v3.25.2
Segment and Geographic Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
Segment Information

The Company operates its business in one industry, intermodal transportation equipment, and has two operating segments which also represent its reportable segments:
•Equipment leasing - the Company owns, leases and ultimately disposes of containers and chassis from its leasing fleet, as well as manages containers owned by other parties.
•Equipment trading - the Company purchases containers from shipping line customers, and other sellers of containers, and resells these containers to container retailers and users of containers for storage or one-way shipment. Included in the equipment trading segment revenues are leasing revenues from equipment purchased for resale that is currently on lease until the containers are dropped off.

These operating segments were determined based on the chief operating decision makers' review and resource allocation of the products and services offered. The Company’s Chief Operating Decision Maker(s) ("CODM") is the senior executive team.

Most of Triton’s revenues are derived from leasing equipment to the Company's core shipping line customers. The most important driver of profitability is the extent to which leasing revenues, which are driven by the Company's owned equipment fleet size, utilization and average lease rates, exceed ownership (depreciation and interest expense) and operating costs. The Company's profitability is also driven by the gains or losses realized on the sale of used containers and the margins generated from trading new and used containers. The CODM uses leasing margin and disposal gains in the Company's equipment leasing segment and net trading margin in the equipment trading segment as the primary measures of profitability and the basis for the allocation of resources. Within the components of leasing margin, the CODM will analyze the relationship between revenue trends and certain significant expenses including storage and handling and repair costs. The Company adopted ASU 2023-07 in December of 2024 on a retrospective basis.
The following tables summarize the Company's segment information and the consolidated totals reported (in thousands):
Three Months Ended June 30,
20252024
Equipment LeasingEquipment TradingTotalsEquipment LeasingEquipment TradingTotals
Total revenues$307,903 $1,975 $309,878 $376,865 $2,124 $378,989 
Less:
Depreciation and amortization79,179 189 79,368 135,330 206 135,536 
Interest and debt expense58,500 391 58,891 61,217 169 61,386 
Storage and handling10,914 — 10,914 13,523 — 13,523 
Repair costs2,558 — 2,558 2,328 — 2,328 
Other operating expenses1,292 — 1,292 1,181 — 1,181 
Administrative expenses(1)
23,972 315 24,287 23,636 376 24,012 
Other (income) expenses(2)
2,006 — 2,006 (1,902)— (1,902)
Leasing margin$129,482 $1,080 $130,562 $141,552 $1,373 $142,925 
Net trading margin— 754 754 — 1,922 1,922 
Net gain (loss) on sale of leasing equipment7,861 — 7,861 (38,118)— (38,118)
Transaction and other costs— (16,139)
Other costs (income)(3)
— (1)
Income (loss) before income taxes$139,177 $90,589 
Total assets9,805,199 96,970 9,902,169 10,945,904 65,805 11,011,709 
Purchases of leasing equipment and investments in finance leases(4)
$79,994 $— $79,994 $293,852 $— $293,852 
Six Months Ended June 30,
20252024
Equipment LeasingEquipment TradingTotalsEquipment LeasingEquipment TradingTotals
Total revenues$689,072 $3,846 $692,918 $746,554 $3,720 $750,274 
Less:
Depreciation and amortization207,345 383 207,728 271,205 412 271,617 
Interest and debt expense126,379 641 127,020 122,505 333 122,838 
Storage and handling20,982 — 20,982 31,479 — 31,479 
Repair costs5,150 — 5,150 5,065 — 5,065 
Other operating expenses3,451 — 3,451 3,235 — 3,235 
Administrative expenses(1)
47,837 576 48,413 45,278 543 45,821 
Other (income) expenses(2)
2,236 — 2,236 (1,615)— (1,615)
Leasing margin$275,692 $2,246 $277,938 $269,402 $2,432 $271,834 
Net trading margin— 1,348 1,348 — 2,299 2,299 
Net gain (loss) on sale of leasing equipment18,555 — 18,555 (23,496)— (23,496)
Transaction and other costs— (21,651)
Other costs (income)(3)
2 (47)
Income (loss) before income taxes$297,843 $228,939 
Total assets9,805,199 96,970 9,902,169 10,945,904 65,805 11,011,709 
Purchases of leasing equipment and investments in finance leases(4)
$100,194 $— $100,194 $368,160 $— $368,160 
(1)     Certain Administrative expenses have been allocated to the equipment trading segment based on a methodology that is consistent in all the periods presented.
(2) Other segment items primarily include the provision (reversal) for doubtful accounts.
(3)    Other non-allocated costs (income) include unrealized gains or losses on derivative instruments and debt termination expense.
(4)    Represents cash disbursements for purchases of leasing equipment and investments in finance leases as reflected in the Consolidated Statements of Cash Flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.
There are no intercompany revenues or expenses between segments. Certain administrative expenses have been allocated between segments based on an estimate of services provided to each segment. A portion of the Company's equipment purchased for resale in the equipment trading segment may be leased for a period of time and is reflected as leasing equipment as opposed to equipment held for sale and the cash flows associated with these transactions are reflected as purchases of leasing equipment and proceeds from the sale of equipment in investing activities in the Company's Consolidated Statements of Cash Flows.

Geographic Segment Information

The Company generates the majority of its leasing revenues from international containers which are deployed by its customers in a wide variety of global trade routes. The majority of the Company's leasing related revenue is denominated in U.S. dollars.

The following table summarizes the geographic allocation of total leasing revenues based on customers' primary domicile (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Total revenues:  
Asia$116,750 $135,328 $265,719 $259,354 
Europe159,760 204,971 361,827 403,870 
Americas14,803 22,743 31,021 55,545 
Bermuda1,047 1,050 2,195 2,122 
Other International17,518 14,897 32,156 29,383 
Total$309,878 $378,989 $692,918 $750,274 

Since the majority of the Company's containers are used internationally, where no one container is domiciled in one particular place for a prolonged period of time, all of the Company's long-lived assets are considered to be international.

The following table summarizes the geographic allocation of equipment trading revenues based on the location of the sale (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Total equipment trading revenues:  
Asia$2,181 $6,483 $4,165 $8,474 
Europe2,886 2,605 4,422 4,538 
Americas8,524 2,840 15,275 6,697 
Bermuda— — — — 
Other International2,820 2,043 4,464 4,408 
Total$16,411 $13,971 $28,326 $24,117