TRN - Earnings call 4 2023 | Trinity Industries, Inc.

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Operator

Good day, and welcome to the Trinity Industries Fourth Quarter and Full Year 2023 Results Conference Call. [Operator Instructions] Please note today's event is being recorded.

Before we get started, let me remind you that today's conference call contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to estimates, expectations, intentions and predictions of future financial performance. Statements that are not historical facts are forward-looking.

Participants are directed to Trinity's Form 10-K and other SEC filings for a description of certain of the business issues and risks, a change in any of which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

to President conference of like Anne to now Vice Mann, Investor would turn over the Leigh I Relations. Please go ahead.

Leigh Mann

Thank appreciate you fourth morning, everyone. for Good results company's financial quarter you, the XXXX call. joining operator. us conference We

Jean prepared Executive Trinity's Marchetto, company's Officer Our Officer. Eric Chief Chief and Savage, Financial comments President; will include the remarks from and

will leaders. hold from remarks our a We Q&A prepared session following the

fourth measures metrics. are today, our earnings we call www.trin.net. in are to will The financial reconciliations of the under quarter call non-GAAP metrics which of slides and the These of During comparable Investor conference appendix Presentations the certain GAAP provided the slides, link. the at the portion event non-GAAP the along reference website, are Events Relations supplemental website on accessible with

on of XX:XX be on today's through over my the call Events and will Eastern Presentations Time to to Jean. website. available is turn the our February Relations call XXXX. replay under available XX, page a.m. It A after Investor Replay pleasure is information now midnight

E. Savage

XXXX Leigh ended morning, the results unexpected throughout Ann, good strong our a to everyone. and despite challenges and We deliver year. you, ability note Thank proved on

Railcar Full revenue was in share both billion up XXXX sales, year and year-over-year up year-over-year. Rail Services railcar per Leasing were up was Management Our Segment $X.XX the GAAP Group XX% and XX% $X was $X.XX, year-over-year. EPS Group. EPS the and of diluted adjusted margins, Products excluding

is fleet our rates. remains lease XX.X%. rate indicators lease are strength While XXXX. future even our or show an our increase ability lease at by and FLRD, operations stronger the also encouraged the forward XXXX show to positioning high currently metrics fleet that I'm in results These significant and our progress, The continued utilization XX.X%, differential, for

platform's but Products are a business visibility. our returns us Rail our to of compete to that side operations and for billion well allows our the backlog It will financial market. solid current business, we plan of Eric positioned production for $X.X maximizes the discuss the XXXX, in year. us the On gives efficiently expectations execute

are from quarter, safety and like updates initiatives. Union In in We diversity these the also notable to on positioned Partner and was based would initiatives. Pacific's a sustainability share pleased few to multiple Award. fourth believe we were I Sustainability Trinity first-ever We receive recognized sustainability, well

One with collaboration lighter of UP and deliver was hopper, the our the capacity. XXXX maximize which utilizes to the to covered car's thinner initiatives materials

efforts Partnership Additionally, as its our commitment to recognized for of part sustainability. EcoConnexions Trinity and Program, CN

the employee our badge earned ESR stewardship, to highlighting we again, work environmental promote philanthropy Mexico, community In well-being, and sustainability, involvement.

Newsweek Diversity, the highlighting us commitment environment one thrive. where to diverse of and an for Workplaces named Greatest cultivating inclusive recently coexist steadfast our perspectives Finally,

dedication. our work of our strongly and are these hard team We at awards recognition keeping want believe congratulate our for forefront core minds. of values to I the

specifics from the discuss year, what seeing I'd discussing the like Before in the market. we're quarter and to

biofuels. ago. than since with carload improvement over showing of the railcar improving. This railroads. December, gains the a Class faster times January needs beginning Carloads recent the markets headwinds costs. trends In higher like were tank fourth among XXXX, Automotive mill is products, chain stores are inflation train issues perceived in contributed due cars to demand improve. service key and continue service high and speeds in improved is also quarter levels and more improvements year-over-year with remained agricultural railcars just in autoracks. Railroad despite despite consumers XX,XXX and markets fastest supply with energy favorable fertilizer lower at borrowing for dwell has year chemicals, sequentially and to as grain This strong the February has the active to certain These X

