Slide 1: Trinity Industries, Inc. Quarterly Investor Presentation
DELIVERING GOODS for THE GOOD of ALL TRINITY INDUSTRIES, INC. Quarterly Investor Presentation August 7, 2023 – for the period ended June 30, 2023 Exhibit 99.1
Slide 2: Forward Looking Statements and Other References
DELIVERING GOODS for THE GOOD of ALL /// 2 Forward Looking Statements and Other References 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 sta
Slide 3: Investor Presentation – August 2023 Contents
DELIVERING GOODS for THE GOOD of ALL /// Investor Presentation – August 2023 3 I. Trinity Industries, Inc. Overview . . . . . . . . . . . . . . . . . . Page 4 II. Trinity’s Value Proposition . . . . . . . . . . . . . . . . . . . . . . . . Page 9 III. Railcar Market Overview . . . . . . . . . . . . .
Slide 4: Trinity Industries, Inc. Overview
DELIVERING GOODS for THE GOOD of ALL TRINITY INDUSTRIES, INC. OVERVIEW (NYSE: TRN)
Slide 5: Trinity's Value Proposition
DELIVERING GOODS for THE GOOD of ALL /// Trinity’s Value Proposition 5
Slide 6: Trinity Industries, Inc. Overview
DELIVERING GOODS for THE GOOD of ALL /// • Trinity Industries, Inc. owns market leading businesses that provide rail transportation products and services in North America – Top 5 Leasing company ~ 109,060 railcars under ownership ~ 33,205 additional investor-owned railcars – Leading manufacturer wit
Slide 7: A Differentiated Value Proposition for Our Customers
DELIVERING GOODS for THE GOOD of ALL /// A Differentiated Value Proposition for Our Customers • Lease Portfolio • Fleet Management • Equipment Finance Solutions Leasing • Rail Product Portfolio • Aftermarket Parts Manufacturing • Maintenance • Modifications • Repair • Mobile Units Maintenance • Logi
Slide 8: Trinity's Business Segments
DELIVERING GOODS for THE GOOD of ALL /// Trinity’s Business Segments * See appendix for reconciliation of non-GAAP measures $2.5B Total Revenues Trinity Industries Inc. (LTM Q2-23) $372M Adjusted Operating Profit* $109M Adjusted Income from Cont. Ops.* $663M Adjusted EBITDA* $819M Segment Revenue $4
Slide 9: Trinity's Value Proposition
DELIVERING GOODS for THE GOOD of ALL TRINITY’S VALUE PROPOSITION
Slide 10: Trinity's Platform is Built to Deliver Shareholder Value
DELIVERING GOODS for THE GOOD of ALL /// Trinity’s Platform is Built to Deliver Shareholder Value LTM Q2-23 Revenues $2.5B LTM Q2-23 Cash Flow, Continuing Ops $211M LTM Q2-23 OP Margin, Adjusted*(1) 15% LTM Q2-23 Stockholder Returns $107M * See appendix for footnote and reconciliation of non-GAAP me
Slide 11: Stable Financial Performance Through the Cycle (Leasing)
DELIVERING GOODS for THE GOOD of ALL /// Leasing Operations Revenue OP Margin 2019 2020 2021 2022 LTM Q2- 23 $500 $600 $700 $800 —% 20% 40% 60% Stable Financial Performance Through the Cycle FLRD and Utilization Remain Favorable Leasing Operations Revenue and Operating Profit Margin(1) (in $mms) See
Slide 12: Optimization of Production Operations Underway (Rail Products)
DELIVERING GOODS for THE GOOD of ALL /// Rail Products Revenue Maintenance Services Revenue Other Revenue OP Margin 2019 2020 2021 2022 LTM Q2- 23 $— $1,000 $2,000 $3,000 —% 4% 8% 12% Leading manufacturer of railcars in North America ◦ Delivered 17,365 railcars during LTM Q2-23 ◦ Backlog of $3.6 bil
Slide 13: Railcars: Sustainable Long-term Investments
DELIVERING GOODS for THE GOOD of ALL /// Railcars: Sustainable Long-term Investments • Long-term leases • High renewal success rates • Low credit defaults and bad debt expense • Active secondary market Stable and Predictable Cash Flows • 35-50 year useful life • Positive yield relationship to inflat
Slide 14: Diversified Portfolio of Railcar Equipment
DELIVERING GOODS for THE GOOD of ALL /// Diversified Portfolio of Railcar Equipment ~ 900 Different Commodities ~ 270 Different Railcar Designs 14*All percentage information reflects Company-owned fleet assets as of December 31, 2022
Slide 15: Commitment to Premier Performance and Sustainability
DELIVERING GOODS for THE GOOD of ALL /// Commitment to Premier Performance and Sustainability 15 Environmental Commitment Social Responsibility Governance Excellence Risk Management Operating our business in a way that minimizes impact on natural resources and the environment • Leveraged Green Finan
Slide 16: Railcar Market Overview
DELIVERING GOODS for THE GOOD of ALL RAILCAR MARKET OVERVIEW
Slide 17: Integral Part of the North American Supply Chain
DELIVERING GOODS for THE GOOD of ALL /// Integral Part of the North American Supply Chain • 1.7 million railcars in North America(1) • 1.4 trillion ton miles moved by rail in 2022(2) • 3,500+ commodities moved by rail(3) • Annual railcar loadings of 17 million in 2022(4), highly correlated to U.S. G
Slide 18: Delivering Essential Goods to the Global Marketplace
