GATX CORP
For the period ended Mar 31, 2025. Filed Apr 25, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 25, 2025
GATX$182.74-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-24.
0000040211-24-000088
OverviewDiscussion of Operating ResultsSegment OperationsCash Flow DiscussionLiquidity and Capital ResourcesCritical Accounting Policies and EstimatesNon-GAAP Financial MeasuresCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-25.
0000040211-25-000045
OverviewDiscussion of Operating ResultsSegment OperationsCash Flow DiscussionLiquidity and Capital ResourcesCritical Accounting Policies and EstimatesNon-GAAP Financial MeasuresThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 185 previous paragraphs and 153 current paragraphs.
85 unchanged; 56 reworded; 12 added; 40 removed; 4 previous and 0 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
GATX, and markets more broadly, are facing uncertainty around tariffs and economic conditions. These conditions did not have a significant impact on our business and financial results during the first quarter of 2025. However, a sustained slowdown in economic growth as a result of tariffs or global tensions could have a more significant impact on GATX’s financial results in the future. If this were to occur, GATX could be impacted directly and indirectly across all segments. Such conditions could lead to specific costs and inflationary pressures that directly impact GATX, including the impact of rising costs of new railcars and other transportation assets, increased maintenance expense, and general increases in other administrative expenses. GATX could also be indirectly impacted by factors such as softening demand for our products and services if customers within the markets or commodities we serve are impacted by tariffs or economic conditions. Management continues to monitor the macroeconomic environment to identify potential risks and to manage our business accordingly. However, we believe we are in a strong position to manage these risks. Our diverse fleet, broad global customer base, and long-term nature of our lease contracts provide substantial operating flexibility. In addition, our strong balance sheet position, credit ratings, and access to capital provide us adequate cash flow availability as needed.
Current report
Demand for railcars was stable, and the renewal success rate remained very strong. Rail North America continued to optimize its fleet by selectively selling railcars in the secondary market. Utilization was 99.2% at the end of the current quarter.
Current report
In the three months ended March 31, 2025, segment profit of $88.8 million decreased 1.7% compared to $90.3 million for the same period in the prior year. The decrease was driven by higher interest and maintenance expenses and an impairment recorded on certain older flammable liquids railcars, offset by higher revenue.
Current report
During the three months ended March 31, 2025, investment volume was $227.7 million compared to $321.7 million in the same period in 2024. We acquired 642 newly built railcars and purchased 627 railcars in the secondary market in the three months ended March 31, 2025, compared to 1,073 newly built railcars and 822 railcars in the secondary market in the same period in 2024.
Current report
In the three months ended March 31, 2025, segment profit of $25.7 million decreased 10.8% compared to $28.8 million for the same period in the prior year. The decrease was primarily due to higher maintenance and interest expense and changes in foreign currency exchange rates, partially offset by higher lease revenue.
Current report
(3) In 2025, we purchased 802 railcars that were previously on operating leases, compared to zero railcars in 2024.
Current report
(4) Proceeds from sales of other assets were primarily related to railcar scrapping.
Current report
Portfolio proceeds increased by $8.6 million for the three months ended March 31, 2025, primarily due to more railcars and locomotives sold at Rail North America.
Current report
During the three months ended March 31, 2025, we repurchased 12,046 shares of common stock for $1.9 million, excluding commissions. We repurchased 36,744 shares of common stock for $4.6 million during the same period in 2024. As of March 31, 2025, $63.2 million remained available under the repurchase authorization.
Removed paragraphs (40)
Previous report
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 report
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 report
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 report
In 2018, we amended a long-term supply agreement with Trinity to extend the term to December 2023, and we agreed to purchase 4,800 tank cars (1,200 per year) beginning in January 2020 and continuing through 2023. As of June 30, 2024, all 4,800 railcars have been ordered and delivered.
