PART I FINANCIAL INFORMATION This part details U-Haul Holding Company's unaudited financial statements, management's analysis, market risks, and internal controls [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents U-Haul Holding Company's unaudited consolidated financial statements, including balance sheets, income, equity, and cash flows, with detailed explanatory notes [Consolidated Balance Sheets](index=3&type=section&id=a)%20Consolidated%20Balance%20Sheets) This section presents the Company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and March 31, 2025 Consolidated Balance Sheet Highlights (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | % Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------|:---------------| | Total Assets | $20,848,368 | $20,479,170 | $369,198 | 1.80% | | Cash and cash equivalents | $877,188 | $988,828 | $(111,640) | -11.29% | | Total Property, Plant and Equipment, net | $15,590,076 | $15,112,600 | $477,476 | 3.16% | | Total Liabilities | $13,187,600 | $12,981,027 | $206,573 | 1.59% | | Notes, loans and finance leases payable, net | $7,249,877 | $7,193,857 | $56,020 | 0.78% | | Total Stockholders' Equity | $7,660,768 | $7,498,143 | $162,625 | 2.17% | - Total assets increased by **$369.2 million (1.80%)** from March 31, 2025, to June 30, 2025, primarily driven by an increase in property, plant and equipment, net, which grew by **$477.5 million (3.16%)**[6](index=6&type=chunk) - Cash and cash equivalents decreased by **$111.6 million (-11.29%)** quarter-over-quarter[6](index=6&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=b)%20Consolidated%20Statements%20of%20Operations) This section details the Company's financial performance, including revenues, expenses, and net earnings for the quarters ended June 30, 2025, and 2024 Consolidated Statements of Operations Highlights (In thousands, except per share data) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | % Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------|:---------------| | Total Revenues | $1,630,470 | $1,548,490 | $81,980 | 5.30% | | Self-moving equipment rental revenues | $1,058,273 | $1,014,332 | $43,941 | 4.33% | | Self-storage revenues | $234,237 | $215,737 | $18,500 | 8.58% | | Total Costs and Expenses | $1,373,056 | $1,242,248 | $130,808 | 10.53% | | Earnings from Operations | $257,414 | $306,242 | $(48,828) | -15.94% | | Pretax Earnings | $185,381 | $256,392 | $(71,011) | -27.69% | | Net Earnings available to common stockholders | $142,331 | $195,417 | $(53,086) | -27.17% | | Basic and diluted EPS (Common Stock) | $0.68 | $0.95 | $(0.27) | -28.42% | | Basic and diluted EPS (Series N Non-Voting Common Stock) | $0.73 | $1.00 | $(0.27) | -27.00% | - Total revenues increased by **$82.0 million (5.30%)** year-over-year, driven by growth in self-moving equipment rental revenues (up **$43.9 million**) and self-storage revenues (up **$18.5 million**)[7](index=7&type=chunk) - Total costs and expenses increased significantly by **$130.8 million (10.53%)** year-over-year, leading to a decrease in earnings from operations by **$48.8 million (-15.94%)** and net earnings by **$53.1 million (-27.17%)**[7](index=7&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=d)%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents the Company's comprehensive income, including net earnings and other comprehensive income (loss) components for the quarters ended June 30, 2025, and 2024 Consolidated Statements of Comprehensive Income (Loss) Highlights (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | Net Earnings | $142,331 | $195,417 | $(53,086) | | Total Other Comprehensive Income (Loss) | $29,118 | $(8,597) | $37,715 | | Total Comprehensive Income (Loss) | $171,449 | $186,820 | $(15,371) | - Total other comprehensive income (loss) significantly improved from a loss of **$8.6 million** in Q1 2024 to a gain of **$29.1 million** in Q1 2025, primarily due to unrealized net gains on investments and future policy benefits discount rate remeasurement gains[10](index=10&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=e)%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section outlines changes in the Company's stockholders' equity, including retained earnings and accumulated other comprehensive loss, from March 31, 2025, to June 30, 2025 Consolidated Statements of Changes in Stockholders' Equity Highlights (In thousands) | Metric | Balance as of March 31, 2025 | Balance as of June 30, 2025 | Change (QoQ) | |:-----------------------------------|:-----------------------------|:----------------------------|:-------------| | Total Stockholders' Equity | $7,498,143 | $7,660,768 | $162,625 | | Retained Earnings | $7,931,886 | $8,065,393 | $133,507 | | Accumulated Other Comprehensive Loss | $(229,314) | $(200,196) | $29,118 | - Total stockholders' equity increased by **$162.6 million** from March 31, 2025, to June 30, 2025, driven by net earnings of **$142.3 million** and a positive change in accumulated other comprehensive income (loss) of **$29.1 million**, partially offset by Series N Non-Voting Common Stock dividends[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=g)%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the Company's cash flow