Ryder Reports Third Quarter 2025 Results

Strategic Initiatives Continue to Drive Contractual Earnings Growth

Third Quarter 2025 Highlights

• GAAP EPS from continuing operations of $3.33, up 2% from prior year
• Comparable EPS (non-GAAP) from continuing operations of $3.57, up 4% from prior year, reflecting higher contractual earnings and share repurchases
• Total revenue of $3.2 billion, consistent with prior year
• Operating revenue (non-GAAP) of $2.6 billion, up 1%, reflecting contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS)

Full Year 2025 Outlook

• Adjusted return on equity (ROE) (non-GAAP) of 17%
• Comparable EPS (non-GAAP) of $12.85 - $13.05
• Operating revenue (non-GAAP) increase of 1%
• Net cash provided by operating activities from continuing operations of $2.8 billion and free cash flow (non-GAAP) of $900 million - $1 billion

Ryder System, Inc. (NYSE:R) reported results for the three months ended September 30 as follows:

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Ryder is a leader in supply chain, dedicated transportation, and fleet management solutions.

Total and operating revenue for the three months ended September 30 were as follows:

CEO Comment

"Ryder delivered our fourth consecutive quarter of earnings-per-share growth," says Ryder Chairman and CEO Robert Sanchez. "Earnings were in line with our expectations as operating performance from our resilient contractual businesses and benefits from our strategic initiatives more than offset the impact from freight market conditions. We are on track to deliver earnings growth in 2025 driven by benefits from our lease pricing and multi-year maintenance cost-saving initiatives, acquisition synergies, and optimization of our omnichannel retail network.

"In FMS, higher ChoiceLease earnings continue to be driven by our initiatives. Benefits in DTS from strong operating performance and acquisition synergies were offset by fleet reductions reflecting weaker freight market conditions. In SCS, we delivered another quarter of solid contractual earnings performance.

"Consistent execution of our balanced growth strategy enabled us to generate ROE of 17% in the current environment. The structural enhancements embedded in our transformed business model, our strong customer relationships, and expanded capabilities provide us with a solid foundation to deliver value-added solutions to our customers and outperform prior cycles.

"We remain focused on creating shareholder value by investing in profitable growth and strategic initiatives, while returning capital to our shareholders. Consistent with this objective, our board recently authorized a new discretionary two-million-share repurchase program that replaces a program that was largely completed. The earnings power of our transformed business model continues to provide us with ample capacity for value-enhancing capital deployment.

"Overall, we are confident in our ability to execute on our strategic objectives and are well positioned to benefit from the eventual freight cycle upturn."

Third Quarter 2025 Segment Review

Fleet Management Solutions: Contractual Earnings Growth Partially Offset by Market Conditions in Used Vehicle Sales and Rental

• FMS total revenue and operating revenue are consistent with prior year
• FMS EBT of $146 million, increased 11%
  • Higher ChoiceLease performance driven primarily by pricing and maintenance cost-saving initiatives
  • Used vehicle sales and rental results reflect weaker market conditions
  • Used tractor and truck pricing declined 6% and 15% respectively, from prior year; sequentially from second quarter of 2025, tractor pricing was unchanged and truck pricing increased 7% reflecting a higher retail mix
  • Rental power-fleet utilization was 70% compared to 71% in the prior year, on a 6% smaller average active power fleet

Supply Chain Solutions: Earnings from Revenue Growth More Than Offset by E-commerce Network Performance and Medical Costs

• SCS total revenue and operating revenue increased 5% and 4%, respectively
  • Total revenue reflects increased operating revenue and subcontracted transportation costs passed through to customers
  • Increase in operating revenue primarily driven by new business in omnichannel retail
• SCS EBT of $86 million, down 8%
  • Benefits from operating revenue growth more than offset by e-commerce network performance and medical costs

Dedicated Transportation Solutions: Earnings Benefits from Acquisition Synergies Offset by Lower Fleet Count Reflecting Freight Market Conditions

• DTS total revenue and operating revenue decreased 10% and 6%, respectively
  • Total revenue reflects decreased subcontracted transportation costs and operating revenue
  • Operating revenue decreased due to lower fleet count reflecting prolonged freight market downturn
• DTS EBT of $36 million, in line with prior year
  • Reflects acquisition synergies offset by lower operating revenue

Corporate Financial Information

Unallocated Central Support Services (CSS)

Unallocated CSS costs increased to $21 million from $17 million in the prior year, primarily due to information technology costs.

