Fourth Quarter Fiscal 2025 U-Haul Investor Update Forward Looking Statement The following information and the statements made during this presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe futur ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter loss of $82.3 million compared to a loss of $0.863 million for the same quarter last year [9] - Full year fiscal 2025 earnings were $367.1 million, down from $628.7 million in fiscal 2024 [9] - EBITDA for the Moving and Storage segment increased by $5.6 million for the quarter to $217.3 million, largely from revenue growth [9] - Full year fiscal 2025 EBITDA increased by just under $52 million to $1.6197 billion [10] Business Line Data and Key Metrics Changes - Equipment rental revenue increased by $29 million or just over 4% in the fourth quarter, with a full year increase of just over $100 million or about 2.8% [12] - Self-storage revenues were up $18 million or 8% for the quarter, with a similar 8% increase for the full year [14] - Average revenue per occupied foot improved by approximately 1.6%, with a 3% increase for the same store portfolio [14] - The average occupancy ratio across all locations declined about 2.5% to just over 77% [16] Market Data and Key Metrics Changes - The company defleeted three-quarters of its pickup fleet due to profitability concerns [5] - Resale prices for vans and pickups are steady or improving, with expectations for a clearer path beyond October [6] - U Box revenue results were up just under $14 million, with both U Box moving transactions and related storage transactions growing [17] Company Strategy and Development Direction - The company aims to provide reliable, fuel-efficient vehicles and is seeking emissions regulation relief to better serve customers [5] - There is a focus on executing storage programs with precision, as storage remains a bright spot for the company [6] - The company plans to leverage its newly developed storage capacity and U Box offerings to drive growth [47] Management's Comments on Operating Environment and Future Outlook - Management noted signs of consumer optimism and a willingness to accept rate increases, indicating a potential for improved business [25] - Concerns were raised about the impact of tariffs on consumer behavior, but management observed that moving activity remains strong [56] - The company expects to see improvements in equipment acquisition costs as automakers normalize their production strategies [31] Other Important Information - Capital expenditures for new rental equipment for fiscal 2025 were $1.863 billion, a $244 million increase compared to fiscal 2024 [13] - Operating expenses in the Moving and Storage segment increased by $53.6 million, with personnel costs up $12.8 million [18] Q&A Session Summary Question: Interpretation of fourth quarter strength - Management acknowledged the fourth quarter as the strongest in six years, indicating a positive trend in top-line business [24][25] Question: Outlook for top-line growth - Management expressed optimism for modest growth, with signs of consumer willingness to engage in moving transactions [25][26] Question: Concerns about depreciation - Management clarified that while depreciation is a normal part of the business, recent increases in equipment acquisition costs have impacted financials [28][30] Question: U Box growth attribution - Management noted that U Box moving transactions are growing faster than storage transactions, with both segments seeing over 20% growth [41][42] Question: Real estate investments and CapEx expectations - Management indicated that while there is no emergency need for construction, they will continue to leverage existing assets for growth [46][47] Question: Impact of tariffs on customer behavior - Management observed that despite potential uncertainties from tariffs, moving activity remains strong, suggesting consumer confidence [56] Question: Fleet age and maintenance expenses - Management indicated that while fleet age has increased, they are working to improve the quality and availability of their trucks [85][90]

