GEL operations.

Current wording

In the nine months ended September 30, 2024, segment profit was $81.6 million, compared to segment profit of $75.1 million for the same period in the prior year. Segment profit included $0.6 million of gains in 2024 and $1.4 million of losses in 2023 associated with the Specialized Gas Vessels. Excluding the impact of these items, results for Engine Leasing were $4.5 million higher than 2023, driven by higher earnings at the RRPF affiliates and higher earnings from GEL operations, partially offset by the absence of the gain on the sale of natural gas holdings recorded in the prior year.

Previous wording

In the six months ended June 30, 2024, lease revenue was comparable to the same period in the prior year. Non-dedicated engine revenue increased $16.0 million due to aircraft spare engines acquired in 2023 and 2024 and utilized in the engine capacity agreement with Rolls-Royce. Marine operating revenue decreased $5.5 million, driven by the final sales of the Specialized Gas Vessels in 2023.

Current wording

In the nine months ended September 30, 2024, lease revenue was comparable to the same period in the prior year. Non-dedicated engine revenue increased $20.5 million, due to aircraft spare engines acquired in 2023 and 2024 and utilized in the engine capacity agreement with Rolls-Royce. Marine operating revenue decreased $6.1 million, driven by the final sales of the Specialized Gas Vessels in 2023.

Previous wording

In the six months ended June 30, 2024, marine operating expense decreased $4.4 million, due to the sale of the Specialized Gas Vessels in 2023. Depreciation expense increased $5.5 million, due to aircraft spare engines acquired in 2023 and 2024.

Current wording

In the nine months ended September 30, 2024, marine operating expense decreased $5.4 million, due to the sale of the Specialized Gas Vessels in 2023. Depreciation expense increased $7.2 million, due to aircraft spare engines acquired in 2023 and 2024.

Previous wording

In the six months ended June 30, 2024, net gain on asset dispositions was unfavorable by $3.9 million, driven by the absence of gains recorded in 2023 for the sale of natural gas holdings and gains on the sales of the Specialized Gas Vessels in 2023 and related post-closing adjustments recorded in both 2023 and 2024.

Current wording

In the nine months ended September 30, 2024, net gain on asset dispositions decreased $4.1 million, driven by the absence of gains recorded in 2023 for the sale of natural gas holdings and gains on the sales of the Specialized Gas Vessels in 2023 and related post-closing adjustments recorded in both 2023 and 2024.

Previous wording

In the six months ended June 30, 2024, income from our share of affiliates' earnings decreased $7.7 million, driven by lower remarketing income, partially offset by higher income from operations.

Current wording

In the nine months ended September 30, 2024, income from our share of affiliates' earnings increased $9.5 million, driven by higher income from operations, partially offset by lower remarketing income. The amount and timing of remarketing income is dependent on a number of factors and may vary materially from period to period.

Previous wording

In the six months ended June 30, 2024, investment volume was $71.3 million, compared to $239.0 million in the same period in 2023. In the six months ended June 30, 2024, GEL acquired three aircraft spare engines compared to nine in the same period in 2023.

Current wording

In the nine months ended September 30, 2024, investment volume was $166.1 million, compared to $267.3 million in the same period in 2023. In the nine months ended September 30, 2024, GEL acquired seven aircraft spare engines compared to nine in the same period in 2023.

Previous wording

In the three months ended June 30, 2024, lease revenue was comparable to the same period in the prior year. Non-dedicated engine revenue increased $7.3 million due to aircraft spare engines acquired in 2023 and 2024 and utilized in the engine capacity agreement with Rolls-Royce. Marine operating revenue decreased $2.0 million, driven by the final sales of the Specialized Gas Vessels in 2023.

Current wording

In the three months ended September 30, 2024, lease revenue was comparable to the same period in the prior year. Non-dedicated engine revenue increased $4.5 million, due to aircraft spare engines acquired in 2023 and 2024 and utilized in the engine capacity agreement with Rolls-Royce. Marine operating revenue decreased $0.6 million, driven by the final sales of the Specialized Gas Vessels in 2023.