Group 1 - The company is currently being evaluated by analysts regarding its ownership status, with options including overweight, market weight, underweight, or no ownership [1] - Analysts are gathering audience opinions on their general bias towards the company, categorizing it as positive, negative, or neutral [2] - There is a focus on the company's through-cycle EPS growth expectations, with comparisons being made to peers to determine if it will be above, in line with, or below [2]

Ryder System (NYSE:R) FY Conference February 18, 2026 02:25 PM ET Company ParticipantsRobert Sanchez - Chairman and CEOConference Call ParticipantsBrandon Oglenski - Director and Senior Equity AnalystDavid Zazula - Equity Research Analyst and Transportation AssociateBrandon OglenskiGood afternoon, everyone, and again, welcome to Day Two of Barclays 43rd Annual Industrial Select Conference. I'm Brandon Oglenski, Airline and Transport Analyst, joined by David Zazula here on our team as well, and very happy, I ...

Core Insights - Ryder System, Inc. reported disappointing fourth-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate [1][10] - Quarterly earnings per share were $3.59, missing the estimate of $3.66 but showing a year-over-year improvement of 4.1% [1][10] - Total revenues were $3.17 billion, falling short of the estimate of $3.24 billion and decreasing by 0.4% year over year [2][10] Financial Performance - Operating revenues (adjusted) for the quarter were $2.62 billion, reflecting a year-over-year increase of 0.4% [2] - Ryder's chairman noted that the fourth quarter marked the fifth consecutive quarter of earnings-per-share growth, aligning with expectations [3] - Fleet Management Solutions segment reported total revenues of $1.46 billion, down 1% year over year due to lower operating and fuel revenue [4] - Supply-Chain Solutions segment saw total revenues of $1.38 billion, up 3% year over year, driven by increased operating revenues and new business [5] - Dedicated Transportation Solutions segment reported total revenues of $565 million, declining 8% year over year due to decreased subcontracted transportation costs [6] Liquidity and Debt - Ryder ended the fourth quarter with cash and cash equivalents of $198 million, up from $189 million in the previous quarter [7] - Total debt at the end of the fourth quarter was $7.64 billion, down from $7.85 billion in the prior quarter [7] Outlook - For 2026, Ryder expects adjusted earnings per share in the range of $13.45-$14.45, with the Zacks Consensus Estimate of $14.29 within this guidance [8] - Total revenues are anticipated to increase by 1%, while adjusted operating revenues are expected to rise by 3% [8] - Adjusted return on equity is projected to be between 17-18%, with net cash from operating activities estimated at $2.7 billion [9]

Core Viewpoint - Tenon Medical, Inc. is enhancing its competitive position and supporting its long-term growth strategy through a strategic expansion of its U.S. intellectual property portfolio, following the receipt of Notices of Allowance for multiple patent applications expected to issue in 2026 [1] Group 1: Intellectual Property Expansion - The company has received Notices of Allowance from the United States Patent and Trademark Office (USPTO) for multiple patent applications [1] - This expansion will strengthen the company's growing patent portfolio, building upon the ten patents issued in 2025, which includes five issued by the USPTO and five issued internationally [1]

Company Overview - Ryder has undergone a significant transformation in recent years, moving away from its traditional image [1] - The company was founded in 1933 in Miami and has grown from one man and one truck to a publicly traded entity [4] - Ryder went public in 1955 and is among the top 5% of the longest-tenured publicly traded companies on the NYSE [4] - The company currently generates just under $13 billion in revenue [4]