Previous report
In 2018, we entered into a multi-year railcar supply agreement with American Railcar Industries, Inc. ("ARI"), pursuant to which we agreed to purchase 7,650 newly built railcars. The order encompasses a mix of tank and freight cars to be delivered over a five-year period, beginning in April 2019 and ending in December 2023. ARI's railcar manufacturing business was acquired by a subsidiary of The Greenbrier Companies, Inc. on July 26, 2019, and such subsidiary assumed all of ARI's obligations under our long-term supply agreement. As of June 30, 2024, all 7,650 railcars have been ordered and delivered.
Previous report
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 report
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 report
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 report
During the nine months ended September 30, 2024, investment volume was $955.7 million compared to $654.8 million in the same period in 2023. We acquired 2,987 newly built railcars, purchased 2,005 railcars in the secondary market, and purchased 156 locomotives in the secondary market in the nine months ended September 30, 2024, compared to 2,506 newly built railcars, 1,266 railcars in the secondary market, and no locomotives in the same period in 2023.
Previous report
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 report
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 report
In the first quarter of 2023, we sold Rail Russia and recorded a gain of $0.3 million upon completion of the sale.
Previous report
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 report
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 report
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 report
In the three months ended September 30, 2024, lease revenue increased $10.7 million, or 14.2%, due to more railcars on lease and higher lease rates at GRE and Rail India and the impact of foreign exchange rates.
Previous report
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 report
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 report
During the second quarter of 2023, we sold our natural gas holdings and recorded a gain of $5.7 million.
Previous report
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 report
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 report
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 report
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 report
In the third quarter of 2024, GATX recorded settlement expenses of $3.3 million for litigation claims arising out of legacy business operations. In the second quarter of 2024, GATX recorded reserves of $10.7 million for its share of anticipated environmental remediation costs arising out of prior operations and legacy businesses. The majority of the recorded reserves relate to a previously owned facility that GATX sold in 1974, while the remainder of the amount relates to a landfill that GATX entities previously utilized, which was closed in 1986.
Previous report
Other (expense) income, including eliminations was unfavorable by $10.9 million for the nine months ended September 30, 2024 compared to the same period in the prior year. The variance was driven by environmental reserves recorded and expenses related to litigation claims settlements, as noted above, partially offset by the absence of pension settlement charges recorded in the prior year. Other (expense) income, including eliminations was unfavorable by $2.3 million in the three months ended September 30, 2024 compared to the same period in the prior year. The variance was primarily a result of expenses related to the settlements of litigation claims noted above.
Previous report
(3) Short-term U.S. Treasury Obligations with an original maturity date of over 90 days.
Previous report
Portfolio proceeds decreased by $36.5 million for the nine months ended September 30, 2024, resulting from the absence of proceeds from the sales of two Specialized Gas Vessels at Engine Leasing and the sale of Rail Russia at Rail International in the prior year.
Previous report
(1) In the nine months ended September 30, 2024, we purchased 728 railcars that were previously leased, compared to none during the same period in 2023.
Previous report
•$350.0 million of 3-year unsecured fixed rate debt at a 5.430% yield
Previous report
•€121.0 million ($132.0 million) of 2-year unsecured floating rate debt at Trifleet, currently 4.97%*
Previous report
•€50.0 million ($54.4 million) of 7-year unsecured floating rate debt at GRE, currently 5.015%*
Previous report
•€75.0 million ($81.1 million) of 5-year unsecured floating rate debt at GRE, currently 5.359%*
Previous report
•€35.0 million ($37.8 million) of 3-year unsecured fixed rate debt at GRE at a 4.371% yield
Previous report
•INR 2.0 billion ($24.1 million) in two tranches from a 5-year delayed draw term loan at fixed rates of 8.43% and 8.55%
Previous report
•INR 2.0 billion ($23.9 million) in two tranches from a separate 5-year delayed draw term loan at fixed rates of 8.88% and 8.51%
Previous report
(4) In 2022, we made the decision to exit Rail Russia and recorded losses in 2022 associated with the impairment of the net assets. In the first quarter of 2023, we sold Rail Russia and recorded a gain on the final sale of this business.
