GATX Corp (GATX)
NYSE:GATX
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GATX
(NYSE:GATX)
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Rating:61Neutral
Price Target:
$205.00
â–²(4.77% Upside)
Action:ReiteratedDate:03/16/26
The score reflects solid underlying operating performance and constructive 2026 guidance (including scale benefits and shareholder returns), tempered by structurally weak free cash flow and leverage risk. Near-term technicals are a meaningful headwind given the pronounced downtrend and oversold momentum.
Positive Factors
Scale & fleet control
Owning/managing ~208k cars is a durable competitive advantage: it increases remarketing inventory, improves pricing leverage with large shippers and suppliers, and creates fixed-cost dilution benefits. Scale raises long-term recurring lease revenue potential and fee income from JV management.
Negative Factors
Persistent negative free cash flow
Chronic negative free cash flow signals that operating cash does not fully cover fleet investment needs, forcing ongoing external financing for growth and buybacks. Over 2–6 months this constrains liquidity flexibility and elevates refinancing and dividend sustainability risk despite profitable operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & fleet control
Owning/managing ~208k cars is a durable competitive advantage: it increases remarketing inventory, improves pricing leverage with large shippers and suppliers, and creates fixed-cost dilution benefits. Scale raises long-term recurring lease revenue potential and fee income from JV management.
Read all positive factors
GATX (GATX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.95B
Dividend Yield1.41%
Average Volume (3M)196.05K
Price to Earnings (P/E)18.2
Beta (1Y)0.86
Revenue Growth10.66%
EPS Growth13.61%
CountryUS
Employees2,150
SectorIndustrials
Sector Strength72
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)2.44
Shares Outstanding35,523,636
10 Day Avg. Volume203,740
30 Day Avg. Volume196,050
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)2.21
Price to Sales (P/S)3.49
P/FCF Ratio-8.88
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue8.48
Enterprise Value/Gross Profit17.47
Enterprise Value/Ebitda13.60
Forecast
1Y Price Target
$215.50Price Target Upside10.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)10.01
Revenue Forecast (FY)$2.42B
GATX Business Overview & Revenue Model
Company Description
GATX Corporation operates as railcar leasing company in the United States and internationally. The company operates through three segments: Rail North America, Rail International, and Portfolio Management. It leases tank and freight railcars, and ...
How the Company Makes Money
GATX primarily makes money by leasing railcars under multi-year contracts and generating recurring rental income from its owned fleet. Under its rail leasing model, the company invests capital to acquire or build railcars (often specialized types ...
GATX Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive outlook driven by strong 2025 operating performance, meaningful scale and revenue/remarketing upside from the Wells Fargo Rail acquisition, robust engine-leasing momentum, raised dividend and new repurchase authorization, and a record EPS outlook for 2026. Key near-term headwinds and risks include sizable increases in interest, depreciation and maintenance expense due to the larger fleet, GAAP dilution from operating-lease accounting, the noncontrolling interest impact on JV gains, and mixed dynamics in Europe and certain car types. Management emphasized successful initial integration and prudent capital allocation, while noting variability in remarketing gains and maintenance spend. Overall, positives from scale, cash flow strength and strategic positioning outweigh the near-term costs and integration risks.Positive Updates
Strong Quarterly and Full-Year Earnings
Q4 2025 net income of $97.0M ($2.66 per diluted share) versus Q4 2024 $76.5M ($2.10 per diluted share). Full-year 2025 net income $333.3M ($9.12 per diluted share) versus 2024 $284.2M ($7.78 per diluted share). Management noted EPS growth vs. prior year (company commentary: ~11% higher EPS vs. 2024) and an expected FY2026 EPS range of $9.50–$10.10 (roughly a ~10% increase year-over-year at midpoint).
Negative Updates
European and Certain Car-Type Weakness
Rail International (Europe) faced a softer-than-expected economic environment in 2025 and management expects Europe to remain challenging in 2026. Certain economically sensitive car types (e.g., box cars) are under downward lease-rate pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Full-Year Earnings
Q4 2025 net income of $97.0M ($2.66 per diluted share) versus Q4 2024 $76.5M ($2.10 per diluted share). Full-year 2025 net income $333.3M ($9.12 per diluted share) versus 2024 $284.2M ($7.78 per diluted share). Management noted EPS growth vs. prior year (company commentary: ~11% higher EPS vs. 2024) and an expected FY2026 EPS range of $9.50–$10.10 (roughly a ~10% increase year-over-year at midpoint).
