Slide 1: Q2 2024 Investor Presentation
Exhibit 99.3 Q2 2024 Investor Presentation August 1, 2024 – based on financial results as of June 30, 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 – Q2 2024
Investor Presentation – Q2 2024 I. Quarter Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 II. Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 4: Quarter Results
Quarter Results Investor Presentation 4
Slide 5: Key Takeaways from Q2 2024
Key Takeaways from Q2 2024 Second quarter adjusted EPS from continuing operations of $0.66*, up $0.33 sequentially and $0.43 year over year on an adjusted basis Continued strength in lease rates; FLRD +28.3%, utilization 96.9% Quarterly revenue up 16% and quarterly operating profit up 43% year over
Slide 6: Financial Results Highlights
Financial Results Highlights Q2 2024 – Year over Year Revenues Adjusted EPS* Cash Flow from Adjusted ROE* Cont. Operations $841M $0.66 $243M 16.8% +16% $+0.43 $+205M LTM Q2-24 Investor Presentation 6 * See appendix for reconciliation of non-GAAP measures
Slide 7: 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 continues to expand, but the rate of expansion has slowe
Slide 8: 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 $300 60% • Revenue higher year over year due to improved lease rates and net additions to the lease fleet $200 (in millions) Leasing & Services
Slide 9: Segment Performance: Rail Products Group
Segment Performance: Rail Products Group Rail Products Segment Revenue and Operating Profit Margin Rail Products Segment Revenue Drivers $750 10% • Quarterly revenue down year over year due to lower deliveries 8% and the mix of railcars sold $500 (in millions) Rail Products Margin Performance Driver
Slide 10: Total Company Results
Total Company Results Revenue Improved Year over Year Q2 2024 Financial Summary: $900 $1.00 Income Statement: • Total revenues of $841M reflect higher external railcar deliveries and improved lease rates (in millions) • GAAP EPS from continuing operations of $0.67 $450 $0.50 • Adjusted EPS of $0.66*
Slide 11: Balance Sheet Positioning
Balance Sheet Positioning Strategically Positioned for Value Creation LIQUIDITY DEBT STRUCTURE CAPITAL LEVERS Cash & Equivalents Recourse Debt Unencumbered Railcars $257M $598M @ ~7.8%(1) $292M LTV of 68.3% for the wholly-owned lease Revolver Availability Non-recourse Debt portfolio as of Q2-24 $595
Slide 12: Management Outlook for Business Performance
Management Outlook for Business Performance FY 2024 Summary Detail Industry Deliveries Approximately 40K 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 13: Company Overview
Company Overview Investor Presentation 13
Slide 14: 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 $4,000 $2.40 – Top 5 Leasing company $3,000 $2.00 ~ 109,365 railcars under ownershi
Slide 15: 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 16: 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 17: Establishing New Value Streams Across Railcar Life Cycle
Establishing New Value Streams Across Railcar Life Cycle Investor Presentation 17
Slide 18: 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 19: 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% 16% TRN Lessor 13% UnionTank 13% Railroad GATX Shipper 55% All oth
Slide 20: 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 21: 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, 17% • 1.4 trillion ton miles moved by rail in 2023(2) • 3,500+ commodities moved by rail(3) Water, 9% 5.4 trill
Slide 22: Financial Positioning and Strategic Initiatives
Financial Positioning and Strategic Initiatives Investor Presentation 22
Slide 23: 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 24: 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 25: Trinity's Operating Model and Company Purpose
Trinity’s Operating Model and Company Purpose Purpose Strategy Business Values Investor Presentation 25
Slide 26: Appendix
Appendix Investor Presentation 26
Slide 27: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Three Months Ended June 30, 2024 (in millions, except per share amounts) Interest GAAP expense, net (1) Adjusted Operating profit $ 141.9 $ — $ 141.9 Income from continuing operations before income taxes $ 75.2 $ (0.4) $ 74.8 Provision (benefit) for income
Slide 28: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Six Months Ended June 30, 2024 (in millions, except per share amounts) Interest GAAP expense, net (1) Adjusted Operating profit $ 257.1 $ — $ 257.1 Income from continuing operations before income taxes $ 117.9 $ (0.8) $ 117.1 Provision (benefit) for income
Slide 29: Reconciliation: Adjusted Operating Results
Reconciliation: Adjusted Operating Results Six Months Ended June 30, 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 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 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 (in millions) Net cash provided by operating activities – continuing operations $ 37.8 $ 75.5 $ 93.2 $ 56.5 $ 243.2 Net gains on lease portfolio sales 29.8 3.1 36.4 2.1 22.7 Cash flow from
Slide 33: Reconciliation: Adjusted Return on Equity
Reconciliation: Adjusted Return on Equity LTM June 30, 2024 June 30, 2023 ($ in millions) Numerator: Income from continuing operations $ 189.5 Net income attributable to noncontrolling interest (12.8) Net income from continuing operations attributable to Trinity Industries, Inc. 176.7 Adjustments (n
Slide 34: Reconciliation: EBITDA and Adjusted EBITDA
Reconciliation: EBITDA and Adjusted EBITDA LTM June 30, 2024 ($ in millions) Net income $ 175.5 Less: Loss from discontinued operations, net of income taxe (14.0) Income from continuing operations 189.5 Interest expense 290.5 Provision (benefit) for income taxes 41.2 Depreciation and amortization ex
Slide 35: Presentation Footnotes
Presentation Footnotes Slide 2 – Forward Looking Statements (1) LTM is calculated as the year ended December 31, 2023, less the six months ended June 30, 2023, plus the six months ended June 30, 2024, representing the financial information from July 1, 2023 to June 30, 2024. Slide 8 – Segment Perfor
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