GATX Corporation (NYSE:GATX) Q3 2024 Earnings Conference Call October 22, 2024 11:00 AM ET

Company Participants

Shari Hellerman - Head, IR
Bob Lyons - President & CEO
Tom Ellman - EVP & CFO

Conference Call Participants

Bascome Majors - Susquehanna
Justin Bergner - Gabelli Funds
Brendan McCarthy - Sidoti

Operator

Thank you for standing by. At this time, I would like to welcome everyone to today's GATX Corporation Third Quarter Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. [Operator Instructions] Thank you.

I’d now like to turn the call over to Shari Hellerman, Head of Investor Relations. Shari, please go ahead.

Shari Hellerman

Thank you Greg. Good morning, and thank you for joining GATX's 2024 Third Quarter Earnings Call. I'm joined today by Bob Lyons, President and Chief Executive Officer; and Tom Ellman, Executive Vice President and Chief Financial Officer.

As a reminder some of the information you will hear during our discussion today will consist of forward-looking statements. Actual results or trends could differ materially from those statements or forecasts. For more information, please refer to the risk factors included in our earnings release and those discussed in GATX's Form 10-K for 2023 and our other filings with the SEC.

GATX assumes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Earlier today, GATX reported 2024 third quarter net income of $89 million or $2.43 per diluted share. This compares to 2023 third quarter net income of $52.5 million or $1.44 per diluted share. The 2024, third quarter results include a net negative impact of $2.5 million or $0.07 per diluted share from tax adjustments and other items. Year-to-date, 2024 net income was $207.7 million or $5.68 per diluted share. This compares to $193.2 million or $5.30 per diluted share for the same period in 2023. The 2024 year-to-date results include a net negative impact of $9.9 million or $0.27 per diluted share from tax adjustments and other items.

The 2023 year-to-date results include a net negative impact of $1.1 million or $0.03 per diluted share from tax adjustments and other items. These items are detailed in the Supplemental Information section of our earnings release. And now I will briefly address each of our business segments. At Rail North America, fleet utilization was 99.3% at the end of the quarter, and our renewal success rate remained high at 82% in the quarter. The renewal rate change of GATX's lease price index was positive 26.6% for the quarter and the average renewal term was 59 months.