Our Railcar Leasing and Services segment reported an 11% revenue increase and a 20% rise in operating profit, while our Rail Products segment generated $603 million in revenue with a backlog of $2.4 billion. These results reflect our continued focus on operational efficiencies and strategic investments in key markets.
Looking ahead, we are optimistic about concluding 2024 positively, with an outlook for continued improvement in lease rates. Our management team remains confident in achieving 120,000 industry deliveries over the next three years, showcasing our commitment to growth and success in the railcar industry.
We are pleased to have raised our full-year EPS guidance to $1.70 – $1.80, from $1.30 – $1.50, indicating a strong financial performance and outlook for the remainder of the year. Our strategic adjustments to our investment and operational efficiencies have contributed to our financial growth, and we are confident in our ability to deliver value to our stakeholders.
I want to thank our team for their hard work and dedication to driving our success, and I look forward to providing further updates in our upcoming earnings report in February. Thank you for joining us today, and we are excited about the future ahead for Trinity Industries.
Operator, we are now ready to take questions from participants. Thank you.
[End of Conference Call Transcript] Looking ahead to the fourth quarter and the remainder of the year, we are confident in our ability to continue delivering strong results. We anticipate continued growth in our leasing and services segment, driven by favorable pricing, increased fleet utilization, and ongoing maintenance work. In the rail products segment, we expect strong order activity to continue, with customers expanding existing orders and deferring decisions to the fourth quarter. Our balance sheet remains strong, with a favorable loan to value ratio and ample liquidity to support our operations and growth initiatives. Overall, we are pleased with our performance in 2024 and remain optimistic about our prospects for the future. Thank you for your continued support and confidence in Trinity.” We have seen higher scrappage rates this year, which is also driving demand for new railcars. We have a strong backlog that supports our production schedule, and we continue to monitor market conditions closely to ensure that we are optimizing our production rates based on demand. Our strategy is to remain flexible and agile in response to market conditions, so that we can adjust our production schedule as needed to maintain a stable backlog and meet customer demand. Thank you for your questions.
Eric Marchetto: And to add to that, Bascome, this is Eric. We also have a very disciplined approach to managing our lease rates. We look at the market, we look at the dynamics that Jean just described, and we make sure that we’re pricing our leases in line with what the market will bear. And so, as long as those dynamics continue, we feel confident that we can continue to see that sequential improvement in our lease rates. And as Jean mentioned, we still have about 52% of our fleet left to reprice, so we see continued opportunity there as well.
Bascome Majors: Great. Thank you for the color. That’s all I have. Thank you.
Estamos muy contentos con la posición en la que nos encontramos con la flota de arrendamiento, las tarifas y hacia dónde vemos que esto se dirige.
Bascome Majors: Jean, Eric, Leigh Anne, muchas gracias.
Eric Marchetto: Gracias.
Jean Savage: Gracias, Bascome.
Operador: Esto concluye nuestra sesión de preguntas y respuestas. Me gustaría devolver la conferencia a Jean Savage, Directora Ejecutiva y Presidenta, para hacer algunos comentarios de cierre.
Jean Savage: Gracias. Me gustaría extender mi gratitud al equipo de Trinity por su arduo trabajo y por impulsar estos resultados sobresalientes para nuestro negocio. Estoy animada por nuestro desempeño y espero volver a hablar con ustedes en febrero, donde nos referiremos a nuestros resultados completos del año 2024 y delinearemos nuestros planes y guía para 2025. Gracias a todos por su continuo apoyo a Trinity.
Operador: La conferencia ha concluido. Gracias por asistir a la presentación de hoy. Ahora pueden desconectarse. Gracias.
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