On this page of StockholderLetter.com we present the latest annual shareholder letter from TRINITY INDUSTRIES INC — ticker symbol TRN. Reading current and past TRN letters to shareholders can bring important insights into the investment thesis.

 •  4/9/2024 Letter Continued (Full PDF)
 •  3/28/2023 TRN Stockholder Letter
 •  More "Railroads" Category Stockholder Letters
 •  TRN Benford's Law Stock Score = 88

TRN Shareholder/Stockholder Letter Transcript:

ANNUAL 2023
REPORT

Delivering Goods
for the Good of All
$ 3.0B
$ 309M
$ 1.38
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51% increase year
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47% increase year
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DEAR FELLOW SHAREHOLDERS:
2023 was a year of growth, demonstrated by
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the positive trends in our industry.
unexpected impact on our operations, we were proud
to see our team work quickly and smartly to identify and
deliver solutions while continuing to provide excellent
service to our customers.
Trinity is proud to play a critical role in the North
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In the Railcar Leasing and Management Services
purpose, Delivering Goods for the Good of All. Thank
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you for another year of partnership with Trinity
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Industries as we work to execute our strategic initiatives.
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saw lease rates continue to rise with full year renewal
2023 FINANCIAL SUMMARY
AND 2024 OUTLOOK
rates up 30% over expiring rates and a full year renewal
Our 2023 revenues of $3.0 billion were up 51% year over
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success rate of 81%. In 2023, we made a net investment
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primarily includes new railcar additions, sustainable
year. Full year GAAP EPS was $1.43 per diluted share,
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and adjusted EPS was $1.38, up 47% year over year.
and net of proceeds from lease portfolio sales. The
We ended the year with a Pre-Tax Return on Equity of
secondary market remained active in 2023, and we
12.1%, up from 10.4% in 2022. We generated operating
successfully completed $382 million of secondary
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market railcar sales in the year.
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In 2023, we completed theacquisition of RSI Logistics,
quarter, we once again raised our quarterly dividend
a data-centric provider of proprietary software and
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logistics and terminal management solutions to the
consecutive dividend payment.
North American rail industry.
We executed on this year of growth in an unpredictable
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operating environment. In September and December,
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the international railway bridge crossings at the U.S. /
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railcars to our customers. Our team quickly sprang
into action, remaining diligent and engaged with all
necessary parties to help mitigate risk. While this had an
Trinity Industries

1

2023 Annual Report

17,355
Railcars delivered
37% of the industry   s
deliveries
Over the last several years, external headwinds have
RAILCAR MARKET OVERVIEW
negatively impacted the manufacturing business   s
performance. We will remain disciplined in our pricing
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and production decisions to account for our current
external limitations, allowing us to drive consistent and
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As of January 1, 2024, we have moved our maintenance
business into our Railcar Leasing and Services segment.
We continue to expect replacement-level demand for
Trinity is a leasing company that is enabled by our
the railcar market and expect industry deliveries of
manufacturing and services businesses, and this change
approximately 40,000 railcars in 2024. We expect this
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railcar cycle to be more rational with a tighter band of
better leverage our maintenance services capabilities
production, which we view very favorably. The industrial
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economy remains resilient, and we expect drivers for
services businesses.
additional orders over the next several years to include
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We are expecting strong results in 2024. In the Leasing
well as growth in grain mill products, chemicals, autos,
and Services segment, we will continue to re-price our
and some construction segments. The industry backlog
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is approximately 60,000 railcars, which gives us good
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visibility into production over the next year.
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COMMITMENT TO INNOVATION
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and a more stable operating environment.
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We are excited to announce our Trinity Industries
traditional and now include digitally-enabled logistics
Investor Day, scheduled for June 2024, as the next
services to meet the needs of our customers who are on
opportunity to share longer-term strategic priorities
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and targets with our external stakeholders.
Trinity Industries

2

2023 Annual Report

109,295
Company-owned railcars
Full year renewal rates up 30%
over expiring rates
freight management operations. We are leading the
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market in solving the rail industry   s challenges, aiming
miles on one gallon of fuel, a substantial advantage
to move more North American transport back on
over all other land-based modes of transit. In addition,
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railcar providers are using innovative designs and
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new materials to enhance the already impressive
meet customer needs.
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Our proprietary Trinsight Logistics Platform was
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enhanced with the acquisition of Quasar in 2022. These
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businesses give us access and insight into unique data
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and analytics about railcars, including asset health,
stakeholder in the broader rail industry.
shipment condition, location, and yard management.
Our acquisition of RSI Logistics added a full suite of
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logistics capabilities to our digital portfolio, including
intelligence (AI), and we think it has the potential to
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manage rail logistics, transloading, and warehousing
as it simulates, evaluates, and improves scenarios and
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strategies for the rail industry. We are committed to
their supply chain by making shipments more visible
investing in and collaborating on this technology, as we
and data real time and easily accessible. We are creating
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an end-to-end platform to help our customers safely,
rail logistics.
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port of origin to the point of use.
COMMITMENT TO SUSTAINABILITY
We are working with industry leaders and channel
rail and providing a better digital solution.
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In addition to railcar-based telemetry, we are seeing
From our business strategy through our operations,
partners toward broader network integration and
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our commitment to sustainability creates value for our
our industry continue to build on its sustainability
stakeholders while ensuring our communities get the
advantages. The North American freight railroad
Trinity Industries

3

2023 Annual Report



 4/9/2024 Letter Continued (Full PDF)