believe and continue emerging logistics we share fluid to supply our better Nevertheless, to with as and in service service a chain platform their rail positive view will customers Coupling rail service growth rail stronger drive modal industry. better incentivizes a ultimately planning. rail increase rail usage

provide to the In fourth Leasing Services in profit. Railcar highlights, starting segment the Leasing $XXX I Management revenue $XXX and some million level Now with quarter, earned Group want in and operating segment. million our

As million. this foreshadowed of included million year, earlier and of gain results proceeds $XXX quarter fourth railcar sales a $XX

segment XXXX. to FLRD year, by lease all the acquired XX% Leasing In were we driven additions Furthermore, favorable rates XXXX Logistics, and which revenue our in year, first quarter includes the up full of higher year-over-year, fleet. revenues RSI net the

quarter, FLRD call, was at the fourth the utilization of mentioned remained XX.X%. the XX.X% fleet in beginning and As the at favorable

full lease term For and rates renewal in rates us allowing approximately higher average XX% the renewal our rates was were higher our longer. the lock expiring year, months, to XX than

the quarter. year-over-year our rates, operating up significantly of driven by impact lease a the margin gains of the secondary gains, result in margin the XX,XXX segment includes which deliveries Trinity down XX.X%, is as and While more sales, railcar railcar projections, the railcars improving primarily the in is and of the quarter X,XXX were performance Fourth year-over-year, fourth of market sales is in XXXX X,XXX the approximately sector. in delivered removing higher this XXXX. When reflects border units closing. impact in below

lost congestion for increased units, increased bridges efficiency and crossing they Paso, the in Agency to and the Monclova, pay. overtime Sabinas primarily border border Customs XX. and Border storage closed deliveries and QX, Mexico, and December includes our primary manufacturing previous from and closed expenses, impact delayed reduced XX, Pass Eagle financial Pass freight that on Eagle Protection remained Texas Trinity's facilities. border on crossing railway The closure fully is international us the and revenue until December railcar addition related the at affected of closures In U.S. El

new demonstrates quarter-to-quarter. quarterly the the order which lumpiness or orders orders, railcar In quarter, XXX of XX% activity about fourth booked industry Trinity the of from

backlog times about on XX% of we XX%, with our hold full range For orders. industry orders and industry the lead year, new to normal still share of long the most of our in was half

allows This accept into disciplined the in orders to our us be we backlog.

continue have our substantially pick view We quarter backlog activity order first to our and volume the favorably. inquiry and seen up in

fourth In revenue slightly us This the preventing primarily segment getting year-end. affected closing down segment's to operating railcars sequentially, border was from border by the the quarter, which X.X%. also across of million finished $XXX the was margin, due

on included fourth affects results quarter. The quarter was margin closure The border gains insurance efficiency, gains, be The lower the basis sequentially. approximately the in recoveries. which excluding closure margins. Fourth from up points basis XXX margin border X.X%, impact the points XX from our results would

XX% improvement challenges of XX% year-over-year. driving Products operating impressive revenue the year and with in year, higher year-over-year you the the profit border closures and as basis, XXXX, supply significant On in full were a labor in This Rail improvement as of the challenges, segment. remember year. and XXX% back in faced well headwinds challenges Group half especially including chain improvement Mexico the external when is strengthening showed Deliveries of peso related we of the including the beginning the at

year expect operating margin of X.X% up to XXXX. full and from improvement Our is in we continued points XXX see basis XXXX,

external impacted performance. have years, several last negatively businesses the manufacturing the Over headwinds

operations. limitations, production We current account will allowing efficient and our to consistent remain pricing and decisions in us external disciplined to drive our for

footprint maximize ease see portfolio our confident effects Trinity manufacturing working found XXXX. versus border, buy logistics some continue is annual in partners I have our with to at positive bring conducted and in to constraints for evolve our step have review We're our tandem capabilities and we'll and We for a to the make returns also entire in to product feel the and order opportunities in-house. this platform. necessary to expect

results the and turn call I I'm we their I would solutions and despite some so an unexpected to employees minute to with considerable growth some that year-over-year to take mentioned the challenging of hard environment. like from review proud of XXXX. faced, willingness creative find work I to Before to a operating Eric, over headwinds highlights our already drove