activities, categorized into operating, investing, and financing, for the quarters ended June 30, 2025, and 2024 Consolidated Statements of Cash Flows Highlights (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | Net cash provided by operating activities | $598,376 | $453,903 | $144,473 | | Net cash used in investing activities | $(764,041) | $(803,318) | $39,277 | | Net cash provided by (used in) financing activities | $47,444 | $(31,438) | $78,882 | | Increase (decrease) in cash and cash equivalents | $(111,640) | $(381,383) | $269,743 | | Cash and cash equivalents at end of period | $877,188 | $1,153,161 | $(275,973) | - Net cash provided by operating activities increased significantly by **$144.5 million** year-over-year, while net cash used in investing activities decreased by **$39.3 million**[15](index=15&type=chunk) - Financing activities shifted from a net cash outflow of **$31.4 million** in Q1 2024 to a net cash inflow of **$47.4 million** in Q1 2025, contributing to a smaller decrease in cash and cash equivalents compared to the prior year[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=h)%20Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the consolidated financial statements, covering accounting policies, earnings per share, investments, liabilities, derivatives, and segment information [1. Basis of Presentation](index=8&type=section&id=1.%20Basis%20of%20Presentation) This note clarifies the Company's fiscal reporting periods, the consolidation of insurance subsidiaries, and the unaudited nature of the interim financial statements conforming to GAAP - U-Haul Holding Company's fiscal quarter ends June 30, while its insurance subsidiaries' fiscal quarter ends March 31, with their calendar year reporting consolidated into the Company's fiscal year[17](index=17&type=chunk)[19](index=19&type=chunk) - The Company operates through three reportable segments: **Moving and Storage**, **Property and Casualty Insurance**, and **Life Insurance**[22](index=22&type=chunk) [2. Earnings per Share](index=9&type=section&id=2.%20Earnings%20per%20Share) This note explains the Company's earnings per share calculation using the two-class method, allocating undistributed earnings to Voting Common Stock and Series N Non-Voting Common Stock - The Company uses the **two-class method** for EPS calculation, allocating **10%** of undistributed earnings to Voting Common Stock and **90%** to Series N Non-Voting Common Stock[28](index=28&type=chunk) Basic and Diluted Earnings Per Share (In thousands, except per share amounts) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Net earnings available to common stockholders | $142,331 | $195,417 | | Undistributed earnings available to common stockholders | $133,507 | $186,593 | | Basic and diluted EPS of Voting Common Stock | $0.68 | $0.95 | | Basic and diluted EPS of Series N Non-Voting Common Stock | $0.73 | $1.00 | [3. Investments](index=10&type=section&id=3.%20Investments) This note details the Company's investment portfolio, including available-for-sale fixed maturity and equity securities, noting a decrease in unrealized losses and credit loss allowance Available-for-Sale Investments (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | Fair Value | $2,521,166 | $2,479,498 | $41,668 | | Gross Unrealized Gains | $5,409 | $2,915 | $2,494 | | Gross Unrealized Losses | $(194,813) | $(228,875) | $34,062 | | Allowance for Expected Credit Losses | $(2,443) | $(3,104) | $661 | - The allowance for credit losses for available-for-sale investments decreased by **$0.7 million** in Q1 2026, compared to a **$1.9 million** net impairment charge in Q1 2025[42](index=42&type=chunk) Equity Investments (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | Common stocks (Fair Value) | $43,843 | $43,413 | $430 | | Non-redeemable preferred stocks (Fair Value) | $21,766 | $22,136 | $(370) | [4. Accounts Payable and Accrued Expenses and Other Reserves](index=13&type=section&id=4.%20Accounts%20Payable%20and%20Accrued%20Expenses%20and%20Other%20Reserves) This note details the increase in accounts payable and accrued expenses, alongside significant self-insurance liabilities for public liability and property damage claims Accounts Payable and Accrued Expenses (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | Accounts payable | $297,570 | $263,280 | $34,290 | | Accrued expenses | $603,513 | $557,620 | $45,893 | | Total | $901,083 | $820,900 | $80,183 | - Self-insurance liabilities for public liability and third-party property damage claims were **$376.0 million** as of June 30, 2025, an increase from **$360.8 million** as of March 31, 2025[47](index=47&type=chunk) [5. Notes, Loans and Finance Leases Payable, net](index=14&type=section&id=5.%20Notes,%20Loans%20and%20Finance%20Leases%20Payable,%20net) This note details the Company's long-term debt, totaling **$7.25 billion** net of issuance costs, and explains the year-over-year increase in interest expense Long Term Debt (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | Notes, loans and finance leases payable | $7,285,130 | $7,229,341 | $55,789 | | Less: Debt issuance costs | $(35,253) | $(35,484) | $231 | | Total notes, loans and finance leases payable, net | $7,249,877 | $7,193,857 | $56,020 | Interest Expense (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | Interest expense | $86,619 | $71,147 | $15,472 | | Total interest expense | $82,330 | $67,218 | $15,112 | - The weighted average interest rate during the quarter for revolving credit activity decreased to **5.63%** in Q1 2026 from **6.63%** in Q1 2025, despite an increase in the average amount outstanding[54](index=54&type=chunk) [6. Derivatives](index=15&type=section&id=6.