GATX (GATX) Company Report

GATX is acquiring 105,000 railcars from Wells Fargo Rail for $4.5 billion, which will double its North American fleet to over 210,000 cars and make it the largest in the region. The deal, expected to close in Q1 2025, is structured as a joint venture with Brookfield Infrastructure, with GATX initially holding a 30% stake but controlling the portfolio and having annual options to acquire Brookfield's share over 10 years, allowing GATX to maintain its investment-grade rating.
The acquisition will shift GATX's North American fleet composition to approximately 65%-66% freight cars and the balance tank cars, from a historical 50/50 split. The deal is expected to be modestly accretive initially and become more accretive over time due to anticipated SG&A and potential maintenance synergies.
GATX's aircraft engine leasing business (a joint venture with Rolls-Royce) demonstrated resilience during the pandemic and is currently benefiting from high demand and attractive lease rates due to supply constraints in new aircraft production. GATX has made over $1 billion in direct investments in engines, in addition to its 50% interest in almost $5 billion of joint venture assets.
In India, GATX Rail maintains 100% utilization for its 12,000+ cars with strong growth prospects driven by infrastructure development. In Europe, GATX recently acquired 6,000 cars from DB Cargo and sees opportunities for further acquisitions from smaller lessors despite current economic headwinds.

9 hours ago

Transcript

GATX Discusses Wells Fargo Rail Acquisition, Global Fleet Strategy, and Market Outlook

GATX

M&A

New Projects/Investments

GATX is acquiring 105,000 railcars from Wells Fargo Rail, effectively doubling its North American fleet to over 210,000 cars, in a deal valued at approximately $4.5 billion for GATX's portion. The transaction is structured as a joint venture with Brookfield Infrastructure, where GATX initially holds a 30% stake but controls the portfolio and has annual options to acquire Brookfield's share over a 10-year period, allowing it to maintain its investment-grade rating.
The Wells Fargo acquisition will shift GATX's North American fleet mix to approximately 65%-66% freight cars and the balance tank cars, increasing customer touchpoints and opportunities in the secondary market. GATX expects to realize SG&A synergies quickly and potential longer-term maintenance synergies by integrating Wells Fargo's third-party maintenance into its own shop network.
GATX's aircraft engine leasing joint venture (RRPF) with Rolls-Royce has demonstrated resilience, remaining profitable even during the pandemic, and is currently benefiting from high demand due to constrained aircraft production, leading to attractive lease rates and sales opportunities. GATX has also made over $1 billion in direct investments in engines managed by the joint venture.
In India, GATX Rail India has grown its fleet to over 12,000 cars and sees strong growth prospects driven by significant infrastructure development, with utilization rates at approximately 100%. The European market faces economic headwinds and tariff concerns, but GATX made a counter-cyclical acquisition of 6,000 cars from DB Cargo, which are immediately leased back for two to seven years.

9 hours ago

Transcript

GATX Corporation announces senior notes offering

GATX

Debt Issuance

GATX Corporation is issuing an additional $400,000,000 aggregate principal amount of senior notes, comprising $200,000,000 of 5.500% Senior Notes due 2035 and $200,000,000 of 6.050% Senior Notes due 2054.
The underwriting agreement for this offering was dated October 22, 2025, with the notes delivered against payment on October 24, 2025.
Upon completion of this offering, the total outstanding principal amount for the 5.500% Senior Notes due 2035 will be $700,000,000, and for the 6.050% Senior Notes due 2054, it will be $900,000,000.
BofA Securities, Inc., Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC are acting as representatives of the underwriters for this transaction.

Oct 24, 2025, 8:05 PM

8-K

GATX Reports Q3 2025 Earnings and Reaffirms Full-Year Guidance

GATX

Earnings

Guidance Update

M&A

GATX reported Q3 2025 net income of $82.2 million or $2.25 per diluted share, which includes a net positive impact of $5.3 million or $0.15 per diluted share from tax adjustments and other items. Year-to-date 2025 net income was $236.3 million or $6.46 per diluted share.
The company continues to expect its full-year 2025 earnings guidance to be in the range of $8.5 to $8.9 per diluted share, excluding any impact from tax adjustments or the Wells Fargo transaction.
GATX Rail North America maintained high operational metrics, with fleet utilization at 98.9% and a renewal success rate of 87.1% at quarter end. The renewal rate change of GATX's lease price index was positive 22.8% for the quarter.
The company generated over $60 million in remarketing income during Q3 2025, bringing the year-to-date total to approximately $81 million.
GATX expects the Wells Fargo rail operating lease assets acquisition to close in 2026 or sooner. Additionally, an agreement was announced to acquire approximately 6,000 railcars from DB Cargo in Europe, with closing expected by the end of 2025.

