TRINITY INDUSTRIES INC

Previous wording

•actions by U.S. and/or foreign governments (particularly Mexico and Canada) relative to tariffs, trade policies, federal government budgeting, taxation policies, government expenditures, and borrowing/debt ceiling limits;

Current wording

•actions by U.S. and/or foreign governments (particularly Mexico and Canada) relative to tariffs, trade policies, federal government budgeting, taxation policies, government expenditures, borrowing/debt ceiling limits, and government shutdowns;

Previous wording

Demand for many of our railcar products and services is correlated to changes in North American industrial production. We continue to actively monitor trade policy and tariff announcements and the potential impacts to our business. Uncertainty in the macroeconomic environment is negatively impacting our results of operations and demand for new railcars. We remain focused on minimizing impacts to our supply chain resulting from these announcements and any future developments.

Current wording

Demand for many of our railcar products and services is correlated to changes in North American industrial production and international trade. We continue to actively monitor evolving tariff and trade developments and the potential impacts to our business. Uncertainty in these areas and in the macroeconomic environment, including the administration of trade policy, is negatively impacting and could continue to negatively impact our results of operations and demand for new railcars. We remain focused on mitigating impacts to our business resulting from these evolving developments.

Previous wording

•Our revenues for the six months ended June 30, 2025 were $1,091.6 million, representing a decrease of 33.9%, compared to the six months ended June 30, 2024. Our operating profit for the six months ended June 30, 2025 was $195.2 million, representing a decrease of 24.1%, compared to $257.1 million for the six months ended June 30, 2024.

Current wording

•Our revenues for the nine months ended September 30, 2025 were $1,545.7 million, representing a decrease of 36.9%, compared to the nine months ended September 30, 2024. Our operating profit for the nine months ended September 30, 2025 was $313.8 million, representing a decrease of 17.3%, compared to $379.5 million for the nine months ended September 30, 2024.

Previous wording

•The Leasing Group's lease fleet of 111,545 company-owned railcars was 96.8% utilized as of June 30, 2025, compared to a lease fleet utilization of 96.9% on 109,365 company-owned railcars as of June 30, 2024. Our company-owned lease fleet includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.

Current wording

•The Leasing Group's lease fleet of 112,850 company-owned railcars was 96.8% utilized as of September 30, 2025, compared to a lease fleet utilization of 96.6% on 109,555 company-owned railcars as of September 30, 2024. Our company-owned lease fleet includes wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.

Previous wording

•For the six months ended June 30, 2025, we made a net fleet investment of approximately $232.7 million, which primarily includes new railcar additions, railcar modifications, and other betterments, net of deferred profit, as well as secondary market purchases; and is net of proceeds from lease portfolio sales.

Current wording

•For the nine months ended September 30, 2025, we made a net fleet investment of approximately $387.4 million, which primarily includes new railcar additions, railcar modifications, and other betterments, net of deferred profit, as well as secondary market purchases; and is net of proceeds from lease portfolio sales.

Previous wording

•The total value of the new railcar backlog at June 30, 2025 was $2.0 billion, compared to $2.7 billion at June 30, 2024. The Rail Products Group received orders for 3,005 railcars and deliveries of 4,875 railcars in the six months ended June 30, 2025, in comparison to orders for 4,375 railcars and deliveries of 9,450 railcars in the six months ended June 30, 2024.

Current wording

•The total value of the new railcar backlog at September 30, 2025 was $1.8 billion, compared to $2.4 billion at September 30, 2024. The Rail Products Group received orders for 3,355 railcars and deliveries of 6,555 railcars in the nine months ended September 30, 2025, in comparison to orders for 6,185 railcars and deliveries of 13,810 railcars in the nine months ended September 30, 2024.

Previous wording

◦Deliveries in the six months ended June 30, 2024 included approximately 1,300 railcar shipments that were delayed at the end of 2023 due to the U.S.-Mexico border closure and delivered during the first half of 2024.

Current wording

◦Deliveries in the nine months ended September 30, 2024 included approximately 1,300 railcar shipments that were delayed at the end of 2023 due to the U.S.-Mexico border closure and delivered during the first half of 2024.

Previous wording

(2) Non-GAAP financial measure. See the Non-GAAP Financial Measures section within this Form 10-Q for a reconciliation to the most directly comparable GAAP measure and why management believes this measure is useful to management and investors. Dollar amounts are presented for the six months ended June 30, 2025 and 2024.

