GATX CORP

Previous wording

Operating results for the six months ended June 30, 2026 are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2026. 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, 2025.

Current wording

Operating results for the nine months ended September 30, 2026 are not necessarily indicative of the results we may achieve for the entire year ending December 31, 2026. 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, 2025.

Previous wording

GATX has the option to acquire up to 100% of the ownership of GABX over time. On June 30, 2026, GATX exercised its first call option for $66.2 million, increasing its overall ownership of GABX from 30% to 33.5% and decreasing Brookfield's ownership from 70% to 66.5%. See "Note 15. Non-Controlling Interest" in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information about the options to acquire additional ownership of GABX.

Current wording

GATX has the option to acquire up to 100% of the ownership of GABX over time. On June 30, 2026, GATX exercised its first call option for $66.2 million. In the third quarter of 2026, the call option price was adjusted to $65.2 million as a result of the finalization of the purchase price. The exercise of the call option resulted in GATX increasing its overall ownership of GABX by 3.5%. See "Note 15. Non-Controlling Interest" in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information about the options to acquire additional ownership of GABX.

Previous wording

GATX, and markets more broadly, are facing heightened uncertainty related to trade policy, geopolitical tensions, and overall economic conditions. These conditions did not have a significant impact on our business and financial results during the first six months of 2026. However, recent developments, including tariff announcements and the ongoing conflict with Iran, have increased economic uncertainty and could have a more significant impact on GATX’s financial results in the future. For example, geopolitical tensions in the Middle East have and could continue to increase energy prices, disrupt supply chains, reduce global air travel, and negatively impact our customers. A sustained economic slowdown resulting from these or other factors could impact GATX directly and indirectly, including through higher costs for new railcars or other assets or softening demand for our products and services. Management continues to monitor the macroeconomic and geopolitical environment closely to identify potential risks and to manage our business accordingly. However, we believe we are in a strong position to manage these risks due to our diverse fleet, broad global customer base, long-term lease portfolio, strong balance sheet, and access to capital.

Current wording

GATX, and markets more broadly, are facing heightened uncertainty related to trade policy, geopolitical tensions, and overall economic conditions. These conditions did not have a significant impact on our business and financial results during the first nine months of 2026. However, recent events, including tariff developments and the ongoing conflict with Iran, have increased economic uncertainty and could have a more significant impact on GATX's financial results in the future. For example, geopolitical tensions in the Middle East have and could continue to increase energy prices, disrupt supply chains, reduce global air travel, increase interest rates, and negatively impact our customers. A sustained economic slowdown resulting from these or other factors could impact GATX directly and indirectly, including through higher costs for new railcars or other assets or softening demand for our products and services. Management continues to monitor the macroeconomic and geopolitical environment closely to identify potential risks and to manage our business accordingly. However, we believe we are in a strong position to manage these risks due to our diverse fleet, broad global customer base, long-term lease portfolio, strong balance sheet, and access to capital.

Previous wording

Net income attributable to GATX for the six months ended June 30, 2026 was $188.9 million, or $5.19 per diluted share, compared to $154.1 million, or $4.21 per diluted share, for the same period in 2025. Net income attributable to GATX increased $34.8 million compared to the prior year and was impacted by the Wells Fargo rail assets acquisition. The variance was largely due to higher revenue at Rail North America and Rail International, higher net gain on asset dispositions at Rail North America, 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, higher depreciation expense at Rail North America and Rail International, and higher interest expense.

Current wording

Net income attributable to GATX for the nine months ended September 30, 2026 was $294.1 million, or $8.11 per diluted share, compared to $236.3 million, or $6.46 per diluted share, for the same period in 2025. Results for the nine months ended September 30, 2025 included a net positive impact of $5.3 million ($0.15 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 attributable to GATX increased $63.1 million compared to the prior year and was impacted by the Wells Fargo rail assets acquisition. The variance was largely due to higher revenue at Rail North America and Rail International, higher net gain on asset dispositions at Rail North America, 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, higher depreciation expense at Rail North America and Rail International, and higher interest expense.