Financial Data and Key Metrics Changes - The company reported a fourth quarter loss of $82.3 million compared to a loss of $0.863 million for the same quarter last year [8] - Full year fiscal 2025 earnings were $367.1 million, down from $628.7 million in fiscal 2024 [8] - EBITDA for the Moving and Storage segment increased by $5.6 million for the quarter to $217.3 million, largely from revenue growth [8] - Full year fiscal 2025 EBITDA increased by just under $52 million to $1.6197 billion [9] - Equipment rental revenue increased by $29 million or just over 4% for the fourth quarter [10] - Operating expenses at Moving and Storage were up $53.6 million [17] Business Line Data and Key Metrics Changes - Self-storage revenues were up $18 million or 8% for the quarter, with a similar increase for the full year [13] - Average revenue per occupied foot improved by approximately 1.6% across the entire portfolio [13] - The average occupancy ratio across all locations declined about 2.5% to just over 77% [15] - U Box revenue results were up just under $14 million, with both U Box moving transactions and related storage transactions growing [16] Market Data and Key Metrics Changes - The company experienced a $244 million increase in capital expenditures for new rental equipment compared to fiscal 2024 [12] - Proceeds from the sales of retired rental equipment declined by $76 million to a total of $652 million [12] - The company added 82 new storage locations, resulting in 6.5 million new net rentable square feet across 71,000 new rooms [14] Company Strategy and Development Direction - The company aims to position itself as the best choice for customers in self-move and self-storage needs [7] - There is a focus on improving execution in storage operations to capitalize on customer demand [6] - The company plans to leverage its newly developed assets and expand its U Box capacity throughout North America [47] Management's Comments on Operating Environment and Future Outlook - Management noted signs of consumer optimism and a willingness to engage in moving transactions [25] - There is an expectation for continued growth in U Box moving transactions, with a higher growth rate than truck share operations [44] - Management expressed confidence that the depreciation of equipment will normalize and align with revenue over time [36] Other Important Information - The company invested $1.507 billion in real estate acquisitions and self-storage development during fiscal 2025 [15] - The average move-in rates for the same store portfolio were up just over 4.5% compared to the fourth quarter of last year [13] Q&A Session Summary Question: Interpretation of fourth quarter strength - Management acknowledged the fourth quarter as the strongest in six years, indicating a strengthening top line business [23][24] Question: Outlook for top line growth - Management expects to see modest growth, with signs of consumer optimism and willingness to accept rate increases [25][26] Question: U Box growth attribution - U Box moving transactions are growing faster than storage transactions, with both in the 20% range [41][42] Question: Real estate CapEx expectations - Management indicated that they are not in an emergency construction phase and will focus on leveraging existing assets [47] Question: Impact of tariffs on customer behavior - Management has not observed significant shifts in customer behavior due to tariffs, noting continued consumer movement [56] Question: Valuation of self-storage assets - Management acknowledged a disconnect in the market valuation of self-storage assets compared to their intrinsic value [72][73] Question: Financial performance of property and casualty business - The decline in operating profits was attributed to market valuation changes in the investment portfolio [78] Question: Fleet age and maintenance expenses - Management indicated that the fleet is improving, with a focus on increasing unused mileage and managing repair expenses [83][84]

Financial Performance - Net earnings available to shareholders for the year ended March 31, 2025, were $367.1 million, down from $628.7 million in the previous year[1] - For the quarter ended March 31, 2025, the company reported net losses available to shareholders of ($82.3) million, compared to net losses of ($0.9) million for the same period last year[2] - Earnings available to common shareholders for the year ended March 31, 2025, were $367,090,000, down from $628,707,000 in 2024, a decrease of approximately 41.6%[23] - The company reported a net loss available to common shareholders of $82,291,000 for the quarter ended March 31, 2025, compared to a