Current wording

(2) Non-GAAP financial measure. See the Non-GAAP Financial Measures section within this Form 10-Q for a reconciliation to the most directly comparable GAAP measure and why management believes this measure is useful to management and investors. Dollar amounts are presented for the nine months ended September 30, 2025 and 2024.

Previous wording

The following table summarizes our consolidated results of operations for the three and six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024:

Previous wording

The tables below present revenues by segment for the three and six months ended June 30, 2025 and 2024:

Current wording

The tables below present revenues by segment for the three and nine months ended September 30, 2025 and 2024:

Previous wording

Operating costs are comprised of cost of revenues; selling, engineering, and administrative costs; and gains or losses on property disposals. Operating costs by segment for the three and six months ended June 30, 2025 and 2024 were as follows:

Current wording

Operating costs are comprised of cost of revenues; selling, engineering, and administrative costs; and gains or losses on property disposals. Operating costs by segment for the three and nine months ended September 30, 2025 and 2024 were as follows:

Previous wording

(1) Includes gains on lease portfolio sales of $7.8 million and $22.7 million for the three months ended June 30, 2025 and 2024, respectively. Includes gains on lease portfolio sales of $13.7 million and $24.8 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

(1) Includes gains on lease portfolio sales of $21.7 million and $11.4 million for the three months ended September 30, 2025 and 2024, respectively. Includes gains on lease portfolio sales of $35.4 million and $36.2 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Operating profit by segment for the three and six months ended June 30, 2025 and 2024 was as follows:

Current wording

Operating profit by segment for the three and nine months ended September 30, 2025 and 2024 was as follows:

Previous wording

Revenues – Our revenues for the three months ended June 30, 2025 were $506.2 million, representing a decrease of $335.2 million, or 39.8%, over the prior year period. Our revenues for the six months ended June 30, 2025 were $1,091.6 million, representing a decrease of $559.4 million, or 33.9%, over the prior year period. These decreases were primarily due to lower external deliveries in the Rail Products Group.

Current wording

Revenues – Our revenues for the three months ended September 30, 2025 were $454.1 million, representing a decrease of $344.7 million, or 43.2%, over the prior year period. Our revenues for the nine months ended September 30, 2025 were $1,545.7 million, representing a decrease of $904.1 million, or 36.9%, over the prior year period. These decreases were primarily due to lower external deliveries in the Rail Products Group.

Previous wording

Cost of revenues – Our cost of revenues for the three months ended June 30, 2025 was $372.8 million, representing a decrease of $289.6 million, or 43.7%, over the prior year period. Our cost of revenues for the six months ended June 30, 2025 was $816.0 million, representing a decrease of $491.3 million, or 37.6%, over the prior year period. These decreases were primarily due to lower external deliveries in the Rail Products Group.

Current wording

Cost of revenues – Our cost of revenues for the three months ended September 30, 2025 was $312.7 million, representing a decrease of $316.6 million, or 50.3%, over the prior year period. Our cost of revenues for the nine months ended September 30, 2025 was $1,128.7 million, representing a decrease of $807.9 million, or 41.7%, over the prior year period. These decreases were primarily due to lower external deliveries in the Rail Products Group.

Previous wording

Selling, engineering, and administrative expenses – Selling, engineering, and administrative expenses for the three months ended June 30, 2025 were $49.4 million, representing a decrease of $11.9 million, or 19.4%, when compared to the prior year period. Selling, engineering, and administrative expenses for the six months ended June 30, 2025 were $99.4 million, representing a decrease of $14.2 million, or 12.5%, when compared to the prior year period. These decreases were primarily due to lower employee-related costs, including incentive-based compensation, and lower consulting costs.

Current wording

Selling, engineering, and administrative expenses – Selling, engineering, and administrative expenses for the three months ended September 30, 2025 were $45.2 million, representing a decrease of $15.3 million, or 25.3%, when compared to the prior year period. Selling, engineering, and administrative expenses for the nine months ended September 30, 2025 were $144.6 million, representing a decrease of $29.5 million, or 16.9%, when compared to the prior year period. These decreases were primarily due to lower incentive-based compensation, as well as lower consulting and employee-related costs as a result of cost reduction efforts taken by management.

Previous wording

Gains on dispositions of property – Gains on dispositions of property decreased by $12.8 million and $8.0 million for the three and six months ended June 30, 2025, respectively, when compared to the prior year periods primarily due to lower gains on lease portfolio sales.