DELIVERING GOODS for THE GOOD of ALL /// Delivering Essential Goods to the Global Marketplace See appendix for source information • Coal • Biofuels • Frac Sand • U.S. Crude • Canadian Crude 31% of North American railcar loadings ~230 distinct commodities Energy • Natural Gas Liquids • Refined Produc
Slide 19: Capitalizing on Structural Change in the Rail Market
DELIVERING GOODS for THE GOOD of ALL /// Capitalizing on Structural Change in the Rail Market The TrinityRail platform has grown at a 12% CAGR since 2002 Lessors Make Up A Growing Share of the North American Fleet Railcar Lessor Ownership Profile Presents Consolidation Opportunity Operating Lessors
Slide 20: Financial Positioning and Strategic Objectives
DELIVERING GOODS for THE GOOD of ALL FINANCIAL POSITIONING AND STRATEGIC OBJECTIVES
Slide 21: Healthy Balance Sheet Strategically Positioned for Opportunistic Deployment
DELIVERING GOODS for THE GOOD of ALL /// Healthy Balance Sheet Strategically Positioned for Opportunistic Deployment and Value Creation 21 Unencumbered Railcars $292M • Pledge to warehouse • Additional assets can be sold or financed • LTV of 65.1% for the wholly-owned lease portfolio as of Q2-23 CAP
Slide 22: Executing on Strategic Initiatives to Improve Pre-Tax ROE
DELIVERING GOODS for THE GOOD of ALL /// Executing on Strategic Initiatives to Improve Pre-Tax ROE 22 Manufacturing Cost Improvement Lease Fleet Optimization *See appendix for footnotes and reconciliation of non-GAAP measures Lower Cost of Capital | Reduce Cyclicality | Improve Rail Supply Chain LTM
Slide 23: Positioned for Further Success in the Marketplace
DELIVERING GOODS for THE GOOD of ALL /// ~ $20-25B TAM Revenue Opportunity for Services Expansion in Railcar Industry Positioned for Further Success in the Marketplace • Superior customer experience through “Anytime” access • Fleet Management Solutions • RailPulseTM consortium Digital Platforms • Co
Slide 24: Operating Model and Company Purpose
DELIVERING GOODS for THE GOOD of ALL /// Operating Model and Company Purpose 24
Slide 25: Appendix
DELIVERING GOODS for THE GOOD of ALL APPENDIX
Slide 26: Reconciliation: Adjusted Operating Results
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results 26 (1) Represents the change in estimated fair value of additional contingent consideration associated with an acquisition. (2) Represents insurance recoveries in excess of net book value for assets damaged by a torn
Slide 27: Reconciliation: Adjusted Operating Results (continued)
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results (continued) (1) Represents insurance recoveries in excess of net book value for assets damaged by a tornado at the Company’s rail maintenance facility in Cartersville, Georgia in the first quarter of 2021. (2) Repres
Slide 28: Reconciliation: Adjusted Operating Results (continued)
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results (continued) (1) The effective tax rate for gains on dispositions of other property; restructuring activities, net; and interest expense, net is before consideration of the CARES Act. (2) Represents insurance recoveri
Slide 29: Reconciliation: Adjusted Operating Results (continued)
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Adjusted Operating Results (continued) (1) The effective tax rate for gains on dispositions of other property; restructuring activities, net; the loss on extinguishment of debt; and pension plan settlement is before consideration of the CARES
Slide 30: Reconciliation: EBITDA and Adjusted EBITDA
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: EBITDA and Adjusted EBITDA “EBITDA” is defined as income from continuing operations plus interest expense, income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA plus certain selling, engineering, and adm
Slide 31: Reconciliation: Total Company Pre-Tax ROE
DELIVERING GOODS for THE GOOD of ALL /// Reconciliation: Total Company Pre-Tax ROE 31 (1) Represents the change in estimated fair value of additional contingent consideration associated with an acquisition. (2) Represents insurance recoveries in excess of net book value for assets damaged by a torna
Slide 32: Footnotes and Sources
DELIVERING GOODS for THE GOOD of ALL /// SLIDE 2 1. LTM is calculated as the year ended December 31, 2022, less the six months ended June 30, 2022, plus the six months ended June 30, 2023, representing the financial information from July 1, 2022 to June 30, 2023. SLIDE 6 – Trinity Industries, Inc. O
Slide 33: Contact Information
DELIVERING GOODS for THE GOOD of ALL /// Contact Information 33 Contact Information: Leigh Anne Mann, Vice President of Investor Relations 214-631-4420 TrinityInvestorRelations@trin.net Investor Website: www.trin.net/investor-relations