v3.25.1
Financial Data of Business Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Financial Data of Business Segments Financial Data of Business Segments
The financial data presented below depicts the profitability, financial position, and capital expenditures of each of our business segments.

We lease, operate, manage, and remarket long-lived, widely used assets, primarily in the rail market. We report our financial results through three primary business segments: Rail North America, Rail International, and Engine Leasing. Financial results for Trifleet are reported in the Other segment.

Rail North America is composed of our operations in the United States, Canada, and Mexico. Rail North America primarily provides railcars pursuant to full-service leases under which it maintains the railcars, pays ad valorem taxes, and provides other ancillary services.

Rail International is an aggregation of our operating segments in Europe ("GATX Rail Europe" or "GRE") and India ("Rail India"). GRE primarily leases railcars to customers throughout Europe pursuant to full-service leases under which it maintains the railcars and provides value-added services according to customer requirements. Rail India primarily leases railcars to customers in India pursuant to net leases, under which the lessee assumes responsibility for maintenance of the railcars.

Engine Leasing is almost entirely composed of our engine leasing operations, which include our ownership interest in the Rolls-Royce & Partners Finance joint ventures (collectively, the "RRPF affiliates"), a group of joint ventures with Rolls-Royce that lease aircraft spare engines, and GATX Engine Leasing ("GEL"), our business that directly owns aircraft spare engines that are leased to airline customers or employed in engine capacity agreements. All engines at GEL are managed by the RRPF affiliates, for which we paid them a fee of $1.4 million for the three months ended March 31, 2025 and $0.6 million for the three months ended March 31, 2024.

Other includes Trifleet operations, as well as selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments.

Segment profit is an internal performance measure reported to GATX's President and Chief Executive Officer, our chief operating decision maker ("CODM"), for purposes of assessing performance and allocating capital and resources to each segment. Segment profit includes all revenues, expenses, pre-tax earnings from affiliates, and net gains on asset dispositions that are directly attributable to each segment. We allocate interest expense to the segments based on what we believe to be the appropriate risk-adjusted borrowing costs for each segment. Segment profit excludes selling, general and administrative expenses, income taxes, and certain other amounts not allocated to the segments. We have disclosed in each segment the significant expense categories that are reviewed by the CODM, and there are no additional significant expenses within the expense categories presented in the segment tables. The CODM uses segment profit during the annual budget and forecasting processes and considers comparisons of actual segment profit against budget, forecast, and prior periods to assess current period performance and when making decisions about allocating capital and resources to each segment.
The following tables show certain segment data for each of our business segments (in millions):


Rail North America		Rail International
Engine Leasing		OtherGATX Consolidated
Three Months Ended March 31, 2025
Revenues
Lease revenue
$260.0 $83.6 $8.1 $7.9 $359.6 
Non-dedicated engine revenue— — 21.5 — 21.5 
Other revenue
33.3 4.9 — 2.3 40.5 
Total Revenues
293.3 88.5 29.6 10.2 421.6 
Expenses
Maintenance expense
83.7 18.5 — 1.3 103.5 
Depreciation expense
70.4 20.1 9.4 3.7 103.6 
Operating lease expense
7.6 — — — 7.6 
Other operating expense
7.5 4.6 2.8 1.1 16.0 
Total Expenses
169.2 43.2 12.2 6.1 230.7 
Other Income (Expense)
Net gain on asset dispositions
32.1 1.3 — — 33.4 
Interest (expense) income, net
(64.7)(19.1)(12.2)1.1 (94.9)
Other (expense) income
(2.7)(1.8)— 1.8 (2.7)
Share of affiliates' pre-tax earnings
— — 33.4 — 33.4 
Segment profit
$88.8 $25.7 $38.6 $7.0 $160.1 
Less:
Selling, general and administrative expense
56.6 
Income taxes (includes $8.3 related to affiliates' earnings)
24.9 
Net income
$78.6 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$30.5 $0.6 $— $— $31.1 
Residual sharing income
0.1 — — — 0.1 
Non-remarketing net gains (1)
5.1 0.7 — — 5.8 
Asset impairments
(3.6)— — — (3.6)
$32.1 $1.3 $— $— $33.4 
Capital Expenditures
Portfolio investments and capital additions
$227.7 $62.7 $— $5.9 $296.3 
Selected Balance Sheet Data at March 31, 2025
Investments in affiliated companies
$0.2 $— $688.7 $— $688.9 
Identifiable assets
$7,898.3 $2,350.6 $1,653.1 $1,064.3 $12,966.3 
_________
(1)    Includes net gains from scrapping of railcars.


Rail North America
Rail International
Engine Leasing		OtherGATX Consolidated
Three Months Ended March 31, 2024
Revenues
Lease revenue
$236.5 $80.6 $8.1 $8.1 $333.3 
Non-dedicated engine revenue— — 13.2 — 13.2 
Other revenue
28.5 3.1 — 1.8 33.4 
Total Revenues
265.0 83.7 21.3 9.9 379.9 
Expenses
Maintenance expense
72.9 17.5 — 1.0 91.4 
Depreciation expense
65.1 18.9 8.4 3.6 96.0 
Operating lease expense
9.0 — — — 9.0 
Other operating expense
6.7 3.5 2.5 0.9 13.6 
Total Expenses
153.7 39.9 10.9 5.5 210.0 
Other Income (Expense)
Net gain on asset dispositions
34.2 1.3 0.6 0.1 36.2 
Interest (expense) income, net
(53.3)(16.7)(9.3)1.5 (77.8)
Other (expense) income
(2.1)0.4 0.3 2.2 0.8 
Share of affiliates' pre-tax earnings
0.2 — 23.7 — 23.9 
Segment profit
$90.3 $28.8 $25.7 $8.2 $153.0 
Less:
Selling, general and administrative expense
55.9 
Income taxes (includes $4.2 related to affiliates' earnings)
22.8 
Net income$74.3 
Net Gain on Asset Dispositions
Asset Remarketing Income:
Net gains on disposition of owned assets
$32.9 $0.1 $0.6 $0.1 $33.7 
Residual sharing income
0.1 — — — 0.1 
Non-remarketing net gains (1)
1.2 1.2 — — 2.4 
$34.2 $1.3 $0.6 $0.1 $36.2 
Capital Expenditures
Portfolio investments and capital additions
$321.7 $49.9 $— $7.0 $378.6 
Selected Balance Sheet Data at December 31, 2024
Investments in affiliated companies
$0.2 $— $663.1 $— $663.3 
Identifiable assets
$7,751.6 $2,233.3 $1,653.4 $658.2 $12,296.5 
_________
(1)    Includes net gains from scrapping of railcars