Trinity Industries (TRN)
NYSE:TRN
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Trinity Industries
(NYSE:TRN)
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Rating:65Neutral
Price Target:
$35.00
▲(6.22% Upside)
Action:ReiteratedDate:05/01/26
TRN’s score is driven by improving profitability and a supportive earnings outlook (raised 2026 EPS guidance with strong leasing utilization), plus an attractive valuation (low P/E and meaningful dividend). The main constraints are weak free-cash-flow history and mixed leverage/capital-structure signals, while technicals remain constructive but not strongly bullish.
Positive Factors
Leasing segment strength
High leasing margins, sustained ~97% utilization and consecutive positive FLRD create durable, recurring cash flow that is less cyclical than manufacturing. Strong renewal spreads and a large leased fleet support rent-roll stability, high incremental returns on fleet assets, and durable earnings resilience.
Negative Factors
Persistent negative free cash flow
Chronic negative free cash flow indicates cash conversion lag versus reported earnings and heavy reinvestment or working-capital needs. Over time this forces reliance on portfolio sales, securitizations or external financing to fund fleet growth, increasing execution and refinancing risk in downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing segment strength
High leasing margins, sustained ~97% utilization and consecutive positive FLRD create durable, recurring cash flow that is less cyclical than manufacturing. Strong renewal spreads and a large leased fleet support rent-roll stability, high incremental returns on fleet assets, and durable earnings resilience.
Read all positive factors
Trinity Industries (TRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.89B
Dividend Yield4.34%
Average Volume (3M)659.07K
Price to Earnings (P/E)26.5
Beta (1Y)0.98
Revenue Growth-27.72%
EPS Growth91.42%
CountryUS
Employees7,380
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)0.32
Shares Outstanding79,652,510
10 Day Avg. Volume548,872
30 Day Avg. Volume659,069
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)1.98
Price to Sales (P/S)0.99
P/FCF Ratio-4.91
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue3.73
Enterprise Value/Gross Profit13.81
Enterprise Value/Ebitda11.92
Forecast
1Y Price Target
$35.50Price Target Upside7.74% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.95
Revenue Forecast (FY)$2.20B
Trinity Industries Business Overview & Revenue Model
Company Description
Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and M...
How the Company Makes Money
Trinity Industries makes money primarily through two core activities: (1) railcar manufacturing/sales and (2) railcar leasing and related services. In manufacturing, Trinity generates revenue by designing and producing various types of freight rai...
Trinity Industries Key Performance Indicators (KPIs)
Trinity Industries Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed predominantly positive operational and financial progress: strong margin expansion, high fleet utilization, significant cash generation, improved returns and an upgraded full-year EPS outlook driven in part by a sizeable noncash partnership gain. Notable risks include a 16% revenue decline, lower consolidated owned fleet, lumpy portfolio-sale gains, manufacturing volume weakness and external pressures from inflation and tariff uncertainty. On balance, strengths (margin, cash, guidance raise, strategic portfolio transaction and leasing momentum) outweigh the challenges.Positive Updates
EPS Growth Despite Revenue Decline
GAAP EPS from continuing operations grew 10% year-over-year to $0.32 in Q1 while revenue declined 16% YoY to $492 million, demonstrating operating leverage.
Negative Updates
Revenue Decline and Fleet Consolidation
Total revenue decreased 16% YoY in Q1 partly due to a prior railcar partnership exchange that reduced the consolidated owned fleet; wholly owned fleet ended Q1 at 101,960 railcars, down about 7% YoY.
Read all updates
Q1-2026 Updates
Positive
Negative
EPS Growth Despite Revenue Decline
GAAP EPS from continuing operations grew 10% year-over-year to $0.32 in Q1 while revenue declined 16% YoY to $492 million, demonstrating operating leverage.
