Ryder(US:R)2025-10-23 10:55Financial Performance - GAAP EPS from continuing operations was $3.33, up 2% from the prior year, while comparable EPS (non-GAAP) was $3.57, up 4% from the prior year[3]. - Total revenue for Q3 2025 was $3.2 billion, consistent with the prior year, and operating revenue (non-GAAP) was $2.6 billion, up 1%[3]. - Net earnings for Q3 2025 were $138 million, compared to $142 million in Q3 2024, resulting in diluted EPS of $3.32, up from $3.24[32]. - Comparable earnings from continuing operations for Q3 2025 were $149 million, compared to $151 million in Q3 2024, with a comparable tax rate of 25.6% for Q3 2025 versus 23.9% for Q3 2024[52]. - The company expects full-year 2025 GAAP EPS to be between $12.10 and $12.30, with comparable EPS (non-GAAP) between $12.85 and $13.05[20]. - The forecast for comparable EPS from continuing operations for the full year 2025 is between $12.85 and $13.05, reflecting growth from the previous year[58]. Revenue Breakdown - Fleet Management Solutions (FMS) total revenue was $1.465 billion, unchanged from the prior year, while Supply Chain Solutions (SCS) total revenue increased by 5% to $1.38 billion[12]. - Dedicated Transportation Solutions (DTS) total revenue decreased by 10% to $570 million, reflecting lower fleet count due to freight market conditions[13]. - Services revenue decreased to $2,088 million in Q3 2025 from $2,097 million in Q3 2024, while lease and related maintenance revenue increased to $976 million from $960 million[32]. - The company reported a 5% increase in Supply Chain Solutions revenue to $1,380 million in Q3 2025, compared to $1,317 million in Q3 2024[38]. - FMS total revenue for Q3 2025 was $1,465 million, a slight decrease of 0.3% compared to $1,470 million in Q3 2024[40]. - SCS total revenue increased by 5% to $1,380 million in Q3 2025 from $1,317 million in Q3 2024[40]. - DTS total revenue decreased by 10% to $570 million in Q3 2025 compared to $633 million in Q3 2024[40]. Earnings Before Tax - Earnings Before Tax (EBT) for FMS increased by 11% to $146 million, driven by higher ChoiceLease performance[11]. - SCS EBT decreased by 8% to $86 million, impacted by e-commerce network performance and medical costs despite revenue growth[12]. - FMS earnings before income taxes increased by 11% to $146 million in Q3 2025, compared to $132 million in Q3 2024[40]. - SCS earnings before income taxes decreased by 8% to $86 million in Q3 2025 from $93 million in Q3 2024[40]. - DTS earnings before income taxes remained stable at $36 million in Q3 2025, unchanged from Q3 2024[40]. Cash Flow and Capital Expenditures - Free cash flow (non-GAAP) is projected to be between $900 million and $1 billion for 2025[20]. - Free cash flow for the nine months ended September 30, 2025, was $496 million, significantly higher than $218 million for the same period in 2024[36]. - The forecast for total cash generated in 2025 is $3,300 million, with expected free cash flow of $1,000 million after capital expenditures[59]. - Capital expenditures decreased to $1.6 billion in 2025 from $2.0 billion in 2024, primarily due to reduced investments in ChoiceLease and rental[17]. Debt and Taxation - Total debt increased to $7,857 million as of September 30, 2025, from $7,779 million at the end of 2024, resulting in a debt-to-equity ratio of 254%[34][36]. - The effective income tax rate from continuing operations was 27.1%, up from 24.0% in the prior year[16]. Operational Performance - Comparable EBITDA for Q3 2025 was $742 million, up from $716 million in Q3 2024, indicating a 4% increase[36]. - The effective interest rate for the company was 5.2% for both Q3 2025 and Q3 2024[36]. - The average fleet count for ChoiceLease decreased by 2% to 142,400 units in Q3 2025 compared to 145,300 units in Q3 2024[42]. - Net cash provided by operating activities from continuing operations for the nine months ended September 30, 2025, was $1,845 million, an increase from $1,707 million in 2024[51]. - Non-operating pension costs for Q3 2025 were $7 million, consistent with Q3 2024, indicating stable pension-related expenses[52]. Future Outlook - The company plans to continue focusing on market expansion and enhancing its service offerings to drive future growth[31]. - Operating revenue for the full year 2025 is expected to be $10,400 million, a 1% increase from $10,266 million in 2024[57].