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Segment Information | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
Segment Information | 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 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 based on the net book value of the original manufacturing cost of the railcars. The financial information for these segments is shown in the tables below (in millions). We operate principally in North America.
| Three Months Ended September 30, 2025 |  | Three Months Ended September 30, 2024
| Railcar Leasing and Services Group |  | Rail Products Group |  | Total |  | Railcar Leasing and Services Group |  | Rail Products Group |  | Total
External revenues | $ | 300.8 |  |  | $ | 153.3 |  |  | $ | 454.1 |  |  | $ | 289.2 |  |  | $ | 509.6 |  |  | $ | 798.8 |
Intersegment revenues | 0.2 |  |  | 125.5 |  |  | 125.7 |  |  | 0.3 |  |  | 93.6 |  |  | 93.9 |
Total revenues | 301.0 |  |  | 278.8 |  |  | 579.8 |  |  | 289.5 |  |  | 603.2 |  |  | 892.7 |
Elimination of intersegment revenues |  |  |  |  | (125.7) |  |  |  |  |  |  | (93.9) |
Total consolidated revenues |  |  |  |  | $ | 454.1 |  |  |  |  |  |  | $ | 798.8 |
Less (1): |  |  |  |  |  |  |  |  |  |  |
Rail Products Group cost of revenues (2) | * |  | 252.0 |  |  |  |  | * |  | 545.7 |  |  |
Depreciation and amortization for Company-owned railcars (3) | 63.6 |  |  | * |  |  |  | 59.7 |  |  | * |  |
Maintenance and compliance for Company-owned railcars (3)(4) | 43.3 |  |  | * |  |  |  | 29.7 |  |  | * |  |
Selling, engineering, and administrative expenses | 14.6 |  |  | 7.1 |  |  |  |  | 18.7 |  |  | 8.7 |  |  |
Gains on lease portfolio sales | (21.7) |  |  | * |  |  |  | (11.4) |  |  | * |  |
Other segment items (5) | 73.1 |  |  | (0.2) |  |  |  |  | 77.6 |  |  | (0.1) |  |  |
Segment operating profit | $ | 128.1 |  |  | $ | 19.9 |  |  | $ | 148.0 |  |  | $ | 115.2 |  |  | $ | 48.9 |  |  | $ | 164.1 |
| Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024
| Railcar Leasing and Services Group |  | Rail Products Group |  | Total |  | Railcar Leasing and Services Group |  | Rail Products Group |  | Total
External revenues | $ | 890.1 |  |  | $ | 655.6 |  |  | $ | 1,545.7 |  |  | $ | 854.0 |  |  | $ | 1,595.8 |  |  | $ | 2,449.8 |
Intersegment revenues | 0.7 |  |  | 337.2 |  |  | 337.9 |  |  | 2.1 |  |  | 309.0 |  |  | 311.1 |
Total revenues | 890.8 |  |  | 992.8 |  |  | 1,883.6 |  |  | 856.1 |  |  | 1,904.8 |  |  | 2,760.9 |
Elimination of intersegment revenues |  |  |  |  | (337.9) |  |  |  |  |  |  | (311.1) |
Total consolidated revenues |  |  |  |  | $ | 1,545.7 |  |  |  |  |  |  | $ | 2,449.8 |
Less (1): |  |  |  |  |  |  |  |  |  |  |
Rail Products Group cost of revenues (2) | * |  | 917.6 |  |  |  |  | * |  | 1,737.6 |  |  |
Depreciation and amortization for Company-owned railcars (3) | 186.5 |  |  | * |  |  |  | 179.7 |  |  | * |  |
Maintenance and compliance for Company-owned railcars (3)(4) | 124.4 |  |  | * |  |  |  | 95.1 |  |  | * |  |
Selling, engineering, and administrative expenses | 47.2 |  |  | 20.7 |  |  |  |  | 56.8 |  |  | 24.2 |  |  |
Gains on lease portfolio sales | (35.4) |  |  | * |  |  |  | (36.2) |  |  | * |  |
Other segment items (5) | 216.9 |  |  | (0.2) |  |  |  |  | 217.2 |  |  | (0.1) |  |  |
Segment operating profit | $ | 351.2 |  |  | $ | 54.7 |  |  | $ | 405.9 |  |  | $ | 343.5 |  |  | $ | 143.1 |  |  | $ | 486.6 |
