GATX Corporation (GATX) Q3 2026 Earnings Call Transcript

Operator: Hello, everyone. Thank you for joining us, and welcome to the GATX 2026 Third Quarter Earnings Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Shari Hellerman, Head of Investor Relations. Shari, please go ahead.

Shari Hellerman: Thank you, Holly. Good morning, and thank you for joining GATX's 2026 Third Quarter Earnings Call. I'm joined today by Bob Lyons, President and Chief Executive Officer, Tom Ellman, Executive Vice President and Chief Financial Officer, and Paul Titterton, Executive Vice President and President of Rail North America. As a reminder, some of the information you'll hear during our discussion today will consist of forward-looking statements. Actual results or trends could differ materially from those statements or forecasts. For more information, please refer to the risk factors included in our earnings release and those discussed in GATX's Form 10-K for 2025 and our other filings with the SEC. GATX assumes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Earlier today, GATX reported 2026 third quarter diluted earnings per share of $2.92, compared to $2.25 in the third quarter of 2025. For the first nine months of 2026, GATX delivered diluted earnings per share of $8.11 compared to $6.46 for the same period in 2025. The 2025 third quarter and year-to-date results include a net positive impact of $0.15 per diluted share from tax adjustments and other items. These items are detailed in the supplemental information section of our earnings release. I'll briefly address each of our business segments. After that, we'll open the call up for questions. At Rail North America, market conditions remain positive. Leasing fundamentals benefited from a favorable supply-demand environment and strong interest in existing fleet assets. These conditions continue to support attractive renewal economics and secondary market opportunities across the fleet. The renewal success rate was strong at 86.1%, and fleet utilization increased to 98.4% at quarter end. The renewal rate change of GATX's lease price index was +12.4%, with an average renewal term of 52 months. We continue to successfully place new railcars under our committed supply agreement with a diverse customer base. We've placed about 10,300 railcars under our 2022 Trinity supply agreement. Our earliest available scheduled delivery under this agreement is in the second quarter of 2027. Demand for our railcars in the secondary market remained exceptionally strong during the quarter. Net gains on asset dispositions in Rail North America were $50.3 million in the quarter and $167.8 million year-to-date. Additionally, we continue to realize benefits from the acquisition of Wells Fargo's Rail assets. Integration efforts have progressed well, and we are leveraging GATX's scale, customer relationships, and portfolio management capabilities across the larger fleet. We also benefited from higher management fee income during the quarter, driven in part by asset sale activity within the Brookfield-owned portfolio. Turning to Rail International, performance was solid in the quarter. GATX Rail Europe's fleet utilization improved to 96.1% at quarter end, and we continued pushing up renewal lease rates for various car types. In India, we further expanded the fleet during the quarter while maintaining full utilization. Across Rail International, we continue to see attractive opportunities for investment and growth. Engine leasing delivered excellent results during the quarter. Portfolio performance remained strong as healthy global air travel activity continued to support high utilization and attractive lease rates. At RRPF, we continue to deploy capital into attractive opportunities, with investment volume at the joint venture approaching $1 billion year-to-date. During the quarter, GATX repurchased approximately 442,000 shares for $78.5 million. Year-to-date, we have repurchased more than 732,000 shares for approximately $130 million. Finally, we now expect 2026 full year earnings to modestly exceed the upper end of our previously announced guidance range of $9.90-$10.30 per diluted share. This guidance excludes any impact from tax adjustments and other items. That concludes our prepared remarks. I will hand it back to the operator so we can open the line for questions.

Operator: We will now begin the question-and-answer session. Your first question comes from Ben Mohr with Citi. Ben, your line is now open. Please go ahead.

Ben Mohr: Hi. Good morning. Thanks so much for taking my call. Wanted just to maybe start off asking about the LPI. Looks like it is softer than expected at the 12.4%. You have not yet lapped the 2Q hopper impact, and yet it stepped down from 2Q. Just wanted to see if that was the only driver or if there were other drivers on top of the 2Q hopper impact that will not get lapped until 2Q of next year. Your full year LPI target, I think to date it has been the lower end of your previously guided high teens to low teens range for 2026. Just wanted to see your outlook on that as well, please.

