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Trinity Industries (TRN)
NYSE:TRN
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Trinity Industries
(NYSE:TRN)
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Rating:64Neutral
Price Target:
$31.00
▲(10.56% Upside)
Trinity Industries' overall score reflects its operational efficiency and positive technical indicators, offset by financial challenges such as declining revenue and high leverage. The earnings call provided a positive outlook, but valuation concerns and cash flow issues weigh on the score.
Trinity Industries (TRN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.25B
Dividend Yield4.24%
Average Volume (3M)536.45K
Price to Earnings (P/E)24.2
Beta (1Y)1.22
Revenue Growth-22.95%
EPS Growth-40.67%
CountryUS
Employees7,380
SectorIndustrials
Sector Strength72
IndustryRailroads
Share Statistics
EPS (TTM)0.19
Shares Outstanding80,837,360
10 Day Avg. Volume619,592
30 Day Avg. Volume536,447
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 Cap3.57
Enterprise Value/Revenue3.19
Enterprise Value/Gross Profit13.38
Enterprise Value/Ebitda12.29
Forecast
1Y Price Target
$29.00Price Target Upside3.42% Upside
Rating ConsensusHold
Number of Analyst Covering1
Trinity Industries Business Overview & Revenue Model
Company DescriptionTrinity 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 Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2021, it had a fleet of 106,970 owned or leased railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. Trinity Industries, Inc. was incorporated in 1933 and is headquartered in Dallas, Texas.
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: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
Trinity Industries presented a strong performance in its leasing business and managed to maintain positive order momentum in the Rail Products segment despite challenges. Increased cash flow and liquidity position the company well for future growth. However, increased costs, severance expenses, and production adjustments due to lower order volumes present challenges.Q2-2025 Updates
Positive Updates
Strong Leasing Business Performance
Trinity's leasing business continues to perform exceptionally well with segment revenues increasing both sequentially and year-over-year due to higher lease rates. The future lease rate differential for FRD stands at an impressive 18.3% for the quarter, marking 13 consecutive quarters in double digits.
Rail Products Segment Improvement
The Rail Products segment received orders for 2,310 railcars with a book-to-bill ratio above 1x for the first time in 10 quarters, indicating positive order momentum expected to continue.
Increased Cash Flow and Liquidity
Year-to-date cash flow from continuing operations is $142 million, with $792 million in liquidity. The company is well-positioned for market conditions with significant flexibility.
Optimistic Future Outlook
Trinity expects stronger deliveries in the latter part of the year and into 2026, with expectations of a positive impact from recent tax legislation and trade developments.
Negative Updates
Increased Cost of Revenues
Cost of revenues in the Railcar Leasing and Services segment increased by 13.7% year-over-year due to higher maintenance and compliance expenses.
Severance Expenses
The company incurred approximately $8 million in severance expenses year-to-date, with full-year expectations of $15 million, impacting the Rail Products Group.
Lower Order Volumes and Production Adjustment
Due to lower order volumes in preceding quarters, production was adjusted to match the pace of customers' delayed decisions, resulting in a segment operating margin of 3%.
Company Guidance
During the Trinity Industries Q2 2025 earnings call, CEO Jean Savage and CFO Eric Marchetto provided guidance highlighting several key metrics. Trinity expects the North American railcar industry to achieve full-year deliveries in the range of 28,000 to 33,000 railcars. The Railcar Leasing and Services segment reported a robust performance with a future lease rate differential at 18.3% and a renewal success rate of 89%, maintaining a high fleet utilization of 96.8%. Trinity's Rail Products segment anticipates full-year operating margins between 5% and 6%, supported by strategic initiatives and expected higher deliveries in the latter half of the year. The company also projects full-year EPS guidance of $1.40 to $1.60, factoring in severance expenses. Marchetto emphasized the positive impact of recent tax legislation on cash flow, projecting gains on lease portfolio sales between $50 million and $60 million for the year. The call underscored Trinity's optimism regarding improved order volumes and financial performance in the second half of 2025.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
Neutral
28.04
Price Trends
27.49
Positive
26.86
Positive
29.07
Negative
Market Momentum
0.06
Positive
50.26
Neutral
27.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TRN, the sentiment is Neutral. The current price of 28.04 is below the 20-day moving average (MA) of 28.20, above the 50-day MA of 27.49, and below the 200-day MA of 29.07, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 27.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | 291.86M | 8.32 | 20.89% | ― | -7.03% | 397.79% | |
74 Outperform | 33.62B | 29.03 | 10.67% | 0.48% | 3.38% | 17.21% | |
69 Neutral | 1.43B | 6.37 | 15.22% | 2.68% | 0.71% | 84.57% | |
66 Neutral | 2.31B | 22.72 | 7.04% | ― | 1.62% | 55.45% | |
64 Neutral | $2.25B | 24.21 | 10.47% | 4.24% | -22.95% | -40.67% | |
44 Neutral | 181.52M | -11.05 | 12.34% | ― | -6.00% | -12.45% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
TRN
Trinity Industries
28.04
-5.49
-16.37%
CXW
CoreCivic
21.55
8.90
70.36%
RAIL
Freightcar America
9.49
-1.30
-12.05%
GBX
Greenbrier
46.22
-3.49
-7.02%
FSTR
L. B. Foster Company
27.54
7.11
34.80%
WAB
Westinghouse Air Brake Technologies
196.67
15.78
8.72%
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.
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.