Current wording

Gains on dispositions of property – Gains on dispositions of property increased by $9.0 million for the three months ended September 30, 2025, when compared to the prior year period primarily due to higher gains on lease portfolio sales. Gains on dispositions of property for the nine months ended September 30, 2025 were flat when compared to the prior year period.

Previous wording

Operating profit – Operating profit for the three months ended June 30, 2025 totaled $95.4 million, representing a decrease of $46.5 million, or 32.8%, from the prior year period. Operating profit for the six months ended June 30, 2025 totaled $195.2 million, representing a decrease of $61.9 million, or 24.1%, from the prior year period. These decreases were primarily due to lower external deliveries in the Rail Products Group, lower gains on lease portfolio sales, and costs associated with workforce reductions, partially offset by lower selling, engineering, and administrative expenses.

Current wording

Operating profit – Operating profit for the three months ended September 30, 2025 totaled $118.6 million, representing a decrease of $3.8 million, or 3.1%, from the prior year period primarily due to lower external deliveries in the Rail Products Group, partially offset by lower selling, engineering, and administrative expenses and higher gains on lease portfolio sales. Operating profit for the nine months ended September 30, 2025 totaled $313.8 million, representing a decrease of $65.7 million, or 17.3%, from the prior year period primarily due to lower external deliveries in the Rail Products Group and costs associated with workforce reductions, partially offset by lower selling, engineering, and administrative expenses.

Previous wording

Interest expense, net – Interest expense, net for the three months ended June 30, 2025 totaled $67.7 million, compared to $70.1 million for the three months ended June 30, 2024 primarily driven by lower interest rates and lower average debt in 2025. Interest expense, net for the six months ended June 30, 2025 totaled $133.8 million, compared to $139.2 million for the six months ended June 30, 2024 primarily driven by lower interest rates, partially offset by higher average debt in 2025. Additionally, interest expense, net includes a loss on extinguishment of debt of $0.8 million for the three and six months ended June 30, 2025, compared to $1.5 million for the three and six months ended June 30, 2024.

Current wording

Interest expense, net – Interest expense, net for the three months ended September 30, 2025 totaled $69.8 million, compared to $67.4 million for the three months ended September 30, 2024 primarily driven by higher average debt in 2025. Interest expense, net for the nine months ended September 30, 2025 totaled $203.6 million, compared to $206.6 million for the nine months ended September 30, 2024 primarily driven by lower interest rates, partially offset by higher average debt in 2025. Additionally, interest expense, net includes a loss on extinguishment of debt of $0.8 million for the nine months ended September 30, 2025, compared to $1.5 million for the nine months ended September 30, 2024.

Previous wording

Income taxes – The effective tax rates from continuing operations for the three and six months ended June 30, 2025 were expenses of 15.8% and 18.4%, respectively, which differ from the U.S. statutory rate of 21.0% primarily due to the benefit of tax credits purchased at a discount and the benefit of noncontrolling interest for which we do not provide income taxes, partially offset by state income taxes and other permanent differences. See Note 9 for further information regarding the purchase of transferable tax credits.

Current wording

The effective tax rate from continuing operations for the nine months ended September 30, 2025 was an expense of 20.4%, which differs from the U.S. statutory rate of 21.0% primarily due to the benefit of noncontrolling interest for which we do not provide income taxes and the benefit of tax credits purchased at a discount, partially offset by state income taxes, foreign income taxes, and other permanent differences. See Note 9 for further information regarding the purchase of transferable tax credits.

Previous wording

The effective tax rates from continuing operations for the three and six months ended June 30, 2024 were expenses of 22.7% and 23.8%, respectively, which differ from the U.S. statutory rate of 21.0% primarily due to state income taxes, foreign income taxes, and non-deductible executive compensation, partially offset by the benefit of noncontrolling interest for which we do not provide income taxes, excess tax benefits associated with equity-based compensation, and changes in state tax laws enacted in the second quarter.

Current wording

The effective tax rates from continuing operations for the three and nine months ended September 30, 2024 were expenses of 27.7% and 25.1%, respectively, which differ from the U.S. statutory rate of 21.0% primarily due to state income taxes, foreign income taxes, non-deductible executive compensation, and return to provision adjustments, partially offset by the benefit of noncontrolling interest for which we do not provide income taxes, excess tax benefits associated with equity-based compensation, and changes in state tax laws.

