GATX Corporation reported 2025 fourth-quarter net income of $97.0 million ($2.66 per diluted share), up from $76.5 million ($2.10 per diluted share) in the fourth quarter of 2024.

GATX Corporation (NYSE: GATX) ("GATX" or the "Company") today reported 2025 fourth-quarter net income of $97.0 million or $2.66 per diluted share, compared to net income of $76.5 million or $2.10 per diluted share in the fourth quarter of 2024. The 2025 and 2024 fourth-quarter results include net positive impacts of $0.22 per diluted share and $0.17 per diluted share, respectively, from tax adjustments and other items.

Net income for the full-year 2025 was $333.3 million or $9.12 per diluted share, compared to $284.2 million or $7.78 per diluted share in the prior year. The 2025 full-year results include a net positive impact of $0.37 per diluted share from tax adjustments and other items. The 2024 full-year results include a net negative impact of $0.11 per diluted share from tax adjustments and other items. Details related to tax adjustments and other items are provided in the attached Supplemental Information.

"2025 was an exceptional year for GATX, highlighted by strong financial results and the announcement of our largest-ever railcar acquisition," said Robert C. Lyons, president and chief executive officer of GATX. "Despite unpredictable economic conditions and challenging macro factors, earnings per diluted share, excluding tax adjustments and other items, increased 11.0% versus the prior year, and our return on equity exceeded 12.0%. Additionally, we invested over $1.3 billion in attractive, long-lived assets, further strengthening our global leasing platforms and providing a strong foundation for future earnings growth and value creation.

"On Jan. 1, 2026, GATX successfully closed the largest acquisition in the Company's history. Through a newly formed joint venture with Brookfield Infrastructure Partners, we acquired approximately 101,000 railcars from Wells Fargo for about $4.2 billion. We are integrating the fleet into our industry-leading railcar leasing platform in North America, which will enable us to better serve customers while leveraging our operational and commercial expertise. Our expanded fleet will also provide substantial remarketing opportunities in the years ahead.

"In Rail North America, demand for existing railcars remained solid, reflected by our 99.0% fleet utilization at year end and a 91.4% renewal success rate in the fourth quarter. During the year, our commercial team achieved higher renewal lease rates and extended lease terms, strengthening our base of high-quality, long-term cash flow. We also capitalized on a robust secondary market, generating approximately $117.0 million of remarketing income for the year.

"Rail International performed in line with expectations in 2025. GATX Rail Europe ("GRE") achieved higher renewal lease rates across the majority of car types despite soft economic conditions. During the year, GRE entered into an agreement to acquire approximately 6,000 freight railcars from DB Cargo-one of the largest acquisitions in its history-further diversifying its portfolio and strengthening its competitive position. GRE has already taken ownership of most of the fleet and expects delivery of the remaining railcars over the course of early 2026. In India, rail freight volumes continued to grow, supporting healthy demand for railcars. GATX Rail India further expanded and diversified its fleet while maintaining 100.0% utilization.

"In Engine Leasing, both the Rolls-Royce & Partners Finance affiliates ("RRPF") and our wholly owned aircraft spare engine portfolio performed very well in 2025. Air travel trends continue to drive strong global demand for aircraft spare engines, creating a favorable operating environment for Engine Leasing. We executed on attractive opportunities to expand our engine portfolios during the year. Our wholly owned portfolio now exceeds $1.0 billion in total assets, and RRPF invested more than $1.4 billion, bringing the joint venture's asset base to over $5.8 billion."

Mr. Lyons added, "For 2026, we expect generally stable conditions in the North American railcar leasing market. The diversity of our North American fleet is an advantage, as we anticipate that continued demand for the vast majority of our fleet will buffer softer conditions in a few of the most economically sensitive car types. In Rail North America, we anticipate higher segment profit driven by the continued renewal of expiring leases at higher rates across a broad range of car types, as well as income contributions from the newly acquired and managed fleets. We also expect segment profit to rise at Rail International, supported by more railcars on lease in both Europe and India. In Engine Leasing, continued strong global demand for aircraft spare engines is expected to fuel another year of segment profit growth."

Mr. Lyons concluded, "As we begin 2026, we are well positioned to build on the strong operational and financial momentum we achieved last year. The scale and diversity of our expanded global fleet, the strength of our customer relationships, and our disciplined investment approach further reinforce our confidence in delivering attractive returns and sustaining strong performance in the years ahead. In 2026, we will be integrating the owned and managed railcars from the Wells Fargo transaction into our North American operations, and as previously indicated, we expect the income contribution from these activities to be modestly accretive in year one. Taking these factors into consideration, we expect 2026 earnings to be in the range of $9.50–$10.10 per diluted share, inclusive of $0.20-$0.30 per diluted share of income contribution from the Wells Fargo transaction."