As mentioned, Logistics our RSI acquisition we completed quarter. the in first of

business shipping very into choice an integrate across have are goal we with worked America. shippers as easy our is Ultimately, the to for of acquisitions our We prior this and rail make to pleased them Trinity. North performance

focused chains. customers their as offerings have We services enabled modernize our logistics to supply digitally expanding our to on include work

serve enhance large a We of strategic customers. our are value customers growing to our working and We our has because Trinity diversified believe better fleet lease these to services.

as Continued more focus industry on to rail make customers. a service and Trinity whole, the expansion will appealing

January a X. leasing as change business Trinity note, and you previewed effective this a our our railcar services, On structure. moved release press related this may in is have morning, by have that segment and reflects leasing organizational our manufacturing enabled company into seen maintenance we

services and business. services leverage allows capabilities to support to grow better It lease to maintenance our us fleet optimization our

the As segment, a Leasing Railcar and group. rename will the result, Services we

will both segments XXXX to our with starting margin results, segment on which some give prior change how guidance of in going quarter all recast Eric the these about makeup will will We first forward. filings, segments. and think

Finally, look Day forward strategically for Ann Leigh We as sharing we to information Tuesday, an our the I'm Dallas forward a event as and excited Investor out Texas announce Trinity. in to company, host XX. will to accommodations. and vision for June that in Reach we on on hosting look you

over our call turn statements, And fourth results for share quarter Eric discuss the XXXX. the I'll to now review to the financial expectations and

Eric Marchetto

our guidance financial Thank fourth everyone. discussing by year full I'll you, with start reconciliation conclude to structure. and for our new segment including reporting high-level morning, a good XXXX, and Jean, quarter and statements

sales, above Starting in year-over-year. consolidated range year income a $XXX to with segments, $X.XX the previously of year, a With higher were On improvement with basis, the fourth billion railcar XXXX. million, of GAAP guidance full revenue Company issued was representing revenues adjusted market improved EPS of XX% excluding than and statement. is which margins for $X.XX, we the quarter EPS $X both ended $X.XX. secondary our $X.XX XX%

changes year completed release taxes, in in XXXX changes a With in full allowances. benefited our portion quarter year state residual valuation a in the rate, and from by the rate, apportionment and the of have lower-than-expected and of state We driven fourth guidance normalized we tax in the lower rate primarily would tax range. changes

for year, the interest expense and $XXX higher in which driven -- over For up railcar completed we $XX benefited higher also by million market sales debt. XXXX and rates Net significantly the of XXXX, average overall full in our interest million, gain million, overall $XXX was a results. secondary year

quarter. XXXX We fourth in the expect to a run similar rate

year cash $XXX to timing statement. financing. lease was was primarily sales year lower from cash This flow railcar portfolio levels flow from and operations, up by cash and the was offset production. operations Adjusted Full for the higher stabilized to million, due inventory net $XX significantly by million. Moving of year-over-year, the driven cash flow free

we in million, million, investment million expectations. full dividend. I'll with in capital committed our was shareholders to secondary proceeds of from guidance quarterly $X.XX dividend quarter, We fourth Our line X% the market December, for by our line lease increased In were This to with per our paid fleet to net close a paid was gain guidance. year XXXX. through in returning $XX our share. $XXX the sales dividend, $XXX approximately consecutive remain our dividend, comments for railcar my with high-level XXXth In January.

cannot had XXXX note on quarter, a and that railcars in an mutual Jean as removed backlog, gives agreement good As XXXX million. One we the a date. on Products delivery X a Rail decision our us come would the to adjustments with was segment which $XX.X backlog the strong entered worth fourth noted, we XXX customer to production. for we based I to with visibility like

from in reduction a customer the we was received accommodation. second compensation size order from a for The which

view continue backlog We our favorably. to

recast As maintenance fleet as service believe services think consolidated will Therefore, Services to our of railcar slides and reflect supplemental XXXX that of our and will our no it's operating to the today's segments. Leasing of line and business business this on we include will in A is as out Leasing of change the of segments the XX primarily The are change. business. reporting reporting maintenance lease not leasing an XXXX results. segment and effect segments operating Slide we segment. Services Rail the business exists moving of logical the appendix internally maintenance to segment. All have and for our the view reference. included recorded change Products profit our We own as reconciliation below mentioned, reporting Jean financial in part into This X enabler

market in we segment, Services in fleet to the as rates quarter lease and rates. of Since expiring continue approximately of turned of us the reprice our at repriced we've Leasing improvement FLRD push higher the than XX% higher. positive and double-digit second expect significantly opportunity In our rates giving to fleet, leases we renew XXXX plenty XXXX,

we as XXXX through strong remain rising. seen to have FLRD absolute the expect We rates lease

of have favorable renewing. We railcars a mix

business. recast car includes remain due market improvement above fleet current margin the XXXX cycle. to Excluding of the which maintenance compliance impact of anticipate margin the railcar expect elevated XXXX expenses maintenance the XX.X%, to we secondary sales, in railcar We tank

For railcar sales to be XXXX, we on railcar of in minimal first and gains what approximately expect quarter. were in expect they sales half XXXX the

Rail from which improving We Products segment, stable efficiency, to the of stable reflects recast margin XXXX the which excludes expect complexity the forecast better a XXXX operating a significantly improved quarter. maintenance be levels, the to and range in the In X.X%, we anticipated year, X% more business. production reduction given margins margin X%, of through the XXXX

seasonality impacted our freight margins business. quarter of by will be First and costs storage the increased and

support with our anticipate see rationalized in in as of the of million view market expect lease net year. deliveries We investment XX,XXX to buyers in Mexico. We of replacement of $XXX $XXX demand in fleet million for we secondary railcars our opportunity consistent approximately the both is capacity But level long-term of which industry sellers. and plenty XXXX,

lower expect to as railcar We sales XXXX. compared

deliver We total backlog of expect XX% in our XXXX. to

XX% will internal. those XX% be year, to we in For deliveries the expect

automation, We to be XXXX facilities a million $XX expenditures guidance $X.XX. supporting processes. And capital announcing to expect approximately million our technology we EPS our for expenditures finally, are range XXXX. our $XX manufacturing are $X.XX of general of These and and to at modernization and generally

year-over-year continuing headwinds this are guidance and manufacturing on a business define provision, and as in rates. and we work have XXXX, the business XXXX. In lease start, generally eliminations, efficiency EPS deliveries our XX% done performance. sales As driving margins off higher we've in The XXXX average major we higher gains more significantly and mentioned, higher the lower our in plan which financial our XX% better motion in strong and is improve tax is to normalized we railcar reflects across to closing, believe reflects in a to achievable improvement

the we our deliver from business. for Day challenges and company have we positioned We forward sharing better and a as learned our at to next some targets are returns Investor disciplined quarter. longer-term believe of to remain And XXXX improved look

Operator

[Operator Fargo. first comes question Allison with from Instructions] Poliniak Our Wells

Allison Poliniak-Cusic

to the leasing move you to for Obviously, been has talk to want Just going higher picky. guys. business. rates are Utilization

for just those this pick you we conversations of the a could your You year? Like a talk Could bit. onetime dropped little up? Is maybe that utilization going about where it back of kind from are renewal on sort view 'XX thing point? how see fleet at this