Paul Titterton: Good morning, Ben. This is Paul speaking. Happy to answer that question, and I think Bob will probably chime in as well. Broadly speaking, I think it's important to understand with our LPI, it's done on a trailing 12-month basis. One thing that's happening over the course of this year is each successive quarter is incorporating another quarter of GABX. By the end of this year, we'll have GABX fully incorporated. Or I should say the former Wells Fargo fleet, which is known as GABX. As well, I would say you have that going on, you have mix, and then you do have the continued impact of the sand cars. Really all three of those things are impacting the LPI. I will say broadly, when we think about sequential pricing in the fleet, we are actually seeing across most of the fleet, flat to slightly up sequential pricing. Certainly the pricing climate for our fleet overall is, I would say, becoming increasingly favorable. Although the LPI, as you pointed out, has been lower for the reasons I just described.

Bob Lyons: Ben, it's Bob. Thank you for the question. I just wanted to add, regarding the LPI, just doing a little back of the envelope math. The difference between, call it a 12% LPI and a 17% LPI in a given year is less than $5 million of revenue on an annual basis, and that's off our revenue base of about $2.4 billion. When you really pencil out the impact of the LPI, the variance in any given year, the impact on our revenue line is de minimis. Now, obviously that accumulates over time and gives you a different answer, but in the present year, in 2027, for example, it's not that material.

Ben Mohr: Great. Thanks so much for that color. My next question then is on what you've mentioned, the higher management fee in the quarter on the higher asset sale activity in the Brookfield owned portfolio for Rail North America. It looks like that's tied to North American remarketing that's also been very strong in 3Q. Maybe sort of a multi-point question. Are you still holding your $200 million target for Rail North America remarketing for 2026? If so, should we expect the positive lumpiness in 3Q to step down to a meaningful step down in 4Q, and then that should drive a lower management fee, sort of your other revenue, in Rail North America for 4Q as well?

Tom Ellman: Yeah, Ben. I'll try to take both parts of those questions. One, you alluded to it in your question, but just so that everyone is totally clear. GATX earns two different types of management fees related to the Wells Fargo Rail transaction. First, we earn a fee, and this is what you were referring to, for managing the long-term lease portfolio, which is wholly owned by Brookfield. Second, we earn a fee for managing the operating lease portfolio joint venture with Brookfield. Today we own 33.5% of that JV. As you noted, the first fee is what's up sequentially this quarter. For the first two quarters, we earned about $2.8 million in fees in each quarter. This quarter it was almost $15 million. So a meaningful increase. That increase was driven by the fact that under certain conditions, GATX earns additional fees for asset sales out of that portfolio. Of course, the decision on what to sell and when to sell are ultimately made by Brookfield, but GATX gets paid a fee for making recommendations and executing on those sales. So that's part of the increase. Related, but separately, in our own business, the secondary market continues to be strong. We do expect to exceed slightly the $200 million that we mentioned at the beginning of the year for asset dispositions. As we've discussed many times, calling the exact timing on when those sales close is challenging, but we certainly do expect directionally to do a bit better than we originally anticipated.

Ben Mohr: Wonderful. Thank you so much, Tom. My last question is looking out longer term. There's been some investor interest on a longer-term growing narrative for nat gas for data centers, where behind the meter prime power generators would be driven more by nat gas turbines or reciprocating engines fueled by nat gas, given there's not enough grid to go around for all the data center build. Wanted to ask you, from your view, how much of this could be an opportunity for you? Are your tank cars suited to moving this expansion in nat gas, presumably as LNG?