%20Derivatives) This note describes the Company's use of interest rate swaps for cash flow hedging and equity market contracts for indexed annuity products, with fair value changes recognized in income Derivative Fair Values (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | Interest rate swaps (Assets) | $3,331 | $4,381 | $(1,050) | | Interest rate swaps (Liabilities) | $546 | $777 | $(231) | | Equity market contracts (Assets) | $5,078 | $8,819 | $(3,741) | | Notional amount (Interest rate swaps) | $374,767 | $376,887 | $(2,120) | | Notional amount (Equity market contracts) | $297,871 | $326,218 | $(28,347) | - The Company recognized a decrease of **$4.8 million** in the fair value of cash flow hedges (net of taxes) in Q1 2026, compared to a decrease of **$1.9 million** in Q1 2025[56](index=56&type=chunk) - Net (gains) losses recognized in net investment and interest income from equity market contracts were **$1.4 million** for both Q1 2026 and Q1 2025[59](index=59&type=chunk) [7. Accumulated Other Comprehensive Loss](index=16&type=section&id=7.%20Accumulated%20Other%20Comprehensive%20Loss) This note highlights the improvement in Accumulated Other Comprehensive Loss (AOCI) from **$(229.3) million** to **$(200.2) million**, driven by unrealized investment gains and foreign currency translation Changes in Accumulated Other Comprehensive Loss (In thousands) | Metric | Balance as of March 31, 2025 | Balance as of June 30, 2025 | Change (QoQ) | |:-----------------------------------|:-----------------------------|:----------------------------|:-------------| | Foreign Currency Translation | $(57,540) | $(55,120) | $2,420 | | Unrealized Net Gains (Losses) on Investments and Impact of LFPB Discount Rates | $(174,320) | $(147,088) | $27,232 | | Fair Value of Cash Flow Hedges | $(56) | $(590) | $(534) | | Postretirement Benefit Obligation Net Loss | $2,602 | $2,602 | $0 | | Total AOCI | $(229,314) | $(200,196) | $29,118 | - The total other comprehensive income (loss) for the quarter ended June 30, 2025, was **$29.1 million**, a significant improvement compared to a loss of **$8.6 million** in the prior year period[61](index=61&type=chunk)[63](index=63&type=chunk) [8. Dividends](index=17&type=section&id=8.%20Dividends) This note reports the Company declared a **$0.05 per share** dividend for Series N Non-Voting Common Stock in Q1 fiscal years 2026 and 2025 Non-Voting Common Stock Dividends | Declared Date | Per Share Amount | |:--------------|:-----------------| | June 4, 2025 | $0.05 | | June 5, 2024 | $0.05 | [9. Leases](index=17&type=section&id=9.%20Leases) This note details a decrease in the Company's right-of-use (ROU) assets from **$184.7 million** to **$129.7 million**, alongside a year-over-year reduction in lease costs Right-of-Use Assets, Net (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | Finance ROU assets, net | $85,661 | $138,698 | $(53,037) | | Operating ROU assets, net | $44,048 | $46,025 | $(1,977) | | Total ROU assets, net | $129,709 | $184,723 | $(55,014) | Lease Costs (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | Operating lease costs | $4,874 | $5,605 | $(731) | | Total finance lease cost | $4,008 | $11,040 | $(7,032) | - The weighted average remaining lease term for operating leases is **24.8 years**, significantly longer than finance leases at **0.4 years**[68](index=68&type=chunk) [10. Contingencies](index=19&type=section&id=10.%20Contingencies) This note addresses the Company's exposure to environmental regulations and litigation, with management expecting no material adverse effect on financial results - Compliance with environmental laws and costs of investigation/cleanup are not expected to result in a material adverse effect on the Company's financial position, results of operations, or cash flows[72](index=72&type=chunk) - Other claims and litigation arising from normal business operations are also not expected to have a material effect on the Company's financial position and results of operations[73](index=73&type=chunk) [11. Related Party Transactions](index=19&type=section&id=11.%20Related%20Party%20Transactions) This note details the Company's related party transactions with SAC Holdings and Mercury Partners, including management fees, lease, printing, and commission expenses Related Party Revenue (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | U-Haul management fee revenue from Blackwater | $7,778 | $7,715 | $63 | | U-Haul management fee revenue from Mercury | $1,804 | $1,780 | $24 | | Total | $9,582 | $9,495 | $87 | Related Party Costs and Expenses (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | U-Haul commission expenses to Blackwater | $23,571 | $22,695 | $876 | | U-Haul commission expenses to Mercury | $6,492 | $6,128 | $364 | | Total | $32,137 | $30,568 | $1,569 | Related Party Assets (In thousands) | Metric | June 30, 2025 | March 31, 2025 | Change (QoQ) | |:-----------------------------------|:--------------|:---------------|:-------------| | U-Haul receivable from Blackwater | $28,470 | $28,442 | $28 | | U-Haul receivable from Mercury | $13,351 | $12,517 | $834 | | Total | $40,473 | $45,003 | $(4,530) | [12. Reportable Segment Information](index=22&type=section&id=12.