Read all positive updates
Company Guidance
Trinity raised and tightened 2026 guidance, increasing full‑year EPS to $2.20–$2.40 (from $1.85–$2.10; ~16% higher at the midpoint) and now expects full‑year gains on portfolio sales of $160–$180M (including $22M in Q1 and an ~ $130M non‑cash pre‑tax gain from the Napier Park transaction to be recorded in Q2); it updated cash metrics to net lease fleet investment of $350–$450M (cash metric, excluding the Napier Park RIV sale) and operating & administrative capex of $55–$65M, assumes ~25,000 industry deliveries in 2026 with Trinity’s share in its historical 30–40% range, and reiterated Rail Products full‑year margins of ~5–6%; key Q1 operating and balance‑sheet markers cited in support include Q1 GAAP EPS from continuing ops of $0.32, revenue $492M, cash from continuing ops $100M, Q1 net fleet investment $68M, $83M proceeds and $22M gain from lease portfolio sales, 97.3% fleet utilization, renewal rates 6.6% above expiring, a positive FLRD of 1.2% (19 consecutive quarters), Rail Products backlog of $1.6B, liquidity of $1.1B, and a wholly‑owned fleet LTV of 69.1% (shareholder returns were $32M in Q1).Trinity Industries Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.06B | 2.16B | 3.08B | 2.98B | 1.98B | 1.52B |
| Gross Profit | 557.30M | 572.70M | 668.20M | 527.10M | 367.70M | 354.50M |
| EBITDA | 645.70M | 954.70M | 789.10M | 707.70M | 612.00M | 512.30M |
| Net Income | 255.20M | 253.10M | 138.40M | 106.00M | 60.10M | 182.00M |
Balance Sheet | ||||||
| Total Assets | 8.33B | 8.42B | 8.83B | 8.91B | 8.72B | 8.24B |
| Cash, Cash Equivalents and Short-Term Investments | 252.60M | 201.30M | 374.40M | 235.10M | 294.30M | 302.40M |
| Total Debt | 5.38B | 5.44B | 5.80B | 5.87B | 5.72B | 5.28B |
| Total Liabilities | 7.18B | 7.28B | 7.53B | 7.63B | 7.45B | 6.94B |
| Stockholders Equity | 1.08B | 1.08B | 1.06B | 1.04B | 1.01B | 1.03B |
Cash Flow | ||||||
| Free Cash Flow | -282.70M | -435.20M | -21.90M | -414.50M | -979.60M | 41.00M |
| Operating Cash Flow | 382.80M | 359.70M | 573.80M | 295.60M | -12.80M | 611.80M |
| Investing Cash Flow | -349.60M | -385.60M | -214.60M | -363.00M | -260.70M | 276.30M |
| Financing Cash Flow | -13.90M | -24.90M | -219.90M | 8.20M | 265.40M | -814.10M |
Trinity Industries Technical Analysis
Positive
32.95
Price Trends
32.26
Positive
29.76
Positive
28.18
Positive
Market Momentum
0.60
Negative
53.92
Neutral
34.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRN, the sentiment is Positive. The current price of 32.95 is above the 20-day moving average (MA) of 32.29, above the 50-day MA of 32.26, and above the 200-day MA of 28.18, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 34.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TRN.
Trinity Industries Risk Analysis
Trinity Industries disclosed 38 risk factors in its most recent earnings report. Trinity Industries reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Trinity Industries Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $44.96B | 29.34 | 10.94% | 0.46% | 9.59% | 10.69% | |
65 Neutral | $2.89B | 26.50 | 24.45% | 4.34% | -27.72% | 91.42% | |
65 Neutral | $2.04B | 18.58 | 8.00% | ― | 12.72% | 74.84% | |
65 Neutral | $1.55B | 34.09 | 9.51% | 2.71% | -17.66% | -26.36% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $321.08M | 28.35 | 4.34% | ― | 1.74% | -81.66% | |
54 Neutral | $158.31M | 9.24 | -40.20% | ― | -10.22% | ― |
* Industrials Sector Average
TRN
Trinity Industries
36.22
12.55
53.04%
CXW
CoreCivic
20.58
-2.38
-10.37%
RAIL
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8.30
2.05
32.80%
GBX
Greenbrier
50.04
7.43
17.45%
FSTR
L. B. Foster Company
30.70
10.22
49.90%
WAB
Westinghouse Air Brake Technologies
264.95
75.10
39.56%
Trinity Industries Corporate Events
Business Operations and StrategyFinancial Disclosures
Trinity Industries Raises 2026 EPS Guidance After Strong Quarter
Positive
Apr 30, 2026
On April 30, 2026, Trinity Industries reported first-quarter 2026 results, posting revenue of $492 million and earnings from continuing operations of $0.32 per diluted share, up $0.03 year on year, alongside operating cash flow of $100 million and...
Business Operations and StrategyPrivate Placements and Financing
Trinity Industries Expands Green Railcar Financing Through New Notes
Positive
Apr 21, 2026
On April 17, 2026, Trinity Rail Leasing 2025 LLC, an indirect wholly owned subsidiary of Trinity Industries, issued $480.8 million of secured green standard railcar notes in two tranches, with fixed interest rates of 5.35% for Class A and 5.56% fo...
Business Operations and StrategyFinancial Disclosures
Trinity Industries Restructures Rail Leasing Interests via NP SPE
Neutral
Apr 15, 2026
On April 9, 2026, Trinity Industries Leasing Company contributed its 42.56% membership interest in TRIP Rail Holdings and 0.2% interest in Triumph Rail Holdings to NP SPE Holdings in exchange for an 11.2% limited partnership interest in NP SPE. As...
Business Operations and StrategyPrivate Placements and Financing
Trinity Industries Issues Secured Green Railcar Notes Offering
Positive
Apr 6, 2026
On April 1, 2026, Trinity Industries subsidiaries Trinity Industries Leasing Company and Trinity Rail Leasing 2025 LLC entered into a Note Purchase Agreement with a syndicate of investment banks to issue $480.8 million of secured green standard ra...
Business Operations and StrategyExecutive/Board Changes
Trinity Industries Announces Executive Leadership Transition in Leasing
Neutral
Feb 17, 2026
On February 13, 2026, Trinity Industries announced that Gregory B. Mitchell, its Executive Vice President, Leasing and Services, had informed the company of his intention to transition to retirement, effective October 15, 2026. As part of this pla...
Business Operations and StrategyFinancial Disclosures
Trinity Industries Reports Strong 2025 Results, Sets 2026 Outlook
Positive
Feb 12, 2026
Trinity Industries reported fourth-quarter and full-year 2025 results on February 12, 2026, posting full-year earnings from continuing operations of $3.14 per diluted share and revenue of $2.2 billion, despite lower external railcar deliveries. Th...
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.