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DATE

Thursday, May 7, 2026 at 11 a.m. ET

CALL PARTICIPANTS

  • President and Chief Executive Officer — Robert C. Lyons
  • Executive Vice President and Chief Financial Officer — Thomas A. Ellman
  • President, Rail North America — Paul F. Titterton
  • Head of Investor Relations — Shari Hellerman

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TAKEAWAYS

  • Diluted EPS -- $2.35, compared to $2.15 in the prior-year quarter, with performance characterized as in line with expectations.
  • Rail North America Fleet Utilization -- 98.1% at quarter end, reflecting the combined legacy and Wells Fargo fleet integration.
  • Wells Fargo Fleet Integration -- Integration completed successfully with customer feedback described as "very positive" and original SG&A headcount targets confirmed as on track.
  • Renewal Success Rate -- 79.1%, guided as consistent with management's forecast for the period.
  • Lease Price Index Renewal Rate Change -- 22.3%, with average renewal term of 56 months.
  • Railcars Placed from Trinity Supply Agreement -- Over 8,400 railcars placed, with the next available scheduled delivery in 2026.
  • Gains on Asset Dispositions -- Approximately $50 million generated in the quarter, driven by secondary market strength.
  • Rail International Fleet Utilization -- 94.7% at quarter end, unchanged from the previous quarter, with demand steady despite macroeconomic pressures.
  • GATX Rail India Fleet Utilization -- 100% at quarter end, attributed to policy support and economic growth.
  • Engine Leasing Operating Results -- Segment profit guidance reiterated at $180 million to $185 million for the year.
  • RRPF (Rolls-Royce Joint Venture) Earnings Driver -- Lower contribution in the quarter, explicitly linked to the timing of remarketing activity and not broader market forces.
  • Customer Base Expansion -- About 300 new customer accounts added as a result of the Wells Fargo fleet acquisition, raising the total customer base well above 1,000.
  • Noncontrolling Interest (NCI) Impact -- Net positive in the quarter, with low asset disposition gains expected to increase throughout the year.
  • Maintenance Expense Guidance -- Target unchanged at approximately $500 million for the full year, with the first quarter annualized rate below that amount.
  • Gains on Dispositions Guidance -- Management affirmed expectations for $200 million in gains, with $130 million from wholly owned assets and $70 million from the joint venture.
  • Wells Fargo Acquisition Financial Impact -- Management reaffirmed earlier full-year net earnings contribution guidance of $0.20 to $0.30 per share.

SUMMARY

Management confirmed that all first-quarter operating and financial metrics aligned closely with internal forecasts, including segment results and the impact of the Wells Fargo fleet integration. Executives emphasized that gains on asset dispositions will remain weighted toward the remainder of the year, with minimal first-quarter contribution from the joint venture. Flat or steady utilization rates were reported across all rail segments, with no material deterioration attributed to recent geopolitical events or macroeconomic stress. Management highlighted that North American fleet supply-demand dynamics remain favorable due to limited new car additions and accelerated retirements, resulting in net fleet shrinkage. Future variability in earnings was specifically linked to the timing of remarketing activity for both rail and engine leasing units.

  • Executives stated, "there have been zero surprises" during integration of the Wells Fargo fleet, with employee onboarding and operational transition completed smoothly.
  • The lease renewal success rate was described as consistent with long-term historical performance and prior guidance, not as a sign of market weakness.
  • Management did not cite any inflationary or cost pressure on maintenance above previously indicated levels, attributing quarter variability to typical operational noise.
  • The company disclosed that roughly two-thirds of the total North American fleet has been repriced in the current favorable lease rate environment, with additional upside potential as more cars renew.
  • Executives affirmed that acquisition synergies and overall financial effects from the joint venture remain "on target" with previously issued forecasts.
  • Reinvestment and secondary market selling strategies remain opportunistic, with no change to the approach for procurement or fleet management as a result of recent transactions.
  • Engine leasing results were influenced primarily by normal fluctuations in remarketing income rather than by external shocks, with recurring guidance that markets remain supportive.

INDUSTRY GLOSSARY

  • Lease Price Index (LPI): A proprietary GATX metric measuring the weighted average percentage change in lease rates on railcar renewals, relative to prior leases for the same railcars.
  • RRPF (Rolls-Royce & Partners Finance): GATX’s joint venture with Rolls-Royce, engaged in aircraft engine leasing and remarketing.
  • Noncontrolling Interest (NCI): The portion of net earnings attributable to minority interests in consolidated joint ventures, particularly GATX’s share in the Wells Fargo Rail joint venture.

Full Conference Call Transcript

Earlier today, GATX Corporation reported 2026 first quarter diluted earnings per share of $2.35. This compares to 2025 first quarter diluted earnings per share of $2.15. I will briefly address each of our business segments. After that, we will open the call up for questions. Despite heightened macroeconomic uncertainty, our businesses delivered results in line with expectations in the first quarter. At Rail North America, demand for railcars in the existing fleet remained steady. As noted in the earnings release, starting this quarter, Rail North America metrics and statistics reflect the combined legacy fleet and the Wells Fargo fleet. At the end of the first quarter, Rail North America's fleet utilization was 98.1%.

This was consistent with our expectations given the inclusion of the Wells Fargo fleet, which was at 96.5% utilization entering 2026. Renewal activity remains strong. The renewal success rate was 79.1%, and we continue to achieve lease rate increases while extending term. The renewal rate change of GATX Corporation's Lease Price Index was 22.3%, and the average renewal term was 56 months. With a little over two-thirds of the combined fleet repriced in the current favorable lease rate environment, we see meaningful runway to enhance financial performance across the remaining fleet. We continue to successfully place new railcars from our committed supply agreement with a diverse customer base.

Through the first quarter, we have placed over 8.4 thousand railcars from our 2022 Trinity supply agreement. Our earliest available scheduled delivery under the supply agreement is in 2026. Additionally, supported by a robust secondary market, we generated about $50 million in gains on asset dispositions in the quarter. At Rail International, railcar demand in Europe remained steady despite ongoing macroeconomic pressure in the region. Fleet utilization at the end of the first quarter was 94.7%, unchanged from the prior quarter. In India, policy support and economic growth continue to drive strong demand for railcars. GATX Rail India's fleet utilization remained at 100% at quarter end.

Within engine leasing, our joint venture with Rolls-Royce and our wholly owned engine portfolio produced excellent operating results in the quarter. Lower earnings at RRPF compared to the prior-year quarter were driven by the timing of remarketing activity, which, as we have discussed, can be lumpy from quarter to quarter. Demand for aircraft spare engines remains strong, supported by resilient global passenger air travel, though we continue to closely monitor the evolving geopolitical environment and its potential impact on air travel trends. With that quick overview, we will now open the call for questions.

Operator: We will now open the call for questions. Your first question comes from the line of Andrzej Zenon Tomczyk with Goldman Sachs. Please go ahead.

Andrzej Zenon Tomczyk: Awesome. Thanks, operator, and good morning, everyone. Thanks for taking my questions. I was just curious, starting off with the integration of the Wells Fargo fleet and the recent deal, I wanted to dig a little deeper on how integration is going there, if you are able to share any milestones or updates there. And then just a reminder on how we should think about synergies in 2026 and 2027?

Robert C. Lyons: Sure, Andrzej. I will take that one to begin with. First of all, the integration is going very well, probably ahead of where we anticipated we would be today. As we noted back in January, we did the cutover of all of the fleet data in one step on January 1, and that was a major undertaking and it was very successful. We have onboarded a number of new employees, many from Wells Fargo. We are thrilled to have them here with us, and the original headcount numbers that we laid out and the expectations for that incremental SG&A are all in line. From a customer perspective, the reaction has been very positive.