loss of $863,000 in the same quarter of 2024[22] - Basic and diluted losses per share of Common Stock for the quarter were $0.46, compared to $0.05 in the prior year[22] - Net earnings available to common stockholders decreased to $367,090 in March 2025 from $448,518 in March 2024, reflecting a decline of about 18.1%[33] Revenue and Growth - Total revenues for the quarter ended March 31, 2025, increased to $1,233,509,000, up from $1,179,170,000 in the same quarter of 2024, representing a growth of approximately 4.6%[22] - For the year ended March 31, 2025, total revenues reached $5,828,665,000, a rise from $5,625,674,000 in 2024, indicating a growth of approximately 3.6%[23] - Self-storage revenues rose by $17.8 million, or 8.4%, in Q4 2025 compared to Q4 2024, and for the full year, it increased by $66.8 million, or 8.0%[4] - Self-moving equipment rental revenues increased by $29.0 million, or 4.1%, in Q4 2025, finishing the full year up $100.8 million, or 2.8% compared to fiscal 2024[4] Expenses and Depreciation - Total depreciation expense for Q4 FY 2025 was $253,178,000, an increase of 18.5% from $213,652,000 in Q4 FY 2024[15] - For the full year FY 2025, total depreciation expense reached $971,933,000, up 18.8% from $817,889,000 in FY 2024[16] - Operating expenses for the quarter increased to $812,290,000, compared to $757,567,000 in the same quarter of 2024, marking an increase of about 7.2%[22] - The company experienced a significant increase in depreciation expenses, which rose to $268,278,000 for the quarter, compared to $198,347,000 in the prior year[22] Assets and Liabilities - Total debt as of March 31, 2025, was $7,229.3 million, an increase from $6,929.6 million in the previous year[14] - Total assets increased to $20,479,170,000 in FY 2025 from $19,058,758,000 in FY 2024, reflecting a growth of 7.4%[21] - Cash and cash equivalents decreased to $988,828,000 in FY 2025 from $1,534,544,000 in FY 2024, a decline of 35.5%[21] - Cash and credit availability at the Moving and Storage operating segment was $1,347.5 million as of March 31, 2025, down from $1,886.3 million in 2024[9] Operational Metrics - The average occupied rooms increased by 39,197, or 6.8%, compared to March 31, 2024, and for the full year, it increased by 35,441, or 6.2%[4] - The company operated 799 self-storage units as of March 31, 2025, compared to 728 units a year earlier, representing a growth of 9.8%[16] - Average monthly occupancy rate for owned storage locations in Q4 FY 2025 was 77.3%, down from 79.8% in Q4 FY 2024[16] - The end of period occupancy rate based on unit count was 77.0% for Q4 FY 2025, down from 79.3% in Q4 FY 2024[16] Investments and Dividends - The company declared a cash dividend of $0.05 per share on March 5, 2025, paid on March 28, 2025[9] - The company added 20 new storage locations with 1.6 million net rentable square feet during the fourth quarter[4] Non-GAAP Measures - The company aims to enhance transparency in financial disclosures through the use of non-GAAP measures like Adjusted EBITDA, which provides a clearer view of core business operations[32] - Adjusted EBITDA for the trailing twelve months as of March 31, 2025, was $1,619,714, compared to $1,614,146 for the same period in 2024, showing a slight increase[33]

Business Operations and Risks - As of March 31, 2025, the company had over 21,600 independent equipment rental dealers, with nearly 50% of U-Move rental revenue generated through this network[78]. - The company faces risks related to the significant increase in costs for acquiring new rental trucks, which could adversely affect its fleet rotation program[77]. - The company relies on a limited number of manufacturers for its rental trucks, primarily Ford and General Motors, exposing it to production risks[76]. - Cybersecurity incidents pose a risk to the company's operations, with past incidents not resulting in material impacts but future risks remaining significant[91]. - The company’s ability to maintain its network of independent dealers is crucial for serving customers and could affect its financial position if disrupted[79]. - The company faces significant competition in the truck rental and self-storage industries, which could adversely impact occupancy levels and rental rates[95][96]. - Economic conditions, including credit market fluctuations and inflation, may negatively affect