GATX Corporation reported fourth‑quarter 2025 results with net income of $97.0 million and a full‑year total of $333.3 million. Adjusted earnings per share reached $2.44 for the quarter and $9.12 for the year, while GAAP diluted EPS was $2.66 and $7.78, respectively. Revenue climbed to $449 million in Q4, up 8.6% from $413.5 million a year earlier, and the company’s full‑year revenue totaled $1.74 billion, a 9.5% increase over $1.586 billion in 2024. The company also raised its quarterly dividend to $0.66 per share and authorized a new $300 million share‑repurchase program.
The adjusted EPS beat the consensus estimate of $2.42 by $0.02, a 0.8% lift. The beat was largely driven by disciplined cost management and a favorable mix shift toward higher‑margin Engine Leasing contracts, which saw full‑year segment profit rise to $181.5 million from $117.3 million in 2024. Operating leverage and pricing power in the railcar leasing market helped maintain margins despite modest increases in operating expenses.
Revenue growth was supported by a 10.5% rise in Engine Leasing revenue, reflecting strong demand for railcars in North America and the successful integration of the Wells Fargo railcar portfolio. Rail North America revenue increased 7.2% to $66.7 million, while Rail International revenue grew 3.8% to $30.6 million. The company’s ability to monetize its fleet without expanding the number of active railcars indicates a shift toward higher utilization and pricing efficiency.
Management highlighted the impact of the January 1, 2026 acquisition of approximately 101,000 railcars from Wells Fargo, valued at about $4.2 billion. The acquisition is expected to add significant capacity and revenue potential, and the company’s guidance for 2026 earnings per diluted share of $9.50 to $10.10 reflects confidence in the integration and the continued strength of the railcar leasing market.
Market reaction to the results was muted, with the stock trading up 2.7% in pre‑market sessions. Investors weighed the modest EPS and revenue beats against the strategic implications of the large acquisition and the dividend increase, leading to a cautious but supportive response.
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