Paul Titterton: Yeah. This is Paul speaking, Ben. It's a good question. For the most part, nat gas moves by pipeline in North America and really throughout the world. LNG tank cars are today quite rare and are extraordinarily expensive to construct. There are certainly folks talking about LNG by rail, but that's not a market in which we play today, and it's not clear under what conditions we might play. I would say any contribution to our business from that would be speculative at this point.

Ben Mohr: I appreciate it. Thank you so much.

Operator: Your next question comes from the line of Andrzej Tomczyk with Goldman Sachs. Andrzej, your line is now open. Please go ahead.

Andrzej Tomczyk: Yeah. Hi. Thanks for the question, everybody. Just curious to start off on the guide for modestly exceeding the top end of the $9.90-$10.30 earnings range for this year. Could you help maybe frame up how you guys are thinking about what modest means? If there's any drivers that could cause you to exceed your expectations for modestly beating the top end. I know it seemed like the third quarter, from our perspective, was pretty healthy beat versus expectations. Just trying to graph sort of the strength versus your expectations here heading into the fourth quarter.

Tom Ellman: Yeah. Thanks for the question, Andrzej. I will first kind of recap what has happened so far, and then our decision to revise the guidance to modestly exceeding the top end of the range. For the first nine months of the year, most things were generally in line with our expectations coming into the year. Despite economic and geopolitical uncertainty, the favorable supply and demand dynamics continued to drive positive results for Rail North America. The GATX Rail Europe team continued to successfully navigate a challenging economic environment. Similarly, we had strong engine leasing results, and the RRPF JV with Rolls-Royce performed well. Really, two factors drove our decision to revise our guidance description for the third quarter. First, as talked about on the last question, the secondary market remains strong. Second, as talked about on the last question, we earned more for managing the long-term lease portfolio that Brookfield owns than we expected to. Both of those reasons are driven by factors that have some lumpiness to them. Quantifying the exact amount that we might exceed the high end of the range is going to be dependent on the timing of future opportunities there, which is why we left it where we did.

Bob Lyons: Yeah, Andrzej, it is Bob. I would also add too, with remarketing income, it gets a little bit more challenging to call that precisely in the fourth quarter because the buyer universe, they are approaching their year-end as we are. They may have different capital allocations that they can expend this year, or they want to expend it in the first quarter. We have to work with those potential buyers and, at times, try to recognize what their needs are and what their capital plans are. It gets a little bit more difficult to predict in the fourth quarter.

Andrzej Tomczyk: Understood. Thanks for the color. Was curious on just the repricing runway of the acquired assets following the Wells Fargo integration. If you are able to share maybe what percent of the acquired operating fleet has now repriced to the current market levels, how much is left to price or maybe sell in the secondary markets, and how does the embedded renewal pricing delta on that specific pool of cars compare to legacy GATX equipment?

Bob Lyons: Yeah. I'll start first, Andrzej, by just saying the average term in the portfolio that we purchased was very similar to our own. We're going to renew the same amount of cars out of the joint venture that GATX would renew in a given year, 18,000-20,000 or somewhere in that range. There's no significant lumpiness to how that portfolio will renew. We haven't disclosed or broken out the data with regards to the difference in their embedded lease rate and rollover versus ours. Quite frankly, we're managing the entire business as one. Our sales team doesn't differentiate at all between a GATX wholly owned car and a joint venture car. Because keep in mind also, over time, they'll become wholly owned cars. We'll likely buy that joint venture down over time. We're not looking at it as two discrete fleets, and certainly that'll be even more the case going forward.

Andrzej Tomczyk: Understood. Wanted to just touch, while we're talking on Wells Fargo, the maintenance expense within Rail North America, I think, seemed to dip down sequentially. Last year, I think it went up Q2 to Q3. Could you just speak to how the synergies are tracking on the Wells Fargo integration efforts and maybe any specifics on the maintenance runway as well?