Previous wording

Net income attributable to GATX for the three months ended June 30, 2026 was $103.4 million, or $2.84 per diluted share, compared to $75.5 million, or $2.06 per diluted share, for the same period in 2025. Net income attributable to GATX increased $27.9 million compared to the prior year and was impacted by the Wells Fargo rail assets acquisition. The variance was largely due to higher revenue at Rail North America and Rail International, higher net gain on asset dispositions at Rail North America, and higher earnings at the RRPF affiliates, partially offset by higher maintenance expense at Rail North America, higher depreciation expense at Rail North America and Rail International, higher interest expense, and lower earnings at the RRPF affiliates.

Current wording

Net income attributable to GATX for the three months ended September 30, 2026 was $105.2 million, or $2.92 per diluted share, compared to $82.2 million, or $2.25 per diluted share, for the same period in 2025. Results for the three months ended September 30, 2025 included a net positive impact of $5.3 million ($0.15 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 attributable to GATX increased $28.3 million compared to the prior year and was impacted by the Wells Fargo rail assets acquisition. The variance was largely due to higher revenue at Rail North America and Rail International and higher net gain on asset dispositions at Rail North America, partially offset by higher maintenance expense at Rail North America, higher depreciation expense at Rail North America and Rail International, higher interest expense, and lower earnings at the RRPF affiliates.

Previous wording

GATX serves as manager of the railcars in GABX as well as the finance lease portfolio directly owned by Brookfield and earns management fees for such services. In thethree and six months ended June 30, 2026, GATX received $12.4 million and $24.9 million from GABX and $2.8 million and $5.6 million from Brookfield for these services. GABX management fees earned by GATX are eliminated in consolidation and not shown on the face of the condensed consolidated statements of income. However, the impact of fees earned are included in net income attributable to GATX. Management fees earned by GATX for managing the finance lease portfolio directly owned by Brookfield are reported in other revenue.

Current wording

GATX serves as manager of the railcars in GABX as well as the finance lease portfolio directly owned by Brookfield and earns management fees for such services. In thethree and nine months ended September 30, 2026, GATX earned $9.8 million and $34.7 million from GABX and $14.6 million and $20.2 million from Brookfield for these services. GABX management fees earned by GATX are eliminated in consolidation and are not shown on the face of the condensed consolidated statements of income. However, the impact of fees earned are included in net income attributable to GATX. Management fees earned by GATX for managing the finance lease portfolio directly owned by Brookfield are reported in other revenue.

Previous wording

Despite ongoing macroeconomic uncertainty and the impacts of the geopolitical environment in the Middle East, demand for most railcars was stable and the renewal success rate remained strong. Utilization was 98.0% at the end of the current quarter.

Current wording

Despite ongoing macroeconomic uncertainty and the impacts of the geopolitical environment in the Middle East, the operating environment for the industry remained favorable as railcar deliveries remained historically low, fleet attrition continued to exceed new additions, and customers remained focused on retaining railcars in service. At Rail North America, demand for most railcars was stable and the renewal success rate remained strong. Utilization was 98.4% at the end of the current quarter.

Previous wording

As of June 30, 2026, leases for 23,008 tank and freight cars and 1,184 boxcars are scheduled to expire over the remainder of 2026. These amounts exclude railcars on leases expiring in 2026 that have already been renewed or assigned to a new lessee.

Current wording

As of September 30, 2026, 15,654 tank and freight cars and 926 boxcars are on leases that have expired or are scheduled to expire in 2026. These amounts exclude railcars on expiring leases that have already been renewed or assigned to a new lessee.

Previous wording

In 2022, we entered into a 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 June 30, 2026, 9,523 railcars have been ordered pursuant to the terms of the agreement, of which 7,344 railcars have been delivered.

Current wording

In 2022, we entered into a 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, 2026, 10,288 railcars have been ordered pursuant to the terms of the agreement, of which 7,762 railcars have been delivered.

