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NEW YORK - GATX Corporation (NYSE:GATX) shares jumped 5.58% on Wednesday after the railcar lessor reported better-than-expected fourth quarter results and issued an upbeat 2025 earnings forecast.
The Chicago-based company posted fourth quarter adjusted earnings of $1.93 per share, surpassing analyst estimates of $1.69. Revenue rose to $413.5 million, slightly above the consensus of $410.3 million.
For full-year 2024, GATX reported net income of $284.2 million or $7.78 per diluted share, up from $259.2 million or $7.12 per share in 2023.
Looking ahead, GATX initiated 2025 earnings guidance of $8.30 to $8.70 per share, the midpoint of which exceeds the current Wall Street consensus of $8.35.
"Based on strong performance throughout the year, GATX delivered 2024 full-year financial results that exceeded our original expectations," said Robert C. Lyons, president and CEO of GATX.
In Rail North America, GATX's largest segment, fleet utilization remained high at 99.1% at year-end. The company's Lease Price Index, which measures railcar lease renewal rates, was 26.7% in the fourth quarter.
GATX invested over $1.1 billion in its North American rail business in 2024, including opportunistic railcar purchases and investments under existing supply agreements.
The company expects a stable railcar leasing market in North America for 2025, with higher lease revenue as expiring leases are renewed at higher rates across many car types. However, this will be partially offset by higher maintenance expenses and interest costs.
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