Tom Ellman: Yeah. So really, the story there is very consistent with what we've talked about over the last couple of quarters. In the near term, we knew that we would be in a position to rationalize the third-party maintenance that's being provided and to challenge the providers in a way that as an owner of maintenance facilities ourselves, we can do that Wells Fargo couldn't. We are seeing improvement in that area and continue to expect to see that going forward. The run rate that we've seen so far this year, you would expect to continue for the full year.

Bob Lyons: Yeah. I think if you took our gross maintenance expense year-to-date and annualized it, you'd come up with $502 million or $503 million. Our guide for the year back in January was about $500 million. There's some puts and takes between our legacy portfolio and the joint venture cars, but we're coming in right in line with what we expected. We had baked into that some of those synergies already that we're realizing.

Andrzej Tomczyk: Thanks for that. Maybe just hitting a little bit on the secondary market activity within rail leasing, and it does seem like that's potentially driving the higher end of the range guidance as well, or above the higher end of the range. That's been an area of strength this year and over the recent years. I'm just curious if you could share sort of the types of the profiles of buyers, whether that's institutional funds, shippers, or competing lessors that are providing liquidity there. I know it's probably a little early, but any indication on what we should anticipate for the pace of gains into 2027 as well? That'd be super helpful. Thank you.

Bob Lyons: Yeah. Andrzej, good question. We continue to see a really wide buyer universe. The breadth and depth is quite strong. If we're putting a book out in the marketplace or one of our competing lessors is doing the same, there's a good list of 25, 30 different types of institutions. Other lessors is really the primary source. We occasionally will sell cars back to shippers. That happens at times. It's primarily that lessor universe, and it continues to be extremely robust. One thing playing into that, as we've talked about, is the supply dynamic in the marketplace right now. There's not a lot of new cars on order. I think the expectation for this year is quite low from a cyclical standpoint in terms of new car orders. If you're an existing lessor with an established base of cars and you're looking to add, you're going to do it in the secondary market. We see ample opportunity, and really, we don't see that abating anytime soon, absent some bigger macro factor.

Andrzej Tomczyk: Very helpful. Maybe just to close off for me and sort of relatedly as well, I wanted to touch on the tariffs, and how that's impacting buyers' decisions as well. I think the tariffs, the idea is that they could elevate the new build replacement economics and the cost of a new car. Are buyers incrementally using that to tap the secondary market as well? Is that causing them to sort of delay new car orders as well? Do you see this dynamic sort of creating a floor for asset values here?

Paul Titterton: Andrzej, this is Paul speaking.

Andrzej Tomczyk: Thanks for the time.

Paul Titterton: Certainly. This is Paul speaking, and just to address it, I think it is worth a little context here. With respect to tariffs on new railcars right now, the only railcars that are technically subject to tariffs are tank cars. Freight cars, which constitute the majority of the new car market, are not currently subject to any tariffs. The tariff situation is fluid, in the sense that there are Section 232 tariffs that have been imposed but not enforced, and then there are anti-dumping tariffs that are under discussion right now for tank cars. It is a very fluid situation here right now. What I would say is, obviously, should tariffs be imposed, it would increase the cost of acquisition of tank cars. GATX is actually extremely well hedged because, of course, it is one of the largest owners of an installed fleet of tank cars. Effectively, any increase in the cost to replace that fleet will improve the value of our installed fleet, and that should manifest through lease rates. It is an evolving situation, but I think that gives you a sense of where we are right now.

Andrzej Tomczyk: Makes sense. Appreciate all the thoughts.

Operator: Your next question comes from the line of Brendan McCarthy with Sidoti. Brendan, your line is now open. Please go ahead.

Brendan McCarthy: Great. Good morning, everybody. Thanks for taking my questions here. I wanted to start off on the Rail North America utilization rate up about 40 basis points sequentially. I think we talked about the Wells portfolio having utilization of under 98%, maybe in the 97% range, at acquisition date. I guess, are you seeing a benefit from better placement of cars or maybe it's a remarketing activity? I guess, do you expect that utilization rate to continue to grind up back towards that 99% level?