Previous wording

During the second quarter of 2026, the renewal rate change of the LPI was positive 16.8%, compared to positive 22.3% in the prior quarter, and positive 24.2% in the second quarter of 2025. Lease terms on renewals for railcars in the LPI averaged 54 months in the current quarter, compared to 56 months in the prior quarter, and 60 months in the second quarter of 2025.

Current wording

During the third quarter of 2026, the renewal rate change of the LPI was positive 12.4%, compared to positive 16.8% in the prior quarter, and positive 22.8% in the third quarter of 2025. Lease terms on renewals for railcars in the LPI averaged 52 months in the current quarter, compared to 54 months in the prior quarter, and 60 months in the third quarter of 2025.

Previous wording

In the six months ended June 30, 2026, segment profit of $222.4 million increased 20.0% compared to $185.4 million for the same period in the prior year. Segment profit in 2026 was impacted by the acquisition of railcars from Wells Fargo. Aside from the impact of the acquisition, segment profit increased $30.2 million, driven by higher net gains on asset dispositions and higher revenue, partially offset by higher maintenance and interest expense.

Current wording

In the nine months ended September 30, 2026, segment profit of $343.7 million increased 34.2% compared to $256.1 million for the same period in the prior year. Segment profit in 2026 was impacted by the acquisition of railcars from Wells Fargo. Aside from the impact of the acquisition, segment profit increased $74.4 million, driven by higher net gains on asset dispositions and higher revenue, partially offset by higher maintenance and interest expense.

Previous wording

In the six months ended June 30, 2026, lease revenue increased $268.9 million, or 51.4%. The acquisition of railcars from Wells Fargo led to an increase in lease revenue of $262.5 million. In addition to the impact of the acquisition, lease revenue increased $6.4 million, primarily driven by more railcars on lease and higher lease rates. Other revenue increased $13.8 million primarily due to higher repair revenue and management fee revenue from the finance lease portfolio owned by Brookfield and managed by GATX.

Current wording

In the nine months ended September 30, 2026, lease revenue increased $399.0 million, or 50.7%. The acquisition of railcars from Wells Fargo led to an increase in lease revenue of $390.5 million. In addition to the impact of the acquisition, lease revenue increased $8.5 million, primarily driven by more railcars and locomotives on lease and higher lease rates. Other revenue increased $35.2 million primarily due to higher management fee revenue from the finance lease portfolio owned by Brookfield and managed by GATX and higher repair revenue.

Previous wording

In the six months ended June 30, 2026, maintenance expense increased $84.4 million. The acquisition of railcars from Wells Fargo led to an increase of $61.9 million. In addition to this impact, maintenance expense increased $22.5 million driven by more repair events, including more repairs performed by the railroads, and a mix of repairs that resulted in higher costs per repair. Depreciation expense increased $108.6 million, primarily due to the impact of the railcars acquired from Wells Fargo.

Current wording

In the nine months ended September 30, 2026, maintenance expense increased $115.9 million. The acquisition of railcars from Wells Fargo led to an increase of $97.0 million. In addition to this impact, maintenance expense increased $18.9 million driven by more repair events, including more repairs performed by the railroads, and a mix of repairs that resulted in higher costs per repair. Depreciation expense increased $159.8 million, primarily due to the impact of the railcars acquired from Wells Fargo.

Previous wording

In the six months ended June 30, 2026, net gain on asset dispositions increased $46.3 million, driven by higher net gains on asset dispositions and higher net scrapping gains, partially offset by lower net gains on railcars converted to finance leases. 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 $88.6 million, due to a higher average debt balance resulting from debt incurred for the acquisition of railcars from Wells Fargo and a higher average interest rate.

Current wording

In the nine months ended September 30, 2026, net gain on asset dispositions increased $75.3 million, driven by higher net gains on asset dispositions, higher net scrapping gains, and lower impairments recorded, partially offset by lower net gains on railcars converted to finance leases. 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 $128.4 million, due to a higher average debt balance resulting from debt incurred for the acquisition of railcars from Wells Fargo and a higher average interest rate.

