GATX

GATX is a global lessor of railcars, aircraft spare engines and other transportation assets — a long-duration, contract-backed business that compounds through lease rates, fleet utilization and disciplined asset acquisition. The track record is consistent: revenue grew 9.8% to $1.74B and net income rose 17.3% to $333M (a 19.2% net margin), continuing a steady multi-year climb from $143M in FY2021. Operating cash flow of $648M (+7.6%) supports a reliable dividend ($89.8M, +5.9%) and increased buybacks ($65M). Returns are solid at a 12.1% ROE.

The defining FY2025 event is a large fleet expansion: total assets jumped 46.4% to $18.0B and long-term debt rose 51.2% to $12.5B, lifting leverage to 5.22x liabilities/equity. For an asset-leasing company, high leverage against long-lived, cash-generative leased assets is the normal model, and management built cash to $743M (+85.0%) alongside it. But the step-change in debt does raise the stakes — the acquired assets must be leased at satisfactory rates to earn their cost of capital, and refinancing exposure grows in a higher-rate environment.