Summary of Ryder's Conference Call Company Overview - **Company**: Ryder System, Inc. - **Industry**: Transportation and Logistics - **Founded**: 1933, went public in 1955 - **Revenue**: Approximately $13 billion - **Stock Symbol**: R - **Segments**: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), Supply Chain Solutions (SCS) [1][2][3] Core Business Segments 1. **Fleet Management Solutions (FMS)** - Represents about 43% of total revenue - Offers truck leasing and maintenance services - Operates a fleet of nearly 240,000 vehicles - Revenue growth is dependent on the freight market [3][5][26] 2. **Dedicated Transportation Solutions (DTS)** - Accounts for 19% of revenue - Provides trucks and drivers for customers - Growth is influenced by the driver market and outsourcing trends [5][61] 3. **Supply Chain Solutions (SCS)** - Focuses on warehousing and logistics - Operates over 300 warehouses with over 100 million square feet of space - Long-term growth target is low double digits [6][40][54] Transformation and Strategy - **Balanced Growth Strategy**: Initiated in 2019 to de-risk the business model, improve returns, and accelerate growth in asset-light businesses [7][10] - **Revenue Mix Shift**: In 2018, asset-intensive business was 56% of revenue; by 2023, it decreased to 38% [11] - **Earnings Improvement**: Targeting low twenties return on equity (ROE) over the cycle, with a peak ROE of 17% expected in 2025 [12] - **Cost Savings**: Achieved over $100 million in savings from maintenance optimization initiatives [10][13] Financial Outlook - **2026 EPS Guidance**: Midpoint reflects an 8% year-over-year growth, with a range of 4%-12% [71] - **Potential Earnings Lift**: Identified $250 million in earnings lift as the freight market recovers [13][72] - **Free Cash Flow**: Expected to be $700-$800 million, with plans for organic growth, acquisitions, dividends, and share buybacks [83][85] Market Dynamics - **Freight Market**: Current softness in the freight market is impacting lease sales and rental fleet performance [27][69] - **Driver Market**: A tightening driver market is expected to drive growth in dedicated services as companies outsource more [61][66] - **Customer Sentiment**: Large companies are moving forward with projects, while small to mid-sized companies are more hesitant due to market conditions [70] Innovation and Technology - **AI Integration**: Ryder is leveraging AI in customer-facing systems and operational efficiencies [88][89] - **Automation**: Increased use of automation in warehouses and maintenance operations to enhance productivity [100][102] Management Transition - **Leadership Change**: Robert Sanchez will transition to Executive Chair, with John Diez taking over as CEO [15][78] - **Management Team**: Strong leadership team in place, with a focus on innovation and operational excellence [17][80] Conclusion - Ryder is positioned for future growth with a focus on innovation, operational efficiency, and a strong management team. The company anticipates that the best years are ahead as market conditions improve and demand for logistics services increases [105]

Company Overview - Ryder System, Inc. is one of the world's largest providers of integrated logistics and transportation solutions, serving a diverse range of customers from small businesses to large international enterprises across various industries, including automotive, electronics, transportation, grocery, lumber and wood products, food service, and home furnishing [11]. Investment Ratings - Ryder has a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating a strong investment potential [12]. - The company is particularly appealing to growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 15.6% for the current fiscal year [12]. Earnings Estimates - An analyst has revised Ryder's earnings estimate higher in the last 60 days for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.08 to $14.94 per share [12]. - Ryder has an average earnings surprise of +1.9%, suggesting a positive trend in earnings performance [12]. Investment Recommendation - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Ryder is recommended to be on investors' short lists for potential investment opportunities [13].

Core Insights - Aspire Biopharma has filed a provisional patent application for a fast-acting sublingual powder formulation of ondansetron, the active ingredient in Zofran, aimed at providing rapid relief from nausea caused by cancer treatments [1] - The global ondansetron market was valued at approximately $1.4 billion in 2023 and is projected to grow to $2.4 billion by 2032, driven by increasing cancer incidences and surgical procedures [1] Company Developments - Aspire's new sublingual delivery system is designed to bypass the gastrointestinal tract, potentially reducing the onset of action from 30 minutes to just minutes, thus providing near-instant absorption [1] - The company plans to utilize the FDA's 505(b)(2) regulatory pathway to streamline clinical development and reduce time-to-market for its new formulation [1] Market Positioning - Ondansetron was the 53rd most prescribed medication in the U.S. in 2023, with over 12.5 million prescriptions, indicating significant market utilization [1] - The sublingual formulation specifically addresses the unmet need for patients who cannot swallow tablets due to severe vomiting or gastric irritation [1]