Previous wording

During the six months ended June 30, 2026, investment volume was $4,611.3 million (including approximately $4.2 billion for the acquisition of railcars and locomotives from Wells Fargo) compared to $359.9 million in the same period in 2025. We acquired 1,765 newly built railcars and purchased 100,994 railcars in the secondary market (including 100,870 railcars acquired at GABX from Wells Fargo) and 202 locomotives (including 200 locomotives from Wells Fargo) in the six months ended June 30, 2026, compared to 1,269 newly built railcars, 707 railcars in the secondary market, and zero locomotives in the same period in 2025.

Current wording

During the nine months ended September 30, 2026, investment volume was $4,720.6 million (including approximately $4.2 billion for the acquisition of railcars and locomotives from Wells Fargo) compared to $502.5 million in the same period in 2025. We acquired 2,342 newly built railcars and purchased 100,994 railcars in the secondary market (including 100,870 railcars acquired at GABX from Wells Fargo) and 202 locomotives (including 200 locomotives acquired from Wells Fargo) in the nine months ended September 30, 2026, compared to 1,805 newly built railcars, 849 railcars in the secondary market, and zero locomotives in the same period in 2025.

Previous wording

In the three months ended June 30, 2026, segment profit of $118.5 million increased 22.7% compared to $96.6 million for the same period in the prior year. Segment profit in 2026 was impacted by the acquisition of railcars from Wells Fargo. Aside from the impact of the acquisition, segment profit increased $8.1 million, driven by higher net gains on asset dispositions and higher revenue, partially offset by higher maintenance and interest expense.

Current wording

In the three months ended September 30, 2026, segment profit of $121.3 million increased 71.6% compared to $70.7 million for the same period in the prior year. Segment profit in 2026 was impacted by the acquisition of railcars from Wells Fargo. Aside from the impact of the acquisition, segment profit increased $44.2 million, driven by higher net gains on asset dispositions and higher revenue, partially offset by higher maintenance and interest expense.

Previous wording

In the three months ended June 30, 2026, lease revenue increased $128.2 million, or 48.8%. The acquisition of railcars from Wells Fargo led to an increase in lease revenue of $129.7 million. Aside from the impact of the acquisition, lease revenue decreased $1.5 million, primarily driven by fewer railcars on lease, principally due to the effect of asset sales. Other revenue increased $11.1 million, driven by higher repair revenue and management fee revenue from the finance lease portfolio owned by Brookfield and managed by GATX.

Current wording

In the three months ended September 30, 2026, lease revenue increased $130.1 million, or 49.3%. The acquisition of railcars from Wells Fargo led to an increase in lease revenue of $128.0 million. Aside from the impact of the acquisition, lease revenue increased $2.1 million, primarily driven by more railcars on lease and higher lease rates. Other revenue increased $21.4 million, driven by higher management fee revenue from the finance lease portfolio owned by Brookfield and managed by GATX and higher repair revenue.

Previous wording

In the three months ended June 30, 2026, net gain on asset dispositions increased $28.6 million, driven by higher net gains on asset dispositions and higher net scrapping gains, partially offset by lower net gains on railcars converted to finance leases. 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 $39.3 million, due to a higher average debt balance resulting from debt incurred for the acquisition of railcars from Wells Fargo and a higher average interest rate.

Current wording

In the three months ended September 30, 2026, net gain on asset dispositions increased $29.0 million, driven by higher net gains on asset dispositions. 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 $39.8 million, due to a higher average debt balance resulting from debt incurred for the acquisition of railcars from Wells Fargo and a higher average interest rate.

Previous wording

Rail International, composed primarily of GATX Rail Europe ("GRE"), experienced a challenging railcar leasing market as GRE faced ongoing macroeconomic headwinds, including weak GDP results and higher inflation, as well as uncertainty due to the geopolitical environment in the Middle East and Ukraine, which weighed on customers' fleet planning activities. Despite pressure on utilization, GRE experienced renewal lease rate increases for the majority of railcar types in the period. Utilization was 95.3% at the end of the current quarter.

