GATX Corporation (NYSE: GATX) announced its financial results for the third quarter of 2024, reporting a net income of $89.0 million, or $2.43 per diluted share, compared to $52.5 million, or $1.44 per diluted share, in the same period of 2023. The 2024 third-quarter results include a net negative impact of $2.5 million, or $0.07 per diluted share, from tax adjustments and other items.
For the first nine months of 2024, GATX’s net income was $207.7 million, or $5.68 per diluted share, up from $193.2 million, or $5.30 per diluted share, during the same period in 2023. The year-to-date results for 2024 include a net negative impact of $9.9 million, or $0.27 per diluted share, from tax adjustments and other items, compared to a net negative impact of $1.1 million, or $0.03 per diluted share, in 2023.
President and CEO Robert C. Lyons highlighted that operating conditions remained in line with expectations. He praised the high performance of GATX’s Rail North America teams, reporting fleet utilization of 99.3% and a renewal success rate above 80%. The Lease Price Index (LPI) saw a 26.6% positive renewal rate change, with an average renewal lease term of 59 months.
Remarketing activities at Rail North America generated over $43 million in income for the third quarter, with year-to-date remarketing income exceeding $96 million. Additionally, the company expanded its asset base by acquiring over 1,000 railcars during the quarter.
Internationally, GATX Rail Europe ended the quarter with fleet utilization of 95.9%, while GATX Rail India maintained 100% utilization, driven by strong demand and investment opportunities.
In Engine Leasing, the Rolls-Royce and Partners Finance affiliates performed exceptionally well as demand for aircraft spare engines remained strong. GATX also expanded its engine portfolio, acquiring four new engines for $94.8 million.
Looking ahead, GATX projects its full-year 2024 earnings to range between $7.50 and $7.70 per diluted share, excluding the impact of tax benefits and other items.
Rail North America
Rail North America reported a segment profit of $102.4 million in Q3 2024, up from $66.1 million in Q3 2023, driven by higher gains on asset sales and lease revenue. Year-to-date, the segment profit reached $271.5 million, compared to $240.6 million for the same period in 2023. The fleet utilization rate was 99.3% at the end of the quarter, with a positive 26.6% lease renewal rate change in the LPI.
Rail International
Rail International posted a segment profit of $33.9 million in Q3 2024, up from $28.2 million in Q3 2023, primarily due to higher lease rates and an increase in leased railcars. Year-to-date, the segment profit was $89.2 million, compared to $79.0 million in 2023.
GATX Rail Europe’s fleet utilization stood at 95.9% at the end of Q3 2024, while Rail India maintained 100% utilization, reflecting strong demand.
Engine Leasing
Engine Leasing reported a segment profit of $37.5 million in Q3 2024, compared to $20.2 million in Q3 2023, driven by robust performance at the Rolls-Royce and Partners Finance affiliates. Year-to-date, segment profit was $81.6 million, up from $75.1 million in 2023.
Higher earnings were attributed to increased ownership of engines in GATX’s portfolio and strong affiliate performance.