Financial Analysis

Acquisitions Acquisition of Holden America In December 2022, we acquired Holden America, a manufacturer of market-leading multi-level vehicle securement and protection systems, gravity-outlet gates, and gate accessories for freight rail in North America. The purchase agreement included minimum additional consideration of $10.0 million, which was payable in installments of $5.0 million per year in each of 2024 and 2025. The purchase agreement also contained a provision whereby additional consideration could become payable based on the achievement of certain revenue targets, up to a maximum payout of $10.0 million. The first installment of the additional consideration, totaling $10.0 million, was paid during the year ended December 31, 2024. During the year ended December 31, 2025, the second and final installment of the additional consideration, totaling $10.0 million, was paid. This payment is reflected in our Consolidated Statements of Cash Flows, of which $8.0 million related to the initial estimated fair value is included in financing activities, and $2.0 million related to the remeasurement of the initial estimated fair value is included in operating activities.

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"Contingencies East Palestine, OH Train Derailment On February 3, 2023, a Norfolk Southern Railway freight train derailed 38 railcars in East Palestine, Ohio. In March 2023, the State of Ohio and the United States Environmental Protection Agency filed lawsuits against Norfolk Southern Railway Company and Norfolk Southern Corporation (Norfolk Southern), which were consolidated in the United States District Court for the Northern District of Ohio, Eastern Division in a civil action styled The State of Ohio, ex rel., Dave Yost, Ohio Attorney General, and the United States of America, Plaintiffs v. Norfolk Southern Railway Company and Norfolk Southern Corporation, Defendants , Civil Action No. 4:23-cv-00517. On June 30, 2023, Norfolk Southern filed a third-party complaint against the Companys wholly-owned subsidiary, TILC, and certain other third-party defendants. Norfolk Southern asserted third-party claims against TILC for recovery of response costs, contribution, and declaratory relief under the Comprehensive Environmental Response, Compensation, and Liability Act (""CERCLA""); negligence; and equitable contribution. On March 6, 2024, the trial court granted TILCs motion to dismiss Norfolk Southerns Third-Party Complaint and entered an order dismissing Norfolk Southerns complaint against TILC. On March 24, 2025, the trial court denied Norfolk Southerns Motion for Entry of Partial Final Judgment. In April 2023, multiple putative class action lawsuits filed against Norfolk South …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The carrying amounts and estimated fair values of our debt are as follows: December 31, 2025 December 31, 2024 Carrying Value Estimated Fair Value Carrying Value Estimated Fair Value (in millions) Corporate Recourse: Revolving credit facility $ $ $ $ Senior notes due 2028, inclusive of unamortized premium of $3.1 and $4.3 603.1 623.9 604.3 623.2 603.1 623.9 604.3 623.2 Less: unamortized debt issuance costs (4.6) (6.5) Total recourse debt 598.5 597.8 Lease fleet Non-recourse: Wholly-owned subsidiaries: TILC warehouse facility 478.5 478.5 584.6 584.6 2010 secured railcar equipment notes 150.0 148.5 2017 promissory notes, net of unamortized discount of $ and $1.5 631.3 631.3 2018 secured railcar equipment notes, net of unamortized discount of $0.1 and $0.1 344.3 331.6 359.1 344.9 2019 secured railcar equipment notes, net of unamortized discount of $ and $0.1 676.4 662.5 711.3 694.7 2020 secured railcar equipments notes, net of unamortized discount of $ and $ 285.8 274.7 296.8 275.1 2021 secured railcar equipment notes, net of unamortized discount of $0.1 and $0.1 677.3 673.8 706.4 682.5 2022 secured railcar equipment notes, net of unamortized discount of $ and $ 216.6 214.5 223.7 215.8 TRL-2023 term loan, net of unamortized discount of $0.6 and $ 1,031.9 1,031.9 323.4 323.4 2025 secured railcar equipment notes, net of unamortized discount of $0.1 and $ 532.1 535.2 TRP-2021 secured railcar equipment notes (1) , net of unamortized discount of $ and $ 303.8 292.5 Other equipm …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The following table presents our disaggregated revenues by major product or service line for each reportable segment: Year Ended December 31, 2025 2024 2023 (in millions) Railcar Leasing and Services Group: Leasing and management $ 919.1 $ 867.8 $ 813.8 Maintenance services 247.4 234.0 170.1 Digital and logistics services 40.1 41.4 57.1 1,206.6 1,143.2 1,041.0 Rail Products Group: Rail products 1,302.5 2,321.7 2,363.7 Parts & components 117.0 109.4 115.7 1,419.5 2,431.1 2,479.4 Elimination of intersegment revenues (469.2) (495.1) (537.1) Total consolidated revenues $ 2,156.9 $ 3,079.2 $ 2,983.3

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Stockholders' Equity Share Repurchase Authorization In December 2022, our Board of Directors authorized a share repurchase program effective December 9, 2022 with no expiration. The share repurchase program authorizes the Company to repurchase up to $250.0 million of its common stock. During the year ended December 31, 2025, share repurchases totaled 2.7 million shares, at a cost of approximately $71.3 million, resulting in a remaining authorization to repurchase up to $157.7 million of our common stock under the share repurchase program as of December 31, 2025. Share repurchase activity during the year ended December 31, 2025 resulted in $0.4 million in excise taxes. During the year ended December 31, 2024, share repurchases totaled 0.6 million shares, at a cost of approximately $21.0 million. There were no shares repurchased under this share repurchase program during the year ended December 31, 2023.