Reworded paragraphs (56)
Previous wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes and other information included elsewhere in this Quarterly Report, Annual Report on Form 10-K for the year ended December 31, 2023, and in our other filings with the Securities and Exchange Commission ("SEC"). We based the discussion and analysis that follows on financial data we derived from the financial statements prepared in accordance with U.S. Generally Accepted Accounting Standards ("GAAP") and on certain other financial data that we prepared using non-GAAP components. For a reconciliation of these non-GAAP components to the most comparable GAAP components, see "Non-GAAP Financial Measures" at the end of this item. The discussion and analysis below includes forward-looking statements that are subject to risks, uncertainties and other factors described in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2023 that could cause actual results to differ materially from such forward-looking statements. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.
Current wording
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes and other information included elsewhere in this Quarterly Report, Annual Report on Form 10-K for the year ended December 31, 2024, and in our other filings with the Securities and Exchange Commission ("SEC"). We based the discussion and analysis that follows on financial data we derived from the financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and on certain other financial data that we prepared using non-GAAP components. For a reconciliation of these non-GAAP measures to the most comparable GAAP measures, see "Non-GAAP Financial Measures" at the end of this item. The discussion and analysis below includes forward-looking statements that are subject to risks, uncertainties and other factors described in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2024 that could cause actual results to differ materially from such forward-looking statements. Additionally, our historical results are not necessarily indicative of the results that may be expected for any period in the future.
Previous wording
We lease, operate, manage, and remarket long-lived, widely used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Engine Leasing (previously named Portfolio Management). Financial results for our tank container leasing business ("Trifleet") are reported in the Other segment.
Current wording
We lease, operate, manage, and remarket long-lived, widely used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Engine Leasing. Financial results for our tank container leasing business ("Trifleet") are reported in the Other segment.
Previous 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.
Current wording
Operating results for the three months ended March 31, 2025 are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2025. 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, 2024.
Previous 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.
Current wording
Net income for the three months ended March 31, 2025 was $78.6 million, or $2.15 per diluted share, compared to $74.3 million, or $2.03 per diluted share, for the same period in 2024. Results for the three months ended March 31, 2024 included a net positive impact of $0.6 million ($0.02 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 $4.9 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, and higher earnings at the Rolls-Royce & Partners Finance joint ventures (collectively, the "RRPF affiliates"), partially offset by higher maintenance expense at Rail North America and Rail International and higher interest expense.
Previous wording
Segment profit is an internal performance measure used by the Chief Executive Officer to assess the profitability of each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.
Current wording
Segment profit is an internal performance measure reported to GATX's President and Chief Executive Officer for purposes of assessing performance and allocating capital and resources to each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.
Previous 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.
Current wording
As of March 31, 2025, leases for approximately 17,300 tank and freight cars and approximately 1,000 boxcars are scheduled to expire over the remainder of 2025. These amounts exclude railcars on leases expiring in 2025 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, 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.
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 March 31, 2025, 5,711 railcars have been ordered pursuant to the terms of the agreement, of which 4,060 railcars have been delivered.
Previous 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.
Current wording
During the first quarter of 2025, the renewal rate change of the LPI was positive 24.5%, compared to positive 26.7% in the prior quarter, and positive 33.0% in the first quarter of 2024. Lease terms on renewals for railcars in the LPI averaged 61 months in the current quarter, compared to 60 months in the prior quarter, and 64 months in the first quarter of 2024.
Previous wording
(2) Active boxcars refers to the number boxcars on lease to customers. Changes in boxcars on lease compared to prior quarters are impacted by the utilization of new boxcars purchased from builders or in the secondary market and the disposition of boxcars that were sold or scrapped, as well as the fleet utilization rate.
Current wording
(2) Active boxcars refers to the number of boxcars on lease to customers. Changes in boxcars on lease compared to prior quarters are impacted by the utilization of new boxcars purchased from builders or in the secondary market and the disposition of boxcars that were sold or scrapped, as well as the fleet utilization rate.
Previous 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.
Current wording
In the three months ended March 31, 2025, lease revenue increased $23.5 million, or 9.9%, driven by more railcars on lease and higher lease rates. Other revenue increased $4.8 million, primarily due to higher repair revenue, partially offset by lower lease termination fees.
