PresentationWell, good afternoon, everyone. It's now my pleasure to introduce Ryder's CFO, Cristina Gallo-Aquino. We look forward to hearing about Ryder's ongoing plan execution, which we think sets the company up well for long-term growth with opportunities across Supply Chain and Dedicated, all things that are contributing to an earnings floor that's greater than prior period's peak.Cristina Gallo-AquinoCFO, EVP & Principal Accounting Officer Yes. I just wanted to briefly introduce Ryder for those of you ...

Ryder System (NYSE:R) 2025 Conference Summary Company Overview - Ryder System is an outsourced logistics and transportation solutions provider, primarily operating in North America with a focus on three main segments: Fleet Management Solutions, Dedicated Transportation Solutions, and Supply Chain Solutions. The company has a revenue of $13 billion and has been in operation for 90 years [3][4]. Strategic Transformation - Since 2018, Ryder has implemented a balanced growth strategy focusing on de-risking the business model, improving margins, and shifting towards an asset-light model. This includes pricing residuals conservatively, targeting higher returns, and revamping maintenance operations, resulting in significant cost savings [4][5][6]. - The company has invested approximately $1.1 billion in acquisitions over the past five years to enhance supply chain capabilities and scale [6][7]. Financial Performance - Ryder's earnings have doubled compared to 2018, even during a freight market downturn, with a return on equity of 18% compared to 13% in 2018 [7][8]. Freight Environment Assessment - The freight market has experienced four consecutive years of downturn, but recent trends indicate stabilization. Key metrics such as rental demand and used vehicle pricing have shown signs of stability, although no significant recovery is anticipated in the near term [8][10][11]. - Industrial production, housing starts, and consumer confidence are critical indicators being monitored, with no immediate signs of improvement [11][12]. Future Cost Initiatives - Ryder aims to achieve an additional $150 million in savings through operational excellence, customer-centric technology, and optimizing its omnichannel network. This includes a focus on maintenance cost initiatives and synergies from recent acquisitions [13][14][15]. Rental Fleet Utilization - Current rental fleet utilization is around 70%, with a target of mid-70s%. The company is prepared to capitalize on increased demand by quickly expanding its fleet when utilization improves [16][17]. Used Vehicle Pricing Outlook - Used vehicle pricing is expected to rebound due to lower OEM production levels and increasing costs of new vehicles. The company anticipates improvements in used vehicle pricing by late 2026 [18][19]. Driver Market Dynamics - A tightening driver market is beneficial for Ryder's dedicated business, as it encourages companies to outsource transportation needs. Ryder's focus on private fleets reduces exposure to broader driver market pressures [21][22][23]. Pricing Strategy - Ryder has maintained disciplined pricing strategies, which have been supported by rational competition in the market. The company expects to retain pricing discipline despite market softness [24][25][26]. Dedicated Transportation Opportunities - Ryder differentiates its dedicated services through specialized solutions and strong customer relationships, with a significant portion of dedicated sales coming from existing fleet management customers [27][30][31]. Supply Chain Growth Areas - The company sees significant growth potential in warehouse management and e-commerce, with a strong sales pipeline expected to translate into revenue growth starting in 2026 [32][34][35]. Reshoring and Nearshoring - Ryder is well-positioned to benefit from reshoring and nearshoring trends, particularly in the U.S. and Mexico, as companies seek to bring supply chains closer to home [38][39]. Technology and AI Investments - Ryder has invested in customer-centric technology and AI to enhance operational efficiency and customer service. This includes tools for fleet management and supply chain visibility [41][42][43][45]. M&A Strategy - The company continues to seek M&A opportunities that enhance scale and capabilities, particularly in supply chain logistics. Ryder is interested in tuck-in acquisitions similar to Cardinal and exploring opportunities in healthcare logistics [49][51]. Conclusion - Ryder is optimistic about its strategic initiatives and the potential for future growth, particularly as market conditions improve. The company is focused on achieving its cost-saving targets and enhancing its resilience in the logistics sector [53].