E. Savage

Thanks, at excited. question. Allison. look I'll And start When Great that. really we're we XXXX, on

these the You we versus expiring up serve renewal the markets saw for majority that The had of year XX%. improving. vast over rates and in cars the are full fourth quarter,

We sometimes utilization, some will depending the that did come back. have cars the go and timing. up And down on

get Sometimes into put to service. to back you have the to through them shop them be ready

year to on and increase the being excited this those expiring that are that going FLRD, be utilization of our with see then are cars. that still rates we So strong, cars the going mix about ability

thing renewal, these 'XX average We've XX is increasing And last to for months 'XX, up that of an cars been and our months. went term. XX in term on the the is

of all in the direction. our forward-looking metrics going So are right

Allison Poliniak-Cusic

then And then the side, being underutilized Great. this I be it over. up decision it Is a you to mentioned point? it to Was And elevated. on in to Eric, more was guess color 'XX? at just on still bit little relative move maintenance it what the I going maintenance know,

E. Savage

Sure.

ownership our quality cars leasing And we we gives fleet, total you When it we shopping. strong less over a when for look that that, the cost in move did of new company, linkage. look into at it our reason very through lease customers at us have to in the our producing. we great the the So that maintenance, is have we're

cars. when can we cost also we shop, look those the have times control We at turn for But we can industry-leading do better. the

want to we to are many shops as cars those lease that benefits. own our as -- through of throughout our cars possible. all So And get drive fleet those

has mobile The a year a don't it units. repair you that's the shop. we've our over the that you if moving our added And customers mobile X have repair other have of last benefit or costs associated to freight because been the thing with again, unit,

You with time also that. don't associated have getting the

customers service gives So for the cars are us those in and more benefit. a

compliance really When headwinds heard that next you the mandated years. next look to HM-XXX, several at so I maintenance the seeing the that of industry. the to for with years, That's done be we're you've couple throughout has that work think do over

that. so facing And we're

through those costs looking putting we're some cars our trying units. way The are to using mitigate own those of repair more shops mobile at

goes thing compare allow you And I So is concert. companies. leasing very to it us easily final all in other the would it say with should

in that others. we everything us directly that segment Now with compares have

Operator

Long Our next Justin from question comes with Stephens.

Justin Long

start know with a year sense you're progression. issues to recently guidance you're thinking full the the the where at the margins, Group us expecting maybe into about us a I XQ? you of year, to a Products for been but as it So for have to will maybe sense into but give give to was linger Pass, question could get move Rail helpful expecting the well, exit on something curious Eagle first that we if And as just there year the that quarter? where that's then start

E. Savage

with say Leasing, renewal Justin, going to rates again, start expiring. So great versus FLRD and strong very I'm just to utilization

area only fleet improvement very of XX% that So far. very so with stable, strong being repriced

operations look or manufacturing. we When to go at

of expect we we the the compression border the due of those quarter margin over extra with of that first saw storage the majority carry congestion in the border into cross because we X,XXX quarter the units the chain issues And headwinds did the along to that that first some in not on inefficiencies some fourth deliver units freight the will entered, that and supply at those was have to in QX Some the fact of the extra that did of that XXXX. the cost, had. the quarter

that So in. carries

improve quarterly the I expect Now think at looking you and our that I business guidance. go But give expect the don't we in compression we I've throughout given to fact beginning, we some year. enough the as at typically

Justin Long

Okay. it way. this ask Well, maybe to

throughout that the that to range X%. You expecting remain gave X% Are of to range year? you in

E. Savage

headwinds at fourth We off so numbers for doing quarterly just But at would based first higher. the not now, and giving guidance, we're that's to expect be the quarter the quarter the right math. looking

Justin Long

Okay. backlog Understood. secondly, we've kind so? more there that comment provide quarter. around in moved the you here here that? taper a the to I quarter color you I in growth maybe us think think a give picking it's we to was about pickup frame a first reference, what's year bit as into And just backlog substantially next past X up on if seeing after the the or was And wondering of inquiries as of little enough do driving think support could or

