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Trinity Industries (TRN)
NYSE:TRN
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Trinity Industries
(NYSE:TRN)
Rating:61Neutral
Price Target:
$28.00
▼(-3.05% Downside)
Trinity Industries (TRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.32B
Dividend Yield4.09%
Average Volume (3M)807.56K
Price to Earnings (P/E)25.0
Beta (1Y)1.19
Revenue Growth-22.95%
EPS Growth-40.67%
CountryUS
Employees7,380
SectorIndustrials
Sector Strength84
IndustryRailroads
Share Statistics
EPS (TTM)0.19
Shares Outstanding80,837,360
10 Day Avg. Volume1,210,494
30 Day Avg. Volume807,559
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.46
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit13.38
Enterprise Value/Ebitda12.29
Forecast
1Y Price Target
$26.00Price Target Upside-9.97% Downside
Rating ConsensusHold
Number of Analyst Covering2
Trinity Industries Business Overview & Revenue Model
Company DescriptionTrinity Industries, Inc. is a diversified industrial company based in the United States, primarily engaged in the manufacturing and leasing of transportation and industrial products. The company operates through various segments, including Rail Group, which produces railcars and provides railcar leasing services; Construction Products Group, which offers highway products and construction materials; and Energy Equipment Group, which manufactures products for the energy sector. With a robust portfolio that includes a range of rail-related products and infrastructure services, Trinity serves key markets across North America.
How the Company Makes MoneyTrinity Industries generates revenue through several key streams, primarily from the manufacturing and leasing of railcars. The Rail Group is a significant contributor, where the company designs, manufactures, and sells a variety of railcars, including tank cars, freight cars, and intermodal containers. Additionally, the leasing of these railcars provides a recurring revenue stream. The Construction Products Group contributes by selling products like concrete and asphalt, while the Energy Equipment Group derives income from manufacturing equipment utilized in the oil and gas industry. Partnerships with major transportation and energy companies enhance their earnings potential, along with market demand fluctuations in rail and construction sectors impacting revenue generation.
Trinity Industries Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: 15.61%|
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlights a strong performance in the leasing business and a positive market outlook, with signs of recovery and improved order volumes. However, challenges in the Rail Products segment and increased costs present obstacles. Overall, the sentiment is mixed with a cautious optimism for the second half of the year.Q2-2025 Updates
Positive Updates
Strong Leasing Business Performance
The leasing business performed exceptionally well, with segment revenues increasing both sequentially and year-over-year due to higher lease rates. The renewal success rate was 89%, with a fleet utilization rate of 96.8%.
Positive Market Outlook
The market shows signs of recovery with a book-to-bill ratio of 1.3x and expected increases in deliveries. The overall industry deliveries are projected to be in the range of 28,000 to 33,000 for the year.
Financial Strength and Flexibility
The company reported $792 million in liquidity and maintained a strong balance sheet, providing flexibility under various market conditions.
Increased Guidance for Gains on Lease Portfolio Sales
The guidance for gains on lease portfolio sales increased from $40-50 million to $50-60 million for the full year, indicating a robust secondary market.
Negative Updates
Challenges in Rail Products Segment
The Rail Products segment faced lower order volumes, resulting in a reduced operating margin of 3%, impacted by workforce reductions and slower delivery pace.
Increased Costs
The cost of revenues in the leasing segment increased by 13.7% year-over-year due to higher maintenance and compliance expenses.
Severance Expenses
The company incurred $8 million in severance expenses year-to-date and expects full-year severance expenses to be $15 million, contributing to challenges in maintaining operating margins.
Company Guidance
During the Trinity Industries Q2 2025 Earnings Call, CEO Jean Savage highlighted the company's strong performance, focusing on the leasing segment's exceptional results. Key metrics included a 1.3x book-to-bill ratio and a solid 96.8% fleet utilization rate. The Railcar Leasing and Services segment saw a 21% year-over-year increase in quarterly maintenance services revenue, with future lease rate differential (FRD) standing at 18.3%. Renewal rates were 17.9% above expiring rates, with an 89% renewal success rate. Trinity completed $29 million in lease fleet portfolio sales, generating gains of $8 million. The Rail Products segment reported a 3% operating margin, delivering 1,815 railcars, with orders for 2,310 railcars and a book-to-bill ratio above 1x, marking a positive momentum. CFO Eric Marchetto reiterated the full-year EPS guidance of $1.40 to $1.60 and highlighted a $40 million purchase of transferable tax credits, reducing the effective tax rate to 15.8%. The company maintained segment margin guidance and expected stronger performance in the latter half of the year, driven by higher deliveries and improved operating efficiency.Trinity Industries Financial Statement Overview
Summary