%20Reportable%20Segment%20Information) This note disaggregates the Company's financial performance into three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance Revenues by Reportable Segment (Quarter ended June 30, 2025, In thousands) | Segment | Revenues | |:-----------------------------------|:---------| | Moving & Storage | $1,553,859 | | Property & Casualty Insurance | $29,721 | | Life Insurance | $50,094 | Net Earnings Available to Common Stockholders by Reportable Segment (Quarter ended June 30, 2025, In thousands) | Segment | Net Earnings | |:-----------------------------------|:-------------| | Moving & Storage | $142,331 | | Property & Casualty Insurance | $9,420 | | Life Insurance | $2,084 | Gross Capital Expenditures by Reportable Segment (In thousands) | Segment | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Moving & Storage | $916,571 | $963,163 | [13. Geographic Area Data](index=26&type=section&id=13.%20Geographic%20Area%20Data) This note presents the Company's geographic data, showing the United States as the primary market for revenues, pretax earnings, and identifiable assets Geographic Area Data (Quarter ended June 30, 2025, In thousands) | Metric | United States | Canada | Consolidated | |:-----------------------------------|:--------------|:-------|:-------------| | Total Revenues | $1,543,342 | $87,128 | $1,630,470 | | Pretax Earnings | $180,092 | $5,289 | $185,381 | | Identifiable Assets | $19,891,368 | $957,000 | $20,848,368 | - Canada contributed approximately **5.3% of total revenues** for the first three months of fiscal 2026[98](index=98&type=chunk)[256](index=256&type=chunk) [14. Employee Benefit Plans](index=26&type=section&id=14.%20Employee%20Benefit%20Plans) This note details the net periodic postretirement benefit cost, which decreased to **$0.5 million** in Q1 2026 from **$0.6 million** in Q1 2025 Net Periodic Postretirement Benefit Costs (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Service cost for benefits earned during the period | $169 | $245 | | Total other components of net periodic benefit costs | $346 | $372 | | Net periodic postretirement benefit cost | $515 | $617 | [15. Fair Value Measurements](index=26&type=section&id=15.%20Fair%20Value%20Measurements) This note describes the Company's fair value measurements for financial assets and liabilities using a three-tiered hierarchy (Level 1, 2, and 3) Financial Assets Measured at Fair Value (June 30, 2025, In thousands) | Asset Category | Total | Level 1 | Level 2 | Level 3 | |:-----------------------------------|:------|:--------|:--------|:--------| | Fixed maturities - available for sale | $2,521,166 | $— | $2,521,166 | $— | | Preferred stock | $21,766 | $21,766 | $— | $— | | Common stock | $43,843 | $43,843 | $— | $— | | Derivatives | $8,409 | $5,078 | $3,331 | $— | | Total | $2,595,184 | $70,687 | $2,524,497 | $— | Financial Liabilities Measured at Fair Value (June 30, 2025, In thousands) | Liability Category | Total | Level 1 | Level 2 | Level 3 | |:-----------------------------------|:------|:--------|:--------|:--------| | Derivatives | $546 | $— | $546 | $— | | Embedded derivatives | $6,389 | $— | $— | $6,389 | | Market risk benefits | $13,197 | $— | $— | $13,197 | | Total | $20,132 | $— | $546 | $19,586 | [16. Revenue Recognition](index=29&type=section&id=16.%20Revenue%20Recognition) This note disaggregates revenue by recognition timing, with the majority from self-moving equipment and storage recognized under ASC 842 (Leases) Revenue Disaggregation by Recognition Method (In thousands) | Revenue Category | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Revenues recognized over time (ASC 606) | $115,869 | $100,175 | | Revenues recognized at a point in time (ASC 606) | $116,187 | $113,725 | | Total revenues recognized under ASC 606 | $232,056 | $213,900 | | Revenues recognized under ASC 842 | $1,320,869 | $1,254,317 | | Insurance premium revenues recognized under ASC 944 | $42,334 | $43,148 | | Net investment and interest income recognized under other topics | $35,211 | $37,125 | | Total revenues | $1,630,470 | $1,548,490 | - Revenues recognized under ASC 842 (Leases) increased by **$66.5 million (5.3%)** year-over-year, while total revenues recognized under ASC 606 increased by **$18.2 million (8.5%)**[129](index=129&type=chunk) [17. Allowance for Credit Losses](index=31&type=section&id=17.