Previous wording

Total revenues for the Railcar Leasing and Services Group increased by 7.5% and 4.1% for the three and six months ended June 30, 2025, respectively, compared to the prior year periods. Leasing and management revenues increased by 5.2% and 5.0% for the three and six months ended June 30, 2025, respectively, when compared to the prior year periods, primarily due to higher lease rates.

Current wording

Total revenues for the Railcar Leasing and Services Group increased by 4.0% and 4.1% for the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. Leasing and management revenues increased by 8.8% and 6.3% for the three and nine months ended September 30, 2025, respectively, when compared to the prior year periods, primarily due to higher lease rates.

Previous wording

Our maintenance services business is primarily dedicated to servicing our lease fleet. Revenues related to maintenance services performed on Company-owned railcars under full-service lease agreements are eliminated within the Railcar Leasing and Services Group. Services that are not included in the full-service lease agreement, such as repairs of railcar damage or other customer-specific requirements, as well as maintenance and repair activities on railcars owned by third parties, including our investor-owned fleet, are reflected in the maintenance services revenues line above and are not eliminated in consolidation. Revenues in our maintenance services business increased by 21.0% and 3.8% for the three and six months ended June 30, 2025, respectively, when compared to the prior year periods as a result of favorable pricing on, and the mix of, repairs completed for third parties. The increase in revenues for the six months ended June 30, 2025 was partially offset by a lower volume of external repairs.

Current wording

Our maintenance services business is primarily dedicated to servicing our lease fleet. Revenues related to maintenance services performed on Company-owned railcars under full-service lease agreements are eliminated within the Railcar Leasing and Services Group. Services that are not included in the full-service lease agreement, such as repairs of railcar damage or other customer-specific requirements, as well as maintenance and repair activities on railcars owned by third parties, including our investor-owned fleet, are reflected in the maintenance services revenues line above and are not eliminated in consolidation. Revenues in our maintenance services business decreased by 11.1% and 1.7% for the three and nine months ended September 30, 2025, respectively, when compared to the prior year periods as a result of a lower volume of external repairs, partially offset by favorable pricing.

Previous wording

Cost of revenues for the Railcar Leasing and Services Group increased by 13.7% and 7.3% for the three and six months ended June 30, 2025, respectively, compared to the prior year periods primarily due to higher maintenance and compliance costs for the lease fleet, as well as the mix of external repairs in our maintenance services business. Cost of revenues for the six months ended June 30, 2025 was partially offset by a lower volume of external repairs, including the impact of weather disruptions, in our maintenance services business.

Current wording

Cost of revenues for the Railcar Leasing and Services Group increased by 6.9% and 7.1% for the three and nine months ended September 30, 2025, respectively, compared to the prior year periods primarily due to higher maintenance and compliance costs for the lease fleet, partially offset by a lower volume of external repairs in our maintenance services business.

Previous wording

The Leasing Group generally uses its non-recourse warehouse loan facility or cash to provide initial funding for a portion of the purchase price of the railcars. After initial funding, the Leasing Group may obtain long-term financing for the railcars in the lease fleet through non-recourse asset-backed securities; long-term recourse debt; long-term non-recourse promissory notes; or third-party equity.

Current wording

The Leasing Group generally uses its non-recourse warehouse loan facility or cash to provide initial funding for a portion of the purchase price of the railcars. After initial funding, the Leasing Group may obtain long-term financing for the railcars in the lease fleet through non-recourse asset-backed securities; long-term recourse debt; long-term non-recourse promissory notes and term loans; or third-party equity.

Previous wording

(1)Includes 2,230 railcars and 2,490 railcars under leased-in arrangements as of June 30, 2025 and 2024, respectively.

Current wording

(1)Includes 2,330 railcars and 2,490 railcars under leased-in arrangements as of September 30, 2025 and 2024, respectively.

Previous wording

(1)Includes sustainable railcar conversion revenues of $2.1 million, representing 25 railcars, for the three and six months ended June 30, 2025. Includes sustainable railcar conversion revenues of $14.4 million, representing 195 railcars, for the three months ended June 30, 2024 and sustainable railcar conversion revenues of $64.6 million, representing 870 railcars, for the six months ended June 30, 2024.

Current wording

(1)Includes sustainable railcar conversion revenues of $2.1 million, representing 25 railcars, for the nine months ended September 30, 2025. There were no sustainable railcar conversion revenues for the three months ended September 30, 2025. Includes sustainable railcar conversion revenues of $12.8 million, representing 170 railcars, for the three months ended September 30, 2024 and sustainable railcar conversion revenues of $77.4 million, representing 1,040 railcars, for the nine months ended September 30, 2024.

