Financial Data and Key Metrics Changes - The company reported a modest increase in equipment rental revenue year over year, indicating a gradual improvement in moving customer optimism, although it is not yet sufficient to declare a positive trend [15] - The depreciation on the fleet reflects higher costs for replacement equipment and additional investments made to increase fleet capacity, which will continue to impact the company into fiscal year 2026 [16] Business Line Data and Key Metrics Changes - The company added 6,500,000 net rentable square feet of self-storage during the fiscal year, increasing covered storage capacity by nearly 25% [16] - Consumer awareness for U Box as both a moving product and storage solution continues to grow, indicating its importance in the company's future [16] Market Data and Key Metrics Changes - The company surpassed 24,000 rental locations across the United States and Canada, which is a significant strength in its distribution network [15] Company Strategy and Development Direction - The company is focused on attracting talent and ensuring its survival and prosperity by expanding the knowledge and ranks of its personnel [17] - The management emphasizes the importance of affirming the actions of officers and directors to attract talent and reduce potential legal disputes over past decisions [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that while there is an improvement in customer optimism, it is not yet strong enough to indicate a definitive positive trend [15] - The company is entering its eightieth year in business, which reflects its long-standing presence and commitment to growth [17] Other Important Information - The company conducted its annual meeting both in person and via live webcast as part of its sustainability initiatives, which has been in practice for nineteen years [4] - Preliminary voting results showed that over 17,200,000 shares were voted, representing more than 87% of eligible shares, with all board nominees receiving over 91% of votes cast [18] Q&A Session Summary Question: Why does the company ask shareholders to ratify the actions of officers and directors? - Management explained that this practice is common in private organizations but uncommon in public ones, and it aims to attract talent by reducing the risk of lawsuits over past decisions [21][22] Question: Is this ratification process unpopular among shareholders? - Management acknowledged that it is the least popular motion among shareholders but emphasized its importance for maintaining good governance and attracting talent [21][22]

Financial Data and Key Metrics Changes - The company reported a modest increase in equipment rental revenue year over year, although moving customer optimism has gradually improved, it has not yet established a definitively positive trend [14] - The depreciation realized on the fleet reflects higher costs for replacement equipment and additional investments made to increase fleet capacity, which will continue to impact fiscal year 2026 [15] Business Line Data and Key Metrics Changes - The company added 6,500,000 net rentable square feet of self-storage during the fiscal year, increasing covered storage capacity by nearly 25% [15] - Consumer awareness for U Box as both a moving product and a storage solution continues to grow, indicating its importance in the company's future [15][16] Market Data and Key Metrics Changes - The company surpassed 24,000 rental locations across the United States and Canada, which is a significant strength in its distribution network [14] Company Strategy and Development Direction - The company is focused on attracting talent and ensuring the survival and prosperity of the organization as it enters its eightieth year in business [16] - The management emphasizes the importance of affirming the judgments of officers and directors to attract talent and reduce potential legal disputes over past decisions [22][23] Management Comments on Operating Environment and Future Outlook - Management acknowledges that while there is an improvement in customer optimism, it is not yet sufficient to declare a positive trend [14] - The company is committed to expanding its self-storage capabilities and enhancing consumer awareness of its products [15][16] Other Important Information - The company conducted its annual meeting both in person and via live webcast as part of its sustainability initiatives, marking the nineteenth year of this format [4] Q&A Session Summary Question: Why does the company ask shareholders to ratify the actions of the officers and directors? - Management noted that this practice is uncommon in public corporations but aims to attract talent and avoid lawsuits over past decisions, emphasizing that judgments can always be questioned [21][22] - It was acknowledged that this proposal is the least popular among shareholders, but management believes it serves the best interest of the company [21][23]