the company's business and results of operations[98]. - The company is subject to numerous environmental laws and regulations, which could lead to increased compliance costs and potential liabilities[108][109]. - The company is classified as a "controlled company," with approximately 50.1% of Voting Common Stock owned by a small group of stockholders, potentially limiting governance standards[103][104]. - The company may face challenges in maintaining its competitive position due to rapid technological advancements and changing consumer preferences[96][97]. Financial Performance and Position - The company reported $0.4 million of reinsurance recoverables and $32.4 million of reserves and liabilities ceded to reinsurers as of December 31, 2024[93]. - The company's largest exposure to a single reinsurer was $20.3 million as of December 31, 2024[93]. - As of March 31, 2025, the company had total debt outstanding of $7,229.3 million and operating lease liabilities of $47.0 million[101]. - A.M. Best affirmed the financial strength rating for Oxford and Christian Fidelity Life Insurance Company of A, with the outlook revised to negative from stable[100]. - Approximately 5.1% of the company's revenue was generated in Canada for both fiscal 2025 and 2024, with no material impact expected from a 10% change in the U.S. dollar relative to the Canadian dollar[260]. Interest Rate and Market Risks - As of March 31, 2025, the company had $814.4 million in variable rate debt obligations, with $437.5 million not fixed through interest rate swaps[254]. - A 100 basis point increase in the Secured Overnight Funding Rate (SOFR) would decrease future earnings and cash flows by $4.4 million annually[254]. - The company's fixed maturity portfolio market value was $2,479,498 thousand as of March 31, 2025, with a sensitivity analysis showing a decrease to $2,372,291 thousand with a +100 basis point change in interest rates[257]. - The interest rate risk sensitivity of the fixed maturity portfolio indicates a potential decrease in fair value to $2,158,122 thousand with a -300 basis point change in interest rates[257]. - The company utilizes interest rate swap agreements to mitigate exposure to interest rate changes, with fixed rates ranging from 2.72% to 4.71%[254]. - The net market value of derivative hedges related to indexed annuity products was $8.8 million as of March 31, 2025, down from $10.5 million in 2024[258]. - The company does not hedge foreign currency risk as the exposure is not considered material[260]. - The company does not use derivative financial instruments for speculative purposes, focusing instead on risk mitigation strategies[253]. Strategic Initiatives and Challenges - Regulatory pressures favoring electric vehicles may require significant infrastructure improvements, potentially impacting the company's business model[80]. - The company is actively developing new technologies to adapt to changing customer demands, but the success of these initiatives is uncertain[97]. - The trading prices of the company's Voting Common Stock and Non-Voting Common Stock may be volatile, influenced by various market factors[107]. - The company carries excess of loss insurance coverage to mitigate risks associated with potential terrorist attacks, although the sufficiency of this coverage is uncertain[119]. - The Tax Cuts and Jobs Act and the CARES Act have introduced significant changes to U.S. tax laws that may adversely affect the company's financial condition[117].

Core Insights - The focus is on fundamental analysis and disciplined market research to identify investment opportunities in small cap companies with strong fundamentals, large cap companies facing temporary setbacks, and stable companies with solid dividend yields and growth potential [1]. Group 1 - The analyst has a strong quantitative background with a Ph.D. in Chemical Engineering and an MBA, indicating a robust analytical capability [1]. - The investment strategy emphasizes identifying small cap companies with growth potential, which may present unique opportunities for investors [1]. - Large cap companies undergoing temporary setbacks are also a focus, suggesting a strategy to capitalize on recovery potential [1]. Group 2 - The emphasis on stable companies with solid dividend yields indicates a preference for income-generating investments alongside growth [1].

