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Investing.com -- GATX Corporation (NYSE:GATX) reported better-than-expected second-quarter results on Tuesday, driven by strong performance across its global railcar leasing businesses and significant remarketing income.
The rail and aircraft engine lessor posted second-quarter earnings of $2.06 per share, exceeding analyst estimates of $1.95. Revenue came in at $430.5 million, surpassing the consensus forecast of $425.52 million. The company also raised its full-year earnings guidance to a range of $8.50 to $8.90 per share, with the midpoint of $8.70 slightly above analyst expectations of $8.64.
GATX shares rose 3.7% following the announcement as investors responded positively to the earnings beat and solid outlook.
"Our strong second-quarter results reflect solid operating performance across our global businesses," said Robert C. Lyons, president and chief executive officer of GATX. "In the second quarter, we capitalized on an active secondary market and generated remarketing income of over $34 million."
Rail North America, the company’s largest segment, maintained high fleet utilization at 99.2% with a renewal success rate of 84.2%. The segment reported a 24.2% increase in renewal lease rates with an average renewal term of 60 months.
Rail International saw some pressure in Europe where fleet utilization decreased to 93.3%, while Rail India maintained strong utilization at 99.6%. The Engine Leasing business continued to perform well amid strong demand for aircraft spare engines.
GATX invested over $515 million year-to-date and continues to pursue its previously announced joint venture with Brookfield Infrastructure (NYSE:BIPC) to acquire Wells Fargo (NYSE:WFC)’s rail assets, expected to close in the first quarter of 2026 or sooner.
The company’s second-quarter net income of $75.5 million represented a 70% increase compared to $44.4 million in the same period last year.
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