Financial Data and Key Metrics Changes - The company reported first quarter earnings of $142 million, down from $195 million in the same quarter last year, resulting in a decline in earnings per share (EPS) from $1 to $0.73 per non-voting share [5] - Adjusted EBITDA for the Moving and Storage segment increased by 6%, or nearly $31 million, driven by strong revenue growth across all product lines [5] - A $22 million loss was recorded on the disposal of retired rental equipment, compared to an $8 million gain last year, attributed to higher initial costs and lower resale values [6] Business Line Data and Key Metrics Changes - Equipment rental revenue increased by $44 million, or just over 4%, with revenue per transaction rising for both in-town and one-way markets [7] - Storage revenues increased by $19 million, representing a 9% increase for the quarter, with average revenue per foot improving by just over 1% [8] - U Box revenue increased by approximately 16%, contributing significantly to the other revenue line item [11] Market Data and Key Metrics Changes - Same store occupancy decreased by 100 basis points to just under 93%, with efforts underway to increase available rooms by focusing on delinquent units [9] - The company added 15 locations with storage, resulting in approximately 1.2 million new net rentable square feet, while currently developing about 6.5 million square feet across 124 projects [10] Company Strategy and Development Direction - The company is focusing on increasing U Box capacity and warehouse space, indicating optimism about its growth potential [17] - Management is rationalizing capital allocation, slowing down real estate spending while ensuring sufficient development to avoid past issues experienced during COVID [41] - Future revenue growth from existing storage locations is projected to be significant, with estimates suggesting around $260 million could flow to the bottom line as occupancy improves [36] Management's Comments on Operating Environment and Future Outlook - Management noted that while revenue is trending positively, transaction volumes have not yet seen significant improvement [7][49] - The company is facing headwinds related to truck-related liability costs and increased depreciation from fleet expansion, which are impacting margins [38][40] - Management expressed confidence that the investments in fleet and locations will pay off in the long term [51] Other Important Information - Capital expenditures for new rental equipment in the first quarter were $585 million, an increase of $46 million compared to the same period last year [8] - The company is holding its nineteenth Annual Virtual Analyst and Investor Meeting on August 21, providing an opportunity for direct interaction with company representatives [12] Q&A Session Summary Question: What is the growth potential for U Box? - Management believes U Box could grow significantly, potentially matching the size of U Haul, but consumer understanding of the product is still developing [18][19] Question: How many locations currently support U Box functionality? - Approximately 5-10% of locations have U Box functionality, with company stores closer to 50% [21] Question: Are U Box one-way moves growing faster than truck rental transactions? - U Box one-way transactions are indeed growing faster than truck rental transactions, indicating a decoupled performance between the two segments [30] Question: What is causing margin trends in the business? - Margins are affected by increased liability costs and depreciation from fleet expansion, with expectations for improvement as the fleet stabilizes [38][40] Question: What is the expected future revenue from non-same store locations? - Future revenue from non-same store locations could be around $260 million as occupancy improves, with a significant portion expected to flow to the bottom line [36] Question: What is the investment cost per square foot for new storage? - The estimated investment cost per square foot for new storage is closer to $150, factoring in non-productive investments and U Box developments [62]

Financial Data and Key Metrics Changes - The company reported first quarter earnings of $142 million, down from $195 million in the same quarter last year, resulting in an EPS of $0.73 compared to $1 last year [5] - Adjusted EBITDA for the Moving and Storage segment increased by 6%, or nearly $31 million, driven by strong revenue growth across all product lines [5] - A $22 million loss was recorded on the disposal of retired rental equipment, compared to an $8 million gain last year, attributed to higher initial costs and lower resale values [6] Business Line Data and Key Metrics Changes - Equipment rental revenue increased by $44 million, just over 4%, with revenue per transaction rising for both in-town and one-way markets [7] - Storage revenues were up $19 million, representing a 9% increase for the quarter, with average revenue per foot improving by just over 