Andrzej Tomczuk

Andrzej Tomczuk of Goldman Sachs inquired about the potential impact of a major transcontinental rail merger on the leasing business, the sustainability of the high 24% lease price renewal rate, and the approval timeline for the Wells Fargo Rail transaction.

Answer

President & CEO Robert Lyons stated it was too early to assess the rail merger's impact but noted that long-term rail efficiency is positive for lessors. Executive VP & President of Rail North America, Paul Titterton, indicated that lease pricing is expected to remain stable and flattish without a new external catalyst. Regarding the Wells Fargo deal, Mr. Lyons confirmed the regulatory timeline is proceeding as planned with no change to the Q1 2026 or earlier closing estimate.

Andrzej Tomczuk inquired about the potential impact of the recently announced transcontinental railroad merger on the railcar leasing business, the sustainability of the strong lease price index (LPI) renewal rate, and the approval timeline for GATX's joint venture with Wells Fargo and Brookfield.

Answer

President & CEO Bob Lyons stated it was too early to assess the merger's full impact but noted that long-term rail efficiencies are positive for lessors. EVP & President of Rail North America, Paul Titterton, explained that the lease rate environment remains strong and expects pricing to stay flattish without a new catalyst. Regarding the Wells Fargo transaction, Bob Lyons confirmed the regulatory process is proceeding as planned with no change to the expected closing timeline of Q1 2026 or earlier.