Executive Summary

Q1 2023 delivered solid results despite a slow market: Total leasing revenues were $397.7M, diluted EPS was $2.44, and adjusted EPS was $2.42, with utilization averaging 97.6% .
Sequentially softer vs Q4 2022 as management had flagged: EPS fell from $2.61 to $2.44 and leasing revenues declined from $416.3M to $397.7M, driven by normal seasonality, lower used container sale prices, and absence of Q4 one‑off benefits (~$0.13/share) .
The quarter was overshadowed by the announced take‑private by Brookfield Infrastructure at $85.00 per share; Triton suspended buybacks and did not hold its earnings call or provide 2023 guidance, a notable disclosure change .
Dividends maintained: $0.70 per common share declared; preference shares A–E dividends detailed and expected to continue post‑closing, with listing to remain on NYSE .

What Went Well and What Went Wrong

What Went Well

High utilization and resilient profitability: Average utilization was 97.6% and adjusted ROE reached 22.5%, supported by long‑term leases; CEO emphasized revenues/profitability are “well protected” by the lease portfolio .
Cash generation and portfolio protection: Operating cash flow was $302.8M, aided by strong lease coverage (long‑term + finance leases accounted for 79.2% by CEU and 87.4% by NBV at 3/31/23) .
Strategic milestone: Agreement to be acquired by Brookfield Infrastructure, offering $85 per share (~35% premium to prior close), cited as providing compelling value and a platform for growth under private ownership .

What Went Wrong

Sequential and YoY pressure: Leasing revenues fell to $397.7M (from $416.3M in Q4 and $417.1M YoY), and diluted EPS declined to $2.44 (from $2.61 in Q4 and $2.78 YoY) as market conditions slowed and used container sale prices decreased .
Disposal gains and trading margin moderated: Net gain on sale of leasing equipment dropped to $15.5M (from $25.2M in Q4), and trading margin fell to $1.1M (from $1.8M in Q4) .
Communication curtailed: No earnings call and no forward guidance due to pending transaction, reducing near‑term visibility for investors .

Financial Results

Core P&L Metrics (Quarterly comparison: oldest → newest)

Metric	Q3 2022	Q4 2022	Q1 2023
Total leasing revenues ($USD Millions)	$424.7	$416.3	$397.7
Net income attributable to common shareholders ($USD Millions)	$176.8	$152.2	$136.8
Diluted EPS ($USD)	$2.88	$2.61	$2.44
Operating income ($USD Millions)	$263.1	$249.3	$221.5
Depreciation & amortization ($USD Millions)	$158.5	$154.7	$148.4
Interest & debt expense ($USD Millions)	$57.1	$59.8	$58.8

Revenue Composition (Operating lease detail)

Metric	Q3 2022	Q4 2022	Q1 2023
Per diem revenues ($USD Thousands)	$379,623	$369,837	$352,180
Fee & ancillary revenues ($USD Thousands)	$15,777	$18,213	$18,168
Total operating lease revenues ($USD Thousands)	$395,400	$388,050	$370,348
Finance lease revenues ($USD Thousands)	$29,283	$28,257	$27,375
Total leasing revenues ($USD Thousands)	$424,683	$416,307	$397,723

Utilization and KPIs

KPI	Q3 2022	Q4 2022	Q1 2023
Average utilization (%)	99.1%	98.4%	97.6%
Ending utilization (%)	98.8%	98.1%	97.2%
Adjusted EPS (diluted) ($USD)	$2.88	$2.76	$2.42
Adjusted ROE (%)	27.5%	25.4%	22.5%
Net gain on sale of leasing equipment ($USD Millions)	$26.5	$25.2	$15.5
Trading margin ($USD Millions)	$3.7	$1.8	$1.1
Common shares repurchased (period units)	3.20M (Q3)	2.78M (Q4)	1.74M (Q1) + 0.14M (Apr)

Segment/Fleet Overview (TEU, units)

Equipment type (TEU)	Dec 31, 2022	Mar 31, 2023
Dry (TEU)	6,458,705	6,378,308
Refrigerated (TEU)	442,489	437,784
Special (TEU)	169,290	171,630
Tank (TEU)	12,000	12,156
Chassis (TEU)	52,744	52,198
Equipment leasing fleet (TEU)	7,135,228	7,052,076
Equipment trading fleet (TEU)	79,102	74,636

YoY Comparison (Q1 2023 vs Q1 2022)

Metric	Q1 2022	Q1 2023	YoY Change
Total leasing revenues ($USD Millions)	$417.1	$397.7	-4.6% (computed from cited values)
Net income attributable to common ($USD Millions)	$181.2	$136.8	-24.5% (computed from cited values)
Diluted EPS ($USD)	$2.78	$2.44	-12.2%

Margins (computed using total leasing revenues)

Metric	Q3 2022	Q4 2022	Q1 2023
Net income margin (%)	41.6% (176.8/424.7)	36.6% (152.2/416.3)	34.4% (136.8/397.7)
Operating income margin (%)	62.0% (263.1/424.7)	59.9% (249.3/416.3)	55.7% (221.5/397.7)

