GATX (GATX) 16th Annual Wells Fargo Industrials & Materials Conference summary

Business overview and segment contributions

• North American railcar leasing is the largest segment, representing about 70% of total net book value, with over 200,000 railcars leased primarily on a full-service basis.

• International rail business includes 36,000 cars in Europe (full-service leases) and 12,000 in India (net leases), with India’s maintenance handled by Indian Railways.

• Aircraft engine leasing, in partnership with Rolls-Royce, manages about 460 engines in a joint venture and 46 wholly owned engines, focusing on latest generation wide-body aircraft.

North American rail business dynamics

• Railcar leasing is cyclical, driven mainly by supply; current upcycle is supported by reduced industry capacity to overbuild.

• Lease rates have been strong for four years, with a Lease Price Index increase of 22% in Q1 and guidance for high teens to low 20s percent for the year.

• Utilization remains high at 98%, following the acquisition of Wells Fargo Rail’s portfolio, which doubled the fleet size.

• Integration of Wells Fargo Rail assets has gone smoothly, with positive customer reception and operational synergies expected, especially in maintenance and SG&A.

• Asset sales and portfolio optimization are ongoing, with a focus on maintaining fleet diversity and capitalizing on market opportunities.

Financial performance and guidance

• Wells Fargo Rail acquisition expected to be mildly accretive in year one ($0.20–$0.30 EPS), with greater accretion in subsequent years.

• Full-year 2026 EPS guidance is $9.50–$10.10.

• Remarketing income is lumpy but robust, averaging $80 million annually over the past decade, with $200 million expected in gains for the current year.

• Renewal rates are strong (around 80%), and the pricing environment is expected to remain favorable due to balanced supply and demand.