Read all positive updates
Company Guidance
GATX guided 2026 EPS of $9.50–$10.10 (about a 10% increase vs 2025 EPS of $9.12), after reporting FY2025 net income $333.3M ($9.12) and Q4 2025 $97M ($2.66); ROE remained above 12% and leverage ~3.30. Following the Wells Fargo transactions (GATX 30%/Brookfield 70% JV that acquired 101,000 railcars; Brookfield purchased ~22,000 finance‑lease cars), GATX will manage a consolidated North America fleet of ~208,000 cars and expects LPI in the high‑teens to low‑20s (Q4 LPI 21.9%), consolidated utilization of 98–99% (Wells fleet ~97% at close), and renewal success in the high‑70s to low‑80s. Financial line‑item guidance includes Rail North America lease revenue of ~$1.6B (+~$550M y/y), other revenue ~$160M (+$25M), net gains on dispositions ~$200M (vs $130M in 2025), North America segment profit ~$415M (+$55–65M), Rail International profit +$5–10M, Engine Leasing segment profit +$15–20M, interest expense ~$440M (+$180M), depreciation ~$520M (+$230M), maintenance ~$500M (+$150M), other operating expense ~$85M (+$25M), and SG&A ~$275M (2025: $246M). Capital deployment is expected at ~$1B+ outside the Wells deal, the JV reinvestment is targeted at ~$1B+ (GATX typically does not fund JV capital directly), GATX made an initial equity investment of ~ $400M and anticipates exercising a ~$66M option June 30; the Board approved an 8.2% dividend increase and a new $300M buyback authorization (Q4 repurchases were ~$46.5M at $160/share). Note that GAAP consolidation will show 100% of the JV but Brookfield’s share will be recorded as noncontrolling interest, so GATX economically captures 30% of JV gains.GATX Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
58
Neutral
Cash Flow
46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.74B | 1.59B | 1.41B | 1.27B | 1.26B |
| Gross Profit | 845.50M | 760.90M | 647.30M | 572.60M | 539.20M |
| EBITDA | 986.40M | 1.02B | 901.00M | 762.40M | 776.30M |
| Net Income | 333.30M | 284.20M | 259.20M | 155.90M | 143.10M |
Balance Sheet | |||||
| Total Assets | 18.31B | 12.30B | 11.33B | 10.07B | 9.54B |
| Cash, Cash Equivalents and Short-Term Investments | 4.98B | 401.60M | 450.70M | 452.20M | 344.30M |
| Total Debt | 12.81B | 8.41B | 7.63B | 6.72B | 6.19B |
| Total Liabilities | 14.67B | 9.86B | 9.05B | 8.04B | 7.52B |
| Stockholders Equity | 2.75B | 2.44B | 2.27B | 2.03B | 2.02B |
Cash Flow | |||||
| Free Cash Flow | -683.60M | -1.07B | -1.14B | -722.30M | -622.90M |
| Operating Cash Flow | 648.10M | 602.10M | 520.40M | 533.50M | 507.20M |
| Investing Cash Flow | -117.80M | -1.42B | -1.22B | -1.07B | -916.60M |
| Financing Cash Flow | 4.05B | 770.50M | 844.10M | 504.40M | 463.10M |
GATX Technical Analysis
Positive
195.66
Price Trends
181.10
Positive
175.90
Positive
168.39
Positive
Market Momentum
4.88
Negative
75.43
Negative
96.66
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GATX, the sentiment is Positive. The current price of 195.66 is above the 20-day moving average (MA) of 176.51, above the 50-day MA of 181.10, and above the 200-day MA of 168.39, indicating a bullish trend. The MACD of 4.88 indicates Negative momentum. The RSI at 75.43 is Negative, neither overbought nor oversold. The STOCH value of 96.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GATX.
GATX Risk Analysis
GATX disclosed 32 risk factors in its most recent earnings report. GATX reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GATX Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $2.83B | 12.96 | 13.21% | 1.79% | 4.77% | -35.44% | |
68 Neutral | $7.28B | 9.92 | 13.23% | 1.37% | 9.67% | 96.43% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.95B | 18.22 | 12.47% | 1.41% | 10.66% | 13.61% | |
61 Neutral | $8.31B | 16.03 | 16.36% | 1.75% | 1.68% | 9.91% | |
51 Neutral | $3.45B | -64.81 | -5.35% | 1.44% | -3.64% | 867.62% | |
47 Neutral | $3.35B | 4,644.29 | 0.06% | 1.79% | 19.40% | -120.47% |
* Industrials Sector Average
GATX
GATX
195.66
49.82
34.16%
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23.81
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GATX Corporate Events
Business Operations and StrategyPrivate Placements and Financing
GATX Joint Venture Issues $1 Billion Senior Notes
Positive
Mar 16, 2026
On March 12, 2026, GABX Leasing LLC, a joint venture between GATX and Brookfield Infrastructure Partners, issued $1 billion of senior unsecured notes in two tranches: $500 million of 4.625% notes due 2031 and $500 million of 5.300% notes due 2036,...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
GATX Boosts Dividend and Launches New Buyback Program
Positive
Feb 19, 2026
In 2025, GATX reported strong financial performance, with fourth-quarter net income rising to $97.0 million and full-year net income increasing to $333.3 million, supported by high railcar fleet utilization, robust lease rate renewals, and over $1...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.