Trinity Industries, Inc.

Good morning and welcome to the Trinity Industries Q2 2025 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's remarks, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Leanne Mann, Vice President, Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone. We appreciate you joining us for the company's second quarter 2025 financial results conference call. Our prepared remarks will include comments from Gene Savage, Trinity's Chief Executive Officer and President, and Eric Martetto, the company's Chief Financial Officer. We will hold a Q&A session following the prepared remarks from our leaders. During the call today, we will reference certain non-GAAP financial metrics. The reconciliations of the non-GAAP metrics to comparable GAAP measures are provided in the appendix of the quarterly investor slides, which are accessible on our Investor Relations website at .trend.net. These slides are under the events and presentations portion of the website along with the second quarter earnings conference call event link. A replay of today's call will be available after 10.30 a.m. Eastern Time through midnight on August 7, 2025. Replay information is available under the events and presentations page on our Investor Relations website. It is now my pleasure to turn the call over to Gene.

Thank you, Leanne. Good morning, everyone. Our second quarter results underscored the solid performance of our leasing business and Trinity's strong ability to generate substantial cash flow. The North American rail car fleet remains in balance with ongoing improvements in pricing. Although customers have delayed their capital expenditure plans and new rail car decisions due to evolving trade and tax circumstances, they continue to retain their current rail cars. Additionally, we are starting to see a recovery in new rail car demand as sequential order improved and we generated a book to bill of 1.3 times. As detailed in our prepared remarks today, we expect an increase in deliveries from second quarter levels and continued improvement across the business in the second half of the year. Before discussing our quarterly results, I would like to provide a brief market overview. Inquiry levels remain healthy and these inquiries are translating into increased order activity. Albeit at a slower rate than initially anticipated. We are encouraged by sequential pick up and orders in the second quarter, both for Trinity and for the broader industry. The industry fleet has experienced a modest contraction considering lower year to date deliveries for 2025, coupled with ongoing fleet attrition through scrapping. Given current production levels and improving order environment, the industry is on pace for full year industry deliveries in the range of 20,000 to 33,000. Within the existing rail car market, car loads have improved in the second quarter, primarily driven by strength in the energy and agriculture markets. Rail cars and storage have picked up slightly consistent with normal seasonal trends. We continue to monitor recent tax legislation and ongoing trade developments and remain generally optimistic about their impact on our business. I will now highlight segment performance for the quarter. Rail car leasing and services segment, which includes leasing, maintenance, digital and logistics services. Our leasing business continues to perform exceptionally well. Segment revenues have increased both sequentially and year over year, primarily due to higher lease rates, reflecting our strategic efforts to reprice the fleet. The maintenance business has benefited from favorable pricing and a positive mix, contributing to a 21% year over year increase in quarterly maintenance services revenue. The future lease rate differential for FLRD stands at an impressive .3% for the quarter, marking 13 consecutive quarters in double digits, during which 63% of our fleet has been successfully repriced. Renewal rates in the quarter were .9% of bought expiring rates and our renewal success rate was 89%, demonstrating our ability to continually drive lease rates while sustaining a high fleet utilization of .8% during the second quarter. Indicating a well-balanced fleet. During the quarter, we completed $29 million in lease fleet portfolio sales with gains of $8 million. We remain active in the secondary market as both a buyer and a seller and anticipate this trend will continue in the second half of the year. The cost of revenues in the segment increased by .7% year over year, primarily due to higher maintenance and compliance expenses for the lease fleet, as well as a change in the mix of external repairs and our maintenance services business. Turning to the rail product segment, which includes our manufacturing and parts businesses, second quarter results were in line with our expectations. Due to lower order volumes in preceding quarters, we adjusted production to match the pace of customers delayed decisions, delivering 1,815 rail cars in the quarter. This resulted in a segment operating margin of 3%, which is inclusive of costs associated with workforce reductions. We are encouraged by sequential improvement in orders. In the quarter, we received orders for 2,310 rail cars and achieved a book to bill ratio above one times for the first time in ten quarters. We believe this positive order momentum will continue, supported by inquiry levels consistent with replacement level demand, favorable tax policies, and increased trade certainty expected in the near future. We are well positioned to respond to further market improvement as the year progresses. I would like to commend the Rail Products Group for their strategic initiatives over recent years, including optimizing manufacturing operations, investing in automation, and lowering the business breakdown point. Your hard work is evident in this low order volume environment. We are maintaining our full year operating margin guidance in the 5 to 6% range for the segment. This outlook is underpinned by our expectations of stronger deliveries in the latter part of the year, better fixed cost absorption, a streamlined workforce, and continued efficiencies through automation. As we enter the second half of the year, we remain confident in our ability to deliver strong performance across our business. We will continue our efforts to reprice a leaflet and capitalize on favorable conditions in the secondary market. We anticipate an increased pace of quarterly deliveries, benefiting both revenues and margins. Additionally, we expect our backlog to increase as pent-up demand translates into orders, driving momentum through the latter half of the year and into 2026. I'll now turn the call over to Eric to talk through financial results, as well as our updated guidance for 2025.