Tax Rate

Our effective income tax rate from continuing operations was 27.1%, as compared to 24.0% in the prior year, and our comparable effective income tax rate (a non-GAAP measure) from continuing operations was 25.6%, as compared to 23.9%. The increase in the tax rates was primarily due to discrete tax benefits in the third quarter of 2024.

Capital Expenditures, Cash Flow, and Leverage

Capital expenditures decreased to $1.6 billion in 2025 compared to $2.0 billion in 2024, primarily reflecting reduced investments in ChoiceLease and rental.

Net cash provided by operating activities from continuing operations was $1.8 billion compared to $1.7 billion in 2024, primarily reflecting lower income tax payments. Free cash flow (non-GAAP) of $496 million compared to $218 million in 2024, primarily reflects reduced cash capital expenditures and higher cash provided by operating activities.

Debt-to-equity as of September 30, 2025 was 254% compared to 250% at year-end 2024 and is at the bottom end of the company's long-term target of 250% to 300%.

Outlook

"We remain on track for earnings growth and free cash flow of between $900 million and $1 billion in 2025," says Ryder Chief Financial Officer Cristina Gallo-Aquino. "Our revised earnings forecast continues to assume a muted freight environment. Consistent execution of our balanced growth strategy is driving outperformance relative to prior cycles."

Supplemental Company Information

Business Description

Ryder System, Inc. is a leading supply chain, dedicated transportation, and fleet management solutions company. Ryder's stock (NYSE:R) is a component of the Dow Jones Transportation Average and the S&P MidCap 400^® index. The company's financial performance is reported in the following three, inter-related business segments:

• Supply Chain Solutions – Ryder's SCS business segment optimizes logistics networks to make them more responsive and able to be leveraged as a competitive advantage. Globally-recognized brands in the automotive, consumer goods, food and beverage, healthcare, industrial, oil and gas, technology, and retail industries rely on Ryder's leading-edge technologies and world-class logistics engineers to help them deliver the goods that consumers use every day.
• Dedicated Transportation Solutions – Ryder's DTS business segment combines the best of Ryder's leasing and maintenance capabilities with the safest and most professional drivers in the industry. With a dedicated transportation solution, Ryder helps customers increase their competitive position, reduce risk, and integrate their transportation needs with their overall supply chain.
• Fleet Management Solutions – Ryder's FMS business segment provides a broad range of services to help businesses of all sizes, across virtually every industry, deliver for their customers. From leasing, maintenance, and fueling, to rental and used vehicle sales, customers rely on Ryder's expertise to help them lower their costs, redirect capital to other parts of their business, and focus on what they do best – so they can grow.

For more information on Ryder System, Inc., visit investors.ryder.com and ryder.com.

