TRINITY INDUSTRIES INCTRN
TRINITY INDUSTRIES INC Segments Disclosure
Segment Information
We report our operating results in two reportable segments: (1) the Railcar Leasing and Services Group, which owns and operates a fleet of railcars and provides third-party fleet leasing, management, and administrative services; railcar maintenance and modification services; and other railcar logistics products and services; and (2) the Rail Products Group, which manufactures and sells railcars and related parts and components.
Effective January 1, 2024, the Company modified its organizational structure to better leverage our maintenance services capabilities to support lease fleet optimization and to grow our services and parts businesses. The new structure resulted in a change to our reportable segments beginning in 2024. In connection with this organizational update, we aligned the maintenance services business, which was previously reported in the Rail Products Group, to now be presented within our leasing business. This change aligns with the way in which our CODM assesses performance and allocates resources. Consequently, beginning January 1, 2024, we report our operating results in two reportable segments: (1) the Railcar Leasing and Services Group, formerly the Railcar Leasing and Management Services Group, and (2) the Rail Products Group. These changes had no impact to our previously reported consolidated results of operations, financial position, or cash flows. All prior period segment results set forth herein have been recast to reflect these changes and present results on a comparable basis.
Our CODM is our Chief Executive Officer. Operating profit is the primary measure our CODM uses to assess performance and allocate resources to each of our reportable segments. Gains and losses from the sale of property, plant, and equipment and other divestitures are included in the operating profit of each respective segment. Our CODM does not consider restructuring activities when evaluating segment operating results; therefore, restructuring activities are not allocated to segment profit or loss.
Sales and related net profits ("deferred profit") from the Rail Products Group to the Leasing Group are recorded in the Rail Products Group and eliminated in consolidation. Sales between these groups are recorded at prices comparable to those charged to external customers, taking into consideration quantity, features, and production demand. Amortization of deferred profit on railcars sold to the Leasing Group is included in the operating profit of the Leasing Group, resulting in the recognition of depreciation expense based on our original manufacturing cost of the railcars. Lease portfolio sales are included in the Leasing Group, with related gains and losses computed based on the net book value of the original manufacturing cost of the railcars.
The financial information for these segments is shown in the tables below (in millions).
| Year Ended December 31, 2025 | |||||||||||||||||
| Railcar Leasing and Services Group | Rail Products Group | Total | |||||||||||||||
| External revenues | $ | 1,204.8 | $ | 952.1 | $ | 2,156.9 | |||||||||||
| Intersegment revenues | 1.8 | 467.4 | 469.2 | ||||||||||||||
| Total revenues | 1,206.6 | 1,419.5 | 2,626.1 | ||||||||||||||
| Elimination of intersegment revenues | (469.2) | ||||||||||||||||
| Total consolidated revenues | $ | 2,156.9 | |||||||||||||||
Less (1): | |||||||||||||||||
Rail Products Group cost of revenues (2) | * | 1,309.7 | |||||||||||||||
Depreciation and amortization for Company-owned railcars (3) | 251.8 | * | |||||||||||||||
Maintenance and compliance for Company-owned railcars (3)(4) | 161.3 | * | |||||||||||||||
| Selling, engineering, and administrative expenses | 63.9 | 36.5 | |||||||||||||||
| Gains on lease portfolio sales | (91.4) | * | |||||||||||||||
| Gain on divestiture of partially-owned leasing subsidiary | (194.2) | * | |||||||||||||||
Other segment items (5) | 306.8 | (1.0) | |||||||||||||||
| Segment operating profit | $ | 708.4 | $ | 74.3 | $ | 782.7 | |||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||
| Railcar Leasing and Services Group | Rail Products Group | Total | |||||||||||||||
| External revenues | $ | 1,140.8 | $ | 1,938.4 | $ | 3,079.2 | |||||||||||
| Intersegment revenues | 2.4 | 492.7 | 495.1 | ||||||||||||||
| Total revenues | 1,143.2 | 2,431.1 | 3,574.3 | ||||||||||||||
| Elimination of intersegment revenues | (495.1) | ||||||||||||||||
| Total consolidated revenues | $ | 3,079.2 | |||||||||||||||
Less (1): | |||||||||||||||||
Rail Products Group cost of revenues (2) | * | 2,209.0 | |||||||||||||||
Depreciation and amortization for Company-owned railcars (3) | 240.1 | * | |||||||||||||||
Maintenance and compliance for Company-owned railcars (3)(4) | 131.8 | * | |||||||||||||||
| Selling, engineering, and administrative expenses | 77.0 | 32.8 | |||||||||||||||
| Gains on lease portfolio sales | (57.3) | * | |||||||||||||||
Other segment items (5) | 287.6 | (0.1) | |||||||||||||||
| Segment operating profit | $ | 464.0 | $ | 189.4 | $ | 653.4 | |||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||
| Railcar Leasing and Services Group | Rail Products Group | Total | |||||||||||||||
| External revenues | $ | 1,039.4 | $ | 1,943.9 | $ | 2,983.3 | |||||||||||
| Intersegment revenues | 1.6 | 535.5 | 537.1 | ||||||||||||||
| Total revenues | 1,041.0 | 2,479.4 | 3,520.4 | ||||||||||||||
| Elimination of intersegment revenues | (537.1) | ||||||||||||||||
| Total consolidated revenues | $ | 2,983.3 | |||||||||||||||
Less (1): | |||||||||||||||||
Rail Products Group cost of revenues (2) | * | 2,336.0 | |||||||||||||||
Depreciation and amortization for Company-owned railcars (3) | 238.5 | * | |||||||||||||||
Maintenance and compliance for Company-owned railcars (3)(4) | 130.5 | * | |||||||||||||||
| Selling, engineering, and administrative expenses | 62.0 | 30.5 | |||||||||||||||
| Gains on lease portfolio sales | (82.8) | * | |||||||||||||||
Other segment items (5) | 255.3 | 0.3 | |||||||||||||||
| Segment operating profit | $ | 437.5 | $ | 112.6 | $ | 550.1 | |||||||||||
*Not identified as a significant expense for this segment.