Note: Margins computed using total leasing revenues as denominator and corresponding numerator values from cited statements.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Financial outlook	FY 2023	Q4 commentary: expected adjusted EPS to decrease from Q4 to Q1 due to seasonality, lower used container sale prices, and absence of Q4 one‑offs; no numeric ranges	No outlook provided; no earnings call due to pending Brookfield transaction	Suspended guidance
Common dividend	Q1/Q2 2023	$0.70 per share declared on Feb 14, 2023 (payable Mar 24)	$0.70 per share declared on May 2, 2023 (payable Jun 22)	Maintained
Preference share dividends	Q1/Q2 2023	A: $0.53125; B: $0.50; C: $0.4609375; D: $0.4296875; E: $0.359375 (payable Mar 15)	Same rates; payable Jun 15	Maintained; expected to continue post‑closing; preference shares to remain listed
Share repurchases	2023	Repurchases continued through Feb 8, 2023	Program suspended effective Apr 6, 2023 due to pending transaction	Suspended

Earnings Call Themes & Trends

Note: Triton did not hold an earnings conference call for Q1 2023 due to the pending Brookfield transaction .

Topic	Previous Mentions (Q3 2022)	Previous Mentions (Q4 2022)	Current Period (Q1 2023)	Trend
Macro/trade volumes	Muted peak; customers shifted to fleet efficiency; new container prices down to ~$2,200 for 20’ dry	Global trade volumes decreased; logistical bottlenecks eased; expected EPS to decrease sequentially in Q1	Market conditions remain slow; revenues/profitability protected by long‑term leases	Ongoing softness; stabilization reliant on macro recovery
Utilization	Avg 99.1%; ending 98.8%	Avg 98.4%; ending 98.1%	Avg 97.6%; ending 97.2%	Gradual decline from extraordinary levels
Used container sale prices/disposal gains	High prices; sizable gains	Gains added ~$0.13/share in Q4 along with credit benefit	Gains on sale down to $15.5M	Normalizing lower
Capital allocation	Accretive buybacks; authorization increased to $200M	Aggressive repurchases; 2.8M shares in Q4	1.74M repurchased in Q1; program suspended Apr 6	Shift from repurchases to transaction close
M&A/Strategic	—	—	Definitive agreement to be acquired by Brookfield at $85 per share (cash/stock collar)	Transformational take‑private
Guidance/Communication	Positive long‑term performance outlook	Expected sequential EPS decrease in Q1	No call; no guidance due to transaction	Reduced disclosure pending deal

Management Commentary

“Triton delivered solid results in the first quarter of 2023… While market conditions remain slow, our revenues and profitability are well protected by our strong long‑term lease portfolio. Our utilization averaged 97.6%… We are excited about our recent agreement to be acquired by Brookfield Infrastructure.” — Brian M. Sondey, CEO .
On transaction rationale: “This transaction provides… a 35% premium… crystalizes a total shareholder return of approximately 700% since the 2016 merger… Brookfield Infrastructure’s significant resources and long‑term investment horizon will support Triton’s franchise…” — Brian M. Sondey .

Q&A Highlights

No Q&A; Triton did not hold an earnings conference call and did not provide a financial outlook for 2023 given the pending transaction .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2023 EPS and revenue was unavailable due to data access limitations at the time of retrieval; therefore, we cannot assess beats/misses vs consensus for this quarter. Values retrieved from S&P Global were unavailable.

Where estimates may need to adjust: Given sequential revenue and EPS declines and management’s commentary on weaker disposal gains and seasonality, consensus trajectories likely moved lower near‑term; visibility is reduced until post‑transaction or until macro/trade volumes stabilize .

Key Takeaways for Investors

Lease portfolio durability remains the anchor: Long‑term and finance leases comprised 79.2% by CEU and 87.4% by NBV as of 3/31/23, supporting revenue/earnings resilience despite softer macro .
Utilization trending lower but still high: Average 97.6% (ending 97.2%), consistent with management’s expectation of gradual decline amid slow market conditions .
Earnings softness consistent with prior signals: Q1 diluted EPS fell to $2.44 and adjusted EPS to $2.42, reflecting seasonality, lower disposal gains, and absence of Q4 one‑off benefits, all flagged in Q4 commentary .
Cash generation intact: Operating cash flow of $302.8M in Q1 supports continued dividend capacity; common dividend maintained at $0.70 and preference dividends declared .
Capital allocation pivot: Repurchases totaled 1.74M shares in Q1 but were suspended April 6 due to the pending Brookfield transaction; focus shifts to deal closure .
Transaction is the primary catalyst: $85.00 per‑share consideration with cash/stock mix and collar; preference shares remain outstanding and expected to continue normal dividends and NYSE listing post‑closing .
Near‑term trading implications: Limited fundamental catalysts given no call and no guidance; equity value trajectory dominated by deal spread and regulatory/closing milestones .

Triton International Ltd (TRTN-PA)·Q1 2023 Earnings Summary