1% [8] - U Box revenue increased by $21 million, with U Box itself up about 16%, indicating success in increasing moving transactions and storage container usage [12] Market Data and Key Metrics Changes - Same store occupancy decreased by 100 basis points to just under 93%, with efforts underway to increase available rooms by focusing on delinquent units [10] - The company added 15 locations with approximately 1.2 million new net rentable square feet, with 6.5 million square feet currently under development across 124 projects [11] Company Strategy and Development Direction - The company is focusing on increasing the number of available rooms at existing locations and improving the U Box service, which is seen as a growing area with potential for significant expansion [22] - Capital expenditures for new rental equipment were $585 million, a $46 million increase compared to the same time last year, indicating a commitment to fleet expansion [8] - The company aims to rationalize capital allocation while continuing to invest in self-storage and U Box warehouse development [43] Management's Comments on Operating Environment and Future Outlook - Management noted that while revenue is trending positively, transaction volumes have not yet seen significant improvement [7][56] - The company is facing challenges in placing new equipment efficiently across its expanded network of locations, which has increased significantly over the past two years [53] - Future revenue growth from existing storage locations is projected to be substantial, with estimates suggesting around $260 million could flow to the bottom line as occupancy improves [39] Other Important Information - The company will hold its nineteenth Annual Virtual Analyst and Investor Meeting on August 21, providing an opportunity for direct interaction with company representatives [13] - Management emphasized the importance of understanding the U Box product and service as it continues to grow, indicating optimism about its future potential [21] Q&A Session Summary Question: U Box growth potential - Management believes U Box could grow significantly, potentially matching the size of traditional U Haul services, but consumer understanding of the product is still developing [21][22] Question: U Box one-way moves compared to rental segment - U Box one-way transactions are growing faster than truck rental transactions, indicating a decoupled performance between the two segments [32] Question: Margin trends and storage segment dynamics - Management noted that headwinds affecting margins are primarily truck-related, with increased liability costs and depreciation impacting earnings [40][42] Question: Future revenue from storage and development costs - Approximately 80% of additional revenue from non-same store locations is expected to flow to the bottom line, with development costs estimated at around $150 per square foot [59][64]

Core Insights - U-Haul reported Q1 FY2026 GAAP revenue of $1.63 billion, aligning with analyst expectations, but experienced a decline in earnings per share to $0.73 from $1.00 in Q1 FY2025, primarily due to increased depreciation and losses on equipment disposal [1][2][8] Financial Performance - GAAP revenue increased by 5.3% year-over-year, with the moving and storage segment generating $1.55 billion, up 5.8% [5] - Adjusted EBITDA for the moving and storage segment rose to $545 million, reflecting a 5.8% increase [2][5] - Self-moving equipment rental revenue grew by 4.3% to $1.06 billion, driven by increased revenue per transaction [2][5] - Self-storage revenue reached $234 million, an increase of 8.6%, despite a decline in average occupancy rates [2][6] - Net earnings available to common stockholders fell by 27.1% to $142 million [2] Strategic Focus - U-Haul operates the largest network of do-it-yourself moving rental trucks and is the third-largest self-storage operator in North America, focusing on network expansion and innovation [3][4] - The company aims to maintain market leadership through location breadth, scaling self-storage, and promoting U-Box containers while managing rising costs [4] Growth and Expansion - U-Haul added 15 new storage sites, increasing total rentable square footage by 1.2 million feet, although occupancy rates declined [6] - U-Box product line saw a 15.6% increase in revenue, with moving transactions growing over 20% [7] Profitability Challenges - Net earnings available to shareholders dropped by 41.6%, attributed to increased depreciation and losses from equipment sales [8][9] - Maintenance and repair costs rose by $5.2 million, contributing to profitability pressures [9] Balance Sheet and Capital Allocation - Total debt increased to $7.3 billion, with net debt to adjusted EBITDA rising to 4.0x [10] - Management indicated no significant changes in capital allocation or dividend policy, despite ongoing cost pressures [12]

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) U-Haul Holding Company reported **decreased** Q1 net earnings due to **higher depreciation** and **equipment disposal losses**, despite **revenue growth** in moving and storage [First Quarter Fiscal 2026 Financial Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Highlights) U-Haul Holding Company reported a **decrease** in net earnings for Q1 Fiscal 2026 compared to the prior year, **primarily due to increased depreciation expense and losses from the disposal of retired rental equipment**. Despite this, both self-move and self-storage revenues saw **increases**, and Moving and Storage EBITDA **improved** First Quarter Fiscal 2026 Financial Highlights | Metric | Q1 Fiscal 2026 | Q1 Fiscal 2025 | Change | Source Chunk | | :----------------------------------- | :------------- | :------------- | :----- | :----------- | | Net Earnings Available to Common Shareholders | **$142.3 million** | **$195.4 million** | **-$53.1 million** | [1] | | EPS (Non-Voting Shares UHAL.B) | **$0.73** | **$1.00** | **-$0.27** | [1] | | Moving and Storage Earnings from Operations (before insurance consolidation) | **$242.9 million** | **$295.1 million** | **-$52.2 million** | [3] | | Self-storage revenues | **$234.2 million** | **$215.7 million** | **+$18.5 million (8.6%)** | [3] | | Self-moving equipment rental revenues | **$1,058.3 million** | **$1,014.3 million** | **+$43.9 million (4.3%)** | [3] | | Other revenue (Moving and Storage) | **$154.1 million** | **$133.2 million** | **+$20.6 million (15.6%)** | [3] | - **Increased losses from the disposal of retired rental equipment** accounted for **$29.7 million** of the **decrease** in Moving and Storage earnings from operations[3](index=3&type=chunk) - **Fleet depreciation expense increased $50.7 million** and **real estate related depreciation expense increased $7.1 million**[3](index=3&type=chunk) Moving and Storage EBITDA | Metric | Q1 Fiscal 2026 | Q1 Fiscal 2025 | Change | Source Chunk | | :----------------------------------- | :------------- | :------------- | :----- | :----------- | | Moving and Storage EBITDA | **$545.3 million** | **$514.7 million** | **+$30.6 million** | [3] | | Trailing Twelve Months M&S EBITDA (June 30, 2025) | **$1,650.3 million** | **$1,584.5 million** (June 30, 2024) | **+$65.8 million** | [3] | - **Self-storage same store occupancy decreased 1.0% to 92.8%**, while **revenue per foot increased 0.6%**[3](index=3&type=chunk) - **Added 15 new self-storage locations** with **1.2 million net rentable square feet** (nrsf) during the quarter, with approximately **14.8 million nrsf in development or pending**[3](index=3&type=chunk) [Chairman's Statement](index=1&type=section&id=Chairman%27s%20Statement) Chairman Joe Shoen noted **revenue increases** in self-move and self-storage but highlighted challenges from **increased depreciation** and **losses on equipment sales**. He also commented on the **persistence of increased costs related to the 'race to zero emissions'** and called for **EPA assistance for economical product availability** - **Revenues for self-move and self-storage are up** over the same quarter last year[2](index=2&type=chunk) - **Working through increased depreciation expense and losses on the sale of retired rental equipment**[2](index=2&type=chunk) - The **'race to zero emissions on work trucks has proven to be ephemeral,' leading to increased costs for customers and shareholders that will persist**[2](index=2&type=chunk) - **U-Haul and truck OEMs need additional help from the EPA to have economical and effective product available**[2](index=2&type=chunk) [Company Profile and Business Model](index=2&type=section&id=Company%20Profile%20and%20Business%20Model) U-Haul Holding Company is the parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company, and Amerco Real Estate Company. U-Haul, founded in 1945, is a **leader in do-it-yourself moving and self-storage**, operating a **vast network of locations** and a **large fleet**, emphasizing a **shared-use business philosophy** - U-Haul Holding Company is the parent of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company and Amerco Real Estate Company[5](index=5&type=chunk) - U-Haul was founded on the **fundamental philosophy that the division of use and specialization of ownership is good for both U-Haul customers and the environment**[5](index=5&type=chunk) - U-Haul is the **No. 1 choice of do-it-yourself movers** with a **network of more than 23,000 locations** across all **50 states** and **10 Canadian provinces**[6](index=6&type=chunk) - The U-Haul fleet includes approximately **197,500 trucks**, **137,200 trailers**, and **41,300 towing devices**[6](index=6&type=chunk) - U-Haul is the **third largest self-storage operator in North America**, offering **1,093,000 rentable storage units** and **94.9 million square feet of self-storage space**[6](index=6&type=chunk) [Additional Corporate Updates](index=2&type=section&id=Additional%20Corporate%20Updates) The company announced **upcoming investor calls and meetings**, declared a **cash dividend** on Non-Voting Common Stock, and noted an **increase** in **fleet maintenance and repair costs** - U-Haul Holding Company will hold its **investor call for Q1 Fiscal 2026** on Thursday, **August 7, 2025**[4](index=4&type=chunk) - A **cash dividend of $0.05 per share** on Non-Voting Common Stock was declared on **June 4, 2025**, and paid on **June 27, 2025**[8](index=8&type=chunk) - The **19th Annual Virtual Analyst and Investor meeting** is scheduled for Thursday, **August 21, 2025**[8](index=8&type=chunk) - **Fleet maintenance and repair costs increased by $5.2 million** compared to Q1 Fiscal 2025[8](index=8&type=chunk) [Business Operations and Segment Performance](index=3&type=section&id=Business%20Operations%20and%20Segment%20Performance) Consolidated revenue **increased by 5.3%** driven by self-moving and self-storage, while Moving and Storage segment earnings **declined** despite **revenue growth** [Consolidated Revenue by Product Line](index=3&type=section&id=Consolidated%20Revenue%20by%20Product%20Line) Consolidated revenue for Q1 Fiscal 2026 **increased by 5.3%** year-over-year, **primarily driven by growth** in self-moving equipment rental, self-storage, and other revenue, which includes the U-Box product offering Consolidated Revenue by Product Line (Quarter Ended June 30, in thousands) | Product Line | 2025 | 2024 | YoY Change | YoY % Change | | :------------------------------------ | :--------- | :--------- | :--------- | :----------- | | Self-moving equipment rental revenues | **$1,058,273** | **$1,014,332** | **+$43,941** | **+4.3%** | | Self-storage revenues | **$234,237** | **$215,737** | **+$18,500** | **+8.6%** | | Self-moving and self-storage products and service sales | **$98,188** | **$96,591** | **+$1,597** | **+1.7%** | | Property management fees | **$9,582** | **$9,495** | **+$87** | **+0.9%** | | Life insurance premiums | **$19,169** | **$20,740** | **-$1,571** | **-7.6%** | | Property and casualty insurance premiums | **$21,738** | **$21,229** | **+$509** | **+2.4%** | | Net investment and interest income | **$35,211** | **$37,125** | **-$1,914** | **-5.2%** | | Other revenue | **$154,072** | **$133,241** | **+$20,831** | **+15.6%** | | **Consolidated revenue** | **$1,630,470** | **$1,548,490** | **+$81,980** | **+5.3%** | - Other revenue for Moving and Storage **increased by 15.6%** due to the **growth of the U-Box product offering**[3](index=3&type=chunk) [Segment Revenues and Earnings from Operations](index=3&type=section&id=Segment%20Revenues%20and%20Earnings%20from%20Operations) The Moving and Storage segment saw a **revenue increase** but a **significant decrease in earnings from operations**. Property and Casualty Insurance experienced **growth in both revenue and earnings**, while Life Insurance **revenues declined, but earnings from operations turned positive** Segment Revenues and Earnings from Operations (Quarter Ended June 30, in thousands) | Segment | Metric | 2025 | 2024 | YoY Change | | :-------------------------- | :--------------------------------------- | :--------- | :--------- | :--------- | | **Moving and storage** | Revenues | **$1,553,859** | **$1,469,161** | **+$84,698** | | | Earnings from operations before equity in earnings of subsidiaries | **$242,878** | **$295,058** | **-$52,180** | | **Property and casualty insurance** | Revenues | **$29,721** | **$28,178** | **+$1,543** | | | Earnings from operations | **$11,888** | **$11,483** | **+$405** | | **Life insurance** | Revenues | **$50,094** | **$53,749** | **-$3,655** | | | Earnings (losses) from operations | **$2,676** | **($47)** | **+$2,723** | | **Consolidated Results** | Revenues | **$1,630,470** | **$1,548,490** | **+$81,980** | | | Earnings from operations | **$257,414** | **$306,242** | **-$48,828** | [Financial Metrics and Debt](index=4&type=section&id=Financial%20Metrics%20and%20Debt) Total debt and net debt to adjusted EBITDA **increased**, accompanied by a **significant rise** in depreciation and **net losses on equipment disposals** [Debt Metrics](index=4&type=section&id=Debt%20Metrics) Total debt for the Moving and Storage segment **increased to $7.29 billion** as of June 30, 2025, from **$6.31 billion** a year prior. Net debt to adjusted EBITDA also **increased to 4.0x**, reflecting **higher debt levels** and a **decrease in cash and cash equivalents** Moving and Storage Debt Metrics (in thousands, unaudited) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Real estate secured debt | **$2,727,545** | **$2,703,656** | **$2,497,239** | | Unsecured debt | **$1,700,000** | **$1,700,000** | **$1,200,000** | | Fleet secured debt | **$2,792,015** | **$2,758,821** | **$2,544,235** | | Other secured debt | **$65,570** | **$66,864** | **$70,202** | | **Total debt** | **$7,285,130** | **$7,229,341** | **$6,311,676** | | Cash and cash equivalents | **$726,069** | **$872,467** | **$1,071,779** | | Total assets | **$17,858,535** | **$17,522,952** | **$16,447,193** | | Adjusted EBITDA (TTM) | **$1,650,277** | **$1,619,714** | **$1,584,461** | | Net debt to adjusted EBITDA | **4.0** | **3.9** | **3.3** | | Net debt to total assets | **36.7%** | **36.3%** | **31.9%** | - Cash and credit availability at the Moving and Storage segment **decreased to $1,191.1 million** as of June 30, 2025, from **$1,347.5 million** as of March 31, 2025[8](index=8&type=chunk) [Depreciation and Disposal Gains/Losses](index=4&type=section&id=Depreciation%20and%20Disposal%20Gains%2FLosses) Total depreciation expense **significantly increased by 25.7%** year-over-year, **primarily due to rental equipment**. The company also recorded **net losses on disposals of rental equipment** in Q1 Fiscal 2026, a **reversal from net gains** in the prior year Components of Depreciation, Net of Gains on Disposals (Quarter Ended June 30, in thousands) | Component | 2025 | 2024 | YoY Change | YoY % Change | | :------------------------------------ | :--------- | :--------- | :--------- | :----------- | | Depreciation expense - rental equipment | **$208,212** | **$157,528** | **+$50,684** | **+32.2%** | | Depreciation expense - non rental equipment | **$24,019** | **$23,961** | **+$58** | **+0.2%** | | Depreciation expense - real estate | **$49,845** | **$42,824** | **+$7,021** | **+16.4%** | | **Total depreciation expense** | **$282,076** | **$224,313** | **+$57,763** | **+25.7%** | | Net (gains) losses on disposals of rental equipment | **$22,125** | **($7,948)** | **+$30,073** | N/A | | Net (gains) losses on disposals of non-rental equipment | **($192)** | **$180** | **-$372** | N/A | | **Total net (gains) losses on disposals equipment** | **$21,933** | **($7,768)** | **+$29,701** | N/A | | Net (gains) losses on disposals of real estate | **($1,617)** | **$3,104** | **-$4,721** | N/A | | **Depreciation, net of (gains) losses on disposals** | **$304,009** | **$216,545** | **+$87,464** | **+40.4%** | [Self-Storage Performance Analysis](index=5&type=section&id=Self-Storage%20Performance%20Analysis) Self-storage portfolio **expanded significantly** in units and square footage, with a **slight decline** in occupancy rates, while same-store revenue per foot **increased** [Self-Storage Key Data (Owned Locations)](index=5&type=section&id=Self-Storage%20Key%20Data%20(Owned%20Locations)) U-Haul's owned self-storage portfolio **expanded significantly**, with **unit count increasing by 8.7%** and **square footage by 9.4%** year-over-year. However, **average monthly occupancy rates based on unit count slightly decreased from 80.0% to 78.1%** Self-Storage Data for Owned Locations (Quarter Ended June 30, in thousands, except occupancy rate) | Metric | 2025 | 2024 | YoY Change | YoY % Change | | :------------------------------------ | :--------- | :--------- | :--------- | :----------- | | Unit count as of June 30 | **813** | **748** | **+65** | **+8.7%** | | Square footage as of June 30 | **69,560** | **63,586** | **+5,974** | **+9.4%** | | Average monthly number of units occupied | **632** | **594** | **+38** | **+6.4%** | | Average monthly occupancy rate based on unit count | **78.1%** | **80.0%** | **-1.9% pts** | N/A | | End of June occupancy rate based on unit count | **78.8%** | **81.0%** | **-2.2% pts** | N/A | | Average monthly square footage occupied | **55,399** | **51,717** | **+3,682** | **+7.1%** | [Self-Storage Portfolio Summary by State](index=6&type=section&id=Self-Storage%20Portfolio%20Summary%20by%20State) As of June 30, 2025, U-Haul's self-storage portfolio comprised **1,573 owned stores** with **nearly 69.56 million rentable square feet**. Texas, California, and Florida represent the **largest markets by store count**, with New York and California showing the **highest revenue per foot** U-Haul Owned Store Data by State (As of June 30, 2025, unaudited) | State/Province | Stores | Units Occupied | Rentable Square Feet | Annual Revenue Per Foot | Occupancy During Qtr | | :--------------- | :----- | :------------- | :------------------- | :---------------------- | :------------------- | | Texas | **98** | **39,874** | **4,640,397** | **$14.79** | **77.7%** | | California | **90** | **35,486** | **3,334,972** | **$21.24** | **82.8%** | | Florida | **88** | **35,662** | **3,941,751** | **$18.52** | **77.0%** | | Illinois | **83** | **39,790** | **4,175,787** | **$16.16** | **79.0%** | | Pennsylvania | **73** | **29,540** | **3,140,190** | **$17.96** | **72.5%** | | Ohio | **66** | **26,571** | **2,999,238** | **$14.92** | **74.7%** | | New York | **66** | **28,867** | **2,653,223** | **$23.41** | **80.7%** | | Michigan | **60** | **20,923** | **2,311,073** | **$15.77** | **82.0%** | | Georgia | **53** | **22,717** | **2,608,640** | **$16.26** | **80.4%** | | Arizona | **47** | **25,685** | **2,925,300** | **$15.58** | **78.5%** | | **1Q 2026 Totals** | **1,573** | **640,853** | **69,559,933** | **$16.91** | **78.1%** | [Same Store vs. Non-Same Store Performance](index=6&type=section&id=Same%20Store%20vs.