U-Haul pany(UHAL) - 2026 Q1 - Quarterly Results

Executive Summary & Company Overview 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 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] - Fleet depreciation expense increased $50.7 million and real estate related depreciation expense increased $7.1 million[3] 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] - 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] Chairman's Statement 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] - Working through increased depreciation expense and losses on the sale of retired rental equipment[2] - 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] - U-Haul and truck OEMs need additional help from the EPA to have economical and effective product available[2] Company Profile and Business Model 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] - 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] - 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] - The U-Haul fleet includes approximately 197,500 trucks, 137,200 trailers, and 41,300 towing devices[6] - 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] Additional Corporate Updates 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] - 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] - The 19th Annual Virtual Analyst and Investor meeting is scheduled for Thursday, August 21, 2025[8] - Fleet maintenance and repair costs increased by $5.2 million compared to Q1 Fiscal 2025[8] Business Operations and Segment Performance 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 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] Segment Revenues and Earnings from Operations 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 Total debt and net debt to adjusted EBITDA increased, accompanied by a significant rise in depreciation and net losses on equipment disposals Debt Metrics 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] Depreciation and Disposal Gains/Losses 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 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) 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 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 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] - 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] Consolidated Financial Statements 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 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 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 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 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] 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][23] Non-GAAP Financial Measures 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) 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] 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] Moving and Storage Adjusted EBITDA Reconciliation 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] 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% |