GATX Corporation, a leading provider of railcar leasing and related services, has reported strong financial results for the first quarter of 2023. The company reported net income of $77.4 million, or $2.16 per diluted share, compared to net income of $75.8 million, or $2.10 per diluted share, in the first quarter of 2022. The results exceeded analysts' expectations and demonstrated the company's ability to capitalize on robust demand for railcars across all regions.
"Consistent with our expectations coming into the year, demand across our global railcar fleets remains robust," said Robert C. Lyons, president and chief executive officer of GATX. "At Rail North America, fleet utilization remained high at 99.3% at the end of the first quarter and the renewal success rate during the quarter was 77.9%. The renewal lease rate change of GATX’s Lease Price Index was positive 34.3%. We continue to capitalize on current market conditions by increasing renewal lease rates and lengthening lease terms, thereby locking in high-quality, long-term cash flow.”
During the first quarter, GATX identified attractive investment opportunities in North America and acquired more than 1,000 railcars on the secondary market with long-term leases at attractive rates. The company also made progress in its goal to grow and diversify its fleets in Europe and India, adding a total of nearly 1,000 new railcars in the first quarter.
Rail International’s segment, performed well in the first quarter with a profit of $23.5 million. While results were negatively impacted by changes in foreign exchange rates, an increase in the number of leased railcars contributed to a positive impact on results. During the first quarter of 2023, GATX also completed the sale of Rail Russia.
