Goodwill and Intangible Assets
Goodwill
Goodwill by segment is as follows. There were no changes to our goodwill during the year ended December 31, 2025.
| | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 |
| Railcar Leasing and Services Group | $ | 50.6 | | | $ | 50.6 | |
| Rail Products Group | 170.9 | | | 170.9 |
| $ | 221.5 | | | $ | 221.5 | |
Intangible Assets
A summary of our intangible assets, which are included in other assets in our Consolidated Balance Sheets, is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | December 31, 2025 | | December 31, 2024 |
| Weighted Average Useful Life | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| (in years) | | (in millions) |
| Indefinite-lived intangible assets: | | | | | | | | | | | | | |
| Trade names | * | | $ | 11.2 | | | $ | — | | | $ | 11.2 | | | $ | 11.2 | | | $ | — | | | $ | 11.2 | |
| Finite-lived intangible assets: | | | | | | | | | | | | | |
| Customer relationships & backlog | 14.3 | | 53.6 | | | (12.6) | | | 41.0 | | | 53.6 | | | (9.3) | | | 44.3 | |
| Patents, developed technology, and other | 9.2 | | 38.8 | | | (18.1) | | | 20.7 | | | 36.8 | | | (13.6) | | | 23.2 | |
| Lease-related intangibles | 13.2 | | 57.0 | | | (19.5) | | | 37.5 | | | 38.5 | | | (18.2) | | | 20.3 | |
| Total finite-lived intangible assets | | | 149.4 | | | (50.2) | | | 99.2 | | | 128.9 | | | (41.1) | | | 87.8 | |
| Total intangible assets | | | $ | 160.6 | | | $ | (50.2) | | | $ | 110.4 | | | $ | 140.1 | | | $ | (41.1) | | | $ | 99.0 | |
*Not subject to amortization
During the years ended December 31, 2025, 2024, and 2023, amortization expense related to our finite-lived intangible assets totaled $9.3 million, $10.1 million, and $13.0 million, respectively, which is included in cost of revenues in our Consolidated Statements of Operations. As of December 31, 2025, expected amortization expense related to our finite-lived intangible assets for the next five years is as follows:
| | | | | |
| Expected Amortization Expense |
| (in millions) |
| 2026 | $ | 10.7 | |
| 2027 | $ | 9.8 | |
| 2028 | $ | 7.6 | |
| 2029 | $ | 7.2 | |
| 2030 | $ | 6.9 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.