Financial Data and Key Metrics Changes - U-Haul reported third quarter earnings of $67 million, down from $99 million in the same quarter last year, translating to $0.35 per nonvoting share this quarter compared to $0.51 per share last year [12] - EBITDA in the moving and storage segments increased by $47.8 million, primarily due to stronger revenue growth [13] - Operating expenses increased by $11.6 million, with personnel costs up just over $15 million, while fleet repair and maintenance costs declined by nearly $10.5 million [22][23] Business Line Data and Key Metrics Changes - Equipment rental revenue increased by $39 million, or over 4.5%, for the quarter, better than the 1.5% to 1.7% improvements in the first and second quarters [15] - Self-storage revenues were up $17 million, an 8% increase for the quarter, with average revenue per occupied foot improving by approximately 90 basis points [18] - U-Box revenue increased by $9 million, driven by growth in both moving and storage transactions [21] Market Data and Key Metrics Changes - The medium truck industry is described as competitive, with market share remaining stable [9] - The occupied unit count for self-storage increased by nearly 42,000 units compared to the same time last year, although average occupancy across the portfolio declined to 78.7% [19] - The company added 80,000 new units over the same timeframe, leading to a decrease in average occupancy for the same-store portion of the portfolio by 50 basis points to 92.4% [19] Company Strategy and Development Direction - The company plans to continue adding storage products and is optimistic about future growth, particularly in the U-Box business [10][11] - U-Haul is focusing on customer needs in the truck share business, competing with other major players [9] - The company is also monitoring tariff proposals and supply chain complexities while remaining optimistic about its position in the market [11] Management's Comments on Operating Environment and Future Outlook - Management noted increased consumer optimism, which is beneficial for the self-move business, and has not experienced significant losses from recent weather events [6][7] - The management expressed optimism about the company's ability to navigate regulatory changes and supply chain disruptions [8] - There is a belief that the company can maintain a competitive edge through its extensive distribution network and cost advantages [78] Other Important Information - Capital expenditures for new rental equipment for the first nine months were $1.587 billion, a $237 million increase compared to the same period last year [16] - The company has a cash balance of $1.348 billion as of December 2024, along with availability from existing loan facilities [24] Q&A Session Summary Question: What are the drivers behind the revenue growth? - Management confirmed that revenue per transaction has steadily increased, indicating a good pricing environment [28][29] Question: How are operating expenses controlled despite revenue growth? - Management acknowledged a delayed reaction in cost control measures, which have started to show results [34][35] Question: What is the outlook for U-Box and its storage potential? - Management highlighted the growth in U-Box moving and storage transactions, emphasizing the versatility of the product [42][44] Question: How does the company view competition and pricing dynamics? - Management noted that while competitors are raising prices, U-Haul's extensive distribution network provides a competitive advantage [77][78] Question: What is the current state of warehouse capacity for U-Box? - Management confirmed that warehouse growth is no longer a constraint for U-Box, allowing for increased operational efficiency [85] Question: What are the expectations for future margins in the U-Box business? - Management expressed optimism about achieving higher margins as the business scales and improves asset utilization [59][60]

Financial Performance - Net earnings available to shareholders for Q3 fiscal 2025 were $67.2 million, down from $99.2 million in Q3 fiscal 2024, with earnings per share for Non-Voting Shares at $0.35 compared to $0.51 last year[1][2] - For the nine-month period ended December 31, 2024, net earnings were $449.4 million, a decrease from $629.6 million in the same period last year, with earnings per share at $2.31 compared to $3.22[2] - Earnings from operations for the first nine months of fiscal 2025 were $758,930,000, a decrease of 25.6% compared to $1,019,601,000 in fiscal 2024[15] - Earnings available to common stockholders for the quarter were $67,166,000, down from $99,224,000 in the previous year, a decrease of 32.3%[21] - Basic and diluted earnings per share of Common Stock decreased to $0.30 from $0.46, a decline of 34.8% year-over-year[21] - Net earnings available to common stockholders decreased to $449,381,000 for the nine months ended December 31, 2024, down from $629,570,000 in the same period of 2023, representing a decline