%20Non-Same%20Store%20Performance) Same store occupancy for Q1 Fiscal 2026 **decreased to 92.8%** from **93.8%** in Q1 Fiscal 2025, while non-same store occupancy also saw a **slight decline**. **Revenue per foot for same stores increased**, indicating **pricing power despite lower occupancy** Self-Storage Same Store vs. Non-Same Store Performance (Quarter Ended June 30) | Metric | 1Q 2026 | 1Q 2025 | 1Q 2024 | | :------------------------------------ | :------ | :------ | :------ | | **Same Store Pool (Constant for Prior Periods)** | | | | | Stores | **902** | **879** | **820** | | Units Occupied | **330,969** | **310,825** | **266,832** | | Rentable Square Feet | **30,412,656** | **28,263,627** | **24,503,591** | | Revenue Per Foot | **$17.44** | **$17.32** | **$16.72** | | Occupancy During Qtr | **92.8%** | **93.9%** | **95.1%** | | **Non-Same Store** | | | | | Stores | **671** | **614** | **613** | | Units Occupied | **309,884** | **294,476** | **306,221** | | Rentable Square Feet | **39,147,277** | **35,322,294** | **33,026,074** | | Revenue Per Foot | **$16.31** | **$18.65** | **$18.57** | | Occupancy During Qtr | **66.7%** | **69.0%** | **74.3%** | - **Self-storage same store occupancy decreased 1.0% to 92.8%** compared to the first quarter of fiscal 2025, while **revenue per foot increased 0.6%**[3](index=3&type=chunk) - **Same store includes storage locations with rentable storage inventory for more than three years and a capacity change of less than twenty units for any year-over-year period of the reporting month**[16](index=16&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) Total assets and liabilities **increased**, while total revenues **grew by 5.3%**, but earnings from operations and net earnings **declined** due to **faster growth** in costs [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, **total assets increased to $20.85 billion** from **$20.48 billion** at March 31, 2025, **primarily driven by an increase in property, plant and equipment**. **Total liabilities also rose to $13.19 billion**, while **total stockholders' equity increased to $7.66 billion** Condensed Consolidated Balance Sheets (In thousands) | Asset/Liability/Equity | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Cash and cash equivalents | **$877,188** | **$988,828** | | Total property, plant and equipment, net | **$15,590,076** | **$15,112,600** | | **Total assets** | **$20,848,368** | **$20,479,170** | | Notes, loans and finance leases payable, net | **$7,249,877** | **$7,193,857** | | Policy benefits and losses, claims and loss expenses payable | **$871,530** | **$857,521** | | Liabilities from investment contracts | **$2,537,848** | **$2,511,422** | | **Total liabilities** | **$13,187,600** | **$12,981,027** | | Retained earnings | **$8,065,393** | **$7,931,886** | | **Total stockholders' equity** | **$7,660,768** | **$7,498,143** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the quarter ended June 30, 2025, **total revenues increased by 5.3% to $1.63 billion**. However, **total costs and expenses grew at a faster rate (10.5%)**, **primarily due to higher depreciation and net losses on disposals**, leading to a **15.9% decrease in earnings from operations** and a **27.2% decrease in net earnings available to common stockholders** Condensed Consolidated Statements of Operations (Quarter Ended June 30, in thousands) | Metric | 2025 | 2024 | YoY Change | YoY % Change | | :------------------------------------ | :--------- | :--------- | :--------- | :----------- | | Total revenues | **$1,630,470** | **$1,548,490** | **+$81,980** | **+5.3%** | | Operating expenses | **$826,749** | **$789,757** | **+$36,992** | **+4.7%** | | Depreciation, net of (gains) losses on disposals | **$304,009** | **$216,545** | **+$87,464** | **+40.4%** | | Net (gains) losses on disposal of real estate | **($1,617)** | **$3,104** | **-$4,721** | N/A | | **Total costs and expenses** | **$1,373,056** | **$1,242,248** | **+$130,808** | **+10.5%** | | **Earnings from operations** | **$257,414** | **$306,242** | **-$48,828** | **-15.9%** | | Interest expense | **($82,330)** | **($67,218)** | **-$15,112** | **+22.5%** | | Pretax earnings | **$185,381** | **$256,392** | **-$71,011** | **-27.7%** | | Income tax expense | **($43,050)** | **($60,975)** | **+$17,925** | **-29.4%** | | **Earnings available to common stockholders** | **$142,331** | **$195,417** | **-$53,086** | **-27.2%** | [Earnings Per Share Analysis](index=10&type=section&id=Earnings%20Per%20Share%20Analysis) Earnings per share are calculated using the **two-class method**, with Non-Voting Common Stock EPS **decreasing to $0.73** from **$1.00** year-over-year [EPS Calculation and Details](index=10&type=section&id=EPS%20Calculation%20and%20Details) Earnings per share are calculated using the **two-class method**, **allocating undistributed earnings** **10%** to Voting Common Stock and **90%** to