%20Allowance%20for%20Credit%20Losses) This note details the Company's allowance for credit losses on trade receivables, fixed maturities, and other investments, reflecting changes based on economic conditions - The allowance for expected credit losses for trade receivables was **$5.5 million** as of June 30, 2025, up from **$5.1 million** as of March 31, 2025, with an estimated loss rate of approximately **4%**[135](index=135&type=chunk) Allowance for Credit Losses (In thousands) | Metric | Trade Receivables | Fixed Maturities | Investments, other | Total | |:-----------------------------------|:------------------|:-----------------|:-------------------|:------| | Balance as of March 31, 2025 | $5,082 | $3,104 | $448 | $8,634 | | Provision for (reversal of) credit losses | $3,555 | $(661) | $— | $2,894 | | Write-offs against allowance | $(3,105) | $— | $— | $(3,105) | | Balance as of June 30, 2025 | $5,532 | $2,443 | $448 | $8,423 | [18. Income Tax](index=33&type=section&id=18.%20Income%20Tax) This note discusses the Company's effective tax rate of **23.2%** in Q1 2026 and its evaluation of new tax legislation, including Canadian Pillar Two and the U.S. OBBB Act - The effective tax rate for the quarter ended June 30, 2025, was **23.2%**, compared to **23.8%** for the same period in 2024, differing from the federal statutory rate of **21.0%** primarily due to state and local income taxes[144](index=144&type=chunk) - The Company does not expect the Canadian Pillar Two legislation (Global Minimum Tax Act) to have an impact on income tax provision or cash taxes[145](index=145&type=chunk) - The Company is currently evaluating the tax provisions of the newly enacted One Big Beautiful Bill Act (OBBB) and its impact on financial statements[146](index=146&type=chunk) [19. Accounting Pronouncements](index=33&type=section&id=19.%20Accounting%20Pronouncements) This note outlines the Company's evaluation of new accounting pronouncements, including ASU 2023-09, ASU 2024-03, and ASU 2025-05, and the SEC's climate disclosure rule - The Company is evaluating **ASU 2023-09** (Income Taxes: Improvements to Income Tax Disclosure), effective for annual periods beginning after December 15, 2024[147](index=147&type=chunk) - The SEC's final rule on climate-related disclosures is currently stayed pending judicial review, and the Company cannot determine its future outcome[149](index=149&type=chunk) - The Company is assessing the impact of **ASU 2024-03** (Expense Disaggregation Disclosures), effective for fiscal years beginning after December 15, 2026[150](index=150&type=chunk) [20. Deferred Policy Acquisition Costs, Net](index=35&type=section&id=20.%20Deferred%20Policy%20Acquisition%20Costs,%20Net) This note indicates that deferred policy acquisition costs (DAC), net, remained stable at **$121.6 million**, with capitalization offsetting amortization expense Deferred Policy Acquisition Costs Roll-Forward (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Balance, beginning of year | $121,729 | $121,224 | | Capitalization | $4,809 | $3,228 | | Amortization expense | $(4,917) | $(4,646) | | Balance, end of period | $121,621 | $119,806 | [21. Life Insurance Liabilities](index=36&type=section&id=21.%20Life%20Insurance%20Liabilities) This note details life insurance liabilities, including future policy benefits and investment contracts, noting an increase in investment contract balances due to higher deposits Life Insurance Liabilities (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Balance, end of period (LFPB net) | $301,182 | $306,724 | | Life Insurance end of period balance | $370,950 | $384,875 | | Policy benefits and losses, claims and loss expenses balance, end of period | $871,530 | $841,861 | Liabilities from Investment Contracts (In thousands, except rate) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | |:-----------------------------------|:----------------------------|:----------------------------| | Beginning of year | $2,511,422 | $2,411,352 | | Deposits received | $135,224 | $76,417 | | Surrenders and withdrawals | $(121,531) | $(94,440) | | End of period | $2,537,848 | $2,406,464 | | Weighted average credited rate | 3.33% | 3.27% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the Company's financial condition and results for Q1 fiscal 2026, covering strategy, segment performance, liquidity, capital resources, and fiscal 2026 outlook [General Overview and Strategy](index=39&type=section&id=General%20Overview%20and%20Strategy) This section outlines the Company's strategy to maintain leadership in the North American 'do-it-yourself' moving and storage industry and its insurance segments - The Company's overall strategy is to maintain its **leadership** in the **North American 'do-it-yourself' moving and storage industry** by providing a seamless and integrated supply chain[164](index=164&type=chunk) - Primary focus areas include **expanding moving equipment and storage units**, **increasing independent dealers and Company-operated locations**, and **leveraging Storage Affiliate and Moving Help® capabilities**[165](index=165&type=chunk) - **Property and Casualty Insurance** focuses on providing and administering insurance to U-Haul and its customers, while **Life Insurance** aims for long-term capital growth through life, Medicare supplement, and annuity policies in the senior market[166](index=166&type=chunk) [Description of Operating and Reportable Segments](index=40&type=section&id=Description%20of%20Operating%20and%20Reportable%20Segments) This section describes the operational focus and strategic objectives of the Company's Moving and Storage, Property and Casualty Insurance, and Life Insurance segments - The