of approximately 28.6%[27] - Undistributed earnings per share of Voting Common Stock fell to $2.16, down from $3.09, indicating a decrease of about 30% year-over-year[27] - Basic and diluted earnings per share of Non-Voting Common Stock decreased to $2.31 from $3.22, reflecting a decrease of approximately 28.3%[27] Revenue and Occupancy - Total consolidated revenue for Q3 fiscal 2025 was $1,388.6 million, compared to $1,339.5 million in Q3 fiscal 2024[11] - Self-storage revenues increased by $16.6 million, or 7.9%, with same store occupancy at 92.4% and revenue per foot up by 3.0%[3] - Self-storage revenues for the first nine months of fiscal 2025 reached $667,381,000, an increase of 7.9% compared to $618,368,000 in the same period of fiscal 2024[14] - Consolidated revenue for the first nine months of fiscal 2025 was $4,595,156,000, a slight increase from $4,529,682,000 in fiscal 2024[15] - Total revenues for the quarter ended December 31, 2024, increased to $1,388,558,000, up from $1,339,514,000 in the same quarter of 2023, representing a growth of 3.7%[21] - Self-storage revenues for the quarter increased to $227,125,000, up from $210,517,000, a growth of 7.9%[21] - Average monthly occupancy rate based on unit count for December 2024 was 79.9%, down from 82.9% in December 2023[16] - The end of December occupancy rate based on unit count was 78.1% in 2024, compared to 81.0% in 2023[16] - The average monthly number of occupied units increased to 605 in December 2024 from 571 in December 2023[16] Expenses and Liabilities - Operating expenses for the quarter were $782,351,000, compared to $770,405,000 in the same quarter of 2023, an increase of 1.2%[21] - Total depreciation expense for the first nine months of fiscal 2025 was $718,755,000, up from $604,237,000 in the same period of fiscal 2024[16] - Depreciation expenses rose significantly to $246,091,000 from $173,648,000, an increase of 41.7%[21] - Total debt as of December 31, 2024, was $6,929.6 million, with a net debt to EBITDA ratio of 3.7[12] - Total liabilities increased to $12,698,832,000 from $11,886,313,000, marking an increase of 6.8%[20] Assets and Equity - Total assets as of December 31, 2024, were $20,330,165,000, an increase from $19,058,758,000 as of March 31, 2024, representing a growth of 6.7%[20] - Total stockholders' equity as of December 31, 2024, was $7,631,333,000, compared to $7,172,445,000 as of March 31, 2024, reflecting an increase of 6.4%[20] - The company’s accumulated depreciation increased to $5,954,369,000 as of December 31, 2024, compared to $5,484,016,000 as of March 31, 2024, indicating an increase of about 8.6%[30] - Total property, plant, and equipment, net increased to $15,044,034,000 as of December 31, 2024, compared to $13,423,957,000 as of March 31, 2024, reflecting a growth of approximately 12.1%[30] Segment Performance - Moving and Storage EBITDA increased by $47.8 million to $376.7 million compared to Q3 fiscal 2024, and for the trailing twelve months, it rose by $20.7 million to $1,614.1 million[3] - Self-moving equipment rental revenues rose by $38.8 million, or 4.6%, marking the third consecutive quarter of year-over-year improvement[3] - Moving and Storage Other revenue increased by $9.6 million, or 9.6%, primarily due to growth in U-Box program transactions[8] - Self-moving equipment rental revenues rose to $878,585,000, compared to $839,801,000 in the prior year, reflecting an increase of 4.6%[21] - The company added 34 new storage locations during the third quarter, contributing 2.3 million net rentable square feet[3] Dividends and Share Information - Non-Voting Common Stock dividends declared increased to $0.15 per share, up from $0.13 per share, marking a rise of approximately 15.4%[27] - The company reported a total of 196,077,880 weighted average shares outstanding for both Voting and Non-Voting Common Stock, consistent with the previous year[27] - The total undistributed earnings available to common stockholders allocated to Non-Voting Common Stock decreased to $380,619,000 from $545,966,000, a decline of about 30.3%[27]

Revenue Growth - Self-moving equipment rental revenues increased by $38.8 million to $878.6 million in Q3 fiscal 2025 compared to Q3 fiscal 2024[193]. - Self-storage revenues rose by $16.6 million to $227.1 million, with a 6.8% increase in average monthly occupied units, adding 39,055 units[194]. - Consolidated revenue for Q3 fiscal 2025 reached $1.39 billion, up from $1.34 billion in Q3 fiscal 2024, marking a growth of approximately 3.5%[193]. - Self-moving equipment rental revenues increased by $38.6 million to $879.7 million in Q3 fiscal 2025 compared to Q3 fiscal 2024[208]. - Self-storage revenues rose by $16.6 million to $227.1 million in Q3 fiscal 2025, with a 6.8% increase in average monthly occupied units[209]. - Self-moving equipment rental revenues for the first nine months of fiscal 2025 increased by $71.9 million to $2.98 billion compared to the same period in fiscal 2024[228]. - Self-storage revenues