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Investing.com -- GATX Corporation (NYSE:GATX) reported third-quarter earnings that fell short of analyst expectations, despite revenue exceeding estimates. The transportation equipment lessor’s shares dropped 2.4% in premarket trading Tuesday as investors reacted to the earnings miss and guidance that failed to impress.
The company reported third-quarter earnings of $2.25 per diluted share, missing analyst estimates of $2.32. Revenue came in at $439.3 million, surpassing the consensus estimate of $435.21 million.
GATX maintained its full-year 2025 earnings guidance of $8.50-$8.90 per diluted share, compared to the analyst consensus of $8.80. The midpoint of the guidance range ($8.70) sits slightly below market expectations, contributing to the negative market reaction.
Rail North America, the company’s largest segment, reported strong fleet utilization of 98.9% at quarter-end, with a renewal success rate of 87.1%. The renewal lease rate change was positive 22.8% with an average renewal term of 60 months. However, segment profit declined to $70.7 million from $102.4 million in the same quarter last year.
"Conditions across our global markets remain largely consistent with our original expectations," said Robert C. Lyons, president and CEO of GATX. "At Rail North America, demand for most car types remains stable despite ongoing macroeconomic uncertainty."
The company’s Engine Leasing segment showed strong performance, with segment profit increasing to $60.4 million from $37.5 million in the third quarter of 2024, driven by robust global passenger air travel.
GATX invested $361.7 million in the third quarter and $877.0 million year to date across its various business segments. The company also confirmed it remains on track to close its acquisition of Wells Fargo’s rail operating lease assets in the first quarter of 2026 or sooner.
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