Trinity Industries Clocks ~10% Revenue Growth In Q3, Tops Street View

Trinity Industries Inc TRN reported third-quarter FY21 revenue growth of 9.6% year-over-year to $503.5 million, beating the consensus of $453.97 million.
Increased revenue reflects increased demand and higher pricing in highway products business and higher external deliveries in the Rail Products Group.
Railcar Leasing and Management Services revenues totaled $185.5 million (+0.9% Y/Y) and Rail Products revenues $339.9 million (-10.8% Y/Y).
Adjusted EPS improved to $0.29 compared to $0.17 in 3Q20, beating the consensus of $0.18.
The operating income increased by 26.5% Y/Y to $92.2 million, and the margin expanded by 245 bps to 18.3%.
Adjusted EBITDA was $158.8 million, compared to $141.1 million in 3Q20, and margin expanded by 83 bps to 31.5%.
Lease fleet utilization was 95%. Future Lease Rate Differential was positive 1.4% at quarter-end, compared to negative 2.5% and negative 14.8% in the past two quarters.
New railcar orders of 2,530 (+26.5% Y/Y) and railcar deliveries of 2,410 (-7.5% Y/Y) for the quarter.
During the quarter company repurchased ~2.8 million shares at $77 million.
Trinity Industries generated adjusted cash from operating activities year-to-date of $832.5 million, compared to $595.5 million a year ago.
"While market activity continues to improve, Trinity's third quarter results were negatively impacted by labor shortages and turnover as well as supply chain disruptions, diluting the impact of margin improvement initiatives in the Rail Products Group," said CEO Jean Savage.
Trinity Industries had liquidity of $1.1 billion as of September 30, 2021. It held cash and equivalents of $345.1 million.
Price Action: TRN shares are trading higher by 0.58% at $29.55 on the last check Thursday.

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