Moving and Storage segment focuses on **expanding its dealer and center network**, offering a **complete line of moving products**, and utilizing technology like the **U-Haul mobile app** and **uhaul.com®** for customer service and affiliate connections[169](index=169&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - Property and Casualty Insurance aims to **increase penetration of protection packages** (Safemove®, Safetow®, etc.) into the moving and storage market[174](index=174&type=chunk) - Life Insurance provides **life and health insurance products** primarily to the **senior market** through direct writing and reinsuring policies[175](index=175&type=chunk) [Results of Operations - Consolidated](index=41&type=section&id=Results%20of%20Operations%20-%20Consolidated) This section provides a consolidated overview of the Company's financial performance, detailing revenue by product line and key changes in costs, expenses, and net earnings Consolidated Revenue by Major Product Line (In thousands) | Revenue Line | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | % Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------|:---------------| | Self-moving equipment rental revenues | $1,058,273 | $1,014,332 | $43,941 | 4.33% | | Self-storage revenues | $234,237 | $215,737 | $18,500 | 8.58% | | Other revenue | $154,072 | $133,241 | $20,831 | 15.63% | | Consolidated revenue | $1,630,470 | $1,548,490 | $81,980 | 5.30% | - Total costs and expenses increased by **$130.8 million**, driven by a **$44.4 million** increase in Moving and Storage operating expenses (including **$5.2 million** in repair, **$20.2 million** in personnel, and **$17.2 million** in liability costs) and a **$50.7 million** increase in rental fleet depreciation[184](index=184&type=chunk)[185](index=185&type=chunk) - Net earnings available to common stockholders decreased by **$53.1 million** to **$142.3 million** in Q1 2026, compared to **$195.4 million** in Q1 2025[188](index=188&type=chunk) [Results of Operations - Moving and Storage Segment](index=43&type=section&id=Results%20of%20Operations%20-%20Moving%20and%20Storage%20Segment) This section details the financial performance of the Moving and Storage segment, including revenue drivers, operating expenses, and depreciation impacts on profitability Moving and Storage Revenue (In thousands) | Revenue Line | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | % Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------|:---------------| | Self-moving equipment rental revenues | $1,059,031 | $1,015,163 | $43,868 | 4.32% | | Self-storage revenues | $234,237 | $215,737 | $18,500 | 8.58% | | Other revenue | $152,821 | $132,175 | $20,646 | 15.62% | | Total Moving and Storage revenue | $1,553,859 | $1,469,161 | $84,698 | 5.77% | - Self-storage revenues increased by **$18.5 million**, driven by occupancy gains, new capacity (**1.2 million** new net rentable square feet added during the quarter), and a **1.3%** improvement in average revenue per occupied foot[178](index=178&type=chunk)[190](index=190&type=chunk) - Depreciation expense for the rental fleet increased by **$50.7 million** due to more box trucks and expected decreases in resale values, while net losses from equipment disposals increased by **$29.7 million**[195](index=195&type=chunk) Moving and Storage Depreciation, Net of (Gains) Losses on Disposals (In thousands) | Metric | Quarter ended June 30, 2025 | Quarter ended June 30, 2024 | Change (YoY) | |:-----------------------------------|:----------------------------|:----------------------------|:-------------| | Depreciation expense - rental equipment | $208,212 | $157,528 | $50,684 | | Net (gains) losses on disposals of rental equipment | $22,125 | $(7,948) | $30,073 | | Depreciation, net of gains (losses) on disposals | $304,009 | $216,545 | $87,464 | [Results of Operations - Property and Casualty Insurance Segment](index=44&type=section&id=Results%20of%20Operations%20-%20Property%20and%20Casualty%20Insurance%20Segment) This section reviews the financial performance of the Property and Casualty Insurance segment, highlighting changes in net premiums, investment income, and pretax earnings Property and Casualty Insurance Performance (In thousands) | Metric | Quarter ended March 31, 2025 | Quarter ended March 31, 2024 | Change (YoY) | |:-----------------------------------|:-----------------------------|:-----------------------------|:-------------| | Net premiums | $23,300 | $22,000 | $1,300 | | Net investment and interest income | $6,400 | $6,100 | $300 | | Operating expenses | $12,300 | $11,600 | $700 | | Benefits and losses incurred | $5,500 | $5,000 | $500 | | Pretax earnings from operations | $11,900 | $11,500 | $400 | - Net premiums increased by **$1.3 million**, corresponding to changes in U-Haul moving and storage transactions[198](index=198&type=chunk) [Results of Operations - Life Insurance Segment](index=45&type=section&id=Results%20of%20Operations%20-%20Life%20Insurance%20Segment) This section analyzes the financial performance of the Life Insurance segment, focusing on changes in net premiums, investment income, and pretax earnings (losses) Life Insurance Performance (In thousands) | Metric | Quarter ended March 31, 2025 | Quarter