TRNTRINITY INDUSTRIES INC

Railroad Equipment

Revenue: $2.2B; 30% YoY
Operating margin: 30.1%; 89% YoY
EBITDA: $954M; 22% YoY
Market cap: $3.9B
Employees: 2,650; $814K revenue each
Net debt / EBITDA: 5.4×; $5.2B net debt
AI in 10-K: 1.3; mentions per 10K words

Takeover score 2 of 13

Fixable underperformance 1 of 7

TSR below peersYes
4 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
130% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
47% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
3% of assets
Over 40% of assets
Shareholder dissentNo
98% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$814K · 83rd pct
Bottom quartile of its SIC industry
Quiet on AINo
1.3 per 10K words · 42nd pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
5.4× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$3.9B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$502K net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$1.5B	$2.0B	$3.0B	$3.1B	$2.2B	30%
Operating income	$257M	$334M	$417M	$492M	$649M	32%
Net income	$182M	$73M	$127M	$157M	$277M	77%
Operating cash flow	$612M	−$13M	$296M	$574M	$360M	37%
Capex	$24M	$38M	$41M	$54M	$46M	15%
Stock-based comp	$21M	$23M	$23M	$24M	$23M	3.0%
Buybacks	$833M	$52M	$0	$21M	$71M	244%
Dividends	$89M	$77M	$86M	$93M	$99M	5.9%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Jan 4, 2022	VA Partners I, LLC	SC 13D/A	4.4%	Passive
Nov 10, 2021	VA Partners I, LLC	SC 13D/A	13.0%	Passive
Sep 8, 2021	VA Partners I, LLC	SC 13D/A	15.1%	Passive
Apr 30, 2021	VA Partners I, LLC	SC 13D/A	14.8%	Passive
Mar 3, 2021	VA Partners I, LLC	SC 13D/A	20.8%	Passive
Mar 3, 2020	VA Partners I, LLC	SC 13D/A	22.4%	Passive
Jan 28, 2020	VA Partners I, LLC	SC 13D/A	20.9%	Passive
Dec 10, 2019	VA Partners I, LLC	SC 13D/A	20.3%	Passive
Nov 1, 2019	VA Partners I, LLC	SC 13D/A	19.7%	Passive
Jul 31, 2019	VA Partners I, LLC	SC 13D/A	17.6%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $502K · 1
Net: −$502K

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	121	176
FY2024	—	—	154	164
FY2023	—	—	112	143
FY2022	—	—	120	113
FY2021	—	—	118	120