Anytime there is a change of this magnitude, there are always things to work through, like contract structures and billing and cash distributions, etcetera, and we are addressing issues as they come up, but there have been zero surprises. On top of that, we have added about 300 new accounts through the acquisition—new customers—bringing our total customer base well over 1 thousand, and many of those are companies we have done business with before in the past. We know who they are, and they are all in industries that we know really well, so the learning curve was not very steep. By and large, the largest customers in the portfolio are names that we know very well.

As I laid out back in January, the full-year impact of the joint venture would be somewhere in the $0.20 to $0.30 range, and we are certainly on target for that.

Andrzej Zenon Tomczyk: Great. Thanks. And as a follow-up, do you believe there will be more consolidation in the leasing space over the medium term? Or is it the case that most of the major players are set in a good place at this point? And maybe just broadly, how you are assessing competition in the space and how that shows up in bidding activity of late, whether that is on the buy or sell side.

Robert C. Lyons: I would not want to speculate on other potential transactions or consolidation in the marketplace. That is difficult for us to predict, and given the size and scale we are at today, we are really focused on making sure we maximize the returns on our portfolio. It is a competitive market—that is not going to change. There are a number of big full-scale lessors that we compete with on a regular basis, and then there is a far lengthier list of institutions that have fleets in the sub-100 thousand, sub-50 thousand railcar range that are extremely active in the marketplace.

We see them often when we compete for transactions in the secondary market—other portfolios that get offered—and they are very active buyers of GATX Corporation's assets. We saw that in this quarter, and we expect to see it through the full year where that secondary market is incredibly robust. Capital continues to flow into this market. A lot of people recognize the value proposition that owning railcars presents, and so we are seeing a lot of interest in our secondary market offering.

Andrzej Zenon Tomczyk: Understood. And in terms of the overall GATX Corporation North America consolidated fleet now, where do you see that overall fleet in three to five years from now? If you could share how you are thinking about adds versus selling or scrapping of the fleet over the near to medium term. Historically, you have balanced out your fleet between what you add and sell over a given period. Should we think the same way going forward—that it is largely flattish for the foreseeable future?

Paul F. Titterton: Just from normal fleet activity, I would say that is a fair assumption.

Robert C. Lyons: Right now, obviously, if we see opportunities to buy additional railcars in the secondary market or direct new cars, we will do that, and same on the sell side. We are always looking for the best way to generate the most attractive return for our shareholders and optimize our portfolio. So we are always going to look at buy and sell opportunities, but from a forecasting and budgeting standpoint, I would start in the same place we do, which is keeping the fleet generally in the same car count where we are at today.

Andrzej Zenon Tomczyk: Got it. And then just one more for me on leasing. One of your peers recently indicated that they believe the market value of their fleet is 35% to 45% above its book value. I was just curious if GATX Corporation has assessed that same metric in terms of market value versus the book value of your lease fleet. And I know you have the engine leasing as well—maybe possibly break those out. However you think about it—just curious if you had any thoughts there.

Thomas A. Ellman: Andrzej, this is Tom. We are very active in the secondary market in both the North American rail market and the aircraft engine leasing market. You can see from the consistent returns that we deliver—if you look over the last decade, we have averaged over $70 million a year in gain on sale of assets—so clearly, there is a lot of value there. A theoretical quantification probably does not provide a ton of value since we see it in a very practical way when we receive actual cash for the assets we sell.

Robert C. Lyons: I would just add to that, too. As I mentioned previously, a lot of capital over the last 10 or 15 years has come into the railcar leasing space. We continue to see it, and while we have to deal with that from a competitive standpoint from time to time, we understand the logic. These assets are tremendous stores of value. They generate outstanding, very high-quality cash flow over very long periods of time, and they are attractive assets to own for a lot of different types of institutions.

So yes, we do think about that, and we try to optimize that when we are both buying—in the most disciplined manner we can—and also optimizing the fleet and taking opportunities to sell assets to others.