Revenue Breakdown - Ryder's Fleet Management Solutions (FMS) accounted for 38% of consolidated revenue in 2025[24] - Supply Chain Solutions (SCS) contributed 43% to consolidated revenue, with 722 customer accounts and 319 warehouses as of December 31, 2025[43] - ChoiceLease revenue represented 60% of total FMS revenue in 2025[29] - Commercial rental revenue accounted for 16% of total FMS revenue in 2025[30] - SelectCare revenue made up 12% of total FMS revenue in 2025[32] - In 2025, distribution management and value-added services accounted for approximately 36% of SCS total revenue[46] - Dedicated transportation services contributed approximately 28% to SCS total revenue in 2025[47] - Transportation management solutions represented 12% of SCS total revenue, with $9.8 billion in freight moves executed on behalf of customers[48] - E-commerce and last mile services accounted for 18% of SCS total revenue in 2025[49] - Contract manufacturing and packaging services made up 6% of SCS total revenue in 2025[50] - Fuel services revenue accounted for 12% of the total revenue in the Fleet Management Services (FMS) segment during 2025[34] Market Overview - The U.S. logistics spending was approximately $1.5 trillion, with $234 billion outsourced, indicating a growing market for logistics services[41] - The U.S. commercial fleet market is estimated to include approximately 11 million vehicles, with 1 million leased or rented from third parties like Ryder[23] - The outsourced U.S. dedicated market is estimated at $31 billion, with an addressable market of approximately $500 billion[54] Company Operations - Ryder operates 789 locations across 49 states, the District of Columbia, Puerto Rico, and seven Canadian provinces as of December 31, 2025[25] - As of December 31, 2025, the company had 141,700 vehicles and 11,700 customers in its ChoiceLease segment, with 31,600 commercial rental vehicles and 27,200 commercial rental customers[33] - The used vehicle inventory stood at 9,500 vehicles as of December 31, 2025, slightly above the long-term target range of 7,000 to 9,000[37] Strategic Focus - Ryder's strategy focuses on operational excellence, customer-centric innovation, and improving full-cycle returns[19] - The company aims to leverage trends favoring outsourcing logistics and transportation services to drive growth[20] - Ryder's balanced growth strategy includes creating value through operational excellence and investing in customer-centric innovation[27] - The company aims to grow earnings from its contractual lease, dedicated, and supply chain businesses[20] - The company aims to optimize asset utilization and management, particularly regarding its rental fleet and used vehicle operations[42] - The company aims to increase market share by providing specialized services across various industries, including retail, agriculture, and energy[64] Workforce and Safety - The company employs 51,600 total employees in North America, including 12,700 professional drivers and 4,600 technicians[72] - The company has a robust talent and succession planning process to support the development of its workforce[69] - The safety organization oversees safety policies and training, with a focus on minimizing safety events and ensuring compliance[73] - The company emphasizes safety through a comprehensive safety culture, with ongoing training for professional drivers, technicians, and warehouse associates[73] - The company has established safety policies and procedures that require all employees to incorporate safe processes in their operations[75] - The company is committed to compliance with various regulations, including those related to safety, emissions, and data privacy[67] - The company offers comprehensive health, welfare, and retirement programs to invest in employee well-being[70] Technology and Innovation - The company is developing innovative customer-centric technology, such as RyderShare™, to enhance service offerings[64] - The company focuses on network optimization and continuous improvement to enhance operational efficiency[64] - The company leverages its FMS sales team to encourage private fleet operators to outsource transportation needs[64]

Financial Data and Key Metrics Changes - In 2025, Ryder achieved comparable earnings per share of $1,292, more than double the $595 reported in 2018, with a return on equity (ROE) of 17%, up from 13% in 2018 [12][25] - Operating cash flow increased to $2.6 billion in 2025, up more than 50% from $1.7 billion in 2018 [12][21] - For the fourth quarter, operating revenue was $2.6 billion, consistent with the prior year, while comparable earnings per share from continuing operations were $3.59, up 4% from the previous year [15][25] Business Line Data and Key Metrics Changes - Fleet Management Solutions (FMS) operating revenue decreased by 1%, with pre-tax earnings down to $136 million due to weaker market conditions [16][19] - Supply Chain Solutions (SCS) operating revenue increased by 3%, but earnings decreased by 8% due to lost business and production shutdowns in automotive [18][19] - Dedicated Transportation Solutions (DTS) operating revenue decreased by 4%, but EBT was above the prior year due to lower bad debt and acquisition synergies [19][25] Market Data and Key Metrics Changes - The U.S. economic growth is expected to be modest in 2026, with no significant change in freight market conditions anticipated [24][25] - U.S. Class 8 production is forecasted to decline by 4% in 2026, impacting the overall market dynamics [24] Company Strategy and Development Direction - Ryder's balanced growth strategy has been transformative, reducing reliance on used vehicle proceeds and focusing on asset-light supply chain and dedicated businesses [8][10] - The company is investing in customer-centric technology and AI to enhance operational efficiency and customer service [9][10] - Ryder aims to achieve higher returns by focusing on profitable growth opportunities and strategic investments [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver earnings growth and increased returns in 2026, driven by strategic initiatives and a strong contractual portfolio [24][25] - The company anticipates that the earnings power of its contractual businesses will offset near-term headwinds in transactional parts of the business [31][34] Other Important Information - Ryder has generated $3 billion in free cash flow since 2021 and has repurchased 24% of shares outstanding while increasing the quarterly dividend by 57% [14][23] - The company expects to generate approximately $10.5 billion from operating cash flow and used vehicle sales proceeds over the next three years, creating $3.5 billion of incremental debt capacity [21][22] Q&A Session Summary Question: Variability in Earnings Guidance for 2026 - The largest variability in earnings guidance is tied to the transactional business, particularly maintenance and omnichannel optimization initiatives [38][40] Question: Used Vehicle Sales Expectations - Used vehicle sales are expected to improve gradually throughout the year, with Q1 consistent with Q4 levels [45][46] Question: Impact of Market Conditions on Rental Business - The company has not seen meaningful improvement in rental and used vehicle sales, with guidance not reflecting significant market recovery [64][66] Question: Benefits of Baton Technology - Baton is expected to optimize fleet operations and enhance customer solutions through AI technology [67][68] Question: Flex Operating Structure in Dedicated Business - The flex operating structure is anticipated to optimize back-office resources and improve driver allocation, potentially offsetting margin headwinds [86][87]