Oct 21, 2025, 3:00 PM

Transcript

GATX Reports Q3 2025 Earnings and Reaffirms Full-Year Guidance

GATX

Earnings

Guidance Update

M&A

GATX reported Q3 2025 net income of $82.2 million or $2.25 per diluted share, with year-to-date net income reaching $236.3 million or $6.46 per diluted share.
The company reiterated its 2025 full-year earnings guidance of $8.50 to $8.90 per diluted share, excluding tax adjustments and the Wells Fargo transaction impact.
GATX Rail North America maintained 98.9% fleet utilization and saw a positive 22.8% renewal rate change for its lease price index in Q3 2025, while remarketing income exceeded $60 million for the quarter.
The Wells Fargo rail asset acquisition is anticipated to close in Q1 2026 or sooner, and GATX announced an agreement to acquire approximately 6,000 railcars from DB Cargo in Europe, expected to close by the end of 2025. The engine leasing segment also saw significant investment, acquiring seven additional engines for $147.1 million.

Oct 21, 2025, 3:00 PM

Transcript

GATX Reports Q3 2025 Earnings

GATX

Earnings

Guidance Update

M&A

GATX Corporation reported Q3 2025 revenue of $439.3 million, an 8.4% increase, which slightly beat Wall Street estimates, despite net income of $82.2 million and earnings per share of $2.25 being lower than the previous year.
The company reaffirmed its full-year 2025 GAAP earnings per share guidance of $8.50 to $8.90.
GATX is making strategic investments, including pending acquisitions of Wells Fargo's rail assets and railcars from DB Cargo AG, to strengthen its market position.
Analysts maintain a buy rating with a $201 price target, but highlight risks such as high leverage and declining free cash flow.

Oct 21, 2025, 12:53 PM

Morningstar

GATX Reports Q3 2025 Results and Reaffirms Full-Year Guidance

GATX

Earnings

Guidance Update

M&A

GATX Corporation reported net income of $82.2 million, or $2.25 per diluted share, for the third quarter of 2025, and $236.3 million, or $6.46 per diluted share, for the first nine months of 2025.
The company reiterated its 2025 full-year earnings guidance of $8.50–$8.90 per diluted share (excluding Tax Adjustments and Other Items) and reported investment volume of $361.7 million in the third quarter, totaling $877.0 million year to date.
Rail North America's fleet utilization remained strong at 98.9% with a positive 22.8% renewal lease rate change, and GATX Rail India achieved 100.0% utilization.
The previously announced acquisition of Wells Fargo's rail operating lease assets is on track to close in the first quarter of 2026 or sooner.

Oct 21, 2025, 12:30 PM

8-K

GATX to Acquire Wells Fargo Rail Assets for $4.4 Billion

GATX

M&A

New Projects/Investments

Accounting Changes

GATX Corporation entered into a definitive agreement on May 29, 2025, to acquire approximately 105,000 railcars and 223 locomotives from Wells Fargo for $4.4 billion. This transaction involves a newly formed joint venture (GABX) with Brookfield, where GATX will initially hold a 30% ownership share and serve as manager of the railcars.
The transaction has received several regulatory clearances, including from the European Commission in August 2025, the Hart-Scott-Rodino Antitrust Improvements Act waiting period expiring on September 16, 2025, and the Canadian Competition Act waiting period expiring on September 24, 2025. The closing is anticipated in the first quarter of 2026 or sooner, pending additional regulatory approvals.
Pro forma combined financial statements, reflecting the acquisition, show GATX's total assets increasing to $17,303.6 million as of June 30, 2025, from GATX's historical $13,200.2 million.
For the six months ended June 30, 2025, Wells Fargo Rail, the carve-out business being acquired, reported a net loss of $(58.0) million, primarily due to a $104.2 million goodwill impairment charge recognized in the first six months of 2025.

Oct 15, 2025, 12:31 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for GATX.

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