Andrzej Zenon Tomczyk: Understood. And then just last for me, shifting to engine leasing. Are there any incremental thoughts related to the airline industry capacity impacts into your engine leasing business with Spirit now going away? And also, broadly, in the geopolitical and elevated commodity price environment, is that impacting lease rates at all? And then I think the engine leasing affiliates were down year over year. As you mentioned, I am curious what drove that and if you expect engine leasing affiliates to be back to year-over-year growth in the near term?

Thomas A. Ellman: Yes, Andrzej, I will start with the back half of your question first and then come back to the front half. Income from operations in the engine leasing business was actually up year over year, and that was due to more engines on lease at higher lease rates. As those of you who have followed us for a while know, remarketing income in the engine leasing business can be very lumpy, and indeed, it was very lumpy in the first quarter. The remarketing income as a percent of earnings from the joint venture was less than 10% in the first quarter.

Over the last couple of years, it has been about a third of our total earnings, and indeed, last year it was around a third. But if you looked at quarter-to-quarter variations last time, it was between about 15% on the low end and almost 70% on the high end. So it can move quite a bit quarter to quarter. We expect when the year is over, it will be generally consistent with what we have seen historically.

So the first quarter driver of what was a little bit lower quarter than we have seen the last couple was less remarketing income, but I want to be very clear that is unrelated to what is going on in the world right now. It is still a very strong market for remarketing of that asset class, and we just expect that first quarter is normal variation in what is historically very lumpy. As far as the first part of your question, as I mentioned, through the first quarter the business performed very well. There continue to be strong supply-demand dynamics in the industry.

There is a lot of demand for our engines, and we expect that to continue going forward. Having said that, obviously there is a lot going on in the world right now, and we will continue to watch and monitor the situation.

Robert C. Lyons: If you look at the income contribution from RRPF—the joint venture—over the course of the last many years and try to identify a pattern quarter to quarter in earnings, you would find there is no pattern. It can move pretty dramatically each quarter. At the beginning of the year, I said we expected segment profit in engine leasing to be in the $180 million to $185 million range, which was up from 2025, and we still expect that.

Andrzej Zenon Tomczyk: Thanks, Bob and Tom. Appreciate the time and thoughts this morning.

Operator: Your next question comes from the line of Ben Moore with Citigroup. Please go ahead.

Ben Moore: Hi. Good morning. Thanks for taking my questions. Congrats on the beat. I wanted to ask for some clarification on your NCI line. It looks like it has added to net income versus subtracting a net loss. Presumably, this is the amount left out going to Brookfield. I wanted to see whether that should reverse to be a subtraction from net income in future quarters.

Thomas A. Ellman: Ben, there are two parts to that question that I want to hit. First, if you go back to the guidance that Bob provided, it was the total impact of the Wells Fargo Rail transaction. So in addition to what is going on in the joint venture itself, you need to look at the management fees that are earned and the incremental SG&A that GATX Corporation takes on. When you take those items into consideration, the first quarter was a net positive, all of those combined. Importantly, that was with very low asset disposition gains from the joint venture.

Bob mentioned at the beginning of the year that we expected those gains to be about $70 million over the course of the year. In the first quarter, it was about $2 million, and that was expected. We expected that we would not do a lot of asset sales in the very first quarter as we focused on integration, but we continue to expect to do that over the course of the year. So, again, reiterating, total impact in the quarter was positive, and it should be more positive going forward as we do some of those asset sales.

Ben Moore: Appreciate that. And very good print on the LPI, in my opinion—the 22.3% relative to your full-year guide of high teens to 20%. We were coming in around 20% for the quarter, so a nice beat. Would you say this is indicative of more sustained strength and catch-up renewal rate gains to be expected over the next couple of years, or is this somewhat high based on lumpiness just for this quarter?

Paul F. Titterton: Ben, this is Paul. The North American rail market continues to be supportive of solid performance in our business. The same supply-demand dynamics that we have talked about for a number of quarters now continue to persist, which is to say that we are not seeing a lot of new cars enter the market, and high scrap prices are causing a lot of older cars to exit the market. That is causing net fleet shrinkage across the North American rail fleet, and that is very favorable for us in terms of maintaining utilization and maintaining pricing. Overall, we have said for a while the environment is supportive. We continue to see that supportive environment.

We do not talk about specific guidance beyond the current year. We feel very comfortable with the LPI guidance we provided for the full year.

Ben Moore: Great. Thank you for that, Paul. Next, I would like to ask about your renewal success rate. That is now in the high 70s from the mid-80s average from last year. You had noted 4Q was a step up based on intra-quarter lumpiness. Would this high 70s indicate some impact from the Iran conflict, or is it just a step down in the quarter and we should expect it to come back to the mid-80s average going forward?

Robert C. Lyons: Ben, I will start, and then Paul will add to that. Coming into the year, back in January, when we gave guidance on the LPI and a host of other metrics, we also provided one for the renewal success rate. At that point, I said it would, in all likelihood, be in the high 70s to low 80s. That was our expectation coming into the year. The roughly 91% that we achieved in the fourth quarter—and in my 30 years at GATX Corporation, I have never seen one with a nine in front of it—around 80% is pretty typical if you took a very long-term average.

That is what we guided to, and that is where we came in for the quarter.

Paul F. Titterton: You asked about any impact of the Iran conflict, and while we all express concern, overall we are not seeing any significant deterioration in market conditions for leased railcars across North America. If you look at the first quarter, I would not say we have seen significant impacts in the business so far, broadly speaking.

Ben Moore: Okay, great. Next, I would like to ask about the higher-than-expected step down in your ending balance of combined North America rail railcars. It looks like the 98 thousand added would be the Wells, which is a somewhat dramatic step down from the 100 thousand that they started with, and also higher scrapping and higher sold in this quarter. What were the puts and takes there? Why was the add 98 thousand versus 100 thousand?

Paul F. Titterton: Thanks, Ben. You have to also include the boxcar fleet, which we report on separately from the overall fleet, which is just under 10 thousand cars at the end of the quarter. That is part of it. Broadly speaking, additions and subtractions from the fleet in the first quarter were more or less as expected. The answer to most of the questions on this call is that things have gone more or less as expected since the acquisition of the Wells Fargo fleet.

Robert C. Lyons: If you took the 98 thousand on the non-boxcar fleet and then roughly another 3 thousand-plus on the boxcar side, that gets you to the 101 thousand that we talked about back in January when the transaction closed.

Ben Moore: Great. Appreciate that. One last one from me. A pretty remarkable step down in North America maintenance expense—it looks like 27.6% of revenue. We were at 31%, assuming the qualification test would keep it more elevated. How should we think about that going forward—should maintenance expense as a percentage of revenue revert back up to around 30% from last quarter, or have you taken steps, and we are seeing more cost synergy realization?

Paul F. Titterton: In any given quarter, there can be noise in maintenance. We are standing by the full-year guidance we gave for maintenance. I would not read too much into the performance specifically in the first quarter, so we are sticking to the overall full-year guide on maintenance.

Robert C. Lyons: That guide was in the range of $500 million. If you annualized the first quarter, you would come out a little less than that—more in the $485 million range—but as Paul mentioned, things can move around a little bit from quarter to quarter. For the full year, we still expect to be right in the range we previously guided to.

Ben Moore: Great. Thanks so much for the time and for taking my questions.

Operator: Your next question comes from the line of Harrison Bauer with Susquehanna. Please go ahead.

Harrison Bauer: Great. Thanks for taking my questions. To follow up on the LPI, I want to confirm that it is on the entire North American fleet and not just the legacy fleet. And then building off of that, could you walk through any differences that you are seeing in repricing on your legacy versus the Wells fleet as it relates to bringing up the profitability of a lot of that newer fleet that you have brought on? Thank you.