E. Savage

the that ahead we with to script, start We've of got sitting going go deliver I'm the in this And backlog. our year. about and said XX% in expect So backlog to out about industry books. our half we

we last closer we're still order year, the In the entry industry XX,XXX, solidly for within So the that looking deliveries to that it we think was the talked that XX,XXX year. range. at but for about rate supports industry,

those exciting what's tank specialty levels, tank so you at cars, more cars. are the we're to look see When starting about inquiry especially on

freight come in is a been seeing It's tank hearing so we that and cars about. increase the And entry haven't order been that's back great. car-led a movement

And in autoracks that the is of the driven part those some strong. by of and some out mandatory really aging covered We've other hoppers. that's there autoracks. remain seen or orders requirement also of The improvement

of if and cars. of start you a go of end industry But XX,XXX at XXXX at about is XXXX, the through the beginning the deficit

been retired built. cars have So more have been than

there industry still XX,XXX supporting overall cars that for the for and of see strong this need year. inquiry delivery then a we the level So level

Operator

with Our Elkott Cowen. from next question TD comes Matt

Matthew Elkott

own it, year? on guys meaning you by of is listed, the the it the X clarification in did magnitude The order how give and biggest you headwinds to is First, guide. secondly, it of And fleet compares the the for cars build a reflected followed you tax. lease to sales percentage your and expect railcar quick headwind last in eliminations

Eric Marchetto

is Matt, Eric. Yes, this

me year of to about XX% second this fleet. going of the to talked the Let our We that. take part lease XX% deliveries

what in drew And previous so to blank it similar in that's I'm years. back 'XX. at XX% usually XX%. We're a the... from range down sorry, it When -- down was look was you It's to I closer certainly

E. Savage

the of order headwinds. The

Eric Marchetto

Yes, yes.

So the gains. quantify gains, the gains, saying we did the half approximately about

we of In for yes. terms looking terms the in what of significance, I think X, that we're does kind didn't quantify other but them, of speak of the at terms in order itself

Matthew Elkott

overall Okay. the a factors... of sales, lower valuations market secondary And is specific it is Or expected Eric, moderating? demand and function easing it more

Eric Marchetto

Yes, all. not at

and very Secondary the it additions When year. our market market have as on remains our look a strong. in quarter, weighted the the down secondary a we our planned bit the specifically market, we leasing back-end lot comes the you little seeing as fleet, look depth. both at numbers, and backlog -- to demonstrated activity, still in at We're for secondary breadth of when us, fourth yes,

just it a matter so And is timing. of

investment. million talked million. about $XXX to I $XXX averaged net of We $XXX million about fleet

a it's over is really bit, to So multi-year timing. up and lot of We a that more view. that due a little at look

than little higher bit a normal. it's so And

of the are But other good. side the returns is it

well And those so with of that they're especially higher rate environment, lease booking, we we're interest rates, are originations the lease in above a hurdle. light very our happy

of And when going anything. we're then gets in if to so good we -- timing monetize what feel were originating. we But it about the

E. Savage

say to something I comes do if we right up. And reserve Matt, that the opportunistic will be

plan is our this right So now.

Matthew Elkott

insight where lease think rates. you makes give question. you some you fleet? see quarter, mentioned -- fourth sense. one in more total you last by An just I as them mentioned as type overall some -- briefly it. quarter first Can by absolute and granularity the That maybe Got car on how more spot in maybe well Eric, they've spot trended the trending

Eric Marchetto

Yes.

So that we rates, I I anyway. but there mentioned spot go don't about anything know can

Matthew Elkott

I said solid, maybe still thought but I... you they're

Eric Marchetto

Yes, the rate -- yes.

lease look you trends across the rates, we are we're When we're average in still seeing seeing in still of at down portfolio rates the the very when on drill the types. lease increasing rates car Okay, the still car strong. most lease types, that

So a on we're really which is still indicator. yield seeing strong. the good Effectively, assets increasing, is

at look rates going a the we as this going bullish as demand for pretty forward, that supply see dynamics on our And maintain we to year, positive FLRD look expiring we at our we're why number. it's very that's

why And feel -- the good so we our feel that's outlook. we fleet, feel that's good about about why and leasing good about we

Matthew Elkott

So lease trending rates are quarter-over-quarter spot still positively?

Eric Marchetto

Yes.

E. Savage

Yes.

Eric Marchetto

Yes. -- yes. That's

Matthew Elkott

surprised given fact that the the... guys by that you Are

Eric Marchetto

let I'm tell not, me and why.

When in requires So lease a car are railcar, to higher, higher. still new still that lease big invest very look new a compare to There's when -- still of marginal there's new car capital are averages, there. rates, -- at rate. a prices gap you you much cost fleet are high

a lot assets. upward the room on still pricing so And for we of yield of see

And very supply we look the most more and look at railcar you market see storage When loadings, in demand at that, solid at cars is of a look tight. fleet detailed environment. is we the and you

And only because it as other so we're the rates lessors not one are -- seeing well. pushing and

Operator

Capital with Barger KeyBanc Steve question next comes Markets. Our from

Christian Zyla

Barger. Christian Steve Zyla for is on This

owned be? think what First is you on see the the you lessors. question, Do total do or where of fleet upper thoughts now there? And of own the by day a that active lessors most what might cars percentage just any limit

E. Savage

railroads end and And the the we a continue overall it of owned is to So own have shift things their like some XX% autoracks, But now. mainly depends. XX% fleet, grain cars, keep by who also. And The own definitely cars. really railroads lessors the owned their the in big cars cars. of are box about customers from fleets do cars majority like to have rail when

Christian Zyla

quarter, made XX% in last backlog And then Great. the will comment your be that you 'XX. of delivered

just Are primarily Or I quarter-to-quarter? driven the you the think can deliveries changed one those XX%. the recent by most impacted was cars by through what border issue? additional walk

Eric Marchetto

roll-off just add we is deliveries. We railcars, the quarter-by-quarter changed you another natural orders, quarter one to of took quarter What delivered changes and other. from

And of works. so don't to It's just -- how I math know that's kind trend that. there's that the any just

Christian Zyla

just Got I one sneak in. it. And could more then if

you car are the lower guess, margins, through the but think, planning can to just guys I be is that For you walk can will the just deliveries. actions improve rail or commentary I margins, there take to,

So through plan what you taking? just on guys walk can just you actions

E. Savage

higher it, look Sure. at you year. we're this when And expecting actually deliveries

We have the over year. X,XXX carrying from prior the

that We to also border fourth quarter talked margins constraint. fourth XXXX impacted and first border the by the that occurred quarter quarter about of were the due first in freight over quarter flowing due the that the to issues headwinds in some into in from the storage efficiencies

work that we look their getting pick are Every training, efficiency thing at in employees continuing up. and quarter, on we're other we're seeing The our the is to automation. stronger

to initiatives, the actions, so the the lead And improvement all the year. training, throughout

the is add thing I guess I And will changeovers. to it last

to changeovers expect closer half second to would 'XX in XXXX. of be I the our So

of causing So margins. have headwind those a we those less do towards

Operator

would session. like our turn conference Jean closing to Savage I to concludes the for This back question-and-answer remarks. over any

E. Savage

Well, thank us morning. you this for joining

every solution. XXXX, For in found Trinity a challenge unexpected unique

in in operations a you of Thank and improving We of seeing look look you margin to to speaking and Trinity. May growth, business. for in your June again support Investor the we continued XXXX, focus Dallas on Day. for anticipate forward the As consistent our returns we

Operator

The Thank conference now concluded. you has for attending presentation. today's

You may now disconnect.

Trinity Industries (TRN) 22 Feb 242023 Q4 Earnings call transcript