Ryder(R) - 2025 Q4 - Annual Results

Financial Performance - GAAP EPS from continuing operations for Q4 2025 was $3.25, up 5% from the prior year, while comparable EPS (non-GAAP) was $3.59, up 4%[3]. - Total revenue for Q4 2025 was $3.2 billion, consistent with the prior year, and operating revenue (non-GAAP) was $2.6 billion, also consistent with the prior year[3]. - Full-year 2025 total revenue reached $12.7 billion, with operating revenue (non-GAAP) of $10.4 billion, reflecting a 1% increase primarily from growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS)[3]. - Ryder's total revenue for Q4 2025 was $3,175 million, a slight decrease from $3,189 million in Q4 2024, while total revenue for the year ended December 31, 2025, was $12,665 million, compared to $12,636 million in 2024[33]. - Comparable earnings from continuing operations for the year ended December 31, 2025, were $540 million, compared to $531 million in 2024, reflecting a year-over-year increase[53]. - The tax rate on continuing operations for the year ended December 31, 2025, was 26.0%, slightly higher than 25.7% in 2024[53]. Cash Flow and Capital Management - The company generated net cash from operating activities of $2.6 billion and free cash flow (non-GAAP) of $946 million in 2025, compared to $133 million in 2024[18]. - Ryder reported a free cash flow of $946 million for the year ended December 31, 2025, a significant increase from $133 million in 2024[37]. - Ryder returned $664 million to shareholders through buybacks and dividends in 2025, demonstrating a commitment to capital return[8]. - The forecast for total cash generated in 2026 is $3,200 million, with free cash flow projected at $800 million[60]. Revenue Growth and Forecast - Ryder expects total revenue growth of 1% and operating revenue growth (non-GAAP) of 3% for FY 2026, with GAAP EPS forecasted between $12.80 and $13.80[21]. - The operating revenue forecast for the year ending December 31, 2026, is $10,700 million, representing a 3% increase from $10,406 million in 2025[58]. - The forecasted comparable EPS from continuing operations for the full year 2026 is between $13.45 and $14.45[59]. Segment Performance - Fleet Management Solutions revenue decreased by 1% to $1,466 million in Q4 2025, while Supply Chain Solutions revenue increased by 3% to $1,382 million in the same period[39]. - Ryder's Dedicated Transportation Solutions segment saw an 8% revenue decline in Q4 2025, totaling $565 million, compared to $615 million in Q4 2024[39]. - FMS total revenue for Q4 2025 was $1,466 million, a decrease of 1% compared to Q4 2024, with annual revenue at $5,845 million, also down 1%[41]. - SCS total revenue increased by 3% to $1,382 million in Q4 2025, with annual revenue reaching $5,459 million, a 3% increase from 2024[41]. - DTS total revenue decreased by 8% to $565 million in Q4 2025, with annual revenue at $2,343 million, down 4% from the previous year[41]. Profitability Metrics - Return on equity (ROE) for FY 2025 was 17%, with expectations for 17% to 18% in FY 2026[3][21]. - The adjusted return on equity (ROE) for the year ended December 31, 2025, was 17%, up from 16% in 2024, reflecting improved profitability[37]. - Comparable EBITDA for Q4 2025 was $726 million, slightly up from $720 million in Q4 2024, while for the year, it increased to $2,867 million from $2,776 million[37]. - FMS segment earnings before income taxes decreased by 10% to $136 million in Q4 2025, with annual earnings at $501 million, down 3%[41]. - SCS segment earnings before income taxes decreased by 8% to $83 million in Q4 2025, while annual earnings increased by 7% to $355 million[41]. - DTS segment earnings before income taxes increased by 19% to $40 million in Q4 2025, with annual earnings at $140 million, up 12% from 2024[41]. Debt and Capital Expenditures - Capital expenditures decreased to $2.1 billion in 2025 from $2.7 billion in 2024, reflecting reduced investments in ChoiceLease and rental fleets[17]. - Debt-to-equity ratio as of December 31, 2025, was 250%, unchanged from the previous year and at the low end of the company's long-term target[19]. - The company's net cash provided by operating activities from continuing operations for the year ended December 31, 2025, was $2,594 million, an increase from $2,265 million in 2024[37]. - Ryder's total debt as of December 31, 2025, was $7,645 million, a decrease from $7,779 million in 2024, while shareholders' equity decreased to $3,052 million from $3,117 million[35]. - The effective interest rate remained stable at 5.2% for both Q4 2025 and 2024, indicating consistent borrowing costs[37]. Fleet Management - The average fleet count for ChoiceLease decreased by 2% to 141,700 units in Q4 2025, with a 1% decrease in the annual average fleet count[43].