Ryder System raised its full-year earnings outlook after third-quarter comparable EPS reached $4.33, up 21% year over year, on revenue of $3.4 billion. Used tractor prices climbed 19% annually and 15% sequentially, while used truck prices rose 5% and 6%. Fleet Management Solutions pre-tax earnings rose 21% to $177 million as rental utilization hit 77%. Ryder added $300 million to its 2026 rental fleet investment, bringing the total to $500 million, betting on higher rental demand in 2027 even as Dedicated Transportation Solutions and Supply Chain Solutions posted uneven results.
According to tlimagazine.com, Ryder System has lifted its full-year earnings guidance after a third quarter in which used truck prices, rental demand and lease earnings all moved in its favor — adding to evidence that the US freight market recovery is gaining pace.
Comparable earnings per share reached $4.33 for the quarter ended Sept. 30, up 21% from a year earlier, helped by higher fleet earnings and share repurchases. Total revenue rose 8% to $3.4 billion, with growth recorded across all three business segments.
The company now expects full-year comparable earnings per share of $14.85 to $15.05 and return on equity of 18% to 19%. The source notes that the earnings figure is only part of the story, because Ryder sells thousands of used trucks and tractors each quarter as vehicles leave its lease and rental fleets, giving an early read on equipment demand.
Used vehicle pricing reverses sharply
Ryder’s used tractor prices rose 19% year over year in the third quarter and 15% from the second quarter. Used truck prices rose 5% year over year and 6% sequentially.
That marks a sharp reversal from a year earlier, when Ryder’s used tractor prices were down 6% and its used truck prices down 15%. Used vehicle prices tend to track the freight cycle: when carriers have more loads and better rates, they compete for equipment and pay more for it; when freight is weak, fleets park or sell trucks and prices fall.
Ryder sold 5,100 used vehicles in the quarter, up 4% from a year earlier, while used vehicle inventory ended the period at 7,300 units, down 14%. Chief Executive Officer John Diez attributed the result to strengthening freight market conditions.
“Used vehicle sales results exceeded our expectations, driven by stronger-than-expected pricing and sales volumes.” — John Diez, Chief Executive Officer, Ryder System
Fleet Management Solutions lifts pre-tax earnings 21%
Higher resale values also lifted Ryder’s largest segment. Fleet Management Solutions, which covers leasing, rental, maintenance and used vehicle sales, increased pre-tax earnings 21% to $177 million.
Diez linked the segment’s improved margin partly to early benefits from the freight recovery. Rental demand tends to respond quickly when freight conditions change, because customers rent trucks to cover short-term peaks instead of committing to multiyear leases.
Ryder’s rental power-fleet utilization reached 77% in the third quarter, compared with 70% a year earlier. It achieved that on an average rental fleet 12% smaller than a year ago, at about 29,400 vehicles, while average rental rates on power units rose 4%.
A smaller fleet working harder suggests Ryder trimmed rental capacity during the downturn and is now short of it. The company has added $300 million to its 2026 rental fleet investment, bringing the total to $500 million, to prepare for higher rental demand it expects in 2027.
Chief Financial Officer Cristina Gallo-Aquino said the investment will position Ryder for that higher rental demand. Full-year capital spending stays at $2.4 billion, because lower lease spending, tied to the timing of lease sales, offsets the higher rental investment.
Recovery uneven across segments
Not every Ryder segment is sharing in the freight recovery. Dedicated Transportation Solutions, which supplies trucks and drivers to customers under contract, reported a 1% fall in operating revenue and a 5% drop in pre-tax earnings to $34 million, reflecting a lower fleet count.
Supply Chain Solutions grew operating revenue 9%, but pre-tax earnings rose a more modest 7% to $91 million, held back by lower automotive results and new business still ramping up. Ryder’s full-year operating revenue growth forecast remains at 3%, driven mainly by supply chain work.
The raised outlook therefore rests more on used vehicle sales, rental and the company’s own strategic initiatives than on broad revenue growth. Reported earnings will also look very different from comparable figures this year: Ryder’s GAAP earnings forecast of $9.75 to $9.95 per share includes about $4.30 per share in non-cash charges from transferring its UK and Canadian pension obligations to insurance companies.
Rental bet hinges on recovery holding into 2027
The bigger question is whether the freight recovery is strong enough to justify the rental bet. Ryder’s own forward-looking statements flag the pace and strength of any recovery as an uncertainty.
If freight demand holds into 2027, fleets that held back on equipment may face higher rental rates and used truck prices. If it fades, Ryder will carry a larger rental fleet into a softer market. For now, the company is backing the first outcome with $300 million.
Source: tlimagazine.com
Compiled from international media by the SCI.AI editorial team.