Non-Voting Common Stock. For Q1 Fiscal 2026, **basic and diluted EPS for Non-Voting Common Stock decreased to $0.73** from **$1.00** in the prior year, reflecting the **overall decline in net earnings** - Earnings per share are calculated using the **two-class method**, **allocating undistributed earnings** available to common stockholders **10%** to Voting Common Stock and **90%** to Non-Voting Common Stock[21](index=21&type=chunk) Basic and Diluted Earnings Per Share (Quarter Ended June 30) | Metric | 2025 | 2024 | | :---------------------------------------------------- | :----- | :----- | | Basic and diluted earnings per share of Common Stock | **$0.68** | **$0.95** | | Basic and diluted earnings per share of Non-Voting Common Stock | **$0.73** | **$1.00** | | Non-Voting Common Stock dividends declared per share | **$0.05** | **$0.05** | - **Weighted average shares outstanding remained constant** for both Voting Common Stock (**19,607,788**) and Non-Voting Common Stock (**176,470,092**) year-over-year[19](index=19&type=chunk)[23](index=23&type=chunk) [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) The company provides adjusted non-GAAP measures for PPE, including ROU-financing, and reported an **increase** in Moving and Storage Adjusted EBITDA [Adjusted Property, Plant and Equipment (PPE)](index=11&type=section&id=Adjusted%20Property%2C%20Plant%20and%20Equipment%20(PPE)) The company provides an adjusted non-GAAP measure for Property, Plant and Equipment (PPE) by including 'Right of use assets - financing' (ROU-financing), which were **reclassified** due to new lease accounting standards. This adjustment aims to offer investors a more comprehensive view of the company's asset base - Approximately **$1 billion** of property, plant and equipment, net ('PPE') was **reclassed to Right of use assets - financing, net ('ROU-financing')** due to the **adoption of new lease accounting standards** as of April 1, 2019[25](index=25&type=chunk) Adjusted Property, Plant and Equipment, Net (In thousands) | Metric | June 30, 2025 (GAAP) | ROU Assets Financing | June 30, 2025 (Adjusted) | March 31, 2025 (Adjusted) | | :------------------------------------ | :------------------- | :------------------- | :----------------------- | :------------------------ | | Property, plant and equipment, at cost: Subtotal | **$21,768,143** | **$212,802** | **$21,980,945** | **$21,372,286** | | Less: Accumulated depreciation | **($6,178,067)** | **($127,141)** | **($6,305,208)** | **($6,120,988)** | | **Total property, plant and equipment, net** | **$15,590,076** | **$85,661** | **$15,675,737** | **$15,251,298** | - This non-GAAP measure is intended as a **supplemental measure for evaluating financial condition** and **should not be considered in isolation from GAAP measures**[25](index=25&type=chunk) [Moving and Storage Adjusted EBITDA Reconciliation](index=13&type=section&id=Moving%20and%20Storage%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for the Moving and Storage segment **increased by 5.9% to $545.3 million** for Q1 Fiscal 2026 compared to the prior year. The **trailing twelve months (TTM) Adjusted EBITDA also showed a 4.1% increase to $1.65 billion** as of June 30, 2025, **demonstrating operational profitability growth despite the decline in GAAP earnings** - **Adjusted EBITDA is presented as a non-GAAP measure to provide transparency into core business operations, excluding items not related to ongoing core business**[27](index=27&type=chunk) Moving and Storage Adjusted EBITDA (Trailing Twelve Months, in thousands) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :------------ | | Net earnings available to common stockholders | **$314,004** | **$367,090** | **$567,286** | | Income tax expense | **$76,156** | **$94,747** | **$174,206** | | Interest expense | **$311,609** | **$296,721** | **$263,808** | | Depreciation, net of gains on disposals | **$1,045,648** | **$958,184** | **$742,662** | | Elimination of net earnings from insurance subsidiaries | **($57,766)** | **($55,280)** | **($63,897)** | | **Adjusted EBITDA** | **$1,650,277** | **$1,619,714** | **$1,584,461** | Moving and Storage Adjusted EBITDA (Quarters Ended June 30, in thousands) | Metric | 2025 | 2024 | YoY Change | YoY % Change | | :------------------------------------ | :--------- | :--------- | :--------- | :----------- | | Net earnings available to common stockholders | **$142,331** | **$195,417** | **-$53,086** | **-27.2%** | | Income tax expense | **$40,086** | **$58,677** | **-$18,591** | **-31.7%** | | Interest expense | **$82,358** | **$67,470** | **+$14,888** | **+22.1%** | | Depreciation, net of gains on disposals | **$304,009** | **$216,545** | **+$87,464** | **+40.4%** | | Elimination of net earnings from insurance subsidiaries | **($11,504)** | **($9,018)** | **-$2,486** | **+27.6%** | | **Adjusted EBITDA** | **$545,270** | **$514,707** | **+$30,563** | **+5.9%** |

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]