Current wording

Rail International, composed primarily of GATX Rail Europe ("GRE"), experienced a challenging railcar leasing market as GRE faced ongoing macroeconomic headwinds, including weak GDP results and higher inflation, as well as uncertainty due to the geopolitical environment in the Middle East and Ukraine, which weighed on customers' fleet planning activities. Despite pressure on utilization, GRE experienced renewal lease rate increases for the majority of railcar types in the period. Utilization was 96.1% at the end of the current quarter.

Previous wording

As of June 30, 2026, leases for 7,179 railcars are scheduled to expire over the remainder of 2026. This amount excludes railcars on leases expiring in 2026 that have already been renewed or assigned to a new lessee.

Current wording

As of September 30, 2026, leases for 5,528 railcars are scheduled to expire over the remainder of 2026. This amount excludes railcars on leases expiring in 2026 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, 2026, fluctuations in the value of the euro, relative to the U.S. dollar, positively impacted lease revenue by approximately $10.7 million and positively impacted segment profit, excluding other (expense) income, by approximately $5.5 million compared to the same period in 2025.

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, 2026, fluctuations in the value of the euro, relative to the U.S. dollar, positively impacted lease revenue by approximately $9.3 million and positively impacted segment profit, excluding other income (expense), by approximately $4.9 million compared to the same period in 2025.

Previous wording

In the six months ended June 30, 2026, segment profit of $63.2 million increased 9.2% compared to $57.9 million for the same period in the prior year. The increase was primarily due to higher lease revenue and changes in foreign currency exchange rates, partially offset by higher depreciation and interest expense.

Current wording

In the nine months ended September 30, 2026, segment profit of $99.1 million increased 7.4% compared to $92.3 million for the same period in the prior year. The increase was primarily due to higher lease revenue and changes in foreign currency exchange rates, partially offset by higher depreciation and interest expense.

Previous wording

In the six months ended June 30, 2026, lease revenue increased $27.5 million, or 15.9%, due to more railcars on lease at GRE and Rail India and the impact of foreign exchange rates.

Current wording

In the nine months ended September 30, 2026, lease revenue increased $35.8 million, or 13.4%, due to more railcars on lease at GRE and Rail India and the impact of foreign exchange rates at GRE.

Previous wording

In the six months ended June 30, 2026, maintenance expense increased $0.9 million, primarily due to the impact of foreign exchange rates and higher repair costs, partially offset by fewer regulatory compliance events. Depreciation expense increased $13.9 million, due to the impact of new railcars added to the fleet, including the railcars acquired from DB Cargo AG primarily in 2025.

Current wording

In the nine months ended September 30, 2026, maintenance expense increased $0.9 million, primarily due to the impact of foreign exchange rates and higher repair costs, partially offset by fewer regulatory compliance events. Depreciation expense increased $18.6 million, due to the impact of new railcars added to the fleet, including the railcars acquired from DB Cargo AG in 2025.

Previous wording

In the six months ended June 30, 2026, net interest expense increased $9.8 million, due to a higher average debt balance and a higher average interest rate. Other (expense) income was favorable by $3.7 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations, and lower litigation costs.

Current wording

In the nine months ended September 30, 2026, net interest expense increased $13.1 million, due to a higher average debt balance and a higher average interest rate. Other income (expense) was favorable by $5.0 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations, and lower litigation costs.

Previous wording

During the six months ended June 30, 2026, investment volume was $93.0 million compared to $143.8 million in the same period in 2025. In the six months ended June 30, 2026, GRE acquired 538 newly built railcars and purchased 46 railcars in the secondary market compared to 1,025 newly built railcars for the same period in 2025, and Rail India acquired 686 newly built railcars compared to 529 newly built railcars for the same period in 2025.

Current wording

During the nine months ended September 30, 2026, investment volume was $142.3 million compared to $209.9 million in the same period in 2025. In the nine months ended September 30, 2026, GRE acquired 704 newly built railcars and purchased 86 railcars in the secondary market compared to 1,353 newly built railcars for the same period in 2025, and Rail India acquired 784 newly built railcars compared to 1,129 newly built railcars for the same period in 2025.

