Slide 1: Q4 2024 Investor Presentation
Exhibit 99.3 Q4 2024 Investor Presentation February 20, 2025 – based on financial results as of December 31, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Some statements in this presentation, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Trinity's estimates, expectations, beliefs, intent
Slide 3: Investor Presentation – Q4 2024
Investor Presentation – Q4 2024 I. Quarter and Full Year Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 II. Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 I
Slide 4: Quarter and Full Year Results
Quarter and Full Year Results Investor Presentation 4
Slide 5: Key Takeaways from Q4 2024
Key Takeaways from Q4 2024 Full year adjusted EPS from continuing operations of $1.82*, up 32% year over year Continued strength in lease rates; FLRD +24.3%, utilization 97.0% Adjusted Return on Equity (ROE) of 14.6%*, up 30% over 2023 driven by significant improvement in operating margins Introduci
Slide 6: Financial Results Highlights Q4 2024 – Year over Year
Financial Results Highlights Q4 2024 – Year over Year Revenues Adjusted EPS* Cash Flow from Adjusted ROE* Cont. Operations $629M $0.39 $205M 14.6% (21)% $(0.43) $+111M FY 2024 Investor Presentation 6 * See appendix for reconciliation of non-GAAP measures
Slide 7: Financial Results Highlights FY 2024 – Year over Year
Financial Results Highlights FY 2024 – Year over Year Revenues Adjusted EPS* Cash Flow from Net Fleet Cont. Operations Investment $3,079M $1.82 $588M $181M +3% $+0.44 $+279M $(106)M Investor Presentation 7 * See appendix for reconciliation of non-GAAP measures
Slide 8: North American Railcar Market In Balance
North American Railcar Market In Balance North American Railcar Fleet and Railcars in Storage 20,000 25% RAILCAR FLEET Change in North American Railcar Fleet (railcars Y/Y) Share of Railcars in Storage (Monthly %) 10,000 20% The industry fleet grew slightly in 2024 with industry deliveries outpacing
Slide 9: Segment Performance: Railcar Leasing & Services Group
Segment Performance: Railcar Leasing & Services Group Leasing & Services Revenue and Operating Profit Margin (1) Leasing & Services Segment Revenue Drivers $360 60% • Revenue higher year over year due to higher lease rates and net additions to the lease fleet $240 (in millions) Leasing & Services Ma
Slide 10: Segment Performance: Rail Products Group
Segment Performance: Rail Products Group Rail Products OP Margin Reflects Significant Improvement Rail Products Segment Revenue Drivers $750 10% • Quarterly revenue down year over year due to lower deliveries, including sustainable railcar conversions $500 8% (in millions) Rail Products Margin Perfo
Slide 11: Total Company Results
Total Company Results Q4 Revenue Reflects Lower External Deliveries Q4 2024 Financial Summary: $900 $1.00 Income Statement: • Total revenues of $629M reflect lower external deliveries, including sustainable railcar conversions, and higher eliminations in the Rail (in millions) Products Group $450 $0
Slide 12: Balance Sheet Positioning
Balance Sheet Positioning Strategically Positioned for Value Creation LIQUIDITY DEBT STRUCTURE CAPITAL LEVERS Cash & Equivalents Recourse Debt Unencumbered Railcars $228M $598M @ ~7.8%(1) $341M LTV of 67.6% for the wholly-owned lease Revolver Availability Non-recourse Debt portfolio as of Q4-24 $591
Slide 13: Management Outlook for Business Performance
Management Outlook for Business Performance FY 2025 Summary Detail Industry Deliveries Approximately 35K Does not include sustainable railcar conversions Includes deliveries to our lease fleet, sustainable railcar conversions, railcar modifications and Net Fleet Investment $300M — $400M betterments,
Slide 14: Company Overview
Company Overview Investor Presentation 14
Slide 15: Trinity Industries, Inc. Overview
Trinity Industries, Inc. Overview External Revenue by Business Segment(2) Trinity Industries, Inc. is a market leading railcar leasing business that provides rail transportation products and services in North America $3,500 $2.00 – Top 5 Leasing company ~ 109,635 railcars under ownership ~ 34,230 ad
Slide 16: Trinity's Platform Built for Superior Performance
Trinity’s Platform Built for Superior Performance Create an unmatched rail platform that provides a full suite of customer solutions to make a Trinity leased railcar the “railcar of choice” for our shipper customers for higher fleet utilization, more value streams per railcar, and higher shareholder
Slide 17: Platform Capabilities Support Optimized Lease Fleet Returns
Platform Capabilities Support Optimized Lease Fleet Returns Fee income from Rail Investment Lease origination capabilities Vehicle partnerships worth an Asset give customer flexibility and average of 100bp to Adjusted Management / RIV Lease Originations unlock multiple monetization ROE over last 5 y
Slide 18: Establishing New Value Streams Across Railcar Life Cycle
Establishing New Value Streams Across Railcar Life Cycle Investor Presentation 18
Slide 19: Diversified Portfolio of Railcar Equipment
