Ryder Says Shift to Asset-Light Services Pays Off During Freight Market Downturn

Core Insights - Ryder System has achieved its third consecutive quarter of double-digit earnings per share growth, indicating the effectiveness of its transformation strategy amid a prolonged freight market downturn [1][3] - The company reported comparable earnings per share of $3.32, an 11% increase year over year, with revenue reaching $2.6 billion, up 2% from the previous year [2] Financial Performance - The transformation strategy has led to asset-light supply chain and dedicated transportation services now accounting for a majority of Ryder's revenue, moving away from traditional fleet management [3] - Ryder's full-year earnings forecast has been adjusted to $12.85 to $13.30 per share, down from the previous range of $12.85 to $13.60, reflecting strong contractual earnings performance but muted recovery in used vehicle sales [7] Strategic Initiatives - The company has adopted a "balanced growth strategy" that focuses on businesses generating stable cash flows across economic cycles, with over 90% of operating revenue derived from multiyear contracts [4] - Ryder's business model is designed to de-risk operations and enhance return profiles, with a resilient contractual portfolio driving performance [5] Market Outlook - Looking ahead, Ryder anticipates benefiting from long-term trends favoring the outsourcing of transportation and logistics, as well as increased industrial manufacturing in the United States [6] - The company acknowledges near-term headwinds in contractual sales due to macroeconomic uncertainty, which has led some customers to delay decisions [8]