Revenue Growth - Self-moving equipment rental revenues increased by $23.1 million to $1,110,477 thousand in Q2 fiscal 2026 compared to Q2 fiscal 2025[194]. - Self-storage revenues rose by $21.8 million to $246,299 thousand in Q2 fiscal 2026, driven by occupancy gains and a 4.9% improvement in average revenue per occupied foot[195]. - Consolidated revenue for Q2 fiscal 2026 was $1,719,922 thousand, an increase from $1,658,108 thousand in Q2 fiscal 2025[194]. - Self-storage revenues increased by $40.3 million to $480.5 million for the first six months of fiscal 2026, compared to $440.2 million in the same period of fiscal 2025[227]. - Total consolidated revenue for the first six months of fiscal 2026 was $3.35 billion, up from $3.21 billion in the first six months of fiscal 2025, representing an increase of 4.5%[226]. - 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][290]. - For the six months ended September 30, 2025, total revenues reached $3,350,392,000, compared to $3,200,000,000 for the same period in 2024, indicating an increase of approximately 4.7%[291]. Operating Performance - Earnings from operations decreased to $217,594 thousand in Q2 fiscal 2026 from $301,956 thousand in Q2 fiscal 2025[202]. - Earnings from operations for Moving and Storage decreased to $475.0 million for the first six months of fiscal 2026, down from $608.2 million in the same period of fiscal 2025, a decline of 22%[234]. - The company reported earnings from operations of $217,594,000 for Q3 2025, a decrease from $301,956,000 in Q3 2024, representing a decline of approximately 28.0%[290]. - Net earnings available to common stockholders for the quarter ended September 30, 2025, were $105,550,000, consistent with the previous year’s earnings of $186,798,000, indicating a significant decline of approximately 43.4%[290]. - Operating expenses for the quarter ended September 30, 2025, totaled $909,542,000, compared to $891,073,000 in Q3 2024, marking an increase of about 2.5%[290]. Costs and Expenses - Total costs and expenses increased by $146.2 million in Q2 fiscal 2026 compared to Q2 fiscal 2025, with significant increases in operating expenses for Moving and Storage[202]. - Total costs and expenses increased by $277.0 million during the first six months of fiscal 2026 compared to the same period in fiscal 2025[232]. - Total costs and expenses for the quarter ended September 30, 2025, were $1,502,328,000, an increase from $1,356,152,000 in Q3 2024, representing a rise of approximately 10.8%[290]. Investment and Capital Expenditures - The company invested approximately $947.1 million in its rental equipment fleet during the first six months of fiscal 2026[262]. - The company plans to invest $1,295 million in its rental equipment fleet for fiscal 2026, net of equipment sales[262]. - The company invested $526.0 million in real estate acquisitions, new construction, and renovation during the first six months of fiscal 2026[263]. - Net capital expenditures for Moving and Storage were $1,528.4 million in 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]. Financial Position - 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]. - As of March 31, 2025, total assets were reported at $20,479,170,000, with cash and cash equivalents of $988,828,000[287]. - The company reported accounts payable and accrued expenses of $820,900,000 as of March 31, 2025, indicating a stable liquidity position[288]. Insurance Segment - Life insurance premiums decreased by $2.1 million to $18,370 thousand in Q2 fiscal 2026, primarily due to lower life and Medicare supplement premiums[196]. - Equity in the earnings of insurance subsidiaries decreased to $16.0 million in Q2 2026 from $17.0 million in Q2 2025[215]. - Life insurance premiums for the quarter ended September 30, 2025, amounted to $18,370,000, compared to $20,488,000 in Q3 2024, indicating a decrease of about 10.3%[290]. - Life Insurance aims to expand its presence in the senior market through new product offerings and business acquisitions[283]. Future Outlook and Strategy - The company plans to increase investment in its truck fleet and rental equipment to meet operational goals in fiscal 2026, with a focus on improving transaction volume and pricing[280]. - The company anticipates increased spending on acquisitions and new developments in fiscal 2026 to support growth in its storage business[281]. - The company expects to maintain a high level of real estate capital expenditures in fiscal 2026[306]. - The company believes fiscal 2026 investments will be largely funded through debt financing, external lease financing, private placements, and cash from operations[306]. Risks and Challenges - The company anticipates challenges from inflationary pressures and tariffs that may affect operating margins[306]. - 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 faces competition and general economic conditions that could affect its performance[306]. - The company is exposed to interest rate risk from its insurance subsidiaries' fixed income investment portfolios, which are managed to mitigate overall interest rate effects[300].
U-Haul pany(UHAL_B) - 2026 Q2 - Quarterly Report