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, 2026, fluctuations in the value of the euro, relative to the U.S. dollar, positively impacted lease revenue by approximately $2.1 million and positively impacted segment profit, excluding other (expense) income, by approximately $1.1 million compared to the same period in 2025.

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, 2026, fluctuations in the value of the euro, relative to the U.S. dollar, negatively impacted lease revenue by approximately $1.4 million and negatively impacted segment profit, excluding other income (expense), by approximately $0.6 million compared to the same period in 2025.

Previous wording

In the three months ended June 30, 2026, segment profit of $31.6 million decreased 1.9% compared to $32.2 million for the same period in the prior year. The decrease was primarily due to higher depreciation and interest expense, partially offset by higher lease revenue and changes in foreign currency exchange rates.

Current wording

In the three months ended September 30, 2026, segment profit of $35.9 million increased 4.4% compared to $34.4 million for the same period in the prior year. The increase was primarily due to higher lease revenue, partially offset by higher depreciation and interest expense.

Previous wording

In the three months ended June 30, 2026, lease revenue increased $10.7 million, or 11.9%, driven by more railcars on lease at GRE and Rail India, as well as the impact of foreign exchange rates.

Current wording

In the three months ended September 30, 2026, lease revenue increased $8.3 million, or 8.8%, driven by more railcars on lease at GRE and Rail India, partially offset by the impact of foreign exchange rates.

Previous wording

In the three months ended June 30, 2026, maintenance expense increased $0.3 million, primarily due to the impact of foreign exchange rates and higher repair costs, partially offset by fewer regulatory compliance events. Depreciation expense increased $6.2 million, due to the impact of new railcars added to the fleet, including the railcars acquired from DB Cargo AG primarily in 2025.

Current wording

In the three months ended September 30, 2026, maintenance expense was comparable to the same period in the prior year. Depreciation expense increased $4.7 million, due to the impact of new railcars added to the fleet, including the railcars acquired from DB Cargo AG in 2025.

Previous wording

In the three months ended June 30, 2026, net interest expense increased $3.9 million, due to a higher average debt balance and a higher average interest rate. Other (expense) income was unfavorable by $0.6 million, driven by the negative impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.

Current wording

In the three months ended September 30, 2026, net interest expense increased $3.3 million, due to a higher average debt balance and a higher average interest rate. Other income (expense) was favorable by $1.3 million, driven by the positive impact of changes in foreign exchange rates, primarily euro-zloty fluctuations.

Previous 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 $49.6 million and $77.2 million for the three and six months ended June 30, 2026, compared to $22.6 million and $56.0 million and for the same periods in 2025. Dividend distributions from the RRPF affiliates totaled $70.0 million for each of the three and six months ended June 30, 2026 compared to none for the same periods in 2025.

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 $46.1 million and $123.3 million for the three and nine months ended September 30, 2026, compared to $53.4 million and $109.4 million and for the same periods in 2025. Dividend distributions from the RRPF affiliates totaled zero and $70.0 million for the three and nine months ended September 30, 2026 compared to none for the same periods in 2025. In the third quarter of 2025, the RRPF affiliates recorded income from insurance recoveries related to aircraft spare engines. GATX's 50% share of this recovery was $10.9 million ($8.2 million after tax).

Previous wording

Engine Leasing also includes GATX Engine Leasing ("GEL"), our wholly owned business that invests directly in aircraft spare engines. As of June 30, 2026, GEL owned 46 aircraft spare engines, with 21 currently on, or available for, 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 owned by GEL are managed by the RRPF affiliates, for which we paid them a fee of $1.5 million and $3.0 million for the three and six months ended June 30, 2026 and $1.3 million and $2.7 million for the same periods in 2025.

Current wording

Engine Leasing also includes GATX Engine Leasing ("GEL"), our wholly owned business that invests directly in aircraft spare engines. As of September 30, 2026, GEL owned 46 aircraft spare engines, with 21 currently on, or available for, 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 owned by GEL are managed by the RRPF affiliates, for which we paid them a fee of $1.5 million and $4.5 million for the three and nine months ended September 30, 2026 and $1.4 million and $4.1 million for the same periods in 2025.

