U-Haul pany(UHAL) - 2026 Q2 - Quarterly Report

Revenue Growth - Self-moving equipment rental revenues increased by $23.1 million to $1,110,477 thousand in Q2 FY2026 compared to Q2 FY2025[194] - Self-storage revenues rose by $21.8 million to $246,299 thousand in Q2 FY2026, driven by occupancy gains and a 4.9% improvement in average revenue per occupied foot[195] - Total consolidated revenue for Q2 FY2026 was $1,719,922 thousand, an increase from $1,658,108 thousand in Q2 FY2025[194] - Other revenue increased by $12.2 million to $177,032 thousand in Q2 FY2026, largely due to growth in the U-Box program[199] - Self-storage revenues increased by $40.3 million during the first six months of fiscal 2026, reaching $480.5 million compared to $440.3 million in fiscal 2025, driven by occupancy gains and new capacity additions[227] - Total consolidated revenue for the first six months of fiscal 2026 was $3.35 billion, an increase from $3.21 billion in the same period of fiscal 2025[226] - Total revenues for the Moving and Storage segment increased to $3,186.7 million, up from $3,042.8 million in the prior year[237] - Total revenues for the quarter ended September 30, 2025, were $1,719,922,000, a decrease from $1,658,108,000 in the same quarter of 2024, representing a decline of approximately 3.3%[289] - For the six months ended September 30, 2025, total revenues reached $3,350,392,000, compared to $3,186,686,000 in the same period of 2024, indicating an increase of approximately 5.1%[291] Operating Performance - Earnings from operations decreased to $217,594 thousand in Q2 FY2026 from $301,956 thousand in Q2 FY2025[202] - Earnings from operations for Moving and Storage decreased to $475.0 million in the first six months of fiscal 2026, down from $608.2 million in the first six months of fiscal 2025[234] - Earnings from operations decreased to $467.8 million for the first six months of fiscal 2026, down from $601.8 million in the same period last year[245] - The company reported a pretax earnings of $136,959,000 for Q3 2025, compared to $246,217,000 in Q3 2024, showing a significant decline of about 44.4%[290] - Net earnings available to common stockholders for the quarter ended September 30, 2025, were $105,550,000, consistent with the previous year, indicating stable performance[289] Costs and Expenses - Total costs and expenses increased by $146.2 million in Q2 FY2026, with operating expenses for Moving and Storage rising by $19.4 million[202] - Total costs and expenses increased by $277.0 million during the first six months of fiscal 2026, with operating expenses for Moving and Storage rising by $63.8 million[232] - Total costs and expenses for the quarter ended September 30, 2025, were $1,502,328,000, compared to $1,356,152,000 in Q3 2024, representing an increase of approximately 10.8%[290] Insurance Premiums - Property and casualty insurance premiums increased by $2.5 million to $28,272 thousand in Q2 FY2026 compared to Q2 FY2025[197] - Life insurance premiums decreased by $2.1 million to $18,370 thousand in Q2 FY2026, primarily due to lower life and Medicare supplement premiums[196] - Life insurance premiums decreased by $3.7 million to $37.5 million in the first six months of fiscal 2026, primarily due to lower Medicare supplement premiums[228] - Life insurance premiums collected amounted to $41,228, indicating growth in the insurance segment[292] Investment and Capital Expenditures - The company plans to reinvest approximately $1,295 million in its rental equipment fleet during fiscal 2026[262] - The company invested $526.0 million in real estate acquisitions and new construction during the first six months of fiscal 2026[263] - Net capital expenditures for Moving and Storage were $1,528.4 million for the first six months of fiscal 2026, a decrease of 2.1% from $1,562.2 million in the same period of fiscal 2025[264] - The company incurred capital expenditures of $1,914,502 in property, plant, and equipment, highlighting significant investment in growth[294] Cash and Liquidity - Cash and cash equivalents increased to $1,083.3 million as of September 30, 2025, compared to $988.8 million as of March 31, 2025[257] - Cash and cash equivalents at the end of the period stood at $1,082,820, up from $988,828 at the beginning[294] - Cash flows from operating activities totaled $1,149,996, indicating robust operational cash generation[293] - As of September 30, 2025, the company had available borrowing capacity under existing credit facilities of $465.0 million[278] Equity and Liabilities - Total liabilities as of September 30, 2025, amounted to $13,660,530,000, with significant components including notes, loans, and finance leases payable of $7,694,640,000[286] - Stockholders' equity totaled $7,767,887,000, with retained earnings contributing $8,162,120,000, reflecting a strong equity position[286] - The total stockholders' equity as of March 31, 2025, was $7,498,143,000, with additional paid-in capital of $462,548,000[288] Strategic Plans and Market Conditions - The company plans to expand its U-Haul storage affiliate program and continue investing in the U-Box program[305] - The company expects to maintain a high level of real estate capital expenditures in fiscal 2026[306] - The company plans to expand owned storage properties, funded through a combination of internally generated funds, corporate debt, and borrowings against existing properties[306] - The company is focused on expanding its Life Insurance segment in the senior market and growing its agency force[306] - The company anticipates challenges from inflationary pressures and tariffs that may affect operating margins[306] - The company faces competition and general economic conditions that could affect its performance[306] Risks and Challenges - The company acknowledges risks related to technology, cybersecurity, and data security breaches impacting financial performance[306] - The company is reliant on a limited number of manufacturers for rental trucks, which poses a risk to operations[306] - The company is subject to fluctuations in quarterly results and seasonality, impacting overall financial stability[307]