Ryder(R) - 2025 Q1 - Quarterly Report

Financial Performance - Diluted EPS from continuing operations increased by 21% to $2.29, with comparable EPS rising 15% to$ 2.46[85] - Total revenue for the first quarter of 2025 was $3.1 billion, reflecting a 1% increase, while operating revenue rose 2% to$ 2.6 billion[85][88] - Net cash provided by operating activities from continuing operations was $651 million, a 24% increase compared to the prior year[85] - Total revenue for Q1 2025 was$ 3,131 million, compared to $3,098 million in Q1 2024, reflecting an increase of 1.1%[159] - Operating revenue for Q1 2025 was$ 2,557 million, an increase from $2,495 million in Q1 2024, representing a growth of 2.5%[159] - Comparable EBITDA for Q1 2025 was$ 671 million, compared to $636 million in Q1 2024, indicating a year-over-year increase of 5.5%[158] - Comparable earnings for Q1 2025 were$ 106 million, up from $96 million in Q1 2024, marking a growth of 10.4%[154] - Adjusted net earnings for the twelve months ended March 31, 2025, were$ 509 million, compared to $533 million in 2024[163] Revenue Breakdown - Lease & related maintenance and rental revenue increased by 1% to$ 945 million, with gross margin rising 11% to 31%[95][97] - Fuel services revenue decreased by 15% to $106 million, primarily due to lower fuel prices passed through to customers[98] - Fleet Management Solutions (FMS) total revenue decreased by 1% to$ 1,447 million, primarily due to lower fuel costs passed through to customers[117] - Supply Chain Solutions (SCS) revenue increased by 2% to $1,331 million, while Dedicated Transportation Solutions (DTS) revenue grew by 7% to$ 602 million[109] - SCS total revenue for the three months ended March 31, 2025, was $1,331 million, a 2.2% increase from$ 1,302 million in the same period of 2024[160] - DTS total revenue for the three months ended March 31, 2025, was $602 million, a 6.9% increase from$ 563 million in the same period of 2024[160] Operating Metrics - The average rental power fleet utilization remained stable at 66% in Q1 2025, consistent with the prior year[118] - The total fleet of owned and leased revenue-earning equipment decreased by 1% to 190,400 units compared to 191,900 units in Q1 2024[120] - FMS operating revenue, excluding fuel, increased by 1% to $1,260 million, driven by higher ChoiceLease revenue[117] - FMS EBT as a percentage of total revenue decreased to 6.5% in Q1 2025 from 6.9% in Q1 2024, reflecting a decline in commercial rental demand[115] - SCS EBT grew by 35% to$ 87 million in Q1 2025, reflecting improved operating performance from strategic initiatives and new business[129] - DTS EBT increased by 50% to $27 million in Q1 2025, benefiting from acquisition synergies and strong performance of the legacy business[131] Expenses and Costs - Interest expense increased by 9% to$ 100 million, reflecting higher market interest rates on new debt issuances[105] - SG&A expenses decreased by 3% to $368 million, maintaining 12% of total revenue[101] - Total CSS costs increased by 9% to$ 108 million in Q1 2025, primarily due to higher incentive-based compensation and strategic investments in marketing[132] Cash Flow and Capital Expenditures - Free cash flow increased to $259 million in Q1 2025, up from$ 13 million in 2024, primarily due to reduced capital expenditures[135] - Gross capital expenditures decreased to $536 million in Q1 2025, down from$ 716 million in 2024, reflecting reduced investments in ChoiceLease[136] - Cash and cash equivalents totaled $151 million as of March 31, 2025, with$ 114 million held outside the U.S. available for non-U.S. operations[138] Debt and Equity - The debt-to-equity ratio was 259% as of March 31, 2025, compared to 250% at the end of 2024, indicating an increase in leverage[146] - The board of directors declared a quarterly cash dividend of $0.81 per share for February 2025, up from$ 0.71 in February 2024[147] - The corporate revolving credit facility was amended to increase the committed borrowing capacity to $1.6 billion, expiring in April 2030[182] Strategic Outlook - The company anticipates continued challenges from inflationary pressures and economic uncertainty impacting demand and financial results[84] - The company expects continued demand for outsourced logistics and anticipates impacts from economic uncertainty on market conditions[164] - The company is focused on strategic investments and initiatives to enhance lease pricing and maintenance cost savings[166] - The company faces risks from inflationary pressures, interest rate movements, and competition affecting profitability and market demand[167] Share Repurchase - The company repurchased a total of 1,229,636 shares of common stock during the three months ended March 31, 2025, at an average price of$ 158.37 per share[179] - The maximum number of shares that may yet be purchased under the publicly announced programs is 1,929,081[179] - The company maintains two share repurchase programs approved by the board of directors in October 2023 and 2024[179]