Previous wording

The operating environment for the RRPF affiliates and GEL continued to be favorable in the second quarter of 2026. Demand for air travel and spare engines continues to be high. However, uncertainty exists due to the geopolitical environment in the Middle East.

Current wording

The operating environment for the RRPF affiliates and GEL continued to be favorable in the third quarter of 2026 as healthy levels of global passenger air travel continued to drive strong demand for aircraft spare engines. However, uncertainty exists due to the geopolitical environment in the Middle East.

Previous wording

In the six months ended June 30, 2026, segment profit of $101.7 million increased $35.8 million compared to segment profit of $65.9 million for the same period in the prior year. The increase was driven by higher earnings at the RRPF affiliates and GEL.

Current wording

In the nine months ended September 30, 2026, segment profit of $153.1 million increased $26.8 million compared to segment profit of $126.3 million for the same period in the prior year. Segment profit in 2025 included $10.9 million from insurance recoveries at the RRPF affiliates, as noted above. Excluding the impact of the insurance recoveries, results for Engine Leasing were $37.7 million higher than 2025. The increase was driven by higher earnings at the RRPF affiliates and GEL.

Previous wording

In the six months ended June 30, 2026, lease revenue increased $2.1 million, driven by more aircraft spare engines on leases directly with airline customers. Non-dedicated engine revenue increased $0.7 million, due to higher annuity receipts for aircraft spare engines utilized in the engine capacity agreement with Rolls-Royce.

Current wording

In the nine months ended September 30, 2026, lease revenue increased $0.6 million, driven by more aircraft spare engines on leases directly with airline customers. Non-dedicated engine revenue increased $0.3 million, due to higher annuity receipts for aircraft spare engines utilized in the engine capacity agreement with Rolls-Royce.

Previous wording

In the six months ended June 30, 2026, depreciation expense increased $2.3 million, due to aircraft spare engines acquired in 2025.

Current wording

In the nine months ended September 30, 2026, depreciation expense increased $2.6 million, due to aircraft spare engines acquired in 2025.

Previous wording

In the six months ended June 30, 2026, other income increased $16.7 million, driven by maintenance reserve releases on certain engines at GEL. Income from our share of affiliates' earnings increased $21.2 million, driven by higher income from operations and higher remarketing income. Higher income from operations was primarily due to more aircraft spare engines in the fleet, partially offset by higher interest expense. 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 nine months ended September 30, 2026, other income increased $16.8 million, driven by maintenance reserve releases on certain engines at GEL. Income from our share of affiliates' earnings increased $13.9 million, driven by higher remarketing and other income and higher income from operations. Higher income from operations was primarily due to more aircraft spare engines in the fleet, partially offset by higher interest expense. Remarketing and other income was negatively impacted by the absence of income from insurance recoveries recorded in the prior year, as noted above, partially offset by higher gains on engine dispositions. 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, 2026, investment volume was $0.2 million, compared to zero in the same period in 2025. Investment volume in 2026 consisted of the purchase of engine stands at GEL.

Current wording

In the nine months ended September 30, 2026, investment volume was $0.2 million, compared to $147.1 million in the same period in 2025. Investment volume in 2026 consisted of the purchase of engine stands at GEL. Investment volume in 2025 consisted of the purchase of seven aircraft spare engines that were placed on long-term leases directly with a customer at GEL.

Previous wording

In the three months ended June 30, 2026, segment profit of $66.4 million increased $39.1 million compared to segment profit of $27.3 million for the same period in the prior year. The increase was driven by higher earnings at the RRPF affiliates and GEL.

Current wording

In the three months ended September 30, 2026, segment profit of $51.4 million decreased $9.0 million compared to segment profit of $60.4 million for the same period in the prior year. Segment profit in 2025 included $10.9 million of insurance recoveries at the RRPF affiliates, as noted above. Excluding the impact of this item, results for Engine Leasing were $1.9 million higher than 2025. The increase was driven by higher earnings at the RRPF affiliates, partially offset by lower earnings at GEL.