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Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to establish a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are listed below. Level 1 This level is defined as quoted prices in active markets for identical assets or liabilities. Our cash equivalents and restricted cash are instruments of the U.S. Treasury or highly-rated money market mutual funds. The assets measured on a recurring basis as Level 1 in the fair value hierarchy are summarized below: Level 1 December 31, 2025 December 31, 2024 (in millions) Assets: Cash equivalents $ 172.4 $ 209.6 Restricted cash 122.3 146.2 Total assets $ 294.7 $ 355.8 Level 2 This level is defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Interest rate hedges and interest rate derivatives are valued at exit prices obtained from each counterparty. Foreign currency hed …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 relate …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"Income Taxes The components of income from continuing operations before income taxes are as follows: Year Ended December 31, 2025 2024 2023 (in millions) Domestic $ 365.0 $ 212.9 $ 137.2 Foreign 10.4 8.9 11.8 Income from continuing operations before income taxes $ 375.4 $ 221.8 $ 149.0 The components of the provision (benefit) for income taxes from continuing operations are as follows: Year Ended December 31, 2025 2024 2023 (in millions) Current: Federal $ 2.7 $ 60.1 $ 38.7 State 3.3 2.6 1.3 Foreign 7.4 9.8 10.5 Total current 13.4 72.5 50.5 Deferred: Federal 66.7 (24.1) (20.7) State 11.3 1.5 (8.1) Foreign (0.5) 0.5 (12.7) Total deferred 77.5 (22.1) (41.5) Provision (benefit) $ 90.9 $ 50.4 $ 9.0 The provision for income taxes from continuing operations results in effective tax rates that differ from the statutory rates. The following is a reconciliation between the statutory U.S. federal income tax rate and our effective income tax rate on income before income taxes: Year Ended December 31, 2025 Amount Percent ($ in millions) U.S. federal statutory income tax rate $ 78.8 21.0 % State and local income tax, net of federal income tax effect (1) 13.9 3.7 Foreign tax effects: Mexico: Withholding taxes 3.0 0.8 Other (0.7) (0.2) Canada: Withholding taxes 3.7 1.0 Tax credits: Foreign tax credits (8.3) (2.2) Other (1.8) (0.5) Changes in valuation allowances 3.0 0.8 Nontaxable or nondeductible items: Noncontrolling interest in partially-owned subsidiaries (5.1) (1.4) Other 2.8 0.8 Othe …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Adopted in 2025 ASU 2023-09 In December 2023, the FASB issued ASU No. 2023-09, ""Improvements to Income Tax Disclosures,"" which enhances transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires, on an annual basis, a tabular disclosure using specific categories in the rate reconciliation and providing additional information for reconciling items that meet a quantitative threshold, as well as the disaggregation of income taxes paid by federal, state, and foreign jurisdictions. ASU 2023-09 is effective for public companies during annual reporting periods beginning after December 15, 2024 on a prospective basis, with an option for retrospective application. We adopted ASU 2023-09 on a prospective basis. See Note 10 for our income tax disclosures. Not Yet Adopted ASU 2024-03 In November 2024, the FASB issued ASU No. 2024-03, ""Disaggregation of Income Statement Expenses,"" which improves financial reporting and responds to investor input by requiring public companies to disclose additional information about certain expenses in the notes to the consolidated financial statements. ASU 2024-03 requires disclosures, on an annual and interim basis, of the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense category; a qualitative description of amounts remaining that are not separately disaggregated quantitatively; and the amount of sell …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Employee Retirement Plans We sponsor a defined contribution plan (the ""401(k) plan"") that provides retirement income for eligible employees. Additionally, we sponsor a Supplemental Executive Retirement Plan (""SERP""), which is our only remaining defined benefit plan and is frozen to new participants. The annual measurement date of the benefit obligations and funded status is December 31. Components of Net Periodic Benefit Cost and Other Retirement Expenses Year Ended December 31, 2025 2024 2023 (in millions) Defined contribution expense $ 12.3 $ 11.7 $ 10.1 Net periodic benefit cost Supplemental Executive Retirement Plan (1) $ 0.7 $ 0.7 $ 0.7 (1) The non-service cost components of net periodic benefit cost are included in other, net (income) expense in our Consolidated Statements of Operations. Obligations and funded status At December 31, 2025 and 2024, the projected benefit obligations and net funded status of our SERP were $10.4 million and $10.5 million, respectively, which are included in accrued liabilities in our Consolidated Balance Sheets. Amounts recognized in other comprehensive income Amounts recognized in other comprehensive income related to actuarial gains and the amortization of actuarial gains or losses during the years ended December 31, 2025, 2024, and 2023 were not significant in relation to the Consolidated Financial Statements. At December 31, 2025, AOCI included unrecognized actuarial losses related to our SERP of $2.6 million ($1.4 million net of r …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

"Revenue associated with our railcar lease contracts is recognized in accordance with ASC 842, Leases . Revenue associated with our railcar manufacturing, maintenance services, and digital and logistics services businesses, as well as certain servicing, maintenance, and management agreements, is recognized in accordance with ASC 606, Revenue from Contracts with Customers. Below is a description of principal activities from which we generate our revenue, separated by reportable segments. Railcar Leasing and Services Group In our Railcar Leasing and Services Group (""Leasing Group""), revenue from rentals and operating leases, including contracts that contain non-level fixed lease payments, is recognized monthly on a straight-line basis. When certain criteria are met, leases not classified as operating leases are generally classified as sales-type leases. We review our operating lease receivables for collectibility on a regular basis, taking into consideration changes in factors such as the lessees payment history, the financial condition of the lessee, and business and economic conditions in the industry in which the lessee operates. In the event that the collectibility of a receivable with respect to any lessee is no longer probable, we derecognize the revenue and related receivable and recognize future revenue only when the lessee makes a rental payment. Contingent rents are recognized when the contingency is resolved. Selling profit or loss associated with sales-type leases …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"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 c …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Principles of Consolidation The financial statements of Trinity Industries, Inc. and Subsidiaries (Trinity, Company, we, our, or ""us"") include the accounts of our wholly-owned subsidiaries and our partially-owned subsidiaries, TRIP Rail Holdings LLC (""TRIP Holdings"") and Trinity Global Ventures Limited (""Trinity Global Ventures""), in which we have a controlling interest. All significant intercompany accounts and transactions have been eliminated. Certain prior year balances have been reclassified to conform to the 2025 presentation. Management's Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our Reportable Segments 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 reporte …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Contingencies East Palestine, OH Train Derailment As previously disclosed, on February 3, 2023, a Norfolk Southern Railway freight train derailed 38 railcars in East Palestine, Ohio. TILC has been named in various actions associated with this incident, including Josh Hickman, et al. v. Norfolk Southern Railway Co., et al. , Case No. 2025 CV 00434, in the Court of Common Pleas, Columbiana County, Ohio (""Hickman Matter""); and Richard Tsai, et al. v. Norfolk Southern Corporation, et al. , Case No. 2025 CV 614, in the Court of Common Pleas, Columbiana County, Ohio (""Tsai Matter""). On April 21, 2026, the court consolidated the Tsai and Hickman Matters and subsequently denied TILC's pending motion to dismiss in the Tsai Matter. TILC was the owner of one tank car cited in these actions, which was leased to a third party, who is also a defendant in these matters. The Company believes it has substantial defenses and intends to vigorously defend itself against all allegations in the third-party and direct claims asserted against TILC. The Company or its subsidiaries could be named in similar litigation involving other plaintiffs, but the ultimate number of claims and the jurisdiction(s) in which such claims, if any, may be filed may vary. We do not believe at this time that a loss is probable in these matters, nor can a range of possible losses be determined. Accordingly, no accrual or range of loss has been included in the accompanying Consolidated Financial