(1) Significant expense categories and amounts align with the segment-level information that is regularly provided to and reviewed by the CODM. Intersegment expenses are included within the amounts shown.
(2) Cost of revenues in the Rail Products Group primarily includes materials, labor, and overhead, including depreciation and amortization.
(3) Company-owned railcars include wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements.
(4) Maintenance and compliance expense is reported at cost with respect to the services performed by our maintenance services business to support the railcars in our lease fleet.
(5) Other segment items for each reportable segment include:
–Railcar Leasing and Services Group: the remaining operating costs for our maintenance services and digital and logistics services businesses, including materials, labor, and overhead costs; other operating costs for the lease fleet, including equipment rental, property taxes, and freight and storage expenses; and gains or losses on dispositions of other property.
–Rail Products Group: (gains) or losses on dispositions of other property.
The reconciliation of segment operating profit to consolidated net income is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in millions) | |||||||||||||||||
| Operating profit: | |||||||||||||||||
| Railcar Leasing and Services Group | $ | 708.4 | $ | 464.0 | $ | 437.5 | |||||||||||
| Rail Products Group | 74.3 | 189.4 | 112.6 | ||||||||||||||
| Segment Totals | 782.7 | 653.4 | 550.1 | ||||||||||||||
| Corporate and other | (111.6) | (125.7) | (108.3) | ||||||||||||||
| Restructuring activities, net | — | (4.3) | 2.2 | ||||||||||||||
| Eliminations | (21.9) | (31.9) | (27.0) | ||||||||||||||
| Consolidated operating profit | 649.2 | 491.5 | 417.0 | ||||||||||||||
| Other (income) expense | 273.8 | 269.7 | 268.0 | ||||||||||||||
| Provision (benefit) for income taxes | 90.9 | 50.4 | 9.0 | ||||||||||||||
| Loss from discontinued operations, net of income taxes | (7.2) | (14.3) | (13.4) | ||||||||||||||
| Net income | $ | 277.3 | $ | 157.1 | $ | 126.6 | |||||||||||
Additional financial information by segment is shown in the tables below.
| Total Assets | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| (in millions) | |||||||||||
| Railcar Leasing and Services Group | $ | 7,676.5 | $ | 8,151.7 | |||||||
| Rail Products Group | 938.0 | 967.7 | |||||||||
| Segment Totals | 8,614.5 | 9,119.4 | |||||||||
| Corporate and other | 385.0 | 383.3 | |||||||||
| Eliminations | (575.1) | (670.5) | |||||||||
| Total assets | $ | 8,424.4 | $ | 8,832.2 | |||||||
| Depreciation & Amortization | Capital Expenditures | ||||||||||||||||||||||||||||||||||
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Railcar Leasing and Services Group | $ | 273.8 | $ | 262.2 | $ | 258.0 | $ | 769.4 | $ | 568.1 | $ | 688.0 | |||||||||||||||||||||||
| Rail Products Group | 28.0 | 27.6 | 30.3 | 22.5 | 27.2 | 20.6 | |||||||||||||||||||||||||||||
| Corporate and other | 3.3 | 4.0 | 4.9 | 3.0 | 0.4 | 1.5 | |||||||||||||||||||||||||||||
| Total | $ | 305.1 | $ | 293.8 | $ | 293.2 | $ | 794.9 | $ | 595.7 | $ | 710.1 | |||||||||||||||||||||||
Corporate and other assets are primarily composed of cash and cash equivalents, other assets, including right-of-use assets and assets associated with employee retirement plans, income tax receivable, and certain property, plant, and equipment.
We operate principally in North America. Our foreign operations are primarily located in Mexico. Revenues and operating profit for our Mexico operations for the years ended December 31, 2025, 2024, and 2023 were not significant in relation to the Consolidated Financial Statements. Total assets for our Mexico operations as of December 31, 2025 and 2024 were $368.5 million and $375.0 million, respectively. Total long-lived assets for our Mexico operations as of December 31, 2025 and 2024 were $94.3 million and $98.9 million, respectively.
One customer in the Rail Products Group comprised approximately 19%, 22%, and 13% of our consolidated revenues during the years ended December 31, 2025, 2024, and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 19, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.