Dallas-based Trinity Industries reported third-quarter results on October 29. The company received orders for 2,190 new railcars, compared with 350 a year earlier, valued at $325 million, up from $50.7 million. Revenue rose 18% to $535.1 million. Net income from continuing operations attributable to Trinity fell from $31.4 million to $21.6 million, according to the company's earnings release.
Revenue in the Rail Products Group rose to $339.5 million, and segment operating profit climbed to $30.7 million. That result included a $13.4 million gain from selling part of the company's Longview, Texas, manufacturing facility. Excluding the gain, the segment's operating margin would have been 5.1%, compared with a reported 9%, according to management's remarks filed with the SEC. The railcar backlog stood at about $1.65 billion, down from $1.76 billion a year earlier.
Leasing and services revenue fell to $286.3 million from $301 million, and segment operating profit declined to $98 million. Trinity cited the sale of interests in partially owned leasing subsidiaries, lower gains on lease portfolio sales and challenges in its maintenance business. Fleet utilization was 97% at the end of September. Trinity President and CEO Jean Savage said, "Our leasing platform continues to perform." The company expects fewer than 25,000 new railcars to be delivered industrywide in 2026 and believes this will be the low point of the current delivery cycle.