Second Quarter 2025 Highlights
- GAAP EPS from continuing operations of $3.15, up 11% from prior year
- Comparable EPS (non-GAAP) from continuing operations of $3.32, up 11% 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 2%, 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 – $13.30
- 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, up $500 million
Ryder System, Inc. reported results for the three months ended June 30 as follows:
|
|
|
Earnings Before Taxes |
|
Earnings |
|
Diluted Earnings Per Share |
||||||||||||||||
|
(In millions, except EPS) |
|
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Continuing operations (GAAP) |
|
$ |
184 |
|
178 |
|
$ |
132 |
|
126 |
|
$ |
3.15 |
|
2.83 |
|||||||
|
Comparable (non-GAAP) |
|
$ |
193 |
|
|
188 |
|
|
$ |
139 |
|
|
134 |
|
|
$ |
3.32 |
|
|
|
3.00 |
|
Total and operating revenue for the three months ended June 30 were as follows:
|
|
Total Revenue |
|
Operating Revenue |
||||||||||||||||||
|
(In millions) |
|
|
2025 |
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
||
|
Total |
|
$ |
3,189 |
|
3,182 |
|
— |
% |
|
$ |
2,610 |
|
2,561 |
|
2 |
% |
|||||
|
Fleet Management Solutions (FMS) |
|
$ |
1,467 |
|
|
1,478 |
|
|
(1 |
)% |
|
$ |
1,288 |
|
|
|
1,276 |
|
|
1 |
% |
|
Supply Chain Solutions (SCS) |
|
$ |
1,366 |
|
|
1,341 |
|
|
2 |
% |
|
$ |
1,019 |
|
|
|
989 |
|
|
3 |
% |
|
Dedicated Transportation Solutions (DTS) |
|
$ |
606 |
|
|
635 |
|
|
(5 |
)% |
|
$ |
470 |
|
|
|
485 |
|
|
(3 |
)% |
“The Ryder team delivered our third consecutive quarter of double-digit growth in earnings per share,” says Ryder Chairman and CEO Robert Sanchez. “Earnings in the second quarter were above our expectations driven by better supply chain performance, partially offset by additional used vehicle wholesale volumes. We remain on track to achieve expected benefits in 2025 from our lease pricing and multi-year maintenance cost-saving initiatives, acquisition synergies, and optimization of our omnichannel retail network. Our ability to generate ROE of 17% in the current environment continues to demonstrate consistent execution and the resilience of our transformed business model.
“SCS delivered another quarter of record earnings, marking nine consecutive quarters of earnings growth. Execution of strategic initiatives and new business were the key drivers of strong SCS performance. DTS earnings were up slightly as acquisition benefits and solid operating performance were offset by lower fleet count, reflecting the prolonged freight market downturn. In FMS, contractual earnings growth, driven by our initiatives, partially offset weaker market conditions in used vehicle sales.
“Our strong capital deployment capacity continues to increase, enabling us to invest in profitable growth and strategic initiatives while also returning capital to shareholders. We recently announced a 12% annualized increase to our quarterly dividend, reflecting higher profitability and improved returns over the cycle. We also continued to execute on our share repurchase programs and have reduced our share count by 21% since 2021.
“Long-term secular growth trends remain intact for all of our businesses. Ryder is well positioned to benefit from the eventual freight cycle upturn in our transactional rental and used vehicle sales offerings, as well as in our contractual businesses as we continue to support customers navigating a dynamic market. We are confident that the structurally higher earnings profile of our transformed business model will continue to outperform prior cycles.”
Second Quarter 2025 Segment Review
Fleet management solutions: contractual earnings growth partially offset weaker market conditions in used vehicle sales
|
(In millions) |
|
|
2Q25 |
|
|
|
2Q24 |
|
|
Change |
|
|
Total Revenue |
|
$ |
1,467 |
|
1,478 |
|
(1 |
)% |
|||
|
Operating Revenue(1) |
|
$ |
1,288 |
|
|
|
1,276 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|||||
|
Earnings Before Tax (EBT) |
|
$ |
126 |
|
|
|
133 |
|
|
(6 |
)% |
|
EBT as a % of total revenue |
|
|
8.6% |
|
|
|
9.0% |
|
(40) bps |
||
|
EBT as a % of operating revenue(1) |
|
|
9.7% |
|
|
|
10.4% |
|
(70) bps |
||
|
|
|
|
|
|
|
|
|||||
|
(1) Non-GAAP financial measure excluding fuel services revenue. |
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- FMS total revenue decreased 1% and operating revenue increased 1%
- Total revenue reflects lower fuel costs passed through to customers and fewer gallons sold
- Operating revenue reflects higher ChoiceLease revenue
- FMS EBT of $126 million, decreased 6%
- Higher ChoiceLease performance driven by pricing and maintenance cost-saving initiatives
- Lower used vehicle sales results reflect weaker market conditions and higher wholesale volumes to manage aged inventory levels
