UHAL Q2 Deep Dive: U-Box and Storage Growth Balance Fleet Depreciation Headwinds

Moving and storage solutions provider U-Haul (NYSE:UHAL) posted $1.63 billion of revenue in Q2 CY2025, up 5.3% year on year. Its GAAP profit of $0.68 per share was 2.9% below analysts’ consensus estimates.

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StockStory’s Take

U-Haul’s second quarter saw positive market reaction, as management pointed to growth in its core moving and storage segments despite reported earnings per share coming in below Wall Street expectations. CFO Jason Berg emphasized the impact of higher fleet depreciation and losses on equipment sales, noting, “Of the $0.27 decline in earnings per share...$0.21 is from fleet depreciation and $0.12 is from the increase in losses on rental equipment sales.” The company’s steady revenue growth was attributed to increased equipment rental rates and continued expansion in both self-storage and U-Box portable storage solutions.

Looking ahead, management is focused on continued investment in fleet and real estate to support long-term growth in moving and storage. Jason Berg highlighted the potential for significant margin improvement as new self-storage locations mature, saying, “By the time we get there, there’s likely going to be rate increases...that additional revenue, a very rough estimate would be maybe 80% of that...is going to flow to the bottom line.” The company also sees U-Box as early in its growth cycle, with Vice Chairman Sam Shoen stating that consumer awareness and adoption could allow U-Box to become a pillar comparable in size to the traditional truck rental business.

Key Insights from Management’s Remarks

Management highlighted strong performance in U-Box and self-storage, while increased fleet costs and equipment depreciation created earnings pressure.

• U-Box growth momentum: Management described U-Box, the company’s portable moving and storage product, as delivering 16% revenue growth and outpacing traditional truck rental gains. Vice Chairman Sam Shoen sees U-Box as still in its infancy, with significant market potential as consumer awareness increases.
• Self-storage expansion: The self-storage segment grew revenue by 9%, with average revenue per foot improving. However, same-store occupancy dipped slightly as the company made more units available by addressing delinquent rooms. Management believes this will support future revenue growth as these units are refilled.
• Fleet depreciation impact: Higher depreciation costs from recent fleet expansion and lower resale values on used cargo vans drove most of the earnings decline. Berg noted that these headwinds are expected to peak this year before moderating as the pace of new truck purchases slows.
• Capital allocation shift: The company is slowing real estate spending to balance capital between fleet investments and storage development, aiming to avoid overextending resources. Management seeks to maintain a steady development pipeline while navigating near-term cash flow demands from the fleet.
• Margin dynamics: While both storