Financial Performance - Diluted EPS from continuing operations was $3.33, up 2% from the prior year, and comparable EPS increased 4% to $3.57, reflecting higher contractual earnings and share repurchases [88]. - Total revenue for Q3 2025 was $3.2 billion, consistent with the prior year, while operating revenue increased 1% to $2.6 billion, driven by growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) [91]. - Services revenue for Q3 2025 was $2.1 billion, a decrease of 1% from the prior year, while gross margin decreased to $309 million, reflecting higher medical costs and e-commerce network performance issues [94]. - Total revenue for Q3 2025 was $3,171 million, a slight increase from $3,168 million in Q3 2024, with total revenue for the nine months at $9,490 million, consistent with the prior year [115]. - Earnings from continuing operations before income taxes increased by 1% in Q3 2025 to $190 million and by 6% for the nine months to $508 million [115]. - Net earnings for Q3 2025 were $138 million, a slight decrease from $142 million in Q3 2024, while net earnings for the nine months ended September 30, 2025, were $367 million, up from $354 million in 2024 [171]. - Adjusted net earnings for the twelve months ended September 30, 2025, were $508 million, compared to $484 million in 2024, reflecting a strong performance despite market challenges [176]. Revenue Breakdown - Fleet Management Solutions revenue was $1,465 million in Q3 2025, a decrease of 0% from the prior year, while Supply Chain Solutions revenue increased by 5% to $1,380 million [115]. - FMS total revenue for Q3 2025 was $1,465 million, a slight decrease of 1% compared to Q3 2024, while total revenue for the nine months ended September 30, 2025, was $4,379 million, down 1% from the previous year [121]. - Supply Chain Solutions (SCS) total revenue for Q3 2025 was $1,380 million, up 5% from Q3 2024, and for the nine months, it increased by 3% to $4,077 million [132]. - DTS total revenue decreased by 10% in Q3 2025 and 3% for the nine months ended September 30, 2025, primarily due to lower operating revenue and subcontracted transportation costs [137]. Expenses and Costs - SG&A expenses increased by 3% in Q3 2025 to $380 million, and by 1% for the nine months ended September 30, 2025, totaling $1,123 million, maintaining 12% of total revenue [103]. - Interest expense increased by 4% in Q3 2025 to $102 million and by 6% for the nine months to $304 million, primarily due to higher average debt [108]. - Non-operating pension costs remained unchanged at $10 million for Q3 2025 and decreased by 10% to $27 million for the nine months ended September 30, 2025 [104]. Cash Flow and Capital Expenditures - Free cash flow for the nine months ended September 30, 2025, was $496 million, a significant increase of 128% compared to the prior year [89]. - Total capital expenditures for the nine months ended September 30, 2025, were $1.6 billion, a decrease of 19% compared to the prior year [89]. - Gross capital expenditures decreased to $1.6 billion for the nine months ended September 30, 2025, down from $2.0 billion in 2024, reflecting reduced investments in ChoiceLease and rental vehicles [146]. - Net cash provided by operating activities from continuing operations was $1.8 billion for the nine months ended September 30, 2025, compared to $1.7 billion in the prior year, primarily due to lower income tax payments [142]. Debt and Equity - The debt to equity ratio increased to 254% in September 2025, up from 250% in the prior year, indicating a slight increase in financial leverage [89]. - The variable-rate portion of total debt was 22% as of September 30, 2025, up from 18% as of December 31, 2024 [158]. - The company declared a quarterly cash dividend of $0.91 per share in October 2025, an increase from $0.81 per share in October 2024 [160]. - The corporate revolving credit facility's committed borrowing capacity was increased to $1.6 billion, expiring in April 2030, primarily used for general corporate purposes [154]. Operational Challenges and Market Conditions - The company faced risks including decreased demand for services and products due to economic conditions, which could lead to lower profit margins and increased bad debt [179]. - The company highlighted potential challenges in maintaining pricing levels due to competition and economic conditions [179]. - The company noted that higher borrowing costs and inflationary pressures could impact financial performance [182]. - The company indicated that there were no changes in internal control over financial reporting that materially affected such controls during the reporting period [186]. - The company reported that it may face difficulties in attracting and retaining professional drivers and technicians due to labor shortages [182]. - The company acknowledged the impact of geopolitical events and financial institution disruptions on its operations [179]. Strategic Initiatives - The company plans to reinvest earnings from foreign subsidiaries to support future growth initiatives and strategic investments [177]. - The company purchased a total of 516,283 shares of its common stock during the three months ended September 30, 2025, at an average price of $183.59 per share [191]. - The company maintained two share repurchase programs approved by its board of directors in October 2023 and 2024 [192].

Financial Data and Key Metrics Changes - The company reported operating revenue of $2.6 billion in Q3 2025, up 1% from the prior year, primarily due to contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) [12] - Comparable EPS from continuing operations increased to $3.57, up 4% from $3.44 in the prior year, reflecting higher contractual earnings and benefits from share repurchases [13] - Return on equity (ROE) was 17%, up from the prior year, driven by higher contractual earnings and share repurchases, partially offset by lower rental demand and used vehicle sales [13] - Year-to-date free cash flow increased to $496 million from $218 million in the prior year due to reduced capital expenditures and lower income tax payments [13] Business Line Data and Key Metrics Changes - Fleet Management Solutions operating revenue was in line with the prior year, with pre-tax earnings of $146 million, reflecting higher ChoiceLease performance but lower used vehicle sales and rental results [14] - Supply Chain operating revenue increased by 4%, driven by new business in omnichannel retail, although earnings decreased by 8% due to e-commerce network performance and higher medical costs [16] - Dedicated operating revenue decreased by 6% due to lower fleet count, but earnings before tax (EBT) remained in line with the prior year, reflecting acquisition synergies [17] Market Data and Key Metrics Changes - The company expects 60% of 2025 revenue to come from asset-light businesses, up from 44% in 2018, indicating a shift in revenue mix towards supply chain and dedicated services [10] - The company anticipates a free cash flow forecast of $900 million to $1 billion for 2025, reflecting lower year-over-year capital spending [9][23] Company Strategy and Development Direction - The company remains focused on creating value through operational excellence and investment in customer-centric technology, aiming for earnings growth driven by resilient contractual businesses and strategic initiatives [6] - A new discretionary share repurchase program was authorized, reflecting the company's commitment to disciplined capital allocation [8] - The company expects to realize approximately $100 million in benefits from strategic initiatives by year-end 2025, benefiting all three business segments [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform prior cycles, citing a strong performance from the transformed business model and the execution of the balanced growth strategy [11] - The company anticipates continued earnings growth in 2025, driven by contractual earnings and strategic initiatives, despite headwinds from the freight market [22] - Management noted that the prolonged freight downturn and economic uncertainty are causing some customers to delay decisions, but robust sales and pipeline activity in SCS are encouraging [22][26] Other Important Information - The company has repurchased approximately 22% of its shares outstanding since 2021 and increased the quarterly dividend by 57% [8] - The company expects to generate approximately $10.5 billion from operating cash flow and used vehicle sales proceeds over a three-year period, creating $3.5 billion of incremental debt capacity [20] Q&A Session Summary Question: Impact of CDL regulations on the business model - Management indicated that tighter driver markets could benefit the dedicated business as companies seek help in driver recruitment, with minimal impact expected on the lease side [30][31] Question: Drivers of earnings growth for 2026 - Management expects contractual earnings growth and benefits from strategic initiatives to drive earnings growth, with strong performance anticipated in supply chain solutions [33][34] Question: Used vehicle pricing and tariffs - Management noted uncertainty regarding the impact of truck tariffs on pricing but suggested that higher new truck prices could eventually benefit used truck values [41][42] Question: Supply chain performance and headwinds - Management acknowledged temporary headwinds in supply chain performance due to higher medical costs and lower e-commerce volumes but remains optimistic about future growth [52][53] Question: SelectCare performance volatility - Management views the recent lower activity in SelectCare as temporary, expecting a return to normal levels in the fourth quarter [57] Question: Non-domicile CDL role and timing of impacts - Management indicated that the impact of CDL regulations would unfold over time, with expectations of increased demand for dedicated services as the driver market tightens [62]

Financial Data and Key Metrics Changes - Ryder reported operating revenue of $2.6 billion in Q3 2025, up 1% from the prior year, primarily due to contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) [13] - Comparable earnings per share from continuing operations were $3.57, up 4% from $3.44 in the prior year, reflecting higher contractual earnings and benefits from share repurchases [13] - Return on equity (ROE) was 17%, up from the prior year, driven by higher contractual earnings and share repurchases, partially offset by lower rental demand and used vehicle sales [14] - Year-to-date free cash flow increased to $496 million from $218 million in the prior year due to reduced capital expenditures and lower income tax payments [14] Business Line Data and Key Metrics Changes - Fleet Management Solutions operating revenue was in line with the prior year, with pretax earnings of $146 million, up year-over-year due to higher ChoiceLease performance, offset by lower used vehicle sales and rental results [14][15] - Supply Chain operating revenue increased 4%, driven by new business in omni-channel retail, but earnings decreased 8% due to e-commerce network performance and higher medical costs [19] - Dedicated operating revenue decreased 6% due to lower fleet count, but earnings before tax (EBT) was in line with the prior year, reflecting acquisition synergies [20] Market Data and Key Metrics Changes - The company noted that 93% of its revenue is generated in the U.S., positioning it well to benefit from increased domestic industrial manufacturing [6] - Rental demand was lower than historical seasonal trends, with rental utilization on the power fleet at 70%, down from 71% in the prior year [15] - Used vehicle pricing saw a year-over-year decline of 6% for tractors and 15% for trucks, although sequential pricing for trucks increased by 7% [16] Company Strategy and Development Direction - Ryder is focused on creating value through operational excellence and investment in customer-centric technology, aiming for earnings growth driven by resilient contractual businesses and strategic initiatives [5][6] - The company expects its transformed business model to deliver ROE in the low to mid-20s when market conditions improve, with over 90% of operating revenue generated by multiyear contracts [7] - A new discretionary $2 billion share repurchase program was authorized, reflecting the company's commitment to disciplined capital allocation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform prior cycles, citing a strong foundation from its transformed business model [8] - The outlook for 2025 includes a comparable EPS forecast of $12.85 to $13.05, driven by higher contractual earnings and benefits from strategic initiatives [29] - Management acknowledged ongoing headwinds from the freight market downturn but remains optimistic about robust sales and pipeline activity in SCS [29][30] Other Important Information - The company has returned $457 million to shareholders in 2025 through share repurchases and dividends, with a 57% increase in the quarterly dividend since 2021 [9] - The forecast for free cash flow remains unchanged at $900 million to $1 billion, reflecting lower capital expenditures and an estimated annual benefit of $200 million from tax bonus depreciation [10][30] Q&A Session Summary Question: Impact of CDL regulations on the business model - Management indicated that tighter driver markets could benefit the dedicated business as companies seek assistance in driver recruitment, with minimal impact expected on the lease side [38][40] Question: Drivers of earnings growth for next year - Management expects contractual earnings growth and strong performance in supply chain to drive revenue and earnings growth, despite muted sales in lease and dedicated due to freight market softness [42][45] Question: Used vehicle pricing and tariffs - Management noted that any price increases would likely be passed through to lease rates, and higher new truck pricing could eventually support used truck prices [52][56] Question: Supply Chain Solutions headwinds - Management acknowledged temporary headwinds in e-commerce network performance but remains optimistic about future growth and margin targets [65][66] Question: Bonus depreciation impact - The bonus depreciation is expected to provide a cash tax benefit of approximately $200 million annually, with no significant impact on operating margins [84][86]

Financial Data and Key Metrics Changes - Ryder reported operating revenue of $2.6 billion in Q3 2025, up 1% from the prior year, primarily due to growth in contractual revenue [11] - Comparable EPS from continuing operations increased to $3.57, up 4% from $3.44 in the prior year, reflecting higher contractual earnings and benefits from share repurchases [11] - Return on equity (ROE) was 17%, up from the prior year, driven by higher contractual earnings and share repurchases, partially offset by lower rental demand and used vehicle sales [11] - Year-to-date free cash flow increased to $496 million from $218 million in the prior year due to reduced capital expenditures and lower income tax payments [11] Business Line Data and Key Metrics Changes - Fleet Management Solutions (FMS) operating revenue was in line with the prior year, with pre-tax earnings of $146 million, reflecting higher ChoiceLease performance [12] - Supply Chain Solutions (SCS) operating revenue increased 4%, driven by new business in omnichannel retail, but earnings decreased 8% due to e-commerce network performance and higher medical costs [15] - Dedicated Transportation Solutions (DTS) operating revenue decreased 6% due to lower fleet count, but EBT was in line with the prior year, reflecting acquisition synergies [16] Market Data and Key Metrics Changes - 93% of Ryder's revenue is generated in the U.S., positioning the company to benefit from increased domestic industrial manufacturing [5] - The rental demand was lower than historical seasonal trends, with rental utilization on the power fleet at 70%, down from 71% the prior year [12] - Used vehicle pricing declined 6% for tractors and 15% for trucks year-over-year, reflecting ongoing weakness in market conditions [13] Company Strategy and Development Direction - Ryder's balanced growth strategy focuses on operational excellence and investment in customer-centric technology, aiming to improve full-cycle returns and unlock long-term shareholder value [5] - The company expects earnings growth in 2025 driven by resilient contractual businesses and strategic initiatives, with a forecasted ROE of 17% [22] - Ryder has authorized a new discretionary share repurchase program, reflecting a commitment to disciplined capital allocation [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's cycle-tested business model, which has demonstrated resiliency during the freight cycle downturn [6] - The company anticipates continued earnings growth from multi-year strategic initiatives, with expected annual pre-tax earnings benefits of approximately $150 million [24] - Management noted that while there are near-term headwinds in lease and dedicated sales due to market conditions, robust sales activity in SCS is encouraging [22] Other Important Information - Ryder's forecast for free cash flow remains unchanged at $900 million to $1 billion, reflecting lower capital spending and an annual cash flow benefit of approximately $200 million from tax bonus depreciation [8] - The company has repurchased approximately 22% of its shares outstanding since 2021 and increased the quarterly dividend by 57% [7] Q&A Session Summary Question: Impact of CDL regulations on business model - Management indicated that tighter driver markets could benefit the dedicated business as companies seek assistance in driver recruitment [30][32] Question: Drivers of earnings growth for 2026 - Management expects contractual earnings growth and benefits from strategic initiatives to drive earnings growth, with strong performance anticipated in supply chain solutions [34][35] Question: Challenges in used vehicle pricing - Management acknowledged challenges in used vehicle pricing but noted that higher new truck pricing could eventually support used truck values [39][40] Question: Supply chain performance and headwinds - Management highlighted that recent headwinds in supply chain performance were temporary and attributed to specific customer issues, with expectations for recovery [49][50] Question: Bonus depreciation impact on financials - Management clarified that the bonus depreciation will provide a cash tax benefit of approximately $200 million annually, with no significant impact on operating margins [61][62]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]

Financial Performance Highlights - Operating revenue increased by 1% to $2.6 billion in 3Q25 compared to $2.6 billion in 3Q24 [16] - Comparable EPS increased by 4% to $3.57 in 3Q25 compared to $3.44 in 3Q24 [16] - Adjusted ROE increased to 17% in 3Q25 from 16% in 3Q24 [16] - The company returned $457 million YTD to shareholders through buybacks and dividends [9] - FY25 free cash flow forecast remains unchanged at $900 million - $1 billion [9] Segment Performance - Fleet Management Solutions (FMS) operating revenue remained consistent at $1.3 billion in 3Q25 compared to 3Q24, with EBT increasing by 11% to $146 million [19] - Supply Chain Solutions (SCS) operating revenue increased by 4% to $1.0 billion in 3Q25 compared to $996 million in 3Q24, while EBT decreased by 8% to $86 million [26] - Dedicated Transportation Solutions (DTS) operating revenue decreased by 6% to $458 million in 3Q25 compared to $486 million in 3Q24, with EBT remaining consistent at $36 million [29] Outlook - The company updated its full-year 2025 comparable EPS forecast range to $12.85 - $13.05 [38] - The company forecasts a 2025 ROE of 17% and free cash flow between $900 million and $1 billion [38]

Core Insights - Ryder System's shares have increased by 25% over the past year, demonstrating strong performance despite a challenging macroeconomic environment [1] - The company's strategic shift towards long-term leasing and supply chain management has provided insulation from macroeconomic sensitivities [1] Company Performance - Ryder System has successfully executed a multiyear strategic transition that has contributed to its stock performance [1] - The company's approach has been characterized by a focus on long-term leasing and effective supply chain management [1] Market Context - The overall macro environment remains uncertain, yet Ryder System has managed to thrive [1] - The company's performance can be seen as a contrarian bet that has yielded outsized returns with a favorable risk/reward profile [1]

Core Insights - Ryder System reported total revenue of $3.17 billion, showing a slight increase from $3.168 billion a year ago, while non-GAAP earnings per share rose to $3.57 from $3.44 [1] Revenue Performance - Dedicated Transportation Solutions (DTS) experienced a 10% decline in revenue to $570 million, reflecting challenges in the trucking market [2] - DTS revenue decreased sequentially from $606 million in the second quarter, which was down from $635 million in the same quarter of 2024 [3] - Fleet Management Solutions saw a minor revenue drop of $5 million year-on-year, but earnings before taxes increased by 11% to $146 million [5] - Supply Chain Solutions achieved the highest revenue growth among the divisions, with a 5% increase to $1.38 billion, although earnings before taxes fell by 8% to $86 million [6] Operational Insights - Ryder's CEO noted that benefits from strong operating performance and acquisition synergies in DTS were offset by fleet reductions due to weaker freight market conditions [4] - Used vehicle pricing for tractors and trucks decreased by 6% and 15%, respectively, compared to the second quarter of 2024, although tractor pricing remained unchanged sequentially and truck pricing increased by 7% [7] Cost Management - Fuel expenses decreased significantly from $116 million a year ago to $94 million in the second quarter of 2025, providing a positive impact on Ryder's financials [8] - The company adjusted its fiscal non-GAAP EPS forecast to a range of $12.85-$13.05, slightly down from the previous range of $12.85-$13.30, while most other forecast numbers remained unchanged [8]

Core Insights - Ryder reported quarterly earnings of $3.57 per share, exceeding the Zacks Consensus Estimate of $3.56 per share, and showing an increase from $3.44 per share a year ago, resulting in an earnings surprise of +0.28% [1] - The company posted revenues of $3.17 billion for the quarter ended September 2025, which was a miss against the Zacks Consensus Estimate by 1.56%, remaining unchanged from the previous year [2] - Ryder has outperformed the S&P 500 with a 16.5% gain since the beginning of the year compared to the S&P 500's 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.84 on revenues of $3.24 billion, and for the current fiscal year, it is $13.16 on revenues of $12.78 billion [7] - The trend of estimate revisions for Ryder was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Transportation - Equipment and Leasing industry, to which Ryder belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - GAAP EPS from continuing operations was $3.33, up 2% from the prior year, while comparable EPS (non-GAAP) was $3.57, up 4% from the prior year[3]. - Total revenue for Q3 2025 was $3.2 billion, consistent with the prior year, and operating revenue (non-GAAP) was $2.6 billion, up 1%[3]. - Net earnings for Q3 2025 were $138 million, compared to $142 million in Q3 2024, resulting in diluted EPS of $3.32, up from $3.24[32]. - Comparable earnings from continuing operations for Q3 2025 were $149 million, compared to $151 million in Q3 2024, with a comparable tax rate of 25.6% for Q3 2025 versus 23.9% for Q3 2024[52]. - The company expects full-year 2025 GAAP EPS to be between $12.10 and $12.30, with comparable EPS (non-GAAP) between $12.85 and $13.05[20]. - The forecast for comparable EPS from continuing operations for the full year 2025 is between $12.85 and $13.05, reflecting growth from the previous year[58]. Revenue Breakdown - Fleet Management Solutions (FMS) total revenue was $1.465 billion, unchanged from the prior year, while Supply Chain Solutions (SCS) total revenue increased by 5% to $1.38 billion[12]. - Dedicated Transportation Solutions (DTS) total revenue decreased by 10% to $570 million, reflecting lower fleet count due to freight market conditions[13]. - Services revenue decreased to $2,088 million in Q3 2025 from $2,097 million in Q3 2024, while lease and related maintenance revenue increased to $976 million from $960 million[32]. - The company reported a 5% increase in Supply Chain Solutions revenue to $1,380 million in Q3 2025, compared to $1,317 million in Q3 2024[38]. - FMS total revenue for Q3 2025 was $1,465 million, a slight decrease of 0.3% compared to $1,470 million in Q3 2024[40]. - SCS total revenue increased by 5% to $1,380 million in Q3 2025 from $1,317 million in Q3 2024[40]. - DTS total revenue decreased by 10% to $570 million in Q3 2025 compared to $633 million in Q3 2024[40]. Earnings Before Tax - Earnings Before Tax (EBT) for FMS increased by 11% to $146 million, driven by higher ChoiceLease performance[11]. - SCS EBT decreased by 8% to $86 million, impacted by e-commerce network performance and medical costs despite revenue growth[12]. - FMS earnings before income taxes increased by 11% to $146 million in Q3 2025, compared to $132 million in Q3 2024[40]. - SCS earnings before income taxes decreased by 8% to $86 million in Q3 2025 from $93 million in Q3 2024[40]. - DTS earnings before income taxes remained stable at $36 million in Q3 2025, unchanged from Q3 2024[40]. Cash Flow and Capital Expenditures - Free cash flow (non-GAAP) is projected to be between $900 million and $1 billion for 2025[20]. - Free cash flow for the nine months ended September 30, 2025, was $496 million, significantly higher than $218 million for the same period in 2024[36]. - The forecast for total cash generated in 2025 is $3,300 million, with expected free cash flow of $1,000 million after capital expenditures[59]. - Capital expenditures decreased to $1.6 billion in 2025 from $2.0 billion in 2024, primarily due to reduced investments in ChoiceLease and rental[17]. Debt and Taxation - Total debt increased to $7,857 million as of September 30, 2025, from $7,779 million at the end of 2024, resulting in a debt-to-equity ratio of 254%[34][36]. - The effective income tax rate from continuing operations was 27.1%, up from 24.0% in the prior year[16]. Operational Performance - Comparable EBITDA for Q3 2025 was $742 million, up from $716 million in Q3 2024, indicating a 4% increase[36]. - The effective interest rate for the company was 5.2% for both Q3 2025 and Q3 2024[36]. - The average fleet count for ChoiceLease decreased by 2% to 142,400 units in Q3 2025 compared to 145,300 units in Q3 2024[42]. - Net cash provided by operating activities from continuing operations for the nine months ended September 30, 2025, was $1,845 million, an increase from $1,707 million in 2024[51]. - Non-operating pension costs for Q3 2025 were $7 million, consistent with Q3 2024, indicating stable pension-related expenses[52]. Future Outlook - The company plans to continue focusing on market expansion and enhancing its service offerings to drive future growth[31]. - Operating revenue for the full year 2025 is expected to be $10,400 million, a 1% increase from $10,266 million in 2024[57].