ended March 31, 2024 | Change (YoY) | |:-----------------------------------|:-----------------------------|:-----------------------------|:-------------| | Net premiums | $19,200 | $20,700 | $(1,500) | | Net investment income | $29,500 | $31,800 | $(2,300) | | Operating expenses | $2,800 | $10,100 | $(7,300) | | Benefits and losses incurred | $39,700 | $39,000 | $700 | | Amortization of deferred acquisition costs | $4,900 | $4,600 | $300 | | Pretax earnings (losses) from operations | $2,600 | $(200) | $2,800 | - Net premiums decreased by **$1.5 million** due to lower life and Medicare supplement premiums, despite deferred annuity deposits increasing by **$66.0 million**[202](index=202&type=chunk) - Net investment income decreased by **$2.3 million**, impacted by realized losses on derivatives and invested assets, partially offset by a **$2.3 million** increase from the change in provision for expected credit losses[203](index=203&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) This section evaluates the Company's liquidity and capital resources, including cash positions by segment, credit facility availability, and cash flow activities Cash and Cash Equivalents by Segment (In thousands) | Segment | June 30, 2025 | March 31, 2025 | |:-----------------------------------|:--------------|:---------------| | Moving & Storage | $726,069 | $872,467 | | Property & Casualty Insurance | $115,633 | $96,165 | | Life Insurance | $35,486 | $20,196 | | Consolidated | $877,188 | $988,828 | - Moving and Storage had **$465.0 million** in additional cash available under existing credit facilities as of June 30, 2025[211](index=211&type=chunk)[232](index=232&type=chunk) - Net cash provided by operating activities increased by **$144.5 million** in Q1 2026, while net cash used in investing activities decreased by **$39.3 million**, and net cash provided by financing activities increased by **$78.9 million**[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - The Company is owed a **$129 million** tax refund plus **$20.7 million** in interest from the IRS, which is currently being processed[231](index=231&type=chunk) [Fiscal 2026 Outlook](index=49&type=section&id=Fiscal%202026%20Outlook) This section provides the Company's outlook for fiscal year 2026, outlining strategic priorities for self-moving equipment, storage, and life insurance segments - The Company will focus on **increasing transaction volume**, **improving pricing, product, and utilization** for self-moving equipment rentals, with new investment in the truck fleet expected to **increase in fiscal 2026**[234](index=234&type=chunk) - For the storage business, plans include **completing current projects**, **increasing occupancy**, **acquiring new locations**, and **continued investment in the U-Box® program**[235](index=235&type=chunk) - Life Insurance aims to **expand its presence in the senior market** by **growing its agency force**, **expanding product offerings**, and **pursuing business acquisition opportunities**[237](index=237&type=chunk) [Consolidating Schedules by Segment](index=51&type=section&id=Consolidating%20Schedules%20by%20Segment) This section provides detailed consolidating financial schedules for each reportable segment and elimination entries to reconcile to the consolidated totals - The consolidating schedules provide detailed financial statements for each segment (**Moving & Storage**, **Property & Casualty Insurance**, **Life Insurance**) and elimination entries to arrive at the consolidated totals[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk)[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk)[249](index=249&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the Company's exposure to interest rate and foreign currency exchange rate risks, including derivative use and cautionary statements on forward-looking information [Interest Rate Risk](index=61&type=section&id=Interest%20Rate%20Risk) This section discusses the Company's exposure to interest rate risk from variable rate debt and its use of interest rate swaps to manage this exposure - The Company is exposed to **interest rate risk** primarily from **variable rate debt obligations** and uses **interest rate swap agreements** to fix interest payments on certain SOFR-indexed variable rate debt through July 2032[251](index=251&type=chunk) Interest Rate Swap Agreements (June 30, 2025, In thousands) | Notional Amount | Fair Value | Fixed Rate | Floating Rate | |:-----------------------------------|:-----------|:-----------|:--------------| | $54,767 | $1,863 | 2.86% | 1 Month SOFR | | $66,500 | $745 | 2.72% | 1 Month SOFR | | $66,000 | $723 | 2.75% | 1 Month SOFR | | $100,000 | $(65) | 4.71% | 1 Month SOFR | | $87,500 | $(481) | 4.36% | 1 Month SOFR | - As of June 30, 2025, **$447.5 million** of variable rate debt obligations were not fixed through interest rate swaps; a **100 basis point increase** in SOFR would decrease future earnings and cash flows by **$4.5 million** annually[251](index=251&type=chunk) [Foreign Currency Exchange Rate Risk](index=62&type=section&id=Foreign%20Currency%20Exchange%20Rate%20Risk) This section addresses the Company's foreign currency exchange rate risk, primarily from its Canadian operations, and its