Paul Titterton: This is Paul speaking, and thank you for the question. Yes, we've had success placing idle cars out of the former Wells Fargo portfolio that's in the joint venture, and really that's what's driving the improved utilization performance. Really what I would say is, there aren't necessarily any specific markets within any specific car types. It's really been broad-based success with our team placing cars, and we would expect that success to continue. We'll still have the headwinds from the small cube covered hopper fleet serving the sand market. So that will continue to be something of a utilization headwind, but outside of. I will say we've had good success even placing small cubes. But outside of the small cube market, it's been very positive and really trending, I'd say at least as well as we expected coming into this.

Brendan McCarthy: Got it. On the remarketing income side, about $168 million year-to-date. Is the expectation for any potential outperformance above that $200 million threshold? I guess, do you expect any outperformance to come from the legacy side of the fleet, or is the Wells side potentially going to go above that $70 million number?

Tom Ellman: Yeah. So obviously, as Bob mentioned earlier, we really try to think of this as a single portfolio, and that's how we operate the business. But just based on the numbers that you've seen year-to-date, it's more likely that the outperformance would be legacy cars as opposed to the JV cars.

Brendan McCarthy: Okay. Understood. And I think last quarter you mentioned the Wells, the JV expected to contribute, maybe double the original $0.20-$0.30 EPS expectation for the year. Is that still reasonable expectation for you?

Tom Ellman: It is, and really it's driven primarily by what we talked about earlier in the call, which is the fees that are earned on the portfolio that Brookfield owns.

Brendan McCarthy: Okay, understood. And just last question on capital allocation. It looks like share buybacks were more outsized in the quarter. Obviously, leverage has remained in place and you've continued to You exercised, I think, one of the joint venture options. I guess, how can we think about the buyback activity going forward? Is it going to be perhaps a larger source of capital going forward?

Tom Ellman: Yeah. What I will do there is just reiterate the way we think about capital allocation, period. We have mentioned many times, first and foremost, we really seek to make economically accretive investment. Right with that, we are very cognizant of the leverage and other credit metrics. You mentioned leverage staying even and to maintain our strong investment-grade credit rating. Then we return excess capital to shareholders. We regularly do that via the dividend, and at times we supplement that with stock buyback. Really what has happened this year is despite a really strong investment year, outside of the Wells Fargo Rail acquisition, we still expect to do about a billion of investment. But that is a little bit lower than what you have seen in the last couple of years. So it is not surprising you would see a little bit more in the stock buyback side.

Bob Lyons: Yeah, Brendan, it is Bob. I just add, too, I like to think we remain very disciplined around that capital allocation concept of three things. The first being the investment. That is what we believe shareholders invest in GATX for us to do, is to put capital to work in assets at accretive economics, keep the balance sheet in good shape, keep leverage in good shape, and then return excess. So we revisit that concept constantly here at GATX.

Brendan McCarthy: Understood. I appreciate the detail. That is all from me.

Operator: Your next question comes from the line of Justin Bergner with Gabelli Funds. Justin, your line is now open. Please go ahead.

Justin Bergner: Good morning, Bob. Good morning, Tom. Good morning, Shari.

Tom Ellman: Good morning.

Shari Hellerman: Good morning.

Justin Bergner: Morning, Paul, as well.

Paul Titterton: Good morning.

Justin Bergner: A couple clarification questions. You mentioned the $0.20-$0.30 JV contribution. Is that inclusive of now the extra benefit from managing the Brookfield assets, or would that extra benefit be on top of the $0.20-$0.30?

Tom Ellman: Yeah. Great clarification, Justin. Thank you. All along, we've been talking about the totality of the investment activity and investment in related activity with that acquisition. So it includes the performance of the JV, the management fees earned from the JV, the incremental SG&A that we have in order to provide those services, and the fees earned from the Brookfield wholly owned portfolio. So it's all of that together.

