In the first quarter of 2024, Ryder reported total revenues of $3.1 billion, representing a 3.3% year-over-year increase, driven by strong performance across its segments. The company's adjusted operating revenues rose to $2.5 billion, reflecting 6% year-over-year growth, recent acquisitions and contractual revenue growth, partially offset by lower commercial rental revenues in Fleet Management Solutions. Key Risks Shares of R have rallied 45.4% in the past year compared with its industry's growth of 37% in ...

In Q1, Joe's revenue surged 20% to $87.8 million as people flocked to their communities. The company's hospitality segment shone, with revenue jumping 60% to $39.3 million as hotel rooms and club memberships swelled. Residential real estate also stayed hot, with revenue up 10% as average selling prices surged. The company's Hospitality and Commercial segments are actually responsible for most of St. Joe's revenue, and this growth is accelerating. On the date of publication, Omor Ibne Ehsan did not hold (eit ...

It has been about a month since the last earnings report for Ryder (R) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Ryder due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Earnings Beat at Ryder in Q4 Ryder's first-quarter 2024 ea ...

PART I. FINANCIAL INFORMATION [ITEM 1. Financial Statements (unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q1 2024, showing decreased net earnings and EPS, increased assets and long-term debt, and higher investing cash outflows from acquisitions [Condensed Consolidated Statements of Earnings](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) Net earnings and diluted EPS decreased in Q1 2024 despite a 5% revenue increase, driven by lower earnings, reduced used vehicle gains, and higher interest expenses Condensed Consolidated Statements of Earnings (in millions, except per share) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Services revenue | $2,038 | $1,821 | 11.9% | | Lease & related maintenance and rental revenue | $936 | $979 | (4.4%) | | Fuel services revenue | $124 | $152 | (18.3%) | | **Total revenue** | **$3,098** | **$2,952** | **5.0%** | | Used vehicle sales, net | $(20) | $(72) | (72.2%) | | Interest expense | $92 | $65 | 41.5% | | Earnings from continuing operations before income taxes | $114 | $201 | (43.3%) | | Provision for income taxes | $29 | $61 | (52.4%) | | Earnings from continuing operations | $85 | $140 | (39.3%) | | **Net earnings** | **$85** | **$139** | **(38.8%)** | | Diluted EPS (Continuing operations) | $1.89 | $2.95 | (35.9%) | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly decreased in Q1 2024 due to lower net earnings and negative changes in translation adjustments and cash flow hedge gains Condensed Consolidated Statements of Comprehensive Income (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Net earnings | $85 | $139 | (38.8%) | | Other comprehensive income, net of taxes | $1 | $14 | (92.9%) | | **Comprehensive income** | **$86** | **$153** | **(43.8%)** | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased by 4.4% due to equipment, goodwill, and intangible assets, while total liabilities rose from increased long-term debt Condensed Consolidated Balance Sheets (in millions) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | Change (%) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :--------- | | Cash and cash equivalents | $234 | $204 | 14.7% | | Receivables, net | $1,814 | $1,714 | 5.8% | | Total current assets | $2,406 | $2,265 | 6.2% | | Revenue earning equipment, net | $8,977 | $8,892 | 0.9% | | Goodwill | $1,017 | $940 | 8.2% | | Intangible assets, net | $569 | $396 | 43.7% | | Operating lease right-of-use assets | $1,190 | $1,016 | 17.1% | | **Total assets** | **$16,481** | **$15,778** | **4.4%** | | Short-term debt and current portion of long-term debt | $741 | $1,583 | (53.2%) | | Total current liabilities | $2,918 | $3,649 | (20.0%) | | Long-term debt | $6,802 | $5,531 | 23.0% | | Other non-current liabilities | $2,063 | $1,871 | 10.3% | | **Total liabilities** | **$13,416** | **$12,709** | **5.6%** | | Total shareholders' equity | $3,065 | $3,069 | (0.1%) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased by 10%, but investing cash outflow more than doubled due to acquisitions, while financing activities shifted to a net provision Condensed Consolidated Statements of Cash Flows (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Net earnings | $85 | $139 | (38.8%) | | Depreciation expense | $424 | $445 | (4.7%) | | **Net cash provided by operating activities from continuing operations** | **$526** | **$478** | **10.0%** | | Purchases of property and revenue earning equipment | $(686) | $(641) | 7.0% | | Acquisitions, net of cash acquired | $(297) | $— | NM | | **Net cash used in investing activities from continuing operations** | **$(810)** | **$(377)** | **114.9%** | | Net borrowings (repayments) of commercial paper and other | $288 | $(216) | NM | | Debt proceeds | $896 | $664 | 35.0% | | Debt repayments | $(763) | $(471) | 62.0% | | **Net cash provided by (used in) financing activities from continuing operations** | **$316** | **$(126)** | **NM** | | Increase (decrease) in Cash and cash equivalents | $30 | $(14) | NM | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Total shareholders' equity remained stable in Q1 2024, as comprehensive income was offset by dividends and share repurchases Condensed Consolidated Statements of Shareholders' Equity (in millions) | Metric | As of January 1, 2024 (in millions) | As of March 31, 2024 (in millions) | | :-------------------------------- | :---------------------------------- | :--------------------------------- | | Total Shareholders' Equity | $3,069 | $3,065 | | Comprehensive income | — | $86 | | Common stock dividends declared | — | $(32) | | Common stock repurchases | — | $(51) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures cover accounting policies, segment performance, revenue, assets, liabilities, debt, share repurchases, and acquisitions, highlighting market conditions and liquidity [1. GENERAL](index=8&type=section&id=1.%20GENERAL) This note details Ryder's GAAP-compliant interim financial statements and identifies its three core business segments: FMS, SCS, and DTS - Ryder operates three business segments: Fleet Management Solutions (FMS), Supply Chain Solutions (SCS), and Dedicated Transportation Solutions (DTS)[26](index=26&type=chunk) - The unaudited condensed consolidated financial statements are prepared in accordance with GAAP and should be read in conjunction with the 2023 Annual Report on Form 10-K[25](index=25&type=chunk) [2. SEGMENT REPORTING](index=8&type=section&id=2.%20SEGMENT%20REPORTING) Segment performance is measured by EBT, including CSS costs but excluding specific items; Q1 2024 saw FMS EBT decrease, SCS EBT grow, and DTS EBT decline - The primary measure of segment financial performance is 'Earnings from continuing operations before income taxes' (EBT), which includes allocated Central Support Services (CSS) costs and excludes non-operating pension costs, intangible amortization, and certain other items impacting comparability[27](index=27&type=chunk) Segment Revenue and EBT (in millions) | Segment | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | **Revenue:** | | | | | Fleet Management Solutions | $1,455 | $1,503 | (3.2%) | | Supply Chain Solutions | $1,302 | $1,201 | 8.4% | | Dedicated Transportation Solutions | $563 | $454 | 24.0% | | **Earnings from continuing operations before income taxes (EBT):** | | | | | Fleet Management Solutions | $100 | $182 | (45.0%) | | Supply Chain Solutions | $64 | $17 | 276.5% | | Dedicated Transportation Solutions | $18 | $29 | (37.9%) | Capital Expenditures by Segment (in millions) | Capital Expenditures | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Fleet Management Solutions | $654 | $621 | | Supply Chain Solutions | $27 | $12 | | Dedicated Transportation Solutions | $1 | $— | | Central Support Services | $4 | $8 | | **Purchases of property and revenue earning equipment** | **$686** | **$641** | [3. REVENUE](index=10&type=section&id=3.%20REVENUE) Revenue disaggregation indicates growth from the U.S. market and SCS industries, with **$2.9 billion** in contracted unrecognized revenue for future maintenance Revenue by Geographical Market (in millions) | Geographical Market | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :------------------ | :--------------------------------------------- | :--------------------------------------------- | | United States | $2,883 | $2,753 | | Canada | $135 | $129 | | Mexico | $80 | $70 | | **Total revenue** | **$3,098** | **$2,952** | SCS Revenue by Industry (in millions) | SCS Industry | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :---------------------- | :--------------------------------------------- | :--------------------------------------------- | | Omnichannel retail | $417 | $453 | | Automotive | $406 | $393 | | Consumer packaged goods | $290 | $227 | | Industrial and other | $189 | $128 | | **Total SCS revenue** | **$1,302** | **$1,201** | - Contracted not recognized revenue was **$2.9 billion** as of March 31, 2024, primarily for future maintenance services related to ChoiceLease[39](index=39&type=chunk) [4. RECEIVABLES, NET](index=11&type=section&id=4.%20RECEIVABLES%2C%20NET) Net receivables increased to **$1,814 million**, while the allowance for credit losses slightly decreased as write-offs surpassed new provisions Receivables, Net (in millions) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :----------------------------- | :----------------------------- | | Trade | $1,595 | $1,505 | | Sales-type lease | $142 | $140 | | Other, primarily warranty and insurance | $115 | $111 | | Allowance for credit losses and other | $(38) | $(42) | | **Receivables, net** | **$1,814** | **$1,714** | Allowance for Credit Losses (in millions) | Allowance for Credit Losses | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Balance as of beginning of period | $42 | $41 | | Changes to provisions for credit losses | $7 | $8 | | Write-offs and other | $(11) | $(12) | | **Balance as of end of period** | **$38** | **$37** | [5. REVENUE EARNING EQUIPMENT, NET](index=12&type=section&id=5.%20REVENUE%20EARNING%20EQUIPMENT%2C%20NET) Net revenue earning equipment increased to **$8,977 million**, with no adjustments to residual values, while used vehicle sales gains decreased due to lower pricing Revenue Earning Equipment, Net (in millions) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :----------------------------- | :----------------------------- | | Held for use, net | $8,796 | $8,724 | | Held for sale, net | $181 | $168 | | **Total Revenue earning equipment, net** | **$8,977** | **$8,892** | - No adjustments were made to the estimated residual values and useful lives of existing revenue earning equipment for the three months ended March 31, 2024 and 2023[43](index=43&type=chunk) Used Vehicle Sales, Net (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Gains on used vehicle sales, net | $(30) | $(75) | | Losses from valuation adjustments | $10 | $3 | | **Used vehicle sales, net** | **$(20)** | **$(72)** | [6. ACCRUED EXPENSES AND OTHER LIABILITIES](index=13&type=section&id=6.%20ACCRUED%20EXPENSES%20AND%20OTHER%20LIABILITIES) Total accrued expenses and other liabilities increased to **$3,386 million**, driven by higher operating lease liabilities, self-insurance, and deferred revenue Accrued Expenses and Other Liabilities (in millions) | Liability Type | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :-------------------------- | :----------------------------- | :----------------------------- | | Salaries and wages | $138 | $200 | | Self-insurance | $518 | $459 | | Operating lease liabilities | $1,232 | $1,034 | | Deferred revenue | $553 | $545 | | Other | $387 | $338 | | **Total** | **$3,386** | **$3,104** | [7. LEASES](index=14&type=section&id=7.%20LEASES) ChoiceLease income increased, commercial rental income decreased, and net investment in sales-type leases rose in Q1 2024 Lease Revenue Components (in millions) | Lease Revenue Component | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Lease income related to ChoiceLease | $381 | $360 | | Lease income related to commercial rental | $219 | $288 | | Interest income related to net investment in leases | $17 | $15 | | Variable lease income excluding commercial rental | $72 | $72 | Sales-Type Leases Net Investment (in millions) | Sales-Type Leases Net Investment | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :------------------------------- | :----------------------------- | :----------------------------- | | Net investment in the lease | $795 | $766 | | Estimated loss allowance | $(3) | $(4) | | **Total** | **$792** | **$762** | [8. DEBT](index=15&type=section&id=8.%20DEBT) Total debt increased to **$7,543 million** due to new **$900 million** unsecured notes, maintaining a healthy **190%** debt-to-net worth ratio Debt by Type (in millions) | Debt Type | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :------------------------------------------ | :----------------------------- | :----------------------------- | | U.S. commercial paper | $860 | $572 | | Unsecured medium-term notes (various maturities) | $6,075 | $5,125 | | Asset-backed U.S. obligations | $355 | $382 | | Finance lease obligations and other | $56 | $49 | | **Total debt** | **$7,543** | **$7,114** | - Issued two tranches of unsecured medium-term notes in February 2024 totaling **$900 million** (**$350M** at **5.30%** due 2027, **$550M** at **5.38%** due 2029)[52](index=52&type=chunk)[141](index=141&type=chunk) - The debt to consolidated net worth ratio was **190%** as of March 31, 2024, well below the **300%** covenant[58](index=58&type=chunk) [9. SHARE REPURCHASE PROGRAMS](index=16&type=section&id=9.%20SHARE%20REPURCHASE%20PROGRAMS) Ryder has two **2 million** share repurchase programs expiring in October 2025, repurchasing **0.5 million shares for $51 million** in Q1 2024 - Two share repurchase programs approved in October 2023: a **2 million** share anti-dilutive program and a **2 million** share discretionary program, both expiring October 12, 2025[60](index=60&type=chunk) Share Repurchases (in millions) | Program | Three months ended March 31, 2024 (Shares in millions) | Amount (in millions) | | :-------------------------- | :--------------------------------------------- | :------------------- | | Anti-Dilutive Programs | 0.3 | $37 | | Discretionary Programs | 0.1 | $14 | | **Total** | **0.5** | **$51** | [10. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=17&type=section&id=10.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Accumulated other comprehensive loss remained stable at **$(654) million**, with a net current-period gain of **$1 million** Accumulated Other Comprehensive Loss (in millions) | Component | January 1, 2024 (in millions) | March 31, 2024 (in millions) | | :-------------------------------- | :---------------------------- | :--------------------------- | | Currency Translation Adjustments | $(18) | $(25) | | Net Actuarial (Loss) Gain and Prior Service Costs | $(637) | $(631) | | Unrealized Gain (Loss) from Cash Flow Hedges | $— | $2 | | **Accumulated Other Comprehensive (Loss) Gain** | **$(655)** | **$(654)** | - Net current-period other comprehensive gain (loss), net of tax, was **$1 million** for the three months ended March 31, 2024[64](index=64&type=chunk) [11. EARNINGS PER SHARE](index=18&type=section&id=11.%20EARNINGS%20PER%20SHARE) Basic and diluted EPS from continuing operations significantly decreased in Q1 2024 due to lower earnings Earnings Per Share | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Earnings from continuing operations per common share — Basic | $1.93 | $3.00 | | Earnings from continuing operations per common share — Diluted | $1.89 | $2.95 | | Weighted average common shares outstanding — Diluted (in thousands) | 45,000 | 47,474 | [12. SHARE-BASED COMPENSATION PLANS](index=18&type=section&id=12.%20SHARE-BASED%20COMPENSATION%20PLANS) The company granted **0.2 million** share-based awards in Q1 2024 at a weighted average fair value of **$118.59** per share, a decrease from Q1 2023 Share-Based Awards Granted (in millions, except per share) | Award Type | Shares Granted (Q1 2024, in millions) | Weighted Average Fair Market Value Per Share (Q1 2024) | Shares Granted (Q1 2023, in millions) | Weighted Average Fair Market Value Per Share (Q1 2023) | | :-------------------------------- | :------------------------------------ | :----------------------------------------------------- | :------------------------------------ | :----------------------------------------------------- | | Time-vested restricted stock rights | 0.1 | $117.11 | 0.2 | $96.38 | | Performance-based restricted stock rights | 0.1 | $121.10 | 0.1 | $101.25 | | **Total** | **0.2** | **$118.59** | **0.3** | **$98.16** | [13. EMPLOYEE BENEFIT PLANS](index=19&type=section&id=13.%20EMPLOYEE%20BENEFIT%20PLANS) Net pension expense slightly increased in Q1 2024 due to interest cost and actuarial loss amortization, with no expected contributions in 2024 Net Pension Expense (in millions) | Component | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Interest cost | $22 | $22 | | Expected return on plan assets | $(19) | $(19) | | Amortization of net actuarial loss and prior service cost | $8 | $7 | | **Net pension expense** | **$11** | **$10** | - Ryder does not expect to contribute to its pension plans in 2024[68](index=68&type=chunk) [14. OTHER ITEMS IMPACTING COMPARABILITY](index=19&type=section&id=14.%20OTHER%20ITEMS%20IMPACTING%20COMPARABILITY) Comparability items shifted from a **$(32) million** net gain in Q1 2023 to a **$4 million** net cost in Q1 2024, due to acquisition costs Other Items Impacting Comparability, Net (in millions) | Item | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Acquisition costs | $5 | $— | | FMS U.K. exit, primarily net commercial claim proceeds | $— | $(31) | | Other, net | $(1) | $(1) | | **Other items impacting comparability, net** | **$4** | **$(32)** | [15. CONTINGENCIES AND OTHER MATTERS](index=19&type=section&id=15.%20CONTINGENCIES%20AND%20OTHER%20MATTERS) Ryder is involved in legal proceedings, including class action and derivative suits, with settlements expected to be insurance-covered and not materially impact financials - A putative securities class action was preliminarily approved for settlement on February 20, 2024, with the settlement amount expected to be covered by insurance and not material to financial statements[73](index=73&type=chunk) - An agreement in principle was reached in September 2023 to resolve shareholder derivative cases in exchange for corporate reforms, with plaintiffs' attorneys' fees and expenses expected to be covered by insurance and not material[74](index=74&type=chunk) [16. SUPPLEMENTAL CASH FLOW INFORMATION](index=20&type=section&id=16.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) Supplemental cash flow data shows increased interest paid and cash paid for operating lease liabilities in Q1 2024 Supplemental Cash Flow Information (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Interest paid | $78 | $63 | | Income taxes paid | $7 | $17 | | Cash paid for operating lease liabilities | $88 | $55 | | Capital expenditures acquired but not yet paid | $274 | $361 | [17. ACQUISITIONS](index=20&type=section&id=17.%20ACQUISITIONS) Ryder acquired Cardinal Logistics for **$297 million** on February 1, 2024, to boost DTS growth, recording **$74 million** goodwill and **$165 million** intangible assets - Acquired CLH Parent Corporation (Cardinal Logistics) on February 1, 2024, for a purchase price of **$297 million**[76](index=76&type=chunk) - The acquisition is expected to increase scale and network density and accelerate growth in the DTS segment[77](index=77&type=chunk) - Preliminary estimated goodwill of **$74 million** and intangible assets, net of **$165 million**, were recorded for the Cardinal Logistics acquisition[78](index=78&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial condition and operations, highlighting challenging used vehicle and rental markets, offset by SCS and DTS growth from acquisitions, impacting profitability and liquidity [OVERVIEW](index=22&type=section&id=OVERVIEW) Ryder operates in competitive markets across diverse industries, with customer choices driven by service quality, price, technology, and offerings - Ryder operates in highly competitive markets, with customers selecting services based on factors including service quality, price, technology, and service offerings[80](index=80&type=chunk) - The customer base spans various industries such as food and beverage, transportation and logistics, retail, automotive, industrial, housing, technology, and business and personal services[80](index=80&type=chunk) [SELECTED OPERATING PERFORMANCE ITEMS](index=22&type=section&id=SELECTED%20OPERATING%20PERFORMANCE%20ITEMS) Weakening used vehicle and rental markets persist, but Ryder benefits from logistics trends and acquisitions driving SCS and DTS growth, despite decreased diluted and comparable EPS - Market conditions for used vehicle sales and commercial rental continued to weaken in Q1 2024, with a freight recessionary environment anticipated through most of 2024[82](index=82&type=chunk)[83](index=83&type=chunk) - Favorable secular trends in logistics and transportation solutions, including supply chain disruptions, provide long-term growth opportunities for SCS and DTS[82](index=82&type=chunk) - Recent acquisitions (IFS Holdings, LLC and CLH Parent Corporation (Cardinal Logistics)) are performing in line with expectations, driving revenue growth in SCS and DTS[82](index=82&type=chunk)[84](index=84&type=chunk) Selected Operating Performance Items (in millions, except per share) | Metric | Three months ended March 31, 2024 (in millions, except per share) | Three months ended March 31, 2023 (in millions, except per share) | Change (%) | | :------------------------------------------ | :------------------------------------------------------------- | :------------------------------------------------------------- | :--------- | | Total revenue | $3,098 | $2,952 | 5% | | Operating revenue (non-GAAP) | $2,495 | $2,346 | 6% | | Earnings from continuing operations before income taxes (EBT) | $114 | $201 | (43%) | | Comparable EBT (non-GAAP) | $129 | $179 | (28%) | | Diluted EPS (Continuing operations) | $1.89 | $2.95 | (36%) | | Comparable EPS (non-GAAP) | $2.14 | $2.81 | (24%) | | Adjusted Return on Equity (ROE) (non-GAAP, trailing twelve months) | 17% | 27% | (1000 bps) | | Net cash provided by operating activities from continuing operations | $526 | $478 | NM | | Free cash flow (non-GAAP) | $13 | $101 | NM | [CONSOLIDATED RESULTS](index=23&type=section&id=CONSOLIDATED%20RESULTS) Q1 2024 consolidated results show a **5%** total revenue increase from services, but profitability declined **43%** in EBT due to lower used vehicle gains and higher interest expense [Services Revenue](index=23&type=section&id=Services) Services revenue increased by **12%** in Q1 2024, driven by DTS and SCS acquisitions, with gross margin percentage improving due to prior year impairment and SCS pricing Services Revenue (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :---------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Services revenue | $2,038 | $1,821 | 12% | | Cost of services | $1,743 | $1,607 | 8% | | Gross margin | $295 | $214 | 38% | | Gross margin % | 14% | 12% | 200 bps | - Services revenue increased due to increases in DTS and SCS revenue, primarily driven by recent acquisitions[89](index=89&type=chunk) - Services gross margin and gross margin percentage increased due to a prior year SCS asset impairment charge and increased pricing in SCS[91](index=91&type=chunk) [Lease & Related Maintenance and Rental](index=24&type=section&id=Lease%20%26%20Related%20Maintenance%20and%20Rental) Lease and related maintenance and rental revenue decreased by **4%** due to lower commercial rental demand, with gross margin declining from reduced utilization Lease & Related Maintenance and Rental (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Lease & related maintenance and rental revenue | $936 | $979 | (4%) | | Cost of lease & related maintenance and rental | $669 | $674 | (1%) | | Gross margin | $267 | $305 | (12%) | | Gross margin % | 29% | 31% | (200 bps) | - Revenue decreased primarily due to lower rental demand, partially offset by ChoiceLease growth[92](index=92&type=chunk) - Gross margin percentage decreased primarily due to lower rental utilization[94](index=94&type=chunk) [Fuel](index=24&type=section&id=Fuel) Fuel services revenue decreased by **18%** in Q1 2024 due to lower prices and reduced volume, while gross margin remained consistent Fuel Services Revenue (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Fuel services revenue | $124 | $152 | (18%) | | Cost of fuel services | $121 | $149 | (19%) | | Gross margin | $3 | $3 | 0% | | Gross margin % | 2% | 2% | 0 bps | - Fuel services revenue decreased primarily reflecting lower fuel prices passed through to customers and a lower volume of gallons sold[95](index=95&type=chunk) [Selling, General and Administrative Expenses (SG&A)](index=25&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) SG&A expenses increased by **4%** in Q1 2024 due to acquisitions, offset by lower marketing, maintaining **12%** of total revenue Selling, General and Administrative Expenses (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Selling, general and administrative expenses | $378 | $363 | 4% | | Percentage of total revenue | 12% | 12% | 0 bps | [Non-Operating Pension Costs, Net](index=25&type=section&id=Non-Operating%20Pension%20Costs%2C%20Net) Non-operating pension costs, net, increased slightly by **10%** in Q1 2024 Non-Operating Pension Costs, Net (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Non-operating pension costs, net | $11 | $10 | 10% | [Used Vehicle Sales, net](index=25&type=section&id=Used%20Vehicle%20Sales%2C%20net) Used vehicle sales, net, significantly decreased in Q1 2024 due to lower pricing, despite higher volumes, with average proceeds for tractors and trucks declining Used Vehicle Sales, Net (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Gains on used vehicle sales, net | $(20) | $(72) | (72%) | Average Proceeds Per Unit (YoY Change) | Average Proceeds Per Unit (YoY Change) | Three months ended March 31, 2024 | | :------------------------------------- | :-------------------------------- | | Tractors | (34%) | | Trucks | (30%) | [Interest Expense](index=25&type=section&id=Interest%20Expense) Interest expense increased by **42%** in Q1 2024 due to higher debt borrowings for acquisitions and increased market interest rates Interest Expense (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Interest expense | $92 | $65 | 42% | | Effective interest rate | 5.0% | 4.1% | 90 bps | [Miscellaneous Income, net](index=26&type=section&id=Miscellaneous%20Income%2C%20net) Miscellaneous income, net, decreased by **25%** in Q1 2024, primarily due to lower gains from property sales Miscellaneous Income, Net (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Miscellaneous income, net | $(15) | $(20) | (25%) | [Restructuring and Other Items, net](index=26&type=section&id=Restructuring%20and%20Other%20Items%2C%20net) Restructuring and other items shifted from a **$(25) million** net gain in Q1 2023 to a **$5 million** net cost in Q1 2024, due to acquisition costs Restructuring and Other Items, Net (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Restructuring and other items, net | $5 | $(25) | [Provision for Income Taxes](index=26&type=section&id=Provision%20for%20Income%20Taxes) Provision for income taxes decreased by **52%** in Q1 2024, with the effective tax rate falling to **25.4%** due to prior year FMS U.K. exit tax charges Provision for Income Taxes | Metric | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Provision for income taxes (in millions) | $29 | $61 | | Effective tax rate from continuing operations | 25.4% | 30.5% | | Comparable effective tax rate on continuing operations (non-GAAP) | 25.2% | 25.5% | - The prior year effective income tax rate was impacted by tax charges related to the exit of FMS U.K. operations[107](index=107&type=chunk) [OPERATING RESULTS BY BUSINESS SEGMENT](index=27&type=section&id=OPERATING%20RESULTS%20BY%20BUSINESS%20SEGMENT) This section details segment revenue and EBT: FMS EBT declined, SCS EBT grew significantly from acquisitions, and DTS revenue increased from acquisitions but EBT decreased due to integration costs Segment Performance (Q1 2024, in millions) | Segment | Total Revenue (Q1 2024, in millions) | Change YoY (%) | Operating Revenue (Q1 2024, in millions) | Change YoY (%) | EBT (Q1 2024, in millions) | Change YoY (%) | | :-------------------------------- | :----------------------------------- | :------------- | :--------------------------------------- | :------------- | :------------------------- | :------------- | | Fleet Management Solutions | $1,455 | (3%) | $1,251 | (1%) | $100 | (45%) | | Supply Chain Solutions | $1,302 | 8% | $972 | 11% | $64 | 267% | | Dedicated Transportation Solutions | $563 | 24% | $427 | 33% | $18 | (38%) | Equipment Contribution by Segment (in millions) | Equipment Contribution | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Supply Chain Solutions | $9 | $10 | (1%) | | Dedicated Transportation Solutions | $19 | $15 | 33% | | **Total** | **$28** | **$25** | **19%** | [Fleet Management Solutions (FMS)](index=28&type=section&id=Fleet%20Management%20Solutions) FMS total revenue decreased by **3%**, and EBT declined **45%** due to lower used vehicle gains and weaker rental demand, with rental fleet utilization falling to **66%** FMS Performance (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | ChoiceLease | $842 | $776 | 9% | | Commercial rental | $231 | $304 | (24%) | | Fuel services revenue | $204 | $241 | (15%) | | **FMS total revenue** | **$1,455** | **$1,503** | **(3%)** | | FMS operating revenue | $1,251 | $1,262 | (1%) | | **FMS EBT** | **$100** | **$182** | **(45%)** | | FMS EBT as a % of FMS operating revenue | 8.0% | 14.4% | (640 bps) | - FMS EBT decreased primarily due to lower gains on used vehicle sales (used truck pricing down **30%**, used tractor pricing down **34%**) and weaker rental demand[119](index=119&type=chunk) - Rental power fleet utilization decreased to **66%** in Q1 2024 from **75%** in Q1 2023[119](index=119&type=chunk)[123](index=123&type=chunk) - The active ChoiceLease fleet (end of period) increased by **7%** year-over-year to **138,500 units**[123](index=123&type=chunk) [Supply Chain Solutions (SCS)](index=30&type=section&id=Supply%20Chain%20Solutions) SCS total revenue increased by **8%** and operating revenue by **11%** due to acquisitions, with EBT growing **267%** from prior year impairment, automotive performance, and acquisitions SCS Performance (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | **SCS total revenue** | **$1,302** | **$1,201** | **8%** | | **SCS operating revenue** | **$972** | **$879** | **11%** | | **SCS EBT** | **$64** | **$17** | **267%** | | SCS EBT as a % of SCS operating revenue | 6.6% | 1.9% | 470 bps | - SCS operating revenue increased primarily by recent acquisitions[126](index=126&type=chunk) - SCS EBT growth was due to a prior year **$30 million** asset impairment charge, stronger automotive performance, and recent acquisitions[127](index=127&type=chunk) [Dedicated Transportation Solutions (DTS)](index=31&type=section&id=Dedicated%20Transportation%20Solutions) DTS total revenue increased by **24%** and operating revenue by **33%** from the Cardinal Logistics acquisition, but EBT decreased by **38%** due to integration and insurance costs DTS Performance (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | **DTS total revenue** | **$563** | **$454** | **24%** | | **DTS operating revenue** | **$427** | **$322** | **33%** | | **DTS EBT** | **$18** | **$29** | **(38%)** | | DTS EBT as a % of DTS operating revenue | 4.2% | 9.0% | (480 bps) | - DTS revenue growth was primarily due to the Cardinal Logistics acquisition[130](index=130&type=chunk) - DTS EBT decreased due to Cardinal Logistics' acquisition integration and other related costs, as well as higher insurance costs[130](index=130&type=chunk) [Central Support Services (CSS)](index=32&type=section&id=Central%20Support%20Services) Total Central Support Services (CSS) costs decreased by **3%** in Q1 2024 due to prior year marketing investments, resulting in a slight decrease in unallocated CSS Central Support Services (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | Change (%) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------- | | Total CSS | $100 | $103 | (3%) | | Unallocated CSS | $14 | $15 | (12%) | [FINANCIAL RESOURCES AND LIQUIDITY](index=32&type=section&id=FINANCIAL%20RESOURCES%20AND%20LIQUIDITY) Operating cash flow increased, but free cash flow declined due to lower asset sales and higher capital expenditures for acquisitions; Ryder issued **$900 million** in notes, maintaining strong liquidity and a **246%** debt-to-equity ratio [Cash Flows](index=32&type=section&id=Cash%20Flows) Operating cash flow increased by **10%**, but investing cash outflow more than doubled due to the Cardinal Logistics acquisition, leading to a significant decline in free cash flow Cash Flow Summary (in millions) | Metric | Three months ended March 31, 2024 (in millions) | Three months ended March 31, 2023 (in millions) | | :------------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash provided by operating activities from continuing operations | $526 | $478 | | Net cash used in investing activities from continuing operations | $(810) | $(377) | | Net cash provided by (used in) financing activities from continuing operations | $316 | $(126) | | Free cash flow (non-GAAP) | $13 | $101 | | Gross capital expenditures | $716 | $802 | - Net cash used in investing activities increased significantly due to the acquisition of Cardinal Logistics and lower proceeds from sales of property and revenue earning equipment[132](index=132&type=chunk) - Gross capital expenditures decreased primarily reflecting lower investments in commercial rental[137](index=137&type=chunk) [Financing and Other Funding Transactions](index=33&type=section&id=Financing%20and%20Other%20Funding%20Transactions) Ryder issued **$900 million** in new notes, maintaining strong debt ratings and liquidity with a **246%** debt-to-equity ratio, and declared a **$0.71** per share quarterly dividend - Issued two tranches of unsecured medium-term notes in February 2024 with aggregate principal amounts of **$350 million** and **$550 million**[141](index=141&type=chunk) Debt Ratings | Rating Agency | Short-term Rating | Short-term Outlook | Long-term Rating | Long-term Outlook | | :-------------------------- | :---------------- | :----------------- | :--------------- | :---------------- | | Standard & Poor's Ratings Services | A2 | — | BBB+ | Stable | | Moody's Investors Service | P2 | Stable | Baa2 | Stable | | Fitch Ratings | F2 | — | BBB+ | Positive | Available Funding (as of March 31, 2024, in millions) | Available Funding (as of March 31, 2024) | Amount (in millions) | | :--------------------------------------- | :------------------- | | Global revolving credit facility | $540 | | Trade receivables financing program | $197 | - The debt-to-equity ratio was **246%** as of March 31, 2024, up from **232%** at December 31, 2023[144](index=144&type=chunk) - A quarterly cash dividend of **$0.71** per share of common stock was declared in February 2024, an increase from **$0.62** per share in February 2023[145](index=145&type=chunk) [NON-GAAP FINANCIAL MEASURES](index=35&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section defines and reconciles non-GAAP measures like Operating Revenue, Comparable Earnings, EBITDA, and Free Cash Flow, which exclude specific items for clearer core business performance and comparability - Non-GAAP financial measures include Operating Revenue, Comparable Earnings Before Income Taxes (EBT), Comparable Earnings, Comparable Earnings per Diluted Common Share (EPS), Comparable Tax Rate, Adjusted Return on Equity (ROE), Total Cash Generated, and Free Cash Flow[148](index=148&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Operating revenue excludes fuel and subcontracted transportation to focus on core business performance[150](index=150&type=chunk) - Comparable earnings measures exclude non-operating pension costs, net, and other significant items not representative of business operations for better year-over-year comparison[150](index=150&type=chunk) - Comparable EBITDA is a standard measure used to assess financial performance and ability to service debt, adjusting net earnings for various non-cash and non-operating items[151](index=151&type=chunk) - Free Cash Flow provides insight into cash available for debt service and shareholders after capital investments, calculated from operating activities and asset sales less equipment purchases[151](index=151&type=chunk) [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=41&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section cautions that forward-looking statements are subject to risks and uncertainties across market, competition, and financial factors, and the company does not intend to update them - Forward-looking statements are based on current plans and expectations and are subject to risks, uncertainties, and assumptions that could cause actual results to differ significantly[167](index=167&type=chunk)[170](index=170&type=chunk) - Key risk factors include changes in general economic and financial conditions, decreases in freight demand, competition, lower sales volumes or customer retention, lower used vehicle sales pricing, higher borrowing costs, and reductions in residual values or useful lives of revenue earning equipment[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - The company does not intend, or assume any obligation, to update or revise any forward-looking statements[173](index=173&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposures since December 31, 2023; refer to the 2023 Annual Report on Form 10-K for comprehensive discussion - No material changes to Ryder's exposures to market risks since December 31, 2023[174](index=174&type=chunk) - Refer to the 2023 Annual Report on Form 10-K for a complete discussion of market risks[174](index=174&type=chunk) [ITEM 4. Controls and Procedures](index=44&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Ryder's disclosure controls and procedures were effective as of March 31, 2024, with no material changes in internal control over financial reporting - Ryder's disclosure controls and procedures were effective as of March 31, 2024, based on an evaluation by management, including the CEO and CFO[176](index=176&type=chunk) - No material changes in Ryder's internal control over financial reporting occurred during the three months ended March 31, 2024[177](index=177&type=chunk) PART II. OTHER INFORMATION [ITEM 1. Legal Proceedings](index=44&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 15 for material pending legal proceedings, which are not expected to materially affect consolidated financial statements - For a description of material pending legal proceedings, refer to Note 15, 'Contingencies and Other Matters,' in the Notes to Condensed Consolidated Financial Statements[179](index=179&type=chunk) [ITEM 1A. Risk Factors](index=44&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to risk factors from the 2023 Annual Report on Form 10-K, though other unknown or immaterial risks could affect operations - No material changes in the risk factors described in the 2023 Annual Report on Form 10-K, except to the extent additional factual information is disclosed in this Quarterly Report[181](index=181&type=chunk) - Operations could be affected by additional risk factors not presently known or currently considered not material[181](index=181&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Ryder repurchased **639,275 shares** for **$114.59** per share in Q1 2024, with **3,019,102 shares** remaining available under repurchase programs Common Stock Repurchases | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :-------------------------- | :----------------------------- | :--------------------------- | | January 1 through January 31, 2024 | 371 | $111.71 | | February 1 through February 29, 2024 | 638,164 | $114.58 | | March 1 through March 31, 2024 | 740 | $118.77 | | **Total (Q1 2024)** | **639,275** | **$114.59** | - As of March 31, 2024, **3,019,102 shares** remained available for repurchase under the discretionary and anti-dilutive programs[182](index=182&type=chunk) [ITEM 5. Other Information](index=45&type=section&id=ITEM%205.%20Other%20Information) Officers and directors participate in Ryder's dividend reinvestment and 401(k) plans, and may engage in Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - Certain officers and directors participate in Ryder's dividend reinvestment plan and 401(k) savings plan[184](index=184&type=chunk) - Officers and directors may engage in Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements[184](index=184&type=chunk) [ITEM 6. Exhibits](index=46&type=section&id=ITEM%206.%20Exhibits) This section lists Form 10-Q exhibits, including certifications (e.g., Rule 13a-14(a), 18 U.S.C Section 1350) and XBRL documents - Exhibits include certifications by Robert E. Sanchez and John J. Diez (31.1, 31.2, 32) and various XBRL taxonomy extension documents (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[187](index=187&type=chunk) [SIGNATURE](index=47&type=section&id=SIGNATURE) The Form 10-Q report was signed on **April 23, 2024**, by John J. Diez, EVP and CFO, and Cristina Gallo-Aquino, SVP and Controller - The report was signed by John J. Diez, Executive Vice President and Chief Financial Officer, and Cristina Gallo-Aquino, Senior Vice President and Controller[190](index=190&type=chunk) - The signing date for the report was **April 23, 2024**[190](index=190&type=chunk)

Financial Data and Key Metrics Changes - Operating revenue for the first quarter was $2.5 billion, up 6% from the prior year, primarily due to recent acquisitions and contractual growth, partially offset by lower rental revenue [105] - Comparable earnings per share from continuing operations were $2.14, down from $2.81 in the prior year, reflecting weaker market conditions in used vehicle sales and rental [106] - Return on equity was 17%, in line with the high-teens target over the cycle, with a year-over-year decline due to weakening used vehicle sales and rental market conditions [107] - Free cash flow for the first quarter decreased to $13 million from $101 million in 2023, primarily due to lower proceeds from property and used vehicle sales [107] Business Line Data and Key Metrics Changes - Fleet Management Solutions operating revenue decreased by 1% due to lower rental demand, partially offset by higher ChoiceLease revenue, which grew by 9% [108] - Dedicated operating revenue increased by 33%, reflecting the acquisition of Cardinal Logistics, although EBT declined due to acquisition integration and related costs [114] - Supply Chain operating revenue increased by 11%, driven by the IFS and Cardinal acquisitions, with earnings benefiting from stronger automotive performance [121] Market Data and Key Metrics Changes - Used vehicle sales results showed a decline, with used tractor proceeds down 34% and used truck proceeds down 30% compared to the prior year [112] - Rental utilization on the power fleet was 66%, down from 75% in the prior year, reflecting weak market conditions [110] - The average rental fleet is expected to be down 8% in 2024, with rental capital expenditures reduced by approximately $100 million [115] Company Strategy and Development Direction - The company continues to execute a balanced growth strategy, which has driven outperformance relative to prior cycles, with a focus on enhancing returns and integrating recent acquisitions [84][85] - The integration of Cardinal Logistics is on track, expected to generate significant cost savings and efficiencies, with net synergies projected between $40 million and $60 million [100][101] - The company remains committed to investing in organic growth and strategic acquisitions to drive long-term profitable growth [119] Management's Comments on Operating Environment and Future Outlook - Management expects 2024 to reflect trough market conditions in used vehicle sales and rental, with a gradual pickup anticipated in the second half of the year [130] - The company is confident in the long-term secular growth trends in its segments, despite current economic uncertainties causing some customers to delay decisions [130] - Management highlighted the importance of maintaining pricing discipline in the leasing market, despite some softness in demand [31] Other Important Information - The company plans to hold an Investor Day on June 13 in New York City, featuring presentations from business leaders and showcasing expanded supply chain capabilities [6] - The full year 2024 forecast for free cash flow is negative $175 million to $275 million, an improvement from prior forecasts due to lower rental capital expenditures [89] Q&A Session All Questions and Answers Question: Update on used truck rental market recovery - Management noted that the current downturn in rental and used trucks is the longest in a long time, with expectations of nearing the end of this cycle, and some stabilization in used truck pricing is beginning to show [11][12][14] Question: Recovery in used vehicle pricing - Management indicated that they are not assuming a recovery in used vehicle pricing for the balance of the year, expecting to hit the bottom in the second and third quarters, with a potential uptick in the fourth quarter [18][19] Question: Trends in Dedicated and Supply Chain backlogs - Management reported that the Dedicated pipeline has seen a pop year-over-year, but there are delays in decision-making in the Supply Chain segment due to economic uncertainty [46][47] Question: Benefits from anticipated pre-buy activity - Management expects benefits across leasing fleet growth, rental, and used pricing gains from the anticipated pre-buy activity ahead of the 2027 EPA engine technology changes [51][52] Question: Comments on end markets and trends in SCS - Management highlighted continued volume in the automotive sector and industrial, with expectations for improvement in e-commerce omnichannel demand in the second half of the year [60][62]

April 23, 2024 Safe Harbor and Non-GAAP Financial Measures Certain statements and information included in this news release are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including: our forecast; our outlook; our expectations regarding market trends and economic environment, such as rental demand, economic growth, challenging freight environment, weakening used vehicle sales and rental, and declining volumes in our omnichannel retail vertical; our expect ...

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-4364 RYDER SYSTEM, INC. (Exact name of registrant as specified in its charter) Florida 59-0739250 (State or other jurisdiction of incorporation or organization ...

Ryder System, Inc. (NYSE:R) Q4 2023 Earnings Call Transcript February 14, 2024 11:00 AM ET Company Participants Calene Candela - VP, IR Robert Sanchez - Chairman and CEO John Diez - EVP and CFO Steve Sensing - President, Supply Chain Solutions and Dedicated Transportation Solutions Tom Haven - President, Fleet Management Solutions Conference Call Participants Jordan Alliger - Goldman Sachs Scott Group - Wolfe Research Jeff Kauffman - Vertical Research Partners Brian Ossenbeck - JPMorgan Allison Poliniak - W ...

43 Note: Amounts may not be additive due to rounding. SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. All Rights Reserved Adjusted Return on Equity Reconciliation(1) Adjusted return on equity (1) [A]/[B] 13 % 29 % 19 % 16 % Note: Amounts may not be additive due to rounding. ($ Millions) SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS 45 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-- ...

Ryder System, Inc. (NYSE:R) Q3 2023 Earnings Conference Call October 25, 2023 11:00 AM ET Company Participants Calene Candela - Vice President, Investor Relations Robert Sanchez - Chairman and Chief Executive Officer John Diez - Executive Vice President and Chief Financial Officer Tom Havens - President of Fleet Management Solutions Steve Sensing - President of Supply Chain Solutions and Dedicated Transportation Solutions Conference Call Participants Jordan Alliger - Goldman Sachs Jeffrey Kauffman - Vertica ...