Trinity Industries presents a mixed financial picture. While operational efficiency is evident from strong EBIT and EBITDA margins, declining revenue and high leverage are concerns. The cash flow situation is challenging, with negative free cash flow growth. The company needs to focus on improving revenue growth and managing debt levels to enhance financial stability.Income Statement
Trinity Industries shows a mixed performance in its income statement. The TTM gross profit margin of 23.18% is decent, indicating effective cost management. However, the net profit margin of 4.10% suggests room for improvement in profitability. The revenue growth rate is negative at -11.74% TTM, indicating a decline in sales, which is a concern. The EBIT and EBITDA margins are relatively strong at 16.92% and 28.80% TTM, respectively, showing operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals high leverage with a debt-to-equity ratio of 5.37, indicating significant reliance on debt financing, which poses a risk. The return on equity is modest at 7.46% TTM, reflecting moderate profitability relative to shareholder equity. The equity ratio is not provided, but the high debt levels suggest a lower proportion of equity in the capital structure.55
Neutral
Cash Flow
Cash flow analysis shows challenges, with a negative free cash flow growth rate of -324.70% TTM, indicating cash outflows. The operating cash flow to net income ratio of 1.91 TTM is strong, suggesting good cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting issues in converting profits to free cash flow.45
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 3.08B | 2.98B | 1.98B | 1.52B | 2.00B |
| Gross Profit | 600.10M | 668.20M | 527.10M | 367.70M | 354.50M | 491.00M |
| EBITDA | 653.50M | 789.10M | 707.70M | 458.00M | 439.90M | -68.30M |
| Net Income | 96.50M | 138.40M | 106.00M | 98.90M | 39.30M | -226.10M |
Balance Sheet | ||||||
| Total Assets | 8.81B | 8.83B | 8.91B | 8.72B | 8.24B | 8.70B |
| Cash, Cash Equivalents and Short-Term Investments | 315.30M | 228.20M | 105.70M | 79.60M | 167.30M | 132.00M |
| Total Debt | 5.86B | 5.69B | 5.75B | 5.61B | 5.17B | 5.02B |
| Total Liabilities | 7.55B | 7.53B | 7.63B | 7.45B | 6.94B | 6.69B |
| Stockholders Equity | 1.01B | 1.06B | 1.04B | 1.01B | 1.03B | 1.74B |
Cash Flow | ||||||
| Free Cash Flow | -56.40M | -21.90M | -414.50M | -979.60M | 41.00M | -52.80M |
| Operating Cash Flow | 420.10M | 573.80M | 295.60M | -12.80M | 611.80M | 651.70M |
| Investing Cash Flow | -402.30M | -214.60M | -363.00M | -260.70M | 276.30M | -532.90M |
| Financing Cash Flow | -64.80M | -219.90M | 8.20M | 265.40M | -814.10M | -168.00M |
Trinity Industries Technical Analysis
Positive
28.88
Price Trends
26.52
Positive
26.11
Positive
30.22
Negative
Market Momentum
0.39
Negative
65.28
Neutral
98.24
Negative
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 28.88 is above the 20-day moving average (MA) of 26.33, above the 50-day MA of 26.52, and below the 200-day MA of 30.22, indicating a neutral trend. The MACD of 0.39 indicates Negative momentum. The RSI at 65.28 is Neutral, neither overbought nor oversold. The STOCH value of 98.24 is Negative, 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 39 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
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $62.42B | 18.80 | 24.11% | 1.92% | 0.71% | 86.84% | |
73 Outperform | $245.12M | 7.34 | 22.67% | ― | -7.03% | 397.79% | |
71 Outperform | $32.98B | 28.79 | 10.84% | 0.49% | 3.38% | 17.21% | |
69 Neutral | $1.44B | 6.57 | 16.16% | 2.60% | 0.71% | 84.57% | |
63 Neutral | $10.83B | 16.63 | 7.96% | 2.06% | 2.20% | -16.67% | |
61 Neutral | $2.32B | 24.97 | 10.47% | 4.09% | -22.95% | -40.67% | |
40 Underperform | $179.80M | ― | 156.43% | ― | -6.00% | -12.45% |
* Industrials Sector Average
Performance Comparison
TRN
Trinity Industries
28.88
-2.11
-6.81%
RAIL
Freightcar America
9.31
4.84
108.28%
GBX
Greenbrier
47.63
2.45
5.42%
FSTR
L. B. Foster Company
24.28
5.70
30.68%
NSC
Norfolk Southern
281.84
45.88
19.44%
WAB
Westinghouse Air Brake Technologies
194.40
36.68
23.26%
Trinity Industries Corporate Events
Business Operations and StrategyFinancial Disclosures
Trinity Industries Reports Q2 2025 Earnings and Orders
Neutral
Jul 31, 2025
Trinity Industries reported its second quarter 2025 results, highlighting a quarterly earnings per share of $0.19 and a year-to-date operating cash flow of $142 million. The company received orders for 2,310 railcars and delivered 1,815, with a backlog of $2.0 billion. Despite lower revenues compared to the previous year, Trinity’s leasing business showed robust performance with a lease fleet utilization of 96.8% and a positive future lease rate differential of 18.3%. The company maintained its full-year EPS guidance, reflecting expectations of improved deliveries and continued business improvement.
The most recent analyst rating on (TRN) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Trinity Industries stock, see the TRN Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Trinity Industries Holds Annual Stockholder Meeting
Positive
May 19, 2025
On May 15, 2025, Trinity Industries, Inc. held its annual meeting of stockholders, where three proposals were voted on. The stockholders elected eight directors for a one-year term, approved executive officer compensation, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025. These decisions reflect continued support for the company’s leadership and financial management, potentially impacting its strategic direction and stakeholder confidence.
The most recent analyst rating on (TRN) stock is a Hold with a $35.00 price target. To see the full list of analyst forecasts on Trinity Industries stock, see the TRN Stock Forecast page.
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.