Trinity Industries, Inc. (NYSE:TRN) reported its stock gaining ground first thing Monday morning, as the Dallas-based company announced that its subsidiary, Trinity Rail Group, LLC, has entered into a new long-term railcar supply agreement with GATX Corporation to deliver a mix of 15,000 newly-built tank and freight railcars over a six-year period. GATX has the option to order an additional 500 railcars in each order year.
Under the terms of the agreement, Trinity will deliver 6,000 tank cars at a rate of 1,200 cars each year from 2024 through 2028. The remaining 9,000 cars, which can be a mix of freight and tank cars, will be ordered at a rate of 1,500 cars per order year from 2023 to 2028 and delivered under a schedule to be determined.
“This multi-year railcar order with GATX represents the extension of a strong partnership,” said CEO Jean Savage.
“We are proud of the relationship we have built with GATX and pleased that they have once again selected TrinityRail as the premier North American railcar manufacturer.”
Trinity owns businesses that are leading providers of rail transportation products and services in North America. Its businesses market their railcar products and services under the trade name TrinityRail®.
The TrinityRail platform provides railcar leasing and management services, as well as railcar manufacturing, maintenance and modifications. Trinity reports its financial results in two reportable segments: the Railcar Leasing and Management Services Group and the Rail Products Group.
TRN shares climbed 34 cents, or 1.6%, to $21.68.
