Executive Summary

Q3 2022 delivered strong profitability: total leasing revenues rose to $424.7M and GAAP diluted EPS was $2.88; adjusted diluted EPS was $2.88, up 18.5% YoY but down 1.4% sequentially .
Utilization remained exceptionally high at 99.1% average in Q3, with ending utilization at 98.8%; management highlighted a highly protected lease portfolio with 87% of fleet by net book value under long-term and finance leases and an average remaining duration of 76 months .
Triton increased the quarterly common dividend by $0.05 to $0.70 per share and accelerated buybacks (3.2M shares repurchased in Q3; authorization reset to $200M in October) — a clear capital return catalyst .
Outlook: management expects adjusted EPS to decrease sequentially due to moderating utilization and used container sale prices, but performance to remain “very strong” given durable business enhancements and accretive repurchases .
Wall Street consensus (S&P Global) was unavailable, so beat/miss vs estimates cannot be assessed this quarter; note for future quarters to retrieve estimates early in the cycle (SPGI request limit reached) [GetEstimates error].

What Went Well and What Went Wrong

What Went Well

Record-like profitability resilience: Q3 adjusted diluted EPS of $2.88 (up 18.5% YoY) and annualized adjusted ROE of 27.5% underscore durable enhancements to the business .
Lease portfolio strength and earnings visibility: “Weighted by net book value, over 87% of our container fleet is covered by long-term and finance leases,” with “average remaining duration of 76 months,” supporting high utilization and stable cash flows .
Secondary market support and gains: used container sale prices “remain high” and Triton “continue[s] to generate sizable gains on disposals,” sustaining margin resilience beyond leasing income .

What Went Wrong

Demand moderation and drop-offs: “Container drop-off volumes increased in the third quarter,” reflecting a muted summer peak as “normalizing consumer spending and macroeconomic challenges” pressured trade volumes and shifted customers to fleet efficiency .
Sequential normalization: adjusted diluted EPS decreased 1.4% vs Q2 (from $2.92 to $2.88), with management cautioning about further sequential EPS pressure as utilization and used container sale prices normalize .
New container pricing down and investment limited: market prices declined into “$2,200 for a 20’ dry container” and Triton’s new container investments in 2022 were limited (orders of $557M as of Oct 26), reflecting cautious growth posture .

Financial Results

Metric	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Total leasing revenues ($USD Millions)	$400.2	$417.1	$421.6	$424.7
Net income attributable to common shareholders ($USD Millions)	$123.0	$181.2	$184.6	$176.8
GAAP diluted EPS ($USD)	$1.83	$2.78	$2.90	$2.88
Adjusted diluted EPS ($USD)	$2.43	$2.76	$2.92	$2.88
Operating income ($USD Millions)	$244.5	$262.0	$269.7	$263.1
Adjusted ROE (%)	29.4%	30.3%	29.8%	27.5%

Leasing revenue breakdown:

Metric	Q3 2021	Q2 2022	Q3 2022
Per diem revenues ($USD Thousands)	$377,234	$378,414	$379,623
Fee and ancillary revenues ($USD Thousands)	$7,987	$13,677	$15,777
Total operating lease revenues ($USD Thousands)	$385,221	$392,091	$395,400
Finance leases ($USD Thousands)	$14,970	$29,517	$29,283
Total leasing revenues ($USD Thousands)	$400,191	$421,608	$424,683

KPIs:

KPI	Q1 2022	Q2 2022	Q3 2022
Average utilization (%)	99.6%	99.4%	99.1%
Ending utilization (%)	99.5%	99.3%	98.8%
Lease coverage (long-term + finance, by net book value, %)	88.0%	87.3%	87.3%
Net gain on sale of leasing equipment ($USD Thousands)	$28,969	$35,072	$26,468
2022 orders of new containers ($USD Millions, point-in-time)	$428 (as of Apr 29)	$546 (as of Jul 26)	$557 (as of Oct 26)
Share repurchases (# shares)	1,257,374 (Q1)	1,832,240 (Q2)	3,200,340 (Q3)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EPS	Near-term sequential	Q2: “remain in line with our very strong Q2 results, excluding extra disposal gains”	Q3: “decrease sequentially as utilization and used container sale prices decrease”	Lowered
Utilization	2H22	Expect to remain exceptionally high	“Expect our utilization will remain high” despite moderation	Maintained high (moderating)
Common dividend	Q4 2022 payment	$0.65 per share	$0.70 per share payable Dec 22, 2022	Raised
Share repurchase authorization	Ongoing	$200M (reaffirmed in July)	Authorization increased back to $200M in October; repurchases “highly accretive”	Maintained/confirmed
New container investment	2022 orders	Moderate pace; $546M ordered as of Jul 26	Limited investment; $557M ordered as of Oct 26	Slightly higher orders, cautious stance