Bob Lyons: Yeah. And Justin, the $0.20-$0.30 is what we thought coming into the year. Back in July, we said it would be double that, and we're very confident in that level.

Tom Ellman: Yeah. Year-to-date it's been in the range of $0.50, so we're well on the way.

Justin Bergner: Oh, year-to-date, it's already at $0.50. Okay. Got it. It was more consistent with the doubling you spoke about in July. Okay.

Tom Ellman: Yeah.

Justin Bergner: That's very helpful.

Tom Ellman: Correct.

Justin Bergner: Then just on the benefit from helping Brookfield sell their fully owned cars, I assume that's in that other revenue category of Rail North America, and are there any costs associated with it, or is it mostly drop through to the bottom line, that revenue?

Tom Ellman: There would be, but they're a little difficult to tease out. It would be part of the incremental SG&A. If you look at what we expected coming into the year, we said SG&A would be up about $30 million on a normalized basis versus a year ago. And we said the vast majority of that would be related to the Wells Fargo Rail acquisition and related activity. All of that together is the cost side, shows up in SG&A. Everything you see in that other revenue line related to the management fee activity is just the revenue side. It's not net of anything.

Bob Lyons: And that SG&A is coming in about right where we thought it would come in. The team's managing that quite well.

Justin Bergner: Okay. Not too much additional cost to generate that extra revenue for managing the Brookfield sales. Seems like—

Tom Ellman: Yeah, Justin, just to be sure you understand that, the incremental SG&A we're talking about is mostly related to the operating lease JV that we have with Brookfield, where we're a 33.5% ownership. Yes, there is some additional incremental SG&A related to the long-term lease portfolio, but that would be relatively small.

Justin Bergner: Okay. Thank you for that. Does that mean that you're now managing a slightly smaller, or you're getting management fees on a slightly smaller Brookfield fully owned fleet because you've helped sell a decent amount of cars?

Tom Ellman: Correct.

Justin Bergner: Okay. Got you. Nice work overall. On the maintenance side, just to clarify, the maintenance benefits that you're seeing near term from the Wells Fargo, those are more about better managing third-party maintenance, or are you actually starting to insource some of that maintenance already?

Paul Titterton: Justin, it's Paul speaking. We have not yet insourced any of the joint venture maintenance. As we talked about coming into the year, our shops are really full of our own work, and there really wasn't much of an opportunity to do that. We are going to be laying the groundwork to be able to take in some of that joint venture work, and we're hoping that, at some point, potentially later next year, you'll be able to see some of the benefits of that.

Bob Lyons: When we announced the transaction initially, we said it would probably be a two to three-year period, just because of the demand of our own fleet and our shops, would likely be two to three years before we started to even move some of the joint venture cars into our maintenance network. We're really digging in and putting the pieces in place to begin doing that on a modest level in 2027. But the expectation is we'll step that up sequentially after next year.

Justin Bergner: Okay, great. Lastly, the Rail International performance seemed to improve nicely on a sequential basis. Could just be noise, but is there anything you wanted to highlight there in terms of what's going well or what's progressing as expected?

Tom Ellman: Yeah. In general, we came into the year expecting a challenging economic environment, and indeed we've seen that. The team has done a really good job navigating through that. As we noted in the press release, there's really two factors driving the comparison year-over-year. One is that the fleet has grown, thanks largely to the DB Cargo acquisition that we did last year. In addition to that, there is some FX benefit that we've seen.

Justin Bergner: Okay. Thank you for taking all my questions.

Tom Ellman: Great.

Operator: Your next question comes from the line of Ben Mohr with Citi. Ben, your line is now open. Please go ahead.

