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Trinity Industries, Inc. and its consolidated subsidiaries ( Trinity, Company, we, our, or us ) own businesses that are leading providers of railcar products and services in North America. Our platform also includes the brands of RSI Logistics, a provider of software and logistics solutions, and Holden America, a supplier of railcar parts and components.
Margins and capital returns are both well above average: 30.10% operating margin, ROIC at 47.39%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue declined 30.0% YoY. The question is whether this is cyclical or a structural shift.
Free cash flow declined 40% versus the prior year, cash generation momentum has weakened.
Profitability & Returns
Revenue (TTM)
$2.06B
▼ -30.0% YoY
Net Income (TTM)
$250M
▲ +82.9% YoY
Op. Margin
31.52%
▲ +14.1pp YoY
ROIC
52.28%
▲ +7.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$338M
▼ -39.6% YoY
Op. Cash Flow (TTM)
$381M
▼ -37.3% YoY
Net Debt
-$133M
Net Cash Position
Cash & Equiv.
$133M
5Y CAGR: +4.3%
5Y CAGR: -10.8%
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