Financial Data and Key Metrics Changes - The company reported a third-quarter loss of $37 million compared to earnings of $67 million in the same quarter last year, resulting in a loss of $0.18 per non-voting share versus earnings of $0.35 per share previously [8][10] - Adjusted EBITDA for the moving and storage segment decreased by 11%, approximately $42 million, reflecting a similar decline in operating cash flows for the quarter [8][12] - A significant increase in depreciation and losses from the disposal of rental units contributed to a $75 million cost increase compared to the same period last year [9][10] Business Line Data and Key Metrics Changes - Equipment rental revenues increased by $8 million, or just under 1%, primarily from the in-town portion of the business [10] - Storage revenues rose by $18 million, or 8%, with average revenue per foot improving by just under 7% and same-store revenue per occupied foot up by 5% [12] - The company added 16 new storage locations, translating to about 1.5 million new net rentable square feet, although the development pipeline has decreased to 106 projects [15][12] Market Data and Key Metrics Changes - The company has a significant U-Box presence with over 200,000 containers in service, and over 100,000 in the hands of customers, indicating growth in the self-storage and moving market [6][12] - Same-store occupancy decreased by 490 basis points to just over 87%, impacted by efforts to increase available units by focusing on delinquent units [12][13] Company Strategy and Development Direction - The company plans to open more U-Haul dealership locations to better utilize excess fleet and increase transactions [4][10] - There is a focus on digital tools investment to meet customer expectations and improve service delivery [6] - The company is strategically slowing down the pace of self-storage development while still pursuing opportunities in key markets [15][75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges due to excessive acquisition costs of vans and pickups, which have negatively impacted earnings [4] - The company is optimistic about future cargo van purchases being at a lower average cost, which may help mitigate losses [10] - Management expressed confidence in filling more storage units and improving occupancy rates despite current challenges [81][84] Other Important Information - The company invested $770 million in real estate acquisitions and development during the first nine months of fiscal 2026, a decrease of $444 million compared to the previous year [15] - Operating expenses increased by $66 million for the third quarter, with significant contributions from personnel costs and self-insurance liability costs [16] Q&A Session Summary Question: Discussion on pressures in the one-way market and U-Box program - Management noted that consumer anxiety leads to shorter transaction distances, affecting the one-way rental market and U-Box performance [22][23] Question: Clarification on depreciation changes - Management explained that depreciation rates for box trucks decrease over time, while adjustments for pickup and cargo vans are made based on resale market conditions [24][25] Question: Capacity reductions from competitors and expansion in dealer space - Management confirmed that competitors are reducing fleet and locations, positioning the company to capture demand when the market improves [30][31] Question: Expense management and future efforts - Management indicated ongoing efforts to manage expenses, particularly in personnel costs, while also focusing on revenue generation [37][40] Question: U-Box construction and usage in large metros - Management confirmed ongoing construction in key markets and highlighted the advantages of U-Box containers in urban areas [44][48] Question: Future vehicle acquisition and depreciation - Management provided insights on the remaining cargo vans and the expected losses on sale, emphasizing the need for accurate market estimates [54][56] Question: Self-storage capacity utilization and development pace - Management acknowledged the need to slow down development while still pursuing strategic opportunities in self-storage [75][76]

Core Viewpoint - Penske has labeled the use of its rental trucks during a DHS operation in Los Angeles as "improper" and stated that it was not informed or authorized for such use [1][2]. Group 1: Company Response - Penske strictly prohibits the transportation of people in the cargo area of its vehicles under any circumstances [2]. - The company plans to contact DHS to reinforce its policy against the improper use of its vehicles in the future [2]. Group 2: Incident Details - The DHS operation occurred around 7 a.m. in the MacArthur Park area of Los Angeles, resulting in the arrest of 16 individuals [3]. - Federal agents were seen using Penske trucks during the operation, which led to migrants scattering from the parking lot [3].