Previous 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.
Current wording
In the three months ended March 31, 2025, maintenance expense increased $10.8 million, driven by more repair events, including more repairs performed by the railroads, and higher costs of repairs. Depreciation expense increased $5.3 million, due to the timing of new railcar investments and dispositions.
Previous 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.
Current wording
In the three months ended March 31, 2025, net gain on asset dispositions decreased $2.1 million, driven by by an impairment related to older flammable liquids railcars and lower net gains on dispositions and railcars converted to finance leases, 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 $11.4 million, due to a higher average debt balance and higher average interest rate.
Previous wording
Our investment volume is predominantly composed of acquired railcars, but also includes certain capitalized repairs and improvements to owned railcars and our maintenance facilities. As a result, the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period. In addition, the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of railcars purchased, which may include tank cars and freight cars, as well as newly manufactured railcars or those purchased in the secondary market.
Current wording
Our investment volume is predominantly composed of acquired railcars, but also includes the acquisition of locomotives and certain capitalized repairs and improvements to owned railcars and our maintenance facilities. As a result, the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period. In addition, the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of railcars purchased, which may include tank cars and freight cars, as well as newly manufactured railcars or those purchased in the secondary market.
Previous 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.
Current wording
Rail International, composed primarily of GATX Rail Europe ("GRE"), produced solid operating results in the first three months of 2025 and continued to grow its fleet. GRE experienced renewal lease rate increases for most railcar types in the period. Utilization was 95.1% at the end of the current quarter.
Previous 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.
Current wording
The fleet size of our rail business in India ("Rail India") continued to grow during the current quarter, as 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 99.6% at the end of the current quarter.
Previous 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.
Current wording
As of March 31, 2025, leases for approximately 7,900 railcars are scheduled to expire over the remainder of 2025. This amount excludes railcars on leases expiring in 2025 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 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.
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 March 31, 2025, fluctuations in the value of the euro, relative to the U.S. dollar, negatively impacted lease revenue by approximately $2.1 million and negatively impacted segment profit, excluding other (expense) income, by approximately $1.4 million compared to the same period in 2024.
Previous 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.
Current wording
In the three months ended March 31, 2025, lease revenue increased $3.0 million, or 3.7%, due to more railcars on lease and higher lease rates at GRE and Rail India, partially offset by the impact of foreign exchange rates.
Previous 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.
Current wording
In the three months ended March 31, 2025, maintenance expense increased $1.0 million, primarily due to more repair events and higher costs of repairs, partially offset by lower wheelset costs. Depreciation expense increased $1.2 million, due the impact of new railcars added to the fleet.
Previous 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.
Current wording
In the three months ended March 31, 2025, net interest expense increased $2.4 million, due to a higher average interest rate and a higher average debt balance. Other (expense) income was unfavorable by $2.2 million, driven by the negative impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.
Previous 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.
Current wording
During the three months ended March 31, 2025, investment volume was $62.7 million compared to $49.9 million in the same period in 2024. In the three months ended March 31, 2025, GRE acquired 446 newly built railcars compared to 322 newly built railcars for the same period in 2024, and Rail India acquired 312 newly built railcars in the current year compared to 696 newly built railcars for the same period in 2024.
Previous wording
Our investment volume is predominantly composed of acquired railcars, but also includes certain capitalized repairs and improvements to owned railcars. As a result, the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period. In addition, the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of the various car types acquired, as well as fluctuations in the exchange rates of the foreign currencies in which Rail International conducts business.
Current wording
Our investment volume is predominantly composed of acquired railcars, but also includes certain capitalized repairs and improvements to owned railcars. As a result, the dollar value of investment volume does not necessarily correspond to the number of railcars acquired in any given period. In addition, the comparability of amounts invested and the number of railcars acquired in each period is impacted by the mix of the various railcar types acquired, as well as fluctuations in the exchange rates of the foreign currencies in which Rail International conducts business.
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 $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.