Statements. The Compa …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The carrying amounts of our debt are as follows: June 30, 2026 December 31, 2025 (in millions) Corporate Recourse: Revolving credit facility $ $ Senior notes due 2028, inclusive of unamortized premium of $2.5 and $3.1 602.5 603.1 602.5 603.1 Less: unamortized debt issuance costs (3.7) (4.6) Total recourse debt 598.8 598.5 Lease fleet Non-recourse: Wholly-owned subsidiaries: Secured railcar equipment notes, net of unamortized discount of $0.4 and $0.3 3,073.4 3,036.3 TRL-2023 term loan, net of unamortized discount of $0.6 and $0.6 1,017.5 1,031.9 TILC warehouse facility 513.2 478.5 Other equipment financing 46.4 47.6 4,650.5 4,594.3 Less: unamortized debt issuance costs (22.8) (20.9) 4,627.7 4,573.4 Partially-owned subsidiary: Secured railcar equipment notes, net of unamortized discount of $ and $ 271.3 Less: unamortized debt issuance costs (0.7) 270.6 Total non-recourse debt 4,627.7 4,844.0 Total debt $ 5,226.5 $ 5,442.5 Estimated Fair Value of Debt The estimated fair value of our 7.75% senior notes due 2028 (""Senior Notes due 2028"") is based on a quoted market price in a market with little activity (Level 2 input). The estimated fair values of our secured railcar equipment notes are based on our estimate of their fair value using unobservable input values provided by a third party (Level 3 inputs). As of June 30, 2026 and December 31, 2025, we evaluated the fair value of the other equipment financing liability using Level 3 inputs and determined that the carrying val …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"The following table presents our disaggregated revenues by major product or service line for each reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Railcar Leasing and Services Group (""Leasing Group""): Leasing and management $ 206.0 $ 233.5 $ 416.3 $ 452.5 Maintenance services 63.4 59.3 126.6 118.5 Digital and logistics services 11.7 9.6 24.0 18.8 $ 281.1 $ 302.4 $ 566.9 $ 589.8 Rail Products Group: Rail products $ 230.1 $ 262.8 $ 505.3 $ 650.6 Parts & components 28.4 30.7 53.2 63.4 258.5 293.5 558.5 714.0 Elimination of intersegment revenues (54.5) (89.7) (148.3) (212.2) Total consolidated revenues $ 485.1 $ 506.2 $ 977.1 $ 1,091.6"

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"Stock-based compensation expense totaled approximately $5.5 million and $10.4 million for the three and six months ended June 30, 2026, respectively. Stock-based compensation expense totaled approximately $5.4 million and $10.7 million for the three and six months ended June 30, 2025, respectively. The Company's annual grants of share-based awards generally occur in the first and second quarters under our Fifth Amended and Restated Stock Option and Incentive Plan. The following table summarizes stock-based compensation awards granted during the six months ended June 30, 2026: Number of Shares Granted Weighted Average Grant-Date Fair Value per Award Restricted stock units 381,404 $ 34.24 Restricted stock awards 18,282 $ 34.30 Performance units 238,550 $ 31.67 The fair value of restricted stock units and restricted stock awards (""RSAs"") granted is based on the Company's closing stock price on the date of grant. For the performance units granted during the six months ended June 30, 2026 for which the payout is based on relative total shareholder return, the fair value was estimated at the date of grant using a Monte Carlo simulation with assumptions that reflect market conditions at the date of grant, including stock price, risk-free interest rate, expected term, expected volatility, and dividend yield. For the performance units granted during the six months ended June 30, 2026 for which the payout is based on return on equity, the fair value is based on the Company's closing …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for that asset or liability in an orderly transaction between market participants on the measurement date. An entity is required to establish a fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value are listed below. Level 1 This level is defined as quoted prices in active markets for identical assets or liabilities. Our cash equivalents and restricted cash are instruments of the U.S. Treasury or highly-rated money market mutual funds. The assets measured on a recurring basis as Level 1 in the fair value hierarchy are summarized below: Level 1 June 30, 2026 December 31, 2025 (in millions) Assets: Cash equivalents $ 101.7 $ 172.4 Restricted cash 114.2 122.3 Total assets $ 215.9 $ 294.7 Level 2 This level is defined as observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Interest rate swaps and interest rate