Ben Mohr: Yes, thanks so much for bringing me back in. Wanted to touch on interest rates as it looks like maybe that's been what's driving some negative sentiment on your shares the last few months, and yet your fundamentals remain very strong. Your favorable supply-demand is much more of a meaningful driver in the short term within the year, as you've shared in the past. It seems like that's very much working. When we look at Fed funds futures, it's showing another 50 basis points of hikes likely through the end of 2027, so likely maybe two more hikes. Wanted to get your updated views on all of this. Are your fundamentals expected to continue to remain strong? You got your debt size and your leasing portfolio immunized. You're using interest rate swaps to convert the floating to fixed. Beyond the year, we should see higher interest rates play out as a benefit for you in higher lease rates. Wanted just to get an overall update on your view of the picture on the interest rate headwind that's more sentiment-driven, whereas your fundamentals remain very strong.

Tom Ellman: Yeah. Ben, as you know, we certainly take a long-term approach to everything, and that includes the way we finance. Less than 10% of our debt is floating rate. We finance a wide variety of ways, but by far the biggest is accessing the capital markets with 10-year-plus debt. So we have long-term debt, mostly fixed. The short-term impacts are not particularly meaningful to us because of the way we've structured the portfolio. You alluded to the fact that interest rates increasing can help lease rates. That is absolutely true. But similarly, that's more of a long-run phenomenon as well. In the short term, it's always supply-demand dynamics that drive the lease rate market by market. But over a long enough period of time, you certainly should expect to see a positive impact on lease rates with increasing interest rates. At the same time, that cumulative effect could impact GATX from a funding perspective, given the long-term way we fund. You would also see that benefit showing up in the lease rates. In the near term, both are pretty insulated. In the long term, they are correlated.

Bob Lyons: Yeah, as we've always said, as a hard asset owner, and it's the same for any hard asset owner, somewhat of an inflation element is a good thing. We benefit. We'll take that benefit. Sure, it raises the cost of a new car, but when you own 200,000 installed base, you get the benefit there, far outweighs the increased cost on any incremental cars we're bringing into the fleet. I think between Tom and I and Paul, we've all been here 30 years. I don't think there's any year ever during that period where we thought too much about near-term interest rates. It's not a driver of our business.

Ben Mohr: Wonderful. Thanks so much for that color. Just one last one from me on the engine leasing RRPF JV side. It looks like last quarter you had a very strong RRPF equity method earnings of roughly $50 million. This quarter, it stepped down to roughly $46 million. My sense is probably that's more lumpiness than anything else. I wanted to get your sense on that, and what to expect for 4Q in that RRPF equity method, and whether your full-year segment profit for engine leasing still holds.

Tom Ellman: Yeah. So, actually the quarter-to-quarter variance that you mentioned is pretty stable for that business. Things do tend to move because of the gain on sales. One question we normally get, we didn't this quarter, so I'll just provide it anyway, is the split between operating income and remarketing income in that business. Both for the quarter and year-to-date, it's about 2/3, 1/3. Two thirds on the operating side, one third on the remarketing side. That's really what drives that variability. As far as the engine leasing segment, we do expect it to outperform beginning-of-year guidance, consistent with the second quarter where we took guidance up, but it's not being driven by the JV. It's driven primarily by the GATX engine leasing wholly-owned portfolio. We talked about the reason for that last quarter and a strong maintenance reserve realization that we saw in the second quarter.

Shari Hellerman: The other thing to call out, Ben, is that in the third quarter of 2025, there was a $10 million pre-tax insurance proceeds related to engines in Russia, which we normalized.

Ben Mohr: Thank you so much.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Shari for closing remarks.

Bob Lyons: Before Shari closes, I just want to mention one thing. We talk often about how we are economic animals at GATX, and that includes everyone around the table. I also happen to be a lifelong Milwaukee Brewers fan. Before I walked in here, somebody offered me $100 every time I offered up a baseball-related phrase on the call. I just want to finish by saying we are hitting on all cylinders. Our commercial team continues to win by hitting singles and doubles, and everyone on the team is contributing. By my count, I just made $300. Thank you all for your time.

Shari Hellerman: I would like to thank everyone for joining us this morning. Please feel free to reach out to me with any follow-up questions. Have a great day.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.