GATX Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to GATX for the third quarter of 2026 was $105.2 million ($2.92 per diluted share), compared to $82.2 million ($2.25 per diluted share) in the prior-year period.
• Year-to-date 2026 net income attributable to GATX was $294.1 million ($8.11 per diluted share), compared to $236.3 million ($6.46 per diluted share) in the prior-year period.
• Total revenues for the third quarter of 2026 were $598.0 million, up from $439.3 million in the third quarter of 2025.
• Year-to-date 2026 total revenues were $1,761.8 million, compared to $1,291.4 million in the prior-year period.
• Net gain on asset dispositions was $51.7 million in the third quarter of 2026, compared to $23.1 million in the prior-year period; year-to-date gains were $172.4 million versus $97.0 million.
• Interest expense, net, was $143.7 million for the third quarter of 2026, compared to $98.2 million in the prior-year period.
• Total debt and lease obligations, net of unrestricted cash, were $11,680.0 million as of September 30, 2026, compared to $8,333.2 million as of September 30, 2025.
• Recourse leverage was 3.3x as of September 30, 2026, compared to 3.1x as of September 30, 2025.
• Cash and cash equivalents were $390.0 million as of September 30, 2026, down from $743.0 million as of December 31, 2025.

Guidance and Future Outlook:

• GATX expects 2026 full-year earnings to modestly exceed the high end of its previously announced guidance range of $9.90 to $10.30 per diluted share.
• The updated guidance reflects positive dynamics and strong execution across global businesses, benefits from the acquisition of Wells Fargo's rail assets, and strong performance at Engine Leasing.
• Management indicated that the outlook excludes any impact from Tax Adjustments and Other Items.

Business Segments and Product Lines:

• Rail North America: Reported segment profit of $121.3 million for the third quarter of 2026, compared to $70.7 million in the prior-year period. Year-to-date segment profit was $343.7 million versus $256.1 million. Fleet utilization was 98.4% at quarter-end. Investment volume was $109.3 million in the quarter. The Lease Price Index (LPI) renewal rate change was positive 12.4%, and the renewal success rate was 86.1%.
• Rail International: Reported segment profit of $35.9 million for the third quarter of 2026, compared to $34.4 million in the prior-year period. Year-to-date segment profit was $99.1 million versus $92.3 million. GATX Rail Europe fleet utilization improved to 96.1% at quarter-end. Rail India fleet utilization remained at 100.0%. Investment volume was $49.3 million in the quarter.
• Engine Leasing: Reported segment profit of $51.4 million for the third quarter of 2026, compared to $60.4 million in the prior-year period. Year-to-date segment profit was $153.1 million versus $126.3 million. Excluding tax adjustments and other items, results exceeded prior-year periods. RRPF investment volume approached $1.0 billion year-to-date. The RRPF portfolio consisted of 475 aircraft engines, and the wholly owned portfolio consisted of 46 aircraft engines as of September 30, 2026.

Market and Competitive Landscape:

• Rail traffic for most commodities is stable or modestly growing, with industry railcar fleet attrition continuing and supply of new railcars limited.
• Demand for railcars in the secondary market is described as extremely strong.
• Global air travel is at healthy levels, and demand for aircraft spare engines remains robust.
• In India, demand for railcars remains robust, supported by continued infrastructure investment and economic growth.

Risks and Challenges:

• Potential risks include significant declines in customer demand due to inflation, high interest rates, weak macroeconomic conditions, or changes in trade policies.
• Geopolitical tensions, including conflicts in the Middle East and the war with Iran, could impact the aviation industry and global economic conditions.
• Risks related to international operations include laws, regulations, tariffs, and trade barriers.
• Operational risks include asset obsolescence, cybersecurity threats, and potential asset impairment charges.
• Dependence on Rolls-Royce in connection with aircraft spare engine leasing businesses is noted as a risk factor.

Management Commentary and Tone:

• CEO Robert C. Lyons described the quarter as "outstanding performance" supported by favorable leasing fundamentals and strong execution.
• Management expressed confidence in the long-term outlook for the Engine Leasing business despite monitoring geopolitical developments.
• Lyons highlighted the positive dynamics in Rail North America, citing high renewal success rates and strong secondary market demand.
• Regarding Rail International, management noted economic uncertainty in the region but remains positioned to capitalize on the strength of the existing platform.

Other Key Points:

• Total investment volume for the third quarter of 2026 was $171.7 million, totaling over $4.8 billion year-to-date.
• The company paid a quarterly dividend of $0.66 per common share in the third quarter of 2026, compared to $0.61 in the prior-year period.
• The 2025 third-quarter results included a net positive impact of $5.3 million ($0.15 per share) from Tax Adjustments and Other Items, primarily related to insurance proceeds and acquisition expenses.
• The acquisition of Wells Fargo's rail assets contributed to the 2026 full-year guidance outlook.
• GATX has paid a quarterly dividend uninterrupted since 1919.