Current wording
Engine Leasing includes the RRPF affiliates, a group of 50% owned domestic and foreign joint ventures with Rolls-Royce plc (or affiliates thereof, collectively "Rolls-Royce"), a leading manufacturer of commercial aircraft jet engines. Segment profit included earnings from the RRPF affiliates of $33.4 million for three months ended March 31, 2025, compared to $23.7 million for the same period in 2024. The operating environment for the RRPF affiliates continued to be favorable as demand for aircraft spare engines remained robust.
Previous 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.
Current wording
Engine Leasing also includes GATX Engine Leasing ("GEL"), our wholly owned entity that invests directly in aircraft spare engines. As of March 31, 2025, GEL owned 39 aircraft spare engines, with 14 on long-term leases with airline customers and 25 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 $1.4 million for the three months ended March 31, 2025 and $0.6 million for the same period in 2024.
Previous 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.
Current wording
In the three months ended March 31, 2025, segment profit was $38.6 million, compared to segment profit of $25.7 million for the same period in the prior year. Segment profit included $0.6 million of gains in 2024 associated with the Specialized Gas Vessels. Excluding the impact of this item, results for Engine Leasing were $13.5 million higher than 2024. The increase was driven by higher earnings at the RRPF affiliates and GEL.
Previous 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.
Current wording
In the three months ended March 31, 2025, lease revenue was comparable to the same period in the prior year. Non-dedicated engine revenue increased $8.3 million, due to aircraft spare engines acquired in 2024 and utilized in the engine capacity agreement with Rolls-Royce.
Previous wording
In the three months ended September 30, 2024, marine operating expense decreased $1.0 million, due to the sale of the Specialized Gas Vessels in 2023. Depreciation expense increased $1.7 million, due to aircraft spare engines acquired in 2023 and 2024.
Current wording
In the three months ended March 31, 2025, depreciation expense increased $1.0 million, due to aircraft spare engines acquired in 2024.
Previous wording
In the three months ended September 30, 2024, income from our share of affiliates' earnings increased $17.2 million, driven by higher remarketing income and higher income from operations. The amount and timing of remarketing income is dependent on a number of factors and may vary materially from period to period.
Current wording
In the three months ended March 31, 2025, income from our share of affiliates' earnings increased $9.7 million, driven by higher income from operations and higher 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
The tank container leasing market remained challenging in the third quarter of 2024. Utilization was 85.6% at the end of the current quarter.
Current wording
The tank container leasing market remained challenging with fluctuating market dynamics in the first quarter of 2025. Utilization was 84.9% at the end of the current quarter.
Previous wording
SG&A increased $18.3 million for the nine months ended September 30, 2024 compared to the same period in the prior year. SG&A increased $6.2 million for the three months ended September 30, 2024 compared to the same period in the prior year. Both variances were driven by higher employee-related expenses, including higher share-based compensation expense, and higher information technology expense.
Current wording
SG&A increased $0.7 million for the three months ended March 31, 2025 compared to the same period in the prior year driven by higher employee-related expenses, partially offset by lower information technology expense.
Previous wording
We generate a significant amount of cash from operating activities and investment portfolio proceeds. We also access domestic and international capital markets by issuing unsecured or secured debt and commercial paper. We use these resources, along with available cash balances, to fulfill our debt, lease, and dividend obligations, to support our share repurchase programs, and to fund portfolio investments and capital additions. We primarily use cash from operations to fund daily operations. The timing of asset dispositions and changes in working capital impact cash flows from portfolio proceeds and operations. As a result, these cash flow components may vary materially from quarter to quarter and year to year.
Current wording
We generate a significant amount of cash from operating activities and investment portfolio proceeds. We also access domestic and international capital markets by issuing debt. We use these resources, along with available cash balances, to fulfill our debt, lease, and dividend obligations, to support our share repurchase programs, and to fund portfolio investments and capital additions. We primarily use cash from operations to fund daily operations. The timing of asset dispositions and changes in working capital impact cash flows from portfolio proceeds and operations. As a result, these cash flow components may vary materially from quarter to quarter and year to year.