Paul F. Titterton: The LPI for Q1 does not include any material impact from the acquired Wells Fargo fleet. Going forward, over time, more and more of the Wells Fargo fleet will be included in the LPI. Even with that in consideration, the full-year guidance we provided of high teens to low 20s remains the guidance we are providing.

Harrison Bauer: Okay. That is helpful. Taking a step back longer term, at the recent RAF conference you outlined a fairly credible case of railcar production potentially being lower for longer for at least the medium-plus term. As you already have an avenue to growing your fleet through owning more of the Wells portion of this JV going forward, can you update your views on your long-term supply agreement with some of the railcar manufacturers? Do you expect a difference in buying new versus used? And general updates on how you expect to replenish your fleet over time.

Paul F. Titterton: Broadly speaking, nothing about the Wells Fargo acquisition has changed our long-term view of supply, which is we are going to continue to buy railcars in a variety of different ways. We will have our programmatic multiyear supply agreements, we will buy in the spot market, and we will buy in the secondary market. That broad, diverse approach to procurement will continue to be the case. We will not comment on any specific procurement efforts, but we would expect that going forward those same three prongs will apply.

We are aware that we are in the midst of a current long-term supply agreement, which we will continue to perform on, and then eventually we will replace that with a subsequent agreement when that runs out. Nothing has changed in terms of our overall fleet procurement strategy.

Harrison Bauer: Understood. Building off the secondary market discussion, gains came in fairly strong in the quarter, in line with expectations. You mentioned that the Wells fleet was not a large contributor. Can you give any sense of your assessment of the secondary market—quantity versus pricing or gains per railcar—how we should be expecting that going forward? Do you think that a lot of the secondary market has been traded through at elevated asset prices and therefore might be a bit of a headwind to gains as you look out to 2027?

Robert C. Lyons: I will start by reiterating what the guidance was coming into the year on gains on dispositions, which was in the range of $200 million, and we still expect that to be the case. As we said at the beginning of the year, we expected that to be split about $130 million on the GATX Corporation wholly owned side and about $70 million from the joint venture. As Tom mentioned, we really have not started that sale process for assets out of the joint venture. That will come in the latter three quarters of the year, and we still believe we will be right in that $70 million range.

Paul F. Titterton: The overall activity remains very robust. There is a lot of capital that wants to invest in railcars—that continues to be the case. Because we are in such a muted new railcar environment, really the only place that capital can flow is into the secondary market. For us as a seller, that is a very nice position to be in, and we see a very eager universe of buyers we are transacting with. You asked about gain per car and that sort of thing.

We are opportunistic sellers in the sense that we are going to go where the relative value is most attractive to us, and that could be older cars or newer cars; it could be more expensive cars or less expensive cars. There is no particular metric I could give you in terms of specifics. We will seek the highest economic value as we sell, and we have been very good at that, but that means what we sell and to whom we sell will be eclectic, depending on where the opportunities are.

Robert C. Lyons: As we talked about back in January, now with 2x the fleet that we had previously, we have a lot more options—a lot more ways to go to market to meet that demand from those secondary market buyers—so we are in a very good spot.

Harrison Bauer: That is it for me today. Thank you for the time, guys.

Operator: Your next question comes from the line of Brendan Michael McCarthy with Sidoti. Please go ahead.

Brendan Michael McCarthy: Great. Good morning. Thanks for taking my questions. Just two quick questions from me. You mentioned the lease economics continue to support a nice positive LPI for you, right in line with expectations. I noticed the average renewal term has stepped down sequentially a little bit, quarter over quarter. Can you discuss general lease renewal conversations and how those have evolved in the past quarter? Are you making any concessions on lease term or price?

Paul F. Titterton: That is largely noise at this point. Every renewal conversation is different. We are not seeing any significantly negative trend in terms of achievable lease term. Some of it may be related to the fact we have a different fleet mix now after adding the Wells Fargo fleet, and in different car type markets, the market term may differ. Some of this may just be mix. If I sound like I am speculating, I am, because we are just in the beginning of digesting this fleet. Broadly speaking, I feel pretty confident that, for the most part, what you are looking at is noise.