- Used tractor and truck pricing both declined 17% from prior year; tractor pricing increased 3% while truck pricing declined 10% sequentially from first quarter of 2025
- Rental power-fleet utilization was 70%, up from 69% in the prior year, on a 7% smaller average active power fleet
Supply chain solutions: double-digit earnings growth reflects continued strong operating performance
|
(In millions) |
|
|
2Q25 |
|
|
|
2Q24 |
|
|
Change |
|
|
Total Revenue |
|
$ |
1,366 |
|
1,341 |
|
2 |
% |
|||
|
Operating Revenue(1) |
|
$ |
1,019 |
|
|
|
989 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|||||
|
Earnings Before Tax (EBT) |
|
$ |
99 |
|
|
|
85 |
|
|
16 |
% |
|
EBT as a % of total revenue |
|
|
7.2% |
|
|
6.4% |
|
80 bps |
|||
|
EBT as a % of operating revenue(1) |
|
|
9.7% |
|
|
8.6% |
|
110 bps |
|||
|
|
|
|
|
|
|
|
|||||
|
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
|||||||||||
- SCS total revenue and operating revenue increased 2% and 3%, respectively
- Total revenue primarily reflects increased operating revenue
- Increase in operating revenue driven by new business as well as higher customer volumes and pricing
- SCS EBT of $99 million, up 16%
- EBT growth primarily reflects operating revenue growth and improved performance from optimization of omnichannel retail network
Dedicated Transportation Solutions: Earnings Include Acquisition Synergies Offset by Lower Fleet Count Reflecting Freight Market Conditions
|
(In millions) |
|
|
2Q25 |
|
|
|
2Q24 |
|
|
Change |
|
|
Total Revenue |
|
$ |
606 |
|
635 |
|
(5 |
)% |
|||
|
Operating Revenue(1) |
|
$ |
470 |
|
|
|
485 |
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|||||
|
Earnings Before Tax (EBT) |
|
$ |
37 |
|
|
|
37 |
|
|
1 |
% |
|
EBT as a % of total revenue |
|
|
6.2% |
|
|
5.8% |
|
40 bps |
|||
|
EBT as a % of operating revenue(1) |
|
|
7.9% |
|
|
7.6% |
|
30 bps |
|||
|
|
|
|
|
|
|
|
|||||
|
(1) Non-GAAP financial measure excluding fuel and subcontracted transportation. |
|||||||||||
- DTS total revenue and operating revenue decreased 5% and 3%, respectively
- Primarily due to lower fleet count reflecting prolonged freight market downturn
- DTS EBT of $37 million, up 1%
- Due to acquisition synergies and prior year integration costs, partially offset by lower operating revenue
Corporate Financial Information
Tax Rate
Our effective income tax rate from continuing operations was 28.3%, as compared to 29.1% in the prior year, and our comparable effective income tax rate (a non-GAAP measure) from continuing operations was 28.0%, as compared to 29.0%. The decrease in the tax rates was primarily due to a reduction in U.S. tax on foreign earnings.
Capital Expenditures, Cash Flow, and Leverage
Second quarter capital expenditures decreased to $1.2 billion in 2025 compared to $1.3 billion in 2024, primarily reflecting reduced investments in ChoiceLease.
Second quarter net cash provided by operating activities from continuing operations was $1.4 billion compared to $1.1 billion in 2024, primarily reflecting lower income tax payments and timing of vendor payments. Free cash flow (non-GAAP) of $461 million compared to $71 million in 2024, primarily reflects higher cash provided by operating activities and reduced capital expenditures.
Debt-to-equity as of June 30, 2025 was 251% 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 continue to expect earnings growth in 2025 reflecting ongoing execution on our initiatives and the strength of our contractual businesses,” says Ryder Chief Financial Officer Cristina Gallo-Aquino. “Our 2025 free cash flow forecast has been increased by approximately $500 million to reflect lower capital spending and the permanent reinstatement of tax bonus depreciation. The top end of our revised earnings forecast range primarily reflects a more muted second-half recovery for used vehicle sales and contractual sales headwinds from ongoing macroeconomic uncertainty.”
|
|
Full Year 2025 Outlook |
|
Total Revenue Growth |
1% |
|
Operating Revenue Growth (non-GAAP) |
1% |
|
FY25 GAAP EPS |
$12.15 – $12.60 |
|
FY25 Comparable EPS (non-GAAP) |
$12.85 – $13.30 |
|
|
|
|
Adjusted ROE(1) |
17% |
|
Net Cash from Operating Activities from Continuing Operations |
$2.8B |
|
Free Cash Flow (non-GAAP) |
$900M – $1B |
|
Capital Expenditures |
$2.3B |
|
Debt-to-Equity |
230% |
|
|
|
|
|
Third Quarter 2025 |
|
3Q25 GAAP EPS |
$3.30 – $3.50 |
|
3Q25 Comparable EPS (non-GAAP) |
$3.45 – $3.65 |
|
———————————— |
|
|
(1) The non-GAAP elements of this calculation have been reconciled to the corresponding GAAP measures. A numerical reconciliation of net earnings to adjusted net earnings and average shareholders’ equity to adjusted average equity is provided in the Appendix – Non-GAAP Financial Measures Reconciliations at the end of this release. |
|
SOURCE: Ryder
