TRN

Trinity Industries, Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

Is TRN Halal?

Railcar manufacturing is permissible, but the large leasing and finance structure fails the current debt screen and is a conservative activity-screen failure.

What You Should Know

Trinity manufactures railcars and operates a large leasing-and-services platform. Its March 31, 2026 Form 10-Q reports $8,330.7 million of assets, $5,382.3 million of recourse and non-recourse debt, $132.6 million of cash and $326.1 million of receivables. Debt/assets is 64.61%, above every examined asset-based limit; liquidity/assets is 1.59% and receivables-plus-cash/assets is 5.51%. The filing separately reports $0.3 million of interest income on sales-type lease receivables, but the broader leasing and finance-income structure remains the binding qualitative issue.

⚠️ Concerns

  • Debt/assets is 64.61% ($5,382.3 million / $8,330.7 million), above the examined limits
  • Recourse and non-recourse debt fund the leasing platform
  • Sales-type lease receivables and finance income require school-specific treatment
  • Railcar manufacturing does not offset the conservative leasing activity failure
  • Re-screen after a newer filing or a material portfolio, debt or leasing change

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.

USD · millions
Interest-bearing debt / assets
64.61%Above limit
Below 33.333% under FTSE Yasaar

5,382.3 / 8,330.7

Cash + interest-bearing securities / assets
1.59%Within limit
Below 33.333% under FTSE Yasaar

132.6 / 8,330.7

Receivables + cash / assets
5.51%Within limit
Below 50% under FTSE Yasaar

458.7 / 8,330.7

Non-compliant income / revenue
0.06%Within limit
No more than 5% under FTSE Yasaar

0.3 / 492

FTSE Yasaar
v4.6, February 2026
Financial
Fails
Overall
Fails

Debt/assets is 64.61%, above the examined 33.333% limit; liquidity/assets is 1.59%, receivables plus cash/assets is 5.51% and disclosed lease-receivable interest income is 0.06%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 64.61%, above the examined 33.33% total-assets limit; the leasing-heavy activity screen also fails conservatively.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 64.61%, above the examined 33% limit; this is not an official SAC classification and the leasing activity screen fails conservatively.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Fails

A licensed historical market-cap series is not stored; the asset-based debt screen and conservative leasing activity screen already fail.

Business-activity disclosure

Trinity manufactures railcars but also operates a large leasing and services platform funded by recourse and non-recourse debt. The leasing and sales-type finance structure is a material conventional-finance concern for the activity screen.

Limitation: The filing does not provide a scholar-approved universal prohibited-income numerator for every lease, finance receivable or customer contract; the documented leasing structure is treated as a conservative qualitative failure in the overall result.

Purification

The filing discloses $0.3 million of interest income on sales-type lease receivables, but the broader leasing and finance-income treatment is not reduced to a fixed scholar-approved purification percentage.

Inputs, assumptions and primary sources
  • Amounts are USD millions from Trinity Industries' March 31, 2026 Form 10-Q.
  • Debt combines $598.6 million of recourse debt, $4,516.7 million of wholly-owned subsidiary non-recourse debt and $267.0 million of partially-owned subsidiary non-recourse debt.
  • Cash and cash equivalents are $132.6 million; restricted cash of $120.0 million is not added to unrestricted cash or securities.
  • Receivables, net are $326.1 million and consolidated quarterly revenue is $492.0 million.
  • The filing separately reports $0.3 million of interest income on sales-type lease receivables; leasing and finance income is a material qualitative issue.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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