for the first nine months of fiscal 2025 increased by $49.0 million to $667.4 million, with a 6.0% increase in average monthly occupied units[229]. - Total revenues for the Moving and Storage segment were $4,339.4 million for the first nine months of fiscal 2025, up from $4,285.8 million in the same period of fiscal 2024[237]. - Total revenues for the quarter ended December 31, 2024, were $1,388,558,000, an increase from $1,339,514,000 in the same quarter of 2023, representing a growth of approximately 3.6%[296][297]. - For the nine months ended December 31, 2024, total revenues reached $4,595,156,000, compared to $4,339,360,000 for the same period in 2023, showing an increase of about 5.9%[298]. Earnings and Profitability - Earnings from operations decreased to $150.7 million in Q3 fiscal 2025, down from $197.6 million in Q3 fiscal 2024, reflecting a decline of about 23.7%[205]. - Earnings available to common stockholders decreased to $67.2 million in Q3 fiscal 2025 from $99.2 million in Q3 fiscal 2024[207]. - Consolidated earnings from operations for Moving and Storage decreased to $145.2 million in Q3 fiscal 2025 from $194.7 million in Q3 fiscal 2024[218]. - Earnings from operations for the Moving and Storage segment decreased to $703.0 million for the first nine months of fiscal 2025, down from $968.9 million in the same period of fiscal 2024[237]. - Net earnings available to common stockholders for Q4 2024 were $67,166,000, consistent with Q4 2023, indicating stable performance despite revenue growth[296][297]. - The company reported pretax earnings of $592,026,000 for the nine months ended December 31, 2024, compared to $579,686,000 in the same period of 2023, reflecting an increase of approximately 2.1%[298]. - Net earnings for the nine months ended December 31, 2023, were $629,570,000, with cash provided by operating activities totaling $1,240,043,000[303]. Costs and Expenses - Total costs and expenses rose by $95.9 million, with operating expenses for Moving and Storage increasing by $11.6 million[203]. - Total costs and expenses increased by $89.1 million in Q3 fiscal 2025 compared to Q3 fiscal 2024, with operating expenses rising by $11.6 million[215]. - Total costs and expenses for the nine months ended December 31, 2024, were $3,836,226,000, an increase from $3,636,330,000 in the same period of 2023, representing a growth of about 5.5%[298]. - The company reported a depreciation expense of $718,755,000 for the nine months ended December 31, 2024, highlighting significant asset utilization[301]. Investment and Capital Expenditures - The company plans to reinvest approximately $1,115 million in its rental equipment fleet during fiscal 2025[271]. - The company invested $1,213.9 million in real estate acquisitions, new construction, and renovations in the first nine months of fiscal 2025[272]. - Net capital expenditures at Moving and Storage were $2,333.4 million for the first nine months of fiscal 2025, compared to $1,802.8 million for the same period in 2024[273]. - The company expects to maintain a high level of real estate capital expenditures through the remainder of fiscal 2025[315]. Cash Flow and Liquidity - Cash and cash equivalents totaled $1,017.4 million as of December 31, 2024, down from $1,534.5 million as of March 31, 2024[266]. - Net cash provided by operating activities increased by $15.9 million in the first nine months of fiscal 2025 compared to fiscal 2024[267]. - Cash flows from financing activities resulted in a net cash provided of $211,234,000, primarily driven by borrowings from credit facilities totaling $1,037,082,000[304]. - Cash and cash equivalents at the end of the period were $1,017,398,000, down from $1,534,544,000 at the beginning of the period[302]. Financial Position - Total assets as of December 31, 2024, amounted to $20,330.1 million, with cash and cash equivalents at $883.1 million[292]. - Total liabilities reached $12,698.8 million, including accounts payable and accrued expenses of $799.5 million[293]. - Stockholders' equity totaled $7,631.3 million, with retained earnings reported at $0[293]. - The company holds fixed maturity securities available-for-sale valued at $2,442.5 million, indicating a strong investment position[294]. - The company reported accumulated other comprehensive income (loss) of $(223.2) million, which may impact future financial performance[295]. Risks and Future Outlook - The company faces risks related to inflationary pressures that may challenge its operating margin[315]. - The company is reliant on a limited number of manufacturers for its rental trucks, which poses a supply risk[315]. - The company acknowledges potential impacts from technology and cybersecurity breaches on its financial performance[315]. - The company anticipates fluctuations in quarterly results and seasonality affecting its performance[315]. - Future outlook includes continued focus on expanding self-storage and moving services, leveraging existing infrastructure and customer base[300].