Previous wording

Revenues for the Rail Products Group decreased for the three and six months ended June 30, 2025 by 53.7% and 45.1%, respectively, when compared to the prior year periods. Cost of revenues for the Rail Products Group decreased for the three and six months ended June 30, 2025 by 51.8% and 44.2%, respectively, when compared to the prior year periods. These decreases were primarily due to lower deliveries.

Current wording

Revenues for the Rail Products Group decreased for the three and nine months ended September 30, 2025 by 53.8% and 47.9%, respectively, when compared to the prior year periods. Cost of revenues for the Rail Products Group decreased for the three and nine months ended September 30, 2025 by 53.8% and 47.2%, respectively, when compared to the prior year periods. These decreases were primarily due to lower deliveries.

Previous wording

Operating profit for the Rail Products Group decreased for the three and six months ended June 30, 2025 by 82.3% and 63.1%, respectively, when compared to the prior year periods primarily due to lower deliveries, reduced absorption due to lower production volumes, and costs associated with workforce reductions.

Current wording

Operating profit for the Rail Products Group decreased for the three and nine months ended September 30, 2025 by 59.3% and 61.8%, respectively, when compared to the prior year periods primarily due to lower deliveries, reduced overhead absorption due to lower production volumes, and costs associated with workforce reductions, partially offset by a higher mix of, and production efficiencies associated with, high-margin specialty railcars.

Previous wording

(1) Deliveries for the six months ended June 30, 2024 included approximately 1,300 railcar shipments that were delayed at the end of 2023 due to the U.S.-Mexico border closure and delivered during the first half of 2024.

Current wording

(1) Deliveries for the nine months ended September 30, 2024 included approximately 1,300 railcar shipments that were delayed at the end of 2023 due to the U.S.-Mexico border closure and delivered during the first half of 2024.

Previous wording

Total backlog dollars decreased by 27.0% when compared to the prior year period. We expect to deliver approximately 36.7% of our railcar backlog value during the remaining six months of 2025 and 24.7% during 2026, with the remainder to be delivered through 2028. The orders in our backlog from the Leasing Group are fully supported by lease commitments with external customers. The final amount of backlog attributable to the Leasing Group may vary by the time of delivery as customers may elect to change their procurement decision.

Current wording

Total backlog dollars decreased by 25.5% when compared to the prior year period. We expect to deliver approximately 21.3% of our railcar backlog value during the remaining three months of 2025 and 35.8% during 2026, with the remainder to be delivered through 2028. The orders in our backlog from the Leasing Group are fully supported by lease commitments with external customers. The final amount of backlog attributable to the Leasing Group may vary by the time of delivery as customers may elect to modify their procurement decision.

Previous wording

Selling, engineering, and administrative expenses for the three and six months ended June 30, 2025 decreased by 14.0% and 11.3%, respectively, when compared to the prior year periods primarily from lower employee-related costs, including incentive-based compensation, and lower consulting costs, partially offset by costs associated with workforce reductions. Total operating costs for all periods presented were favorably impacted by gains associated with the disposition of non-operating facilities.

Current wording

Selling, engineering, and administrative expenses for the three and nine months ended September 30, 2025 decreased by 29.0% and 17.6%, respectively, when compared to the prior year periods primarily from lower employee-related costs, including incentive-based compensation, and lower consulting costs. The decrease in selling, engineering, and administrative expenses for the nine months ended September 30, 2025 was partially offset by costs associated with workforce reductions. Total operating costs during the nine months ended September 30, 2025 were favorably impacted by gains associated with the disposition of non-operating facilities.

Previous wording

We expect to finance future operating requirements with cash, cash equivalents, and short-term marketable securities; cash flows from operations; and short-term debt, long-term debt, and equity. Debt instruments that we have utilized include the TILC warehouse loan facility, senior notes, convertible subordinated notes, asset-backed securities, non-recourse promissory notes, and our revolving credit facility.

Current wording

We expect to finance future operating requirements with cash, cash equivalents, and short-term marketable securities; cash flows from operations; and short-term debt, long-term debt, and equity. Debt instruments that we have utilized include the TILC warehouse loan facility, senior notes, convertible subordinated notes, non-recourse asset-backed securities, non-recourse promissory notes and term loans, and our revolving credit facility.

