Ryder System, Inc. (NYSE:R) shares closed higher on Wednesday after the company reported its fourth quarter FY25 results.
Details
The company reported adjusted EPS of $3.59, topping the consensus estimate of $3.57, marking a 4% increase year over year (Y/Y).
Revenue for the quarter came in at $3.175 billion, below analysts’ expectations of $3.209 billion, and consistent with the prior year.
Ryder ended the quarter with cash and cash equivalents of $198 million.
The company achieved an annual benefit of $100 million from the multi-year strategic initiatives in 2025, with incremental benefits expected in 2026.
Segment Performance
In the fourth quarter, Ryder’s Fleet Management Solutions (FMS) segment revenue fell 1% Y/Y to $1.47 billion, with operating revenue of $1.30 billion, on weaker rental demand.
Also, segment earnings before tax (EBT) decreased 10% Y/Y to $136 million, partly due to weaker freight market conditions.
The Supply Chain Solutions (SCS) segment saw total revenue grow 3% Y/Y to $1.38 billion and operating revenue increase 3% Y/Y to $1.03 billion, fueled by new business and volumes in omnichannel retail.
However, segment EBT declined 8% Y/Y to $83 million due to lost business and extended customer production shutdowns in automotive.
Meanwhile, the Dedicated Transportation Solutions (DTS) segment experienced an 8% Y/Y fall in total revenue to $565 million and a 4% Y/Y drop in operating revenue to $452 million, as fleet size contracted amid weak freight market conditions.
Meanwhile, EBT rose 19% Y/Y to $40 million, helped by acquisition synergies and lower bad debt.
Management Commentary
Chairman and CEO Robert Sanchez stated, “Fourth quarter results represented our fifth consecutive quarter of earnings-per-share growth and were in line with our expectations. SCS and DTS continued to generate pre-tax earnings as a percent of operating revenue at their high single-digit target. In FMS, momentum from our lease pricing and maintenance cost savings initiatives continued to deliver solid quality of earnings despite used vehicle sales and rental market conditions.”
Outlook
For the first quarter, the company expects adjusted EPS of $2.10-$2.35 vs $2.69 analyst estimate.
For FY26, Ryder expects adj EPS of $13.45-$14.45 (vs $14.63 analyst estimate), revenue growth of 1% and operating revenue growth of 3%.
Ryder Chief Financial Officer Cristina Gallo-Aquino added, “The high-end of our EPS forecast range assumes no meaningful improvement in freight market conditions. Historically, the first quarter has been our lowest earnings quarter and we expect it will represent the most difficult year-over-year comparisons, primarily due to used vehicle sales and rental market conditions.”
R Price Action: Ryder System shares were up 2.41% during regular trading on Wednesday, closing at $217.31. The stock is trading near its 52-week high of $218.36, according to Benzinga Pro data.
Photo by Sundry Photography via Shutterstock
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