- Trinity Industries Inc (NYSE:TRN) reported fourth-quarter FY21 revenue growth of 31.3% year-over-year to $472.2 million, missing the consensus of $502.57 million.
- Increased revenue reflects higher external deliveries in the Rail Products Group.
- Adjusted operating profit increased 9.7% Y/Y to $63.5 million, and margin contracted by 265 bps to 13.5%.
- Adjusted EBITDA increased 7% Y/Y to $129.1 million, and margin fell by 622 bps to 27.3%.
- Adjusted EPS improved to $0.08 from $(0.02) in 4Q20, missing the consensus of $0.11.
- Railcar Leasing and Management Services revenues totaled $181.2 million (-4.3% Y/Y) and Rail Products revenues $402.1 million (+28.3% Y/Y).
- Lease fleet utilization was 95.7%, Future Lease Rate Differential was positive 2.2% at quarter-end.
- New railcar orders of 5,360 vs. 1,170 in 4Q20 and railcar deliveries of 2,805 (+25.5% Y/Y).
- The company repurchased ~13.9 million shares for $402 million during the quarter.
- Trinity Industries' net cash provided by operating activities – continuing operations for FY21 was $615.6 million, compared to $622 million, and free cash flow stood at $538.9 million.
- Trinity Industries had liquidity of $782 million as of December 31, 2021. It held cash and equivalents of $302.4 million.
- FY22 Outlook: Trinity Industries expects EPS of $0.85 - $1.05, versus the consensus of $1.21.
- It expects Industry deliveries of 40,000 - 50,000 railcars, net investment in the lease fleet of $450 million - $550 million.
- Price Action: TRN shares are trading lower by 2.67% at $30.44 on the last check Thursday.