policy on hedging this risk - The Company's exposure to foreign currency exchange rate risk is primarily related to its **Canadian business**, which generated approximately **5.3% of revenue** in Q1 2026[256](index=256&type=chunk) - A **10% change** in the value of the U.S. dollar relative to the Canadian dollar is **not considered material** to net income, and the Company typically does not hedge this risk[256](index=256&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=62&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) This section provides cautionary statements regarding forward-looking information, highlighting inherent risks and uncertainties that could cause actual results to differ materially - The report contains **forward-looking statements** identified by words like 'believe,' 'expect,' 'anticipate,' and 'plan,' which are subject to **risks and uncertainties** that could cause actual results to differ materially[257](index=257&type=chunk)[258](index=258&type=chunk) - Key risk factors include **potential future pandemics, economic environment, capital expenditures, legal outcomes, liquidity, competition, government regulations, and cybersecurity breaches**[257](index=257&type=chunk)[258](index=258&type=chunk) [Item 4. Controls and Procedures](index=64&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - The Company's disclosure controls and procedures were **effective** as of June 30, 2025[260](index=260&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[261](index=261&type=chunk) PART II OTHER INFORMATION This section covers other required information, including legal proceedings, risk factors, equity sales, defaults, mine safety, and exhibits [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 10, Contingencies, with a **$1 million** disclosure threshold for environmental proceedings - Information on legal proceedings is incorporated by reference from Note 10, Contingencies[263](index=263&type=chunk) - A **$1 million threshold** is used for disclosing environmental proceedings where a governmental authority is a party[264](index=264&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) The Company reports no material updates to the Risk Factors previously described in its Annual Report on Form 10-K for the fiscal year ended March 31, 2025 - **No material updates** to the Risk Factors described in the Annual Report on Form 10-K for the fiscal year ended March 31, 2025[265](index=265&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the Company for the current reporting period - Not applicable[266](index=266&type=chunk) [Item 3. Defaults Upon Senior Securities](index=64&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the current reporting period - Not applicable[267](index=267&type=chunk) [Item 4. Mine Safety Disclosures](index=65&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the current reporting period - Not applicable[269](index=269&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - **No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements** during the quarter ended June 30, 2025[270](index=270&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists the documents filed or furnished as part of the Quarterly Report, including various certifications and XBRL-related documents - The exhibits include **Rule 13a-14(a)/15d-14(a) Certificates** from the President/Chairman and CFO, **Section 906 Certificates**, and **Inline XBRL documents**[271](index=271&type=chunk)

Company Overview - U-Haul has a dual share class structure with UHAL.B shares prioritizing dividends and UHAL shares having voting rights[12,13,16,17] - The Shoen family controls a significant portion of both UHAL.B (43.2%) and UHAL (50.1%) shares[18,19] - U-Move accounts for 68% of the trailing twelve-month (TTM) revenue, while Self-Storage accounts for 16%[21] Financial Performance - Self-moving equipment rental revenues increased by $29 million, or 4%, in the fourth quarter of fiscal year 2025 compared to the same period in 2024[33] Excluding an extra leap day, the increase would have been approximately $40 million, or 5.6%[33] - Self-storage revenues increased by $17.8 million, or 8.4%, in the fourth quarter of fiscal year 2025 compared to the same period in 2024[33] - Moving and Storage EBITDA, adjusted to remove interest income, increased $5.6 million compared to the fourth quarter of fiscal year 2024[33] Expansion and Development - During fiscal year 2025, U-Haul added 82 new storage locations, resulting in 6.519 million net rentable square feet (NRSF)[33] - The company has approximately 15 million NRSF in development or pending[33] Financial Position - As of March 31, 2025, total debt was $7.229 billion and total assets were $17.522 billion, resulting in a debt-to-assets ratio of 41.1%[61,69] - Net leverage, a non-GAAP measure, was 3.9x as of March 31, 2025[61]

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].

Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector. Sign up today for your two-week free trial and get a new lease on oil & gas! Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. One company that I continue to view as being undervalued is U-Haul ( UHAL ) . Primarily ...

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]