BOARD OF DIRECTORS APPROVES 8.2% INCREASE IN QUARTERLY DIVIDEND AND $300 MILLION SHARE REPURCHASE AUTHORIZATION

On Feb. 18, 2026, the board of directors of GATX (the "Board") declared a quarterly dividend of $0.66 per common share, payable on March 31, 2026, to shareholders of record as of March 2, 2026. GATX has paid quarterly dividends without interruption since 1919, and the dividend announced today represents an 8.2% increase from the prior year's dividend. In addition, the Board approved a new $300 million share repurchase authorization, as the Company's prior authorization from 2019 had largely been exhausted.

Mr. Lyons said, "2026 marks our 108th consecutive year of paying a dividend, a track record few companies can match. Earlier this month, GATX was added to the S&P 400 Dividend Aristocrats Index, affirming the durability of our cash flows and our disciplined approach to capital allocation. In addition to the dividend increase, the Board approved a $300 million share repurchase authorization that will provide the Company with ample capacity to periodically repurchase shares. Over the past decade, we have invested approximately $11.0 billion in our business while returning approximately $1.4 billion to shareholders through dividends and share repurchases, all while maintaining a strong balance sheet and solid investment-grade credit ratings. The dividend increase and share repurchase authorization announced today reflect the Board's confidence in our long-term outlook and ongoing commitment to shareholders."

RAIL NORTH AMERICA

Rail North America reported segment profit of $95.7 million in the fourth quarter of 2025, compared to $84.5 million in the fourth quarter of 2024. For the full year, Rail North America reported segment profit of $351.8 million in 2025, compared to $356.0 million in 2024. Higher segment profit in the fourth quarter of 2025 was driven by higher gains on asset dispositions and higher lease revenue, partially offset by higher maintenance expense. For the full-year 2025, higher lease revenue was offset by higher maintenance and interest expenses, resulting in lower segment profit compared to the prior year.

As of Dec. 31, 2025, Rail North America's wholly owned fleet was approximately 107,600 cars, including approximately 7,000 boxcars. The following fleet statistics and performance discussion exclude the boxcar fleet.

Fleet utilization was 99.0% at the end of the fourth quarter, compared to 98.9% at the end of the prior quarter and 99.1% at 2024 year-end. During the fourth quarter, the renewal lease rate change of the GATX Lease Price Index (LPI) was 21.9%. This compares to 22.8% in the prior quarter and 26.7% in the fourth quarter of 2024. The average lease renewal term for railcars included in the LPI during the fourth quarter was 58 months, compared to 60 months in the prior quarter and 60 months in the fourth quarter of 2024. The 2025 fourth-quarter renewal success rate was 91.4%, compared to 87.1% in the prior quarter and 89.1% in the fourth quarter of 2024. For the full-year 2025, asset remarketing income was $117.0 million and total investment volume was $644.1 million.

Additional fleet statistics, including information on the boxcar fleet, and macroeconomic data related to Rail North America's business, are provided in the attached Supplemental Information under Rail North America Statistics.

RAIL INTERNATIONAL

Rail International's segment profit was $33.6 million in the fourth quarter of 2025, compared to $30.6 million in the fourth quarter of 2024. Full-year segment profit was $125.9 million in 2025, compared to $119.8 million in 2024. Higher segment profit for the fourth quarter and full-year 2025 was driven primarily by more railcars on lease.

As of Dec. 31, 2025, GRE's fleet consisted of approximately 36,500 cars and fleet utilization was 94.7%, compared to 93.7% at the end of the prior quarter and 96.1% at 2024 year-end.

As of Dec. 31, 2025, GATX Rail India's fleet consisted of approximately 12,200 railcars and fleet utilization was 100.0%, consistent with the end of the prior quarter and at 2024 year-end.

For the full-year 2025, total investment volume at Rail International was $502.4 million. Additional fleet statistics for GRE and Rail India are provided on the last page of this press release.

ENGINE LEASING

Engine Leasing reported segment profit of $55.2 million in the fourth quarter of 2025, compared to segment profit of $35.7 million in the fourth quarter of 2024. 2025 fourth-quarter results include a net positive impact of $4.4 million ($3.3 million after tax) from tax adjustments and other items.

2025 full-year segment profit was $181.5 million, compared to $117.3 million in 2024. 2025 full-year results include a net positive impact of $15.3 million ($11.5 million after tax) from tax adjustments and other items. 2024 full-year results include a net positive impact of $0.6 million from tax adjustments and other items. Additional details are provided in the attached Supplemental Information under Impact of Tax Adjustments and Other Items.

Excluding these impacts, higher segment profit for the fourth quarter and full-year 2025 was driven by strong performance at the Rolls-Royce and Partners Finance affiliates, as well as more engines under ownership at GATX Engine Leasing, the Company's wholly owned engine portfolio.

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon
COMTEX_477064521/2227/2026-04-11T13:26:12