Financial Data and Key Metrics Changes - The company reported second quarter earnings of $187 million, a decrease from $274 million in the same quarter last year, translating to earnings per share of $0.96 compared to $1.40 [9] - EBITDA for the moving and storage segment decreased by $18.1 million due to operating costs that are unlikely to recur [9] - Equipment rental revenue increased by $18 million, or about 1.7%, marking the second consecutive quarter of year-over-year increases [10] - Capital expenditures for new rental equipment for the first six months were $1.156 billion, an increase of $182 million compared to the same period last year [12] - Proceeds from the sales of retired rental equipment decreased by $44 million to a total of $361 million [14] Business Line Data and Key Metrics Changes - Self-storage revenues increased by $16 million, representing an 8% improvement, with average revenue per occupied foot up by 1.6% for the quarter [15] - The occupied unit count at the end of September was up nearly 32,000 units compared to the same time last year, with 67,000 new units added [16] - Average occupancy for the entire portfolio decreased to about 80.9%, while same-store occupancy decreased by 80 basis points to 94.1% [16] - U-Box revenue results increased by $7 million, contributing to the overall revenue growth [18] Market Data and Key Metrics Changes - October and the first week of November saw revenue continue to trend positively compared to the same time last year [12] - The self-storage industry is facing challenges due to unrealistic moving promotions, impacting overall performance [6] Company Strategy and Development Direction - The company is focused on developing new storage products and increasing the speed of bringing them online [6] - There is an emphasis on maintaining a strategy despite industry challenges, with a focus on U-Box as a service addressing consumer needs [6] - The company is increasing its fiscal 2025 full-year net CapEx projection from $1.90 billion to approximately $1.115 billion due to additional equipment availability [13] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding consumer confidence and the impact of the new administration on business [8] - The company anticipates modest improvements in the rental business but does not foresee significant changes in the near term [23] - Management acknowledged the imbalance of adding new storage units faster than they are being filled, which is affecting occupancy rates [26] Other Important Information - The company is actively considering inputs from Trian Fund Management but will not change its business plans based on their input [7] - Operating expenses in the moving and storage segment increased by over $55 million, with various cost increases noted [19] Q&A Session Summary Question: Trends in self-moving rental business and self-storage - Management noted that while there has been year-over-year improvement, they do not foresee significant changes in the next two quarters [23] Question: Self-storage year-over-year rate deterioration - Management acknowledged the imbalance of adding new rooms faster than filling them and expressed uncertainty about when stabilization will occur [26] Question: Competitive advantage of U-Box - Management confirmed that the storage component of U-Box is a competitive advantage, but acknowledged that there is room for improvement in the storage segment [35] Question: Value gap between U-Haul and competitors - Management discussed the impact of excess capacity and aggressive development on earnings, indicating that these factors are currently a drag on performance [39] Question: Balancing new unit openings with existing unit occupancy - Management expects fluctuations in the balance between new openings and occupancy rates, emphasizing the long-term growth potential [41]