Note: No explicit quantitative guidance was provided for revenue, margins, OpEx, OI&E, or tax rate in Q3 materials; commentary focused on sequential moderation drivers and capital returns .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Container prices	Q1: factories quoting just below $3,000 for 20’ dry; constructive market . Q2: prices quoted in the $2,600 range; still historically high .	Prices decreased into ~$2,200 for 20’ dry; investment limited .	Downward normalization in container prices.
Utilization and lease protection	Q1/Q2: >99% utilization; large portion on long-term leases .	99.1% average utilization; 87% by NBV covered by long-term + finance; 76-month average remaining duration .	Slight moderation; portfolio remains highly protected.
Macro/trade volumes and drop-offs	Q1: constructive demand, strong goods consumption, bottlenecks support . Q2: market conditions moderating but constructive .	Muted summer peak; normalizing spending and macro challenges increased drop-offs .	Macro headwinds emerging; activity moderating.
Disposal gains and used container sale prices	Q2: boosted by older container transactions (+$6.8M) .	Prices remain high; sizable gains continue but expected to decrease sequentially .	Normalizing gains expected.
Capital allocation (buybacks/dividends)	Q1/Q2: resumed and accelerated buybacks; $0.65 dividend .	Buybacks accelerated (3.2M shares in Q3); dividend raised to $0.70; authorization reset to $200M .	Increasing capital returns.

References for call content: published Q3 2022 call transcript (Nov 1, 2022) available at Marketscreener and EarningsCall.biz .

Management Commentary

“Triton continued to achieve outstanding financial performance in the third quarter of 2022… $2.88 of Adjusted net income per share… annualized Adjusted return on equity of 27.5%” — Brian M. Sondey, CEO .
“Used container sale prices remain high and we continue to generate sizable gains on disposals.”
“Over 87% of our container fleet is covered by long-term and finance leases… average remaining duration of 76 months.”
Outlook: “We anticipate our Adjusted net income per share will decrease sequentially as our utilization and used container sale prices decrease… [but] expect our performance will remain very strong through the end of the year and into the longer term.”
Dividend: “The increase in Triton’s quarterly dividend reflects Triton’s strong balance sheet, outstanding financial performance and our confidence that Triton’s profitability and cash flows will remain strong.”

Q&A Highlights

The full Q3 2022 earnings call transcript is available via third-party repositories; specific Q&A exchanges are not captured in the SEC 8‑K materials used here. For detailed Q&A themes (e.g., drivers of sequential EPS normalization, buyback cadence, utilization trajectory), refer to the published transcript links: Marketscreener and EarningsCall.biz .

Estimates Context

Wall Street consensus (S&P Global) for Q3 2022 EPS and revenue was unavailable at the time of retrieval due to SPGI daily request limits, preventing a formal beat/miss assessment this quarter [GetEstimates error].
Given sequential moderation signaled by management, we expect near-term estimate revisions to reflect lower utilization and normalizing used container sale prices while still incorporating high ROE and strong cash generation .

Key Takeaways for Investors

Earnings quality remains high: adjusted diluted EPS of $2.88 and adjusted ROE of 27.5% highlight resilient profitability despite macro normalization .
Visibility supported by lease structure: 87% of fleet by NBV in long-term/finance leases with 76-month average duration anchors earnings durability across cycles .
Capital return accelerates: dividend raised to $0.70 and 3.2M shares repurchased in Q3, with authorization reset to $200M — buybacks remain “highly accretive” .
Near-term EPS likely down sequentially: moderation in utilization and used container sale prices tempers Q4 sequential EPS, but overall performance expected to remain very strong .
Operating leverage from disposal gains is normalizing: gains remain sizable but should step down vs the exceptional levels of 2021/H1 2022; investors should recalibrate expectations accordingly .
Demand/cycle signals: muted summer peak, normalizing consumer spend, and macro headwinds are increasing drop-offs; watch utilization and per diem trends as leading indicators .
Strategic stance: limited new container investment amid price declines (to ~$2,200 for 20’ dry) indicates disciplined capital allocation; focus remains on repurchases and maintaining high ROE .

Citations: All figures and statements sourced from Triton’s Q3, Q2, and Q1 2022 8‑K press releases and financial statements . External transcript references provided via Marketscreener and EarningsCall.biz .

Triton International Ltd (TRTN-PA)·Q3 2022 Earnings Summary