Brendan Michael McCarthy: Got it. That makes sense. Looking at guidance—your 2026 full-year EPS—now that we are one quarter through the year, what at this point would cause your EPS to come in at the lower end of that range versus the higher end?

Thomas A. Ellman: Purely in terms of what drives near-term variability, the biggest one is remarketing—either in Rail North America or at the Rolls-Royce joint venture. Having said that, as we have noted several times, both those markets are very strong. The variability is almost always timing—you cannot always predict exactly what quarter things will close. We also mentioned last quarter that Rail North America has a big maintenance spend, and Bob reiterated today that we think it will be close to $500 million. Even a relatively small change there can be impactful and can show up.

Importantly, we are assuming no material disruption to the global economy in general or the global aviation market in particular—and in particular there to the wide-body, long-haul routes. To date, we have not seen material impacts, but we will continue to closely monitor the situation in the world and in the Middle East.

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

Operator: Your next question comes from the line of Justin Laurence Bergner with Gabelli Funds. Please go ahead.

Justin Laurence Bergner: Good morning, Bob, Tom, Paul, and Shari. It is a pity that Bloomberg misstated or perhaps overstated consensus expectations for the quarter, but it looks like a strong start to the year regardless. I wanted to kick off my questions regarding guidance and the components therein. Has anything changed? Was Rail International stronger than you expected, or was that just a function of a light first quarter comp in 2025?

Robert C. Lyons: Justin, thank you for the question, and thank you for the opening comment. As far as the overall mix of the elements that drive full-year guidance, the first quarter was very much in line with what we expected as we clicked through every single key element that drives that guidance. We look through where we were at in the first quarter—whether it is lease revenue, gains on disposition, gross maintenance, segment profit at Rail International—everything fell very close to in line. At this point, not a lot of variance from what we expected, and the quarter played out very much the way we expected. I will turn it to Tom if he has anything he wants to add.

Thomas A. Ellman: Bob did a great job. As Paul said earlier, the recurring theme is that things are laying out according to our expectations. If you went back and pulled up Bob's opening comments from last quarter and ticked through things, you would see that it is very much in line.

Justin Laurence Bergner: Great. That is helpful. You mentioned maintenance moves can change financial performance. Are you seeing any pressures on maintenance beyond what you may have thought coming into the year from inflationary forces?

Paul F. Titterton: The short answer is no. By and large, there is noise in the first quarter as there often is, but from a maintenance standpoint, the year is playing out about as expected. We continue to be able to support our existing guidance for that reason.

Justin Laurence Bergner: That is helpful. Lastly, if I focus on the Wells JV—excluding the management agreement—and I look at that noncontrolling interest line, what will cause that to become not a source of income but a source of expected cost as the year progresses, besides higher gains on sale? What else would cause that negative $6.4 million to become closer to breakeven and potentially positive?

Thomas A. Ellman: Justin, the NCI number indicated a loss for the first quarter, and the key reason for that, as noted earlier, was relatively de minimis amounts of asset disposition gains. That really is the key item. If you look at what revenue was for the JV compared to what we expected it to be—very similar. The expense line—very similar. That is not surprising because, just like the GATX Corporation legacy fleet, most of the railcars in the fleet in a given quarter—nothing happens to them. They do not renew; they do not expire. Similarly, the maintenance expectation for a large number of cars is fairly straightforward.

Those are the items you could look for to change, but much like the general question on what could drive overall change, the biggest one would be if that $70 million did not happen. As you look for other potential sources, there is a big gap between the impact of what those might be and that very first one of asset disposition gains.

Justin Laurence Bergner: Thank you. That is it for me. Appreciate it.

Operator: That concludes our question and answer session. I will now turn the call back over to Shari Hellerman for closing remarks.

Shari Hellerman: I would like to thank everyone for their participation on the call this morning. Please contact me with any follow-up questions. Have a great day.

Operator: Thank you. Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.