Note: Regarding Forward-Looking Statements

Certain statements and information included in this news release are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including our expectations regarding: our forecast; our outlook; market conditions, such as expectations regarding macroeconomic uncertainty, rental demand and utilization, and used vehicle sales volume and pricing; the freight cycle, including the impact of the prolonged downturn and cycle timing and recovery on our businesses; total and operating revenue, EPS, comparable EPS, adjusted ROE, earnings before income tax, net cash provided by operating activities from continuing operations, free cash flow, debt-to-equity, capital expenditures, and the causes of change; our ability to continue executing on our transformed business model; our ability to outperform prior cycles; pricing and maintenance cost savings initiatives; long-term growth opportunities and secular growth trends; used vehicle inventory and fleet size; our ability to profitably grow business; our ability to support organic growth; growth and continued strong earnings performance in our contractual businesses; strategic investments and acquisitions, including acquisition synergies; the omnichannel retail network; our capital deployment capacity; our actions to increase returns and create long-term value; and our ability to return capital to shareholders, including through share repurchases and dividends. Our forward-looking statements also include our estimates of the impact of residual value estimates on earnings and depreciation expense that is based in part on our current assessment of the residual values and useful lives of revenue-earning equipment based on multi-year trends and our outlook for the expected near- and long-term used vehicle market. A variety of factors, many of which are outside of our control, could cause residual value estimates to differ from actual used vehicle sales pricing, such as changes in supply and demand of used vehicles; volatility in market conditions; changes in vehicle technology; competitor pricing; regulatory requirements, including changes to taxes or tariffs; driver shortages; customer requirements and preferences; and changes in underlying assumption factors.

All of our forward-looking statements should be evaluated by considering the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Important factors that could cause such differences include: changes and uncertainty regarding financial, economic and market conditions in the U.S. and worldwide; supply chain and labor challenges and vehicle production constraints, including original equipment manufacturer (OEM) delays; the effect of geopolitical events; our ability to adapt to changing market conditions, including lower than expected contractual sales, decreases in rental demand or utilization, poor acceptance of rental pricing, declining market demand for or excess supply of used vehicles impacting current or estimated pricing, and our anticipated proportion of retail versus wholesale sales; declining customer demand for our services; higher than expected maintenance costs; lower than expected benefits from our cost-savings initiatives; our ability to effectively and efficiently integrate acquisitions into our business; lower than expected benefits from our sales, marketing and new product initiatives; setbacks in the economic market or in our ability to retain profitable customer accounts; impact of changing laws and regulations, such as taxes, tariffs, trade restrictions or trade agreements, including the impact to our customers and partners; difficulty in obtaining adequate profit margins for our services; inability to maintain current pricing levels due to, for example, economic conditions, business interruptions, expenditures, labor disputes and extreme weather or other natural occurrences; competition from other service providers; changes in technology and new entrants; professional driver and technician shortages resulting in higher procurement costs and turnover rates; impact of supply chain disruptions; higher than expected bad debt reserves or write-offs; decrease in credit ratings; increased debt costs; adequacy of accounting estimates; higher than expected reserves and accruals particularly with respect to pension, taxes, insurance and revenue; impact of changes in our residual value estimates and accounting policies, including our depreciation policy; unanticipated changes in fuel and alternative energy prices; unanticipated currency exchange rate fluctuations; fluctuations in inflation or interest rates; our ability to manage our cost structure; the inability of our information technology systems to provide timely and accurate access to data or of our information security program to safeguard our or our stakeholders' data; and the risks described in our filings with the Securities and Exchange Commission (SEC). The risks included here are not exhaustive. New risks emerge from time to time, and it is not possible for management to predict all such risk factors or to assess the impact of such risks on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Note: Regarding Non-GAAP Financial Measures

This news release includes certain non-GAAP financial measures as defined under SEC rules. Refer to Appendix - Non-GAAP Financial Measure Reconciliations at the end of the tables following this press release for reconciliations to the most comparable GAAP measure. Additional information regarding non-GAAP financial measures as required by Regulation G and Item 10(e) of Regulation S-K can be found in our most recent Form 10-K, Form 10-Q and Form 8-K filed with the SEC as of the date of this release, which are available at investors.ryder.com.

CONFERENCE CALL AND WEBCAST INFORMATION

Ryder's earnings conference call and webcast is scheduled for October 23, 2025 at 11:00 a.m. ET. To join, click here.

LIVE AUDIO VIA PHONE

WEBCAST REPLAY

An audio replay including the slide presentation will be available within four hours following the call. Click here, then select Financials/Quarterly Results and the date.