TRN

• Market Environment • The broader rail market is in a clear turning upward, with positive manufacturing PMI for six consecutive months, improving year-over-year industrial production, and growing car load volumes across agriculture, energy, and industrial construction segments • Agricultural car loads have been particularly strong, supported by soybean demand and growing ethanol production; railcars in storage have held below 20% for four consecutive months, and new railcar inquiry levels are strong • Durable structural trends including rail's higher fuel efficiency relative to trucking, over-the-road trucking capacity constraints, and growing pressure to reduce supply chain carbon footprints are driving increased freight demand toward rail

• Strategic Developments • Completed the Napier Park partnership transaction, unlocking $132 million in pre-tax non-cash gains by selling the remaining ownership stake in the Tribute fleet, which now moves to Trinity's managed fleet; the transaction simplifies the balance sheet, demonstrates embedded value in Trinity's fleet, and converts hard asset value to shareholder returns • Acquired a 32% interest in TTRL, a new Indian railcar leasing joint venture with 2X Group and Tex Mako Rail; Trinity contributes leasing expertise to gain exposure to the fast-growing Indian rail market, with no material P&L contribution expected in 2026 as the JV completes fleet build-out • Amended and extended the $600 million corporate revolving credit facility for additional financial flexibility, and issued new secured railcar equipment notes to redeem outstanding 2019-series notes

• Operational Updates • The Longview manufacturing facility consolidation and automation project (transitioning from two facilities to one) is expected to be completed in early 2027; while long-term operational improvements are expected, the transition has created temporary productivity headwinds

• Maintains full-year 2026 EPS guidance at $2.20 to $2.40
• Expects total 2026 industry railcar deliveries of 25,000 units, which remains well below industry replacement levels
• Maintains full-year Rail Products segment operating margin guidance at 5% to 6%, with results expected to land at the lower end of this range as production normalizes in the second half of 2026
• Expects Rail Products deliveries in the second half of 2026 to be higher than in the first half, which will deliver operating leverage to support margin recovery
• Reduced full-year net lease fleet investment guidance to a range of $300 million to $400 million, down from prior expectations, and maintains expected full-year portfolio gain guidance at $160 million to $180 million; year-to-date $162 million in gains have already been booked, so only limited secondary market sales are expected in the second half
• Management anticipates a step-up in 2027 industry railcar deliveries to approximately 35,000 units from 2026's expected 25,000 units

Tr Industries operates two core business segments: 1. Leasing and Services: Total quarterly revenue decreased year-over-year due to deconsolidation of the Napier Park fleet after the completed partnership transaction, which reduced the size of the wholly owned consolidated fleet. As of quarter-end, the wholly owned fleet stands at 96,280 railcars, with an additional 50,650 investor-owned managed railcars. Fleet utilization held steady at 97.3%, renewal success rates improved to 75% (up from 60% in Q1 2026), and future lease rate differential (FLRD) increased to positive 3.5% (up from 1.2% in Q1 2026). Including the $132 million non-cash pre-tax gain from the Napier Park transaction, the segment operating margin was 79.8%; excluding this gain, operating margin was 33%, impacted by higher maintenance, depreciation costs, disposal charges from exiting certain logistics locations, and the smaller consolidated fleet. The segment completed $31 million in portfolio sales in Q2 2026, generating $8 million in pre-tax gains. 2. Rail Products: Quarterly revenue was slightly down year-over-year driven by lower deliveries. The segment received 1,560 new railcar orders, delivered 1,570 railcars, and ended the quarter with a $1.6 billion backlog, holding just under 50% of total industry backlog with a book-to-bill ratio just below 1. Operating profit margin came in at 1.3%, 270 basis points below expectations due to an unplanned production interruption at the Longview manufacturing facility and temporary realignment expenses for the Mexico manufacturing footprint. Excluding these items, underlying operating margin was ~4%.

• Unplanned production interruption at the Longview manufacturing facility following a workplace fatality created significant temporary margin headwinds in Q2 2026, and safety process improvements are being implemented
• New 25% tariffs on imported tank cars under amended Section 232 investigations have slowed new tank car order rates as customers wait for regulatory clarity; Trinity is waiting for a formal ruling on its claimed exemption from tariffs for North American manufactured tank cars under USMCA
• Temporary Mexico manufacturing realignment created additional unexpected margin pressure in Q2 2026
• Regulatory uncertainty around Section 232 tariffs is causing potential customers to delay placing new tank car orders, which could impact 2027 order volumes if clarity is not provided soon

Q: How do the new Section 232 tariffs on imported tank cars impact Trinity, what is Trinity's exemption status, and can costs be passed to customers? / A: Trinity manufactures all tank cars in North America under USMCA and has filed a formal ruling request for a Section 232 exemption, which Trinity believes is legally well-founded. Trinity has domestic production capacity to shift production if needed, is not involved in a separate ongoing coupler import evasion investigation (all Trinity couplers are sourced from US manufacturers), and tariffs have already slowed new tank car order rates. Most customer contracts include tariff escalation clauses, so any applicable tariffs would be passed through to customers. The tariff uncertainty primarily impacts 2027 order volumes, not the back half of 2026.

Q: What caused the Q2 2026 rail product margin shortfall, and will margins recover in the second half? / A: The majority of the 270 basis point margin shortfall came from an unplanned production interruption at Longview following a tragic workplace fatality, with the remaining impact from temporary Mexico production realignment. Margins will recover in the second half due to expected higher delivery volumes that will generate operating leverage to offset Q2 costs. Management does not expect a repeat of the Q2 disruption, and full year 2026 margin is still guided to the low end of the 5% to 6% range with no large quarter-over-quarter swings expected in the second half.

Q: Why is full year 2026 guidance maintained after lower-than-expected Q2 rail product profits? / A: Guidance is maintained because Q2 headwinds are temporary and expected to be offset by significantly higher deliveries and operating leverage in the second half. Management only moved to the lower end of the existing 5% to 6% rail margin guidance range rather than lowering the range entirely, and the leasing segment continues to perform in line with expectations. Limited additional secondary market gains are expected in the back half, which is already accounted for in the maintained guidance range.

Q: What is driving the improvement in future lease rate differential (FLRD) to 3.5%, and what is the outlook for FLRD going forward? / A: FLRD improvement is supported by sustained high fleet utilization, increased renewal success rates that rose to 75% in Q2, and ongoing inflation and rising material costs that create headroom for further lease rate increases. Quarterly FLRD can fluctuate quarter to quarter based on car type mix, but management expects continued upward headroom for lease rates moving forward.