caps are valued at exit prices obtained from each counterparty. Foreign currency hedges are valu …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The effective tax rates from continuing operations for the three and six months ended June 30, 2026 were expenses of 23.7% and 23.8%, respectively, which differs from the U.S. statutory rate of 21.0% primarily due to state and foreign income taxes, and non-deductible executive compensation, partially offset by equity-based compensation and foreign tax return to provision adjustments. The effective tax rates from continuing operations for the three and six months ended June 30, 2025 were expenses of 15.8% and 18.4%, respectively, which differ from the U.S. statutory rate of 21.0% primarily due to the benefit of tax credits purchased at a discount and the benefit of noncontrolling interest for which we do not provide income taxes, partially offset by state income taxes and other permanent differences. The Inflation Reduction Act of 2022 allows a company to purchase transferable tax credits. During the three and six months ended June 30, 2025, we purchased $40.0 million in tax credits for approximately $38.4 million in cash. These credits were used to offset the Companys federal income tax liability for 2024, which resulted in the recognition of a tax benefit of $1.6 million for the three and six months ended June 30, 2025. Deferred income tax liabilities related to railcars in our lease fleet were $1.3 billion as of both June 30, 2026 and December 31, 2025. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recent Accounting Pronouncements Not Yet Adopted ASU 2024-03 In November 2024, the FASB issued ASU No. 2024-03, ""Disaggregation of Income Statement Expenses,"" which improves financial reporting and responds to investor input by requiring public companies to disclose additional information about certain expenses in the notes to the consolidated financial statements. ASU 2024-03 requires disclosures, on an annual and interim basis, of the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense category; a qualitative description of amounts remaining that are not separately disaggregated quantitatively; and the amount of selling expenses and, in annual reporting periods, the definition of selling expenses. ASU 2024-03 is effective for public companies during annual reporting periods beginning after December 15, 2026 on a prospective basis, with an option for retrospective application. Early adoption is permitted. We are currently evaluating the impact ASU 2024-03 will have on our financial statement disclosures. ASU 2025-06 In September 2025, the FASB issued ASU No. 2025-06, ""Targeted Improvements to the Accounting for Internal-Use Software,"" which modernizes the accounting for internal-use software costs by removing all references to prescriptive and sequential software development stages. Under this guidance, capitalization of eligible costs begins when management has authorized and commit …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"Revenue Disaggregation of Revenue We disaggregate our revenue from contracts with customers by major product or service line, as this depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The following table presents our disaggregated revenues by major product or service line for each reportable segment: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (in millions) Railcar Leasing and Services Group (""Leasing Group""): Leasing and management $ 206.0 $ 233.5 $ 416.3 $ 452.5 Maintenance services 63.4 59.3 126.6 118.5 Digital and logistics services 11.7 9.6 24.0 18.8 $ 281.1 $ 302.4 $ 566.9 $ 589.8 Rail Products Group: Rail products $ 230.1 $ 262.8 $ 505.3 $ 650.6 Parts & components 28.4 30.7 53.2 63.4 258.5 293.5 558.5 714.0 Elimination of intersegment revenues (54.5) (89.7) (148.3) (212.2) Total consolidated revenues $ 485.1 $ 506.2 $ 977.1 $ 1,091.6 Unsatisfied Performance Obligations The following table includes estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially satisfied as of June 30, 2026 and the percentage of the outstanding performance obligations as of June 30, 2026 expected to be delivered during the remainder of 2026: Unsatisfied performance obligations at June 30, 2026 Total Amount Percent expected to be delivered in 2026 (in millions) Rail Products Group: New railcars: External customers $ …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"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. Our Chief Operating Decision Maker (""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. 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 b …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing