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]

Core Viewpoint - Graphene Manufacturing Group Limited (GMG) has initiated sales of its G® Lubricant globally, targeting various markets including Australia, the UK, Europe, China, Canada, and the US, with plans for further distribution expansion [1][3][4]. Sales and Marketing Initiatives - GMG has begun direct sales and online sales for G® Lubricant, receiving formal requests for distribution in additional countries [1][3]. - The company is investing over AU$200,000 in promotional advertising in Australia, focusing on the trucking and transport industry through various media channels [6][8]. - GMG is also spending over AU$200,000 annually on online marketing campaigns targeting the truck market across platforms like Meta, Google, and LinkedIn [6][8]. Regulatory and Compliance Efforts - GMG is in the process of registering G® Lubricant with the European Chemicals Agency under the REACH regulation, which may take up to three months [4]. - The company is seeking assistance for obtaining USA EPA approval for G® Lubricant [4]. Product Development and Partnerships - GMG is exploring partnerships with large oil and gas companies and original equipment manufacturers to scale G® Lubricant [5]. - The lubricant is currently being tested in large truck fleets, with performance feedback expected in the coming months [5]. Company Overview and Objectives - GMG is an Australian clean-technology company focused on developing energy-saving and energy storage solutions using graphene [8][9]. - The company aims to de-risk and develop commercial scale-up capabilities while securing market applications for its products [9][10]. - GMG's critical business objectives include onboarding new sales team members, expanding G® Lubricant production, and managing packaging systems in line with sales growth [10].

Company Overview - Citizens, Inc. is a diversified financial services company specializing in life, living benefits, and final expense insurance, serving individuals and small businesses in the U.S., Latin America, and Asia [5] - The company operates two primary segments: Life Insurance and Home Service Insurance, with a focus on innovative products and customer-centric growth strategies [5] Index Inclusion - Citizens, Inc. has been selected to rejoin the Russell 3000® index and the Russell 2000® index effective June 30, 2025, as part of the 2025 Russell indexes reconstitution [1][3] - Membership in the Russell 3000® Index signifies automatic inclusion in the large-cap Russell 1000® Index or small-cap Russell 2000® Index, enhancing visibility among institutional and retail investors [3] Financial Performance - The company reported its highest-ever total direct insurance in force of $5.28 billion, reflecting its commitment to profitable growth and capital management [4] - Citizens, Inc. has maintained positive cash flow from operations annually since 2004, indicating strong operational performance [4] Industry Context - Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against the Russell US indexes as of June 2024 [2] - FTSE Russell, the global index provider, calculates thousands of indexes covering 98% of the investable market globally, with about $18.1 trillion benchmarked to its indexes [6]

Business Transformation and Financial Performance - Ryder's transformative actions have led to significantly higher earnings and an improved return profile, outperforming prior cycles[10] - The company expects post-transformation returns (2025F) to be well above pre-transformation peak returns (2018)[17] - A multi-year maintenance cost savings initiative aims for $50 million in savings[20] - Synergies from the Cardinal acquisition are expected to yield $40-60 million by 2026[20] Market Position and Growth Strategy - Ryder is a leader in North American logistics and transportation outsourcing, with significant growth opportunities from secular trends and large addressable markets[10] - The company's balanced growth strategy focuses on accelerating growth in higher-return Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS), with moderate growth and increased returns in Fleet Management Solutions (FMS)[14] - Ryder redeployed approximately 8,800 vehicles in 2024[29] Revenue and Cash Flow - Approximately 90% of Ryder's operating revenue is contractual, providing multi-year recurring operating cash flow[41] - The company forecasts free cash flow of $0.5 billion for 2025[48] - Ryder's total revenue for 2024 was $12.6 billion[24] Financial Targets - Ryder targets high single-digit operating revenue growth over the long term[59] - The company's long-term leverage goal is a debt-to-equity ratio between 2.5x and 3.0x[59]

Ryder System (R) 2025 Conference Summary Company Overview - Ryder System Inc. is a Fortune 500 company with revenues just under $13 billion and has been in operation for 92 years [2][3] - The company operates in the transportation logistics outsourcing business across North America, including the U.S., Mexico, and Canada, employing approximately 50,000 workers [3][4] Core Business Segments - Ryder's services include truck rentals, fleet leasing, dedicated transportation, and supply chain logistics, with a fleet of about 250,000 vehicles and 330 distribution centers covering 100 million square feet [4][5] - Recent expansions include e-commerce fulfillment and co-manufacturing services [5] Business Transformation - Over the past five years, Ryder has focused on derisking its leasing business, improving profitability, and shifting towards more asset-light operations [6][7] - The revenue contribution from supply chain and dedicated services increased from 45% in 2018 to approximately 60% in 2025 [8] - Earnings per share are projected to be between $12.85 and $13.6 in 2025, nearly double the earnings from 2018 [8] Financial Metrics - Return on equity (ROE) is expected to be between 16.5% and 17.5% in 2025, compared to 13% in 2018 [9] - Operating cash flow has significantly increased, with a target of generating $10 billion to $10.5 billion over three years [13] Strategic Initiatives - Ryder has identified $150 million in potential earnings improvements from strategic initiatives, with $100 million expected to be realized by the end of the year [10][11] - Additional $200 million in earnings improvement is anticipated as the economy and freight market recover [12] Capital Deployment - Ryder has approximately $13.5 billion available for capital deployment over three years, with plans to allocate $9 billion for vehicle replacements and $5 billion for dividends [14] - The remaining $4.3 billion will be used for growth, acquisitions, and share buybacks, with a focus on a balanced approach [14] Market Conditions and Outlook - The company is currently experiencing a soft rental market, with a decrease in rental fleet utilization and a wait-and-see approach from customers [29][30] - Ryder's rental fleet is down by about 8,000 to 9,000 units, indicating potential for earnings recovery as market conditions improve [28] - The used vehicle market is expected to stabilize as new truck orders decline, which could lead to increased prices for used trucks [36][37] Challenges and Risks - The ongoing freight recession has created uncertainty, affecting customer decision-making and delaying long-term contracts [25][30] - Interest rates and inflation have increased truck costs by 45% since 2018, impacting leasing and rental pricing strategies [22] Future Expectations - Ryder anticipates a gradual recovery in the rental market and expects to flush out aged inventory by the end of Q2 2025 [34] - The company aims to achieve a long-term target of 2,000 to 4,000 net unit additions annually, contingent on market recovery [56][57] Conclusion - Ryder System is positioned for growth through strategic initiatives and capital deployment, despite current market challenges. The focus remains on improving operational efficiency and adapting to changing market conditions while maintaining a strong balance sheet.