Financial Data and Key Metrics Changes - Ryder reported operating revenue of $2.6 billion for Q2 2025, an increase of 2% from the prior year, primarily driven by contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) [13] - Comparable earnings per share from continuing operations were $3.32, up 11% from $3 in the prior year, reflecting higher contractual earnings and share repurchases [13] - Return on equity (ROE) was 17%, up from the prior year, primarily due to higher contractual earnings [14] - Year-to-date free cash flow increased to $461 million from $71 million in the prior year, reflecting lower working capital needs and reduced capital expenditures [14] Business Line Data and Key Metrics Changes - **Fleet Management Solutions (FMS)**: Operating revenue increased by 1%, driven by ChoiceLease revenue, which was up 2%. However, pretax earnings decreased to $126 million due to weaker freight market conditions [15] - **Supply Chain Solutions (SCS)**: Operating revenue increased by 3%, with earnings up 16% from the prior year, reflecting new business and improved performance from initiatives to optimize the omnichannel retail network [21] - **Dedicated Transportation Solutions (DTS)**: Operating revenue decreased by 3% due to lower fleet count, but earnings before tax (EBT) increased by 1% year-over-year, reflecting acquisition synergies [22] Market Data and Key Metrics Changes - The U.S. market remains a significant focus, generating 93% of Ryder's revenue, with expectations of benefiting from increased industrial manufacturing [6] - Used vehicle sales results were negatively impacted by increased wholesale volumes, with used tractor and truck pricing declining by 17% year-over-year [18] - Rental utilization on the power fleet was 70%, up from 69% in the prior year, although still below the target range [16] Company Strategy and Development Direction - Ryder's balanced growth strategy aims to derisk the business, increase return profiles, and accelerate growth in asset-light supply chain and dedicated businesses [4] - The company expects to continue leveraging its transformed business model to outperform prior cycles, with a focus on organic growth, strategic acquisitions, and innovative technology [11] - Ryder announced a 12% annualized increase to its quarterly dividend, reflecting higher profitability and improved returns [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the transformed business model, expecting to generate higher earnings and returns even in a freight cycle downturn [7] - The company anticipates a more muted recovery in used vehicle sales and ongoing challenges in the rental market due to economic uncertainty [29] - Management remains optimistic about robust sales and pipeline activity in SCS, despite near-term headwinds in lease and dedicated businesses [29] Other Important Information - Ryder increased its 2025 forecast for free cash flow to a range of $900 million to $1 billion, reflecting lower expected capital spending and the reinstatement of tax bonus depreciation [10] - The company has repurchased approximately 21% of its shares outstanding since 2021 and increased the quarterly dividend by 57% [9] Q&A Session Summary Question: Confidence in deploying dry powder on the balance sheet - Management feels confident about deploying capital for share repurchase programs and acquisitions, with plans to invest organically as the freight market improves [40][41] Question: Used vehicle pricing expectations - Management expects a steady increase in tractor pricing, with retail pricing up 10%, although the overall increase may be more muted than initially expected [43][44] Question: Reasons for losses on sales in Q2 and recovery in Q3 - Losses were driven by increased wholesaling of aged inventory, which is not expected to continue at the same level, allowing for a return to gains in Q3 [47][48] Question: Impact of OEM delays on capital expenditures - Management anticipates that OEM delays will reverse in 2026, leading to increased capital spending as the freight market stabilizes [62][64] Question: Maintenance growth outlook - Management is focusing on mobile maintenance initiatives and retail maintenance offerings, which are expected to grow despite historical stagnation [96][99]

Core Insights - Ryder reported revenue of $3.19 billion for the quarter ended June 2025, reflecting a year-over-year increase of 0.2% and surpassing the Zacks Consensus Estimate by 0.5% [1] - Earnings per share (EPS) for the quarter was $3.32, up from $3.00 in the same quarter last year, representing a surprise of 6.75% over the consensus estimate of $3.11 [1] Financial Performance Metrics - Commercial rental utilization was reported at 70%, exceeding the two-analyst average estimate of 68% [4] - Operating Revenue for Fleet Management Solutions was $1.29 billion, matching the average estimate and showing a year-over-year increase of 0.9% [4] - Operating Revenue for Dedicated Transportation Solutions was $470 million, slightly above the average estimate of $460.58 million, but down 3.1% year over year [4] - Operating Revenue for Supply Chain Solutions was $1.02 billion, aligning with the average estimate and reflecting a year-over-year increase of 3% [4] - Revenues for Fleet Management Solutions totaled $1.47 billion, consistent with the average estimate but down 0.7% year over year [4] - Revenues for Supply Chain Solutions reached $1.37 billion, slightly above the average estimate of $1.36 billion, marking a 1.9% year-over-year increase [4] - Revenues from Fleet Management Solutions - SelectCare and other amounted to $178 million, close to the average estimate, with a year-over-year increase of 1.1% [4] - Revenues from Eliminations were reported at -$250 million, better than the average estimate of -$261.4 million, but down 8.1% year over year [4] - Revenues from Fleet Management Solutions - Commercial rental were $239 million, exceeding the average estimate but down 2.1% year over year [4] - Revenues from Fleet Management Solutions - ChoiceLease were $871 million, slightly below the average estimate, with a year-over-year increase of 1.8% [4] - Revenues from Fleet Management Solutions - Fuel services were $179 million, below the average estimate, reflecting an 11.4% year-over-year decline [4] - Revenues from Dedicated Transportation Solutions were $606 million, slightly above the average estimate, but down 4.6% year over year [4] Stock Performance - Ryder's shares have returned +10.9% over the past month, outperforming the Zacks S&P 500 composite's +5.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Financial Performance Highlights - Second quarter operating revenue increased by 2% year-over-year to $2610 million[16,77] - Second quarter comparable EPS increased by 11% year-over-year to $332[16] - Second quarter ROE increased to 17%[16] - Year-to-date free cash flow reached $461 million[16] Segment Results - Fleet Management Solutions (FMS) operating revenue increased by 1% to $1288 million, while earnings before tax (EBT) decreased by 6% to $126 million[19,70] - Supply Chain Solutions (SCS) operating revenue increased by 3% to $1019 million, and EBT increased by 16% to $99 million[26,72] - Dedicated Transportation Solutions (DTS) operating revenue decreased by 3% to $470 million, but EBT remained flat at $37 million[29,74] Capital Allocation and Outlook - Full-year 2025 free cash flow forecast increased by $500 million to a range of $900 million - $1 billion[9,38] - Full-year 2025 comparable EPS forecast updated to $1285 - $1330[38]

Group 1 - Ryder reported quarterly earnings of $3.32 per share, exceeding the Zacks Consensus Estimate of $3.11 per share, and up from $3 per share a year ago, representing an earnings surprise of +6.75% [1] - The company posted revenues of $3.19 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.50%, and slightly up from $3.18 billion year-over-year [2] - Ryder has outperformed the S&P 500 with a gain of about 10.2% since the beginning of the year, compared to the S&P 500's gain of 8.1% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $3.65 on revenues of $3.26 billion, and for the current fiscal year, it is $13.03 on revenues of $12.87 billion [7] - The Transportation - Equipment and Leasing industry, to which Ryder belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] Group 3 - The estimate revisions trend for Ryder was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [6]

Second Quarter 2025 Earnings Conference Call July 24, 2025 Safe Harbor and Non-GAAP Financial Measures Note Regarding Forward-Looking Statements: SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2025 Ryder System, Inc. All Rights Reserved Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding: our forecast; our outlook; market conditions, s ...

News Release Ryder Reports Second Quarter 2025 Results Earnings Growth Driven by Resilient Contractual Portfolio and Strategic Initiatives; 2025 Free Cash Flow Forecast Increased by $500 Million Second Quarter 2025 Highlights Full-Year 2025 Outlook MIAMI, July 24, 2025 – Ryder System, Inc. (NYSE: R) reported results for the three months ended June 30 as follows: | | | | | | | | | Diluted | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | Earnings | | | | | | Earnings | | | | | Before Ta ...

Core Viewpoint - Analysts forecast that Ryder will report quarterly earnings of $3.11 per share, reflecting a year-over-year increase of 3.7%, while revenues are expected to be $3.17 billion, showing a decrease of 0.3% compared to the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised 0.3% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Operating Revenue- Fleet Management Solutions' at $1.29 billion, indicating a year-over-year change of +0.9% [5]. - The estimate for 'Operating Revenue- Dedicated Transportation Solutions' is $460.58 million, reflecting a year-over-year decrease of 5% [5]. - 'Operating Revenue- Supply Chain Solutions' is expected to reach $1.02 billion, showing a change of +3.3% from the previous year [6]. - The estimate for 'Revenues- Fleet Management Solutions' is $1.47 billion, indicating a year-over-year change of -0.6% [7]. - 'Revenues- Dedicated Transportation Solutions' is projected at $604.69 million, reflecting a decrease of 4.8% from the prior year [8]. - 'Revenues- Fleet Management Solutions- ChoiceLease' is expected to reach $880.92 million, indicating a year-over-year change of +2.9% [9]. Key Metrics - 'Commercial rental - Rental Utilization - Power Units' is estimated at 68.0%, down from 69.0% a year ago [10]. - Over the past month, Ryder shares have returned +9.8%, outperforming the Zacks S&P 500 composite's +5.9% change [10].

The market expects Ryder (R) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 24, might help the stock move higher if these key numbers are better than expecta ...

Core Insights - Ryder System, Inc. (R) announced a 12% increase in its quarterly cash dividend, raising it to $0.91 per share from $0.81, reflecting the company's commitment to enhancing shareholder returns [2][10] - The dividend hike is the first since July 2024, indicating Ryder's confidence in its financial stability despite challenging macroeconomic conditions [3][6] - Ryder has a long history of consistent dividend payments, marking its 196th consecutive quarterly cash dividend and over 49 years of uninterrupted payouts [3][10] Financial Performance - In 2022, Ryder returned $123 million in dividends and repurchased shares worth $557 million; in 2023, dividends increased to $128 million with share repurchases of $337 million; in 2024, total returns to shareholders reached $456 million [4] - During the first quarter of 2025, Ryder returned $202 million to shareholders through dividends and buybacks [4][10] Industry Context - Other companies in the transportation sector, such as Delta Air Lines and FedEx, have also announced dividend hikes in 2025, indicating a broader trend of rewarding shareholders within the industry [7][8][9]

Core Insights - Datadog has been named a Leader in the 2025 Gartner Magic Quadrant for Observability Platforms, marking the fifth consecutive year in this position [1][4] - The Gartner Magic Quadrant evaluates technology providers based on their ability to execute and completeness of vision in the application performance monitoring and observability market [2] Company Performance - Customer feedback highlights Datadog's product innovation and responsiveness, with users praising the platform's insights, user interface, and features such as APM and USM [3] - Datadog's Chief Product Officer emphasized the importance of product innovation and R&D, particularly in the context of AI integration to enhance applications and workflows [4] Industry Context - The observability market is characterized by high growth and distinct provider differentiation, with Datadog recognized for its strong execution and market positioning [2]