GATX shares transfer 5% greater as 2025 outlook tops estimates

NEW YORK – GATX Company (NYSE:GATX) shares jumped 5.58% on Wednesday after the railcar lessor reported better-than-expected fourth quarter outcomes and issued an upbeat 2025 earnings forecast.

The Chicago-based firm posted fourth quarter adjusted earnings of $1.93 per share, surpassing analyst estimates of $1.69. Income rose to $413.5 million, barely above the consensus of $410.3 million.

For full-year 2024, GATX reported web earnings of $284.2 million or $7.78 per diluted share, up from $259.2 million or $7.12 per share in 2023.

Trying forward, GATX initiated 2025 earnings steering of $8.30 to $8.70 per share, the midpoint of which exceeds the present Wall Avenue consensus of $8.35.

“Primarily based on robust efficiency all year long, GATX delivered 2024 full-year monetary outcomes that exceeded our authentic expectations,” stated Robert C. Lyons, president and CEO of GATX.

In Rail North America, GATX’s largest section, fleet utilization remained excessive at 99.1% at year-end. The corporate’s Lease Value Index, which measures railcar lease renewal charges, was 26.7% within the fourth quarter.

GATX invested over $1.1 billion in its North American rail enterprise in 2024, together with opportunistic railcar purchases and investments underneath present provide agreements.

The corporate expects a secure railcar leasing market in North America for 2025, with greater lease income as expiring leases are renewed at greater charges throughout many automotive sorts. Nonetheless, this will probably be partially offset by greater upkeep bills and curiosity prices.

This text was generated with the assist of AI and reviewed by an editor. For extra data see our T&C.