Trinity Industries Inc (TRN) Announces 65% YoY Revenue Growth in Q3 2023
Trinity Industries Inc (NYSE:TRN) reports a 65% YoY increase in total company revenues, reaching $821 million in Q3 2023.
Despite supply chain disruptions, the company delivered 4,325 railcars and received orders for 3,200 railcars in the quarter.
TRN generated year-to-date operating and adjusted free cash flow of $216 million and $50 million, respectively.
Lease fleet utilization stood at 98.1% and Future Lease Rate Differential (FLRD) at a positive 26.6% at quarter-end.
Trinity Industries Inc (NYSE:TRN) announced its Q3 2023 earnings results on November 2, 2023. The company reported a significant 65% YoY increase in total company revenues, reaching $821 million. This growth was driven by higher volumes of external deliveries in the Rail Products Group and improved lease rates in the Leasing Group. Despite supply chain disruptions, the company delivered 4,325 railcars and received orders for 3,200 railcars in the quarter.
Financial Highlights
TRN reported a quarterly income from continuing operations per common diluted share ("EPS") of $0.29 and quarterly adjusted EPS of $0.26. The company's lease fleet utilization stood at 98.1% and Future Lease Rate Differential (FLRD) at a positive 26.6% at quarter-end. Year-to-date cash flow from continuing operations and adjusted free cash flow after investments and dividends ("Adjusted Free Cash Flow") were $216 million and $50 million, respectively.
Management Commentary
Trinitys third quarter results reflect significantly stronger performance, with revenue growth of 65% as compared to a year ago, stated Trinitys Chief Executive Officer and President, Jean Savage. We believe we are on a good path to end 2023 with favorable financial performance and continued improvement.
Financial Tables Summary
The company's consolidated financial summary shows a YoY increase in revenues from $496.6 million in Q3 2022 to $821.3 million in Q3 2023. The operating profit also increased from $92.7 million to $100.2 million over the same period. However, net income from continuing operations attributable to Trinity Industries, Inc. decreased from $29.2 million in Q3 2022 to $24.5 million in Q3 2023.
Performance Analysis
Despite the challenges posed by border closures and congestion, TRN managed to improve its operating margins in the Rail Products Group segment to 5.2%, excluding gains from insurance recoveries. The company's forward-looking metrics continue to indicate consistent strength in lease rates. However, due to missed deliveries in Q3 and related supply chain and efficiency impacts, the company has lowered its full-year adjusted EPS guidance to a range of $1.20 to $1.35.
For more detailed financial information, please visit the official Trinity Industries Inc website.
Explore the complete 8-K earnings release (here) from Trinity Industries Inc for further details.
This article first appeared on GuruFocus.