Previous wording
As of September 30, 2024, we had an unrestricted cash balance of $503.7 million. We also have a $600 million, 5-year unsecured revolving credit facility in the United States that matures in 2029 and a $350 million, 3-year unsecured revolving credit facility in the United States that matures in 2027, both of which were fully available as of September 30, 2024.
Current wording
As of March 31, 2025, we had an unrestricted cash balance of $757.2 million. We also have a $600 million, 5-year unsecured revolving credit facility in the United States that matures in 2029 and a $350 million, 3-year unsecured revolving credit facility in the United States that matures in 2027, both of which were fully available as of March 31, 2025. In addition, we have a €210 million, 3-year unsecured revolving credit facility in Europe that matures in 2027, of which €130 million was available as of March 31, 2025.
Previous wording
The following table shows our cash flows from operating, investing and financing activities for the nine months ended September 30 (in millions):
Current wording
The following table shows our cash flows from operating, investing and financing activities for the three months ended March 31 (in millions):
Previous wording
Net cash provided by operating activities for the nine months ended September 30, 2024 decreased $4.0 million compared to the same period in 2023. Comparability among reporting periods is impacted by the timing of changes in working capital items. Specifically, higher payments for interest, income taxes, maintenance, and other operating expenses were partially offset by higher cash receipts from revenue and lower payments for operating leases.
Current wording
Net cash provided by operating activities for the three months ended March 31, 2025 increased $26.6 million compared to the same period in 2024. Comparability among reporting periods is impacted by the timing of changes in working capital items. Specifically, higher cash receipts from revenue, lower payments for operating leases, and lower payments for taxes, were partially offset by higher payments for interest expense, maintenance, and other operating expenses.
Previous wording
The following table shows our principal sources and uses of cash flows from investing activities for the nine months ended September 30 (in millions):
Current wording
The following table shows our principal sources and uses of cash flows from investing activities for the three months ended March 31 (in millions):
Previous wording
The increase in portfolio investments and capital additions of $87.6 million for the nine months ended September 30, 2024 was primarily due to more railcars and locomotives acquired at Rail North America, partially offset by fewer aircraft spare engines acquired at GEL, fewer railcars acquired at GRE and Rail India, and fewer tank containers acquired at Trifleet. The timing of investments depends on purchase commitments, transaction opportunities, and market conditions.
Current wording
The decrease in portfolio investments and capital additions of $82.3 million for the three months ended March 31, 2025 was primarily due to fewer railcars and locomotives acquired at Rail North America and Rail India and fewer tank containers acquired at Trifleet, partially offset by more railcars acquired at GRE. The timing of investments depends on purchase commitments, transaction opportunities, and market conditions.
Previous wording
The following table shows our principal sources and uses of cash flows from financing activities for the nine months ended September 30 (in millions):
Current wording
The following table shows our principal sources and uses of cash flows provided by financing activities for the three months ended March 31 (in millions):
Previous wording
(2) In the nine months ended September 30, 2024, we repurchased 166,400 shares of common stock for $21.8 million. We did not repurchase any shares of common stock during the same period in 2023.
Current wording
(1) In the three months ended March 31, 2025, we repurchased 12,046 shares of common stock for $1.9 million. In the three months ended March 31, 2024, we repurchased 36,744 shares of common stock for $4.6 million.
Previous wording
The following table shows the activity on our long-term debt principal in the nine months ended September 30, 2024 (in millions):
Current wording
The following table shows the activity on our long-term debt principal in the three months ended March 31, 2025 (in millions):
Previous wording
The following provides detail of the long-term debt issued during the nine months ended September 30, 2024:
Current wording
The following provides detail of the long-term debt issued in the U.S. during the three months ended March 31, 2025:
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Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
In the three months ended September 30, 2024, segment profit was $37.5 million, compared to segment profit of $20.2 million for the same period in the prior year. The increase was driven by higher earnings at the RRPF affiliates.
Previous report — wording carried elsewhere
(*) Floating rates are based on the applicable interest rate as of September 30, 2024.