Previous wording

As of June 30, 2025, we have total committed liquidity of $791.8 million. Our total available liquidity includes: $147.7 million of unrestricted cash and cash equivalents; $595.6 million unused and available under our revolving credit facility; and $48.5 million unused and available under the TILC warehouse loan facility based on the amount of warehouse-eligible, unpledged equipment. We believe we have access to adequate capital resources to fund operating requirements and are an active participant in the capital markets.

Current wording

As of September 30, 2025, we have total committed liquidity of $571.4 million. Our total available liquidity includes: $66.3 million of unrestricted cash and cash equivalents; $502.7 million unused and available under our revolving credit facility; and $2.4 million unused and available under the TILC warehouse loan facility based on the amount of warehouse-eligible, unpledged equipment. We believe we have access to adequate capital resources to fund operating requirements and are an active participant in the capital markets.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted. The Act includes multiple business tax provisions, including the reinstatement of 100% bonus depreciation and a change in the calculation of deductible interest expense. We are currently evaluating the impact of these provisions on our overall financial position; however, we preliminarily expect a positive impact on our operating cash flows as a result of the expected refund of estimated tax payments previously made, as well as lower cash tax outlays in both the current and future years.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (the "Act") was enacted. The Act includes multiple business tax provisions, including the reinstatement of 100% bonus depreciation and a change in the calculation of deductible interest expense. We expect a positive impact on our operating cash flows as a result of the expected refund of estimated tax payments previously made, as well as lower cash tax outlays in both the current and future years.

Previous wording

The following table summarizes our cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024:

Current wording

The following table summarizes our cash flows from operating, investing, and financing activities for the nine months ended September 30, 2025 and 2024:

Previous wording

Operating Activities. Net cash provided by operating activities from continuing operations for the six months ended June 30, 2025 was $141.9 million compared to net cash provided by operating activities from continuing operations of $299.7 million for the six months ended June 30, 2024. The changes in our operating assets and liabilities are as follows:

Current wording

Operating Activities. Net cash provided by operating activities from continuing operations for the nine months ended September 30, 2025 was $187.2 million compared to net cash provided by operating activities from continuing operations of $383.5 million for the nine months ended September 30, 2024. The changes in our operating assets and liabilities are as follows:

Previous wording

The changes in our operating assets and liabilities resulted in a net use of $51.9 million for the six months ended June 30, 2025, as compared to a net source of $69.5 million for the six months ended June 30, 2024. The changes in operating assets and liabilities were impacted primarily by the purchase of tax credits for $38.4 million in the current year period, payments of incentive-based compensation during the six months ended June 30, 2025 that were accrued as of December 31, 2024, and the timing of customer deposits for new railcar orders.

Current wording

The changes in our operating assets and liabilities resulted in a net use of $125.6 million for the nine months ended September 30, 2025, as compared to a net source of $49.9 million for the nine months ended September 30, 2024. The changes in operating assets and liabilities were impacted primarily by higher inventory balances and the purchase of tax credits for $38.4 million in the current year period, as well as payments of incentive-based compensation during the nine months ended September 30, 2025 that were accrued as of December 31, 2024.

Previous wording

Investing Activities. Net cash used in investing activities for the six months ended June 30, 2025 was $242.1 million compared to $55.9 million of net cash used in investing activities for the six months ended June 30, 2024. Significant investing activities are as follows:

Current wording

Investing Activities. Net cash used in investing activities for the nine months ended September 30, 2025 was $398.4 million compared to $105.2 million of net cash used in investing activities for the nine months ended September 30, 2024. Significant investing activities are as follows:

Previous wording

•We made a net fleet investment of $232.7 million during the six months ended June 30, 2025, compared to $46.0 million in the prior year period primarily due to higher proceeds from lease portfolio sales in the prior year period and the timing of fleet additions. Our investment in the lease fleet primarily includes new railcar additions, sustainable railcar conversions, railcar modifications, and other betterments, net of deferred profit, as well as secondary market purchases; and is net of proceeds from lease portfolio sales.

Current wording

•We made a net fleet investment of $387.4 million during the nine months ended September 30, 2025, compared to $86.5 million in the prior year period primarily due to the timing of lease portfolio sales and fleet additions. Our investment in the lease fleet primarily includes new railcar additions, sustainable railcar conversions, railcar modifications, and other betterments, net of deferred profit, as well as secondary market purchases; and is net of proceeds from lease portfolio sales.