Diversified Portfolio of Railcar Equipment ~ 900 Different Commodities ~ 270 Different Railcar Designs Commercial End Markets / Commodities Refined Products & Energy Agriculture Construction & Metals Consumer Products Chemicals Aggregates, Steel and Open Open Hoppers Hoppers & & Gondolas Gondolas Co
Slide 20: Capitalizing on Structural Change in the Rail Market
Capitalizing on Structural Change in the Rail Market Lessors Make Up A Growing Share of the North American Fleet Railcar Lessor Ownership Profile Presents Consolidation Opportunity Operating Financial Lessors Lessors 10% TRN, 14% 13% 17% TRN Lessor 13% 13% UnionTank Railroad GATX Shipper 55% All oth
Slide 21: Commitment to Premier Performance and Sustainability
Commitment to Premier Performance and Sustainability Environmental Commitment Social Responsibility Operating our business in a way that minimizes impact on Attracting and retaining a diverse and empowered workforce natural resources and the environment • Fostering an inclusive and collaborative wor
Slide 22: Integral Part of North American Supply Chain
Integral Part of North American Supply Chain 26% of U.S. Freight Ton Miles move by rail U.S. Freight Ton Miles by Mode of Transportation(2) • 1.7 million railcars in North America(1) Pipe, 16% • 1.4 trillion ton miles moved by rail in 2024(2) Water, 9% • 3,500+ commodities moved by rail(3) 5.4 trill
Slide 23: Financial Positioning and Strategic Initiatives
Financial Positioning and Strategic Initiatives Investor Presentation 23
Slide 24: Capital Allocation Strategy Focused on Returns
Capital Allocation Strategy Focused on Returns Fleet investment generates highest returns for Trinity HIGHER RETURNS Fleet Capital Investment Investments Return of and M&A Debt Capital Hold Repayment LOWER Cash RETURNS Committed to Current debt Committed to Requires Strong FLRD maintaining profile s
Slide 25: Railcars are Sustainable Long-Term Investments
Railcars are Sustainable Long-Term Investments Stable and Predictable Hard Asset Value with Tax-advantaged Investment Cash Flows Inflation Benefits • Long-term leases • Accelerated depreciation for tax • 35-50 year useful life purposes • High renewal success rates • Positive yield relationship to in
Slide 26: Trinity's Operating Model and Company Purpose
Trinity’s Operating Model and Company Purpose Investor Presentation 26
Slide 27: Appendix
Appendix Investor Presentation 27
Slide 28: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Three Months Ended December 31, 2024 (in millions, except per share amounts) Gains on dispositions of property – Restructuring GAAP other (1) activities, net Adjusted Operating profit $ 112.0 $ (2.7) $ 4.3 $ 113.6 Income from continuing operations before in
Slide 29: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Year Ended December 31, 2024 (in millions, except per share amounts) Gains on dispositions Interest of property – Restructuring expense, GAAP other (1) activities, net net (2) Adjusted Operating profit $ 491.5 $ (2.7) $ 4.3 $ — $ 493.1 Income from continuin
Slide 30: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Year Ended December 31, 2023 (in millions, except per share amounts) Selling, engineering, Gains on and dispositions administrative of property – Restructuring Interest GAAP expenses (1) other (2) activities, net expense, net (3) Adjusted Operating profit $
Slide 31: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Year Ended December 31, 2022 (in millions, except per share amounts) Gains on dispositions Restructuring Interest Income tax of property activities, expense, effect of GAAP – other (1)(2) net (1) net (1)(3) CARES Act Adjusted Operating profit $ 334.0 $ (7.5
Slide 32: Reconciliation: Cash Flow from Operations with Net Gains on Lease Portfolio Sales
Reconciliation: Cash Flow from Operations with Net Gains on Lease Portfolio Sales FY 2022 FY 2023 Q4-24 FY 2024 (in millions) Net cash provided by operating activities – continuing operations $ 9.2 $ 309.0 $ 204.6 $ 588.1 Net gains on lease portfolio sales 126.2 82.8 21.1 57.3 Cash flow from operati
Slide 33: Reconciliation: Adjusted Return on Equity
Reconciliation: Adjusted Return on Equity December 31, December 31, December 31, 2024 2023 2022 ($ in millions) Numerator: Income from continuing operations $ 171.4 $ 140.0 Net income attributable to noncontrolling interest (18.7) (20.6) Net income from continuing operations attributable to Trinity
Slide 34: Reconciliation: EBITDA and Adjusted EBITDA
Reconciliation: EBITDA and Adjusted EBITDA Year Ended December 31, 2024 (in millions) Net income $ 157.1 Less: Loss from discontinued operations, net of income taxes (14.3) Income from continuing operations 171.4 Interest expense 288.5 Provision (benefit) for income taxes 50.4 Depreciation and amort
Slide 35: Presentation Footnotes
Presentation Footnotes Slide 9 – Segment Performance: Railcar Leasing & Services Group (1) OP margin for the Railcar Leasing and Services Group includes gains from insurance recoveries of $1.4M in Q4-23 and $2.7M in Q4-24. (2) Future Lease Rate Differential (FLRD) calculates the implied change in le
Slide 36: Contact Information
Contact Information Leigh Anne Mann, Vice President of Investor Relations 214-631-4420 TrinityInvestorRelations@trin.net Investor Website: www.trin.net/investor-relations Investor Presentation 36