*Not identified as a significant expense for this segment. (1) Significant expense categories and amounts align with the segment-level information that is regularly provided to and reviewed by the CODM. Intersegment expenses are included within the amounts shown. (2) Cost of revenues in the Rail Products Group primarily includes materials, labor, and overhead, including depreciation and amortization. (3) Company-owned railcars include wholly-owned railcars, partially-owned railcars, and railcars under leased-in arrangements. (4) Maintenance and compliance expense is reported at cost with respect to the services performed by our maintenance services business to support the railcars in our lease fleet. (5) Other segment items for each reportable segment include: –Railcar Leasing and Services Group: the remaining operating costs for our maintenance services and digital and logistics services businesses, including materials, labor, and overhead costs; other operating costs for the lease fleet, including equipment rental, property taxes, and freight and storage expenses; and gains or losses on dispositions of other property. –Rail Products Group: (gains) or losses on dispositions of other property. The reconciliation of segment operating profit to consolidated net income is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions)
Operating profit: |  |  |  |  |  |  |
Railcar Leasing and Services Group | $ | 128.1 |  |  | $ | 115.2 |  |  | $ | 351.2 |  |  | $ | 343.5 |
Rail Products Group | 19.9 |  |  | 48.9 |  |  | 54.7 |  |  | 143.1 |
Segment Totals | 148.0 |  |  | 164.1 |  |  | 405.9 |  |  | 486.6 |
Corporate and other | (23.5) |  |  | (33.1) |  |  | (74.4) |  |  | (92.9) |
Eliminations | (5.9) |  |  | (8.6) |  |  | (17.7) |  |  | (14.2) |
Consolidated operating profit | 118.6 |  |  | 122.4 |  |  | 313.8 |  |  | 379.5 |
Other (income) expense | 70.4 |  |  | 66.0 |  |  | 203.2 |  |  | 205.2 |
Provision (benefit) for income taxes | 11.1 |  |  | 15.6 |  |  | 22.6 |  |  | 43.7 |
Loss from discontinued operations, net of income taxes | (1.1) |  |  | (5.3) |  |  | (4.9) |  |  | (11.3) |
Net income | $ | 36.0 |  |  | $ | 35.5 |  |  | $ | 83.1 |  |  | $ | 119.3 |
Additional financial information by segment is shown in the tables below.
| Total Assets
| September 30, 2025 |  | December 31, 2024
| (in millions)
Railcar Leasing and Services Group | $ | 8,389.4 |  |  | $ | 8,151.7 |
Rail Products Group | 954.4 |  |  | 967.7 |
Segment Totals | 9,343.8 |  |  | 9,119.4 |
Corporate and other | 252.5 |  |  | 383.3 |
Eliminations | (665.0) |  |  | (670.5) |
Total assets | $ | 8,931.3 |  |  | $ | 8,832.2 |
| Depreciation & Amortization |  | Capital Expenditures
| Three Months Ended September 30, |  | Three Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions)
Railcar Leasing and Services Group | $ | 69.1 |  |  | $ | 65.1 |  |  | $ | 240.1 |  |  | $ | 117.9 |
Rail Products Group | 6.9 |  |  | 7.0 |  |  | 3.0 |  |  | 5.9 |
Corporate and other | 0.9 |  |  | 0.9 |  |  | 0.4 |  |  | 0.1 |
Total | $ | 76.9 |  |  | $ | 73.0 |  |  | $ | 243.5 |  |  | $ | 123.9 |
| Depreciation & Amortization |  | Capital Expenditures
| Nine Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| (in millions)
Railcar Leasing and Services Group | $ | 203.0 |  |  | $ | 196.1 |  |  | $ | 541.7 |  |  | $ | 359.3 |
Rail Products Group | 20.8 |  |  | 21.0 |  |  | 14.2 |  |  | 12.8 |
Corporate and other | 2.6 |  |  | 3.1 |  |  | 1.2 |  |  | 0.4 |
Total | $ | 226.4 |  |  | $ | 220.2 |  |  | $ | 557.1 |  |  | $ | 372.5 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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