Ryder Q2 Earnings & Revenues Beat Estimates, 2025 EPS View Tweaked

Ryder System, Inc. (R) reported solid second-quarter 2025 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate and improved on a year-over-year basis.

Quarterly earnings per share of $3.32 surpassed the Zacks Consensus Estimate of $3.11 and improved 10.7% year over year, reflecting higher contractual earnings and share repurchases. The reported figure exceeded the higher end of the guided range of $3.00-$3.25.

Total revenues of $3.18 billion surpassed the Zacks Consensus Estimate of $3.17 billion and marginally grew 0.2% year over year. Operating revenue (adjusted) of $2.6 billion, up 2% year over year, reflects contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS).

Ryder chairman and chief executive officer, Robert Sanchez, stated, "The Ryder team delivered our third consecutive quarter of double-digit growth in earnings per share. 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.”

Segmental Results

Fleet Management Solutions: Total revenues of $1.46 billion inched down by 1% year over year, owing to lower fuel costs passed through to customers and fewer gallons sold. Operating revenues totaled $1.28 billion, up 1% year over year, owing to higher ChoiceLease revenue.

Supply-Chain Solutions: Total revenues of $1.36 billion inched up 2% year over year, reflecting increased operating revenues. Operating revenues rose 3% year over year to $1.01 billion, owing to new business and higher customer volumes and pricing.

Dedicated Transportation Solutions: Total revenues of $606 million and operating revenues of $470 million decreased 5% and 3%, year over year, respectively, owing to lower fleet count reflecting prolonged freight market downturn.

Liquidity

Ryder exited the second quarter with cash and cash equivalents of $180 million compared with $151 million at the end of the prior quarter. R’s total debt (including the current portion) was $7.72 billion at the second-quarter end compared with $7.76 billion at the end of the prior quarter.

R’s Outlook

For third-quarter 2025, Ryder expects adjusted EPS in the range of $3.45-$3.65. The Zacks Consensus Estimate of $3.60 lies within the guidance.

For 2025, Ryder now expects adjusted EPS in the range of $12.85-$13.30 (prior view: $12.85 - $13.60). The Zacks Consensus Estimate of $13.12 lies within the updated guidance.

Management continues to anticipate total revenues to increase by almost 1%. Operating revenues (adjusted) are still expected to increase 1%.

Adjusted ROE (return on equity) is now expected to be 17% (prior view: 16.5%-17.5% band). Net cash from operating activities is now projected to be $2.8 billion (prior view: $2.5 billion). Adjusted free cash flow is expected to be in the range of$900 million-$1.00 billion (prior view: $375 - $475 million).Capital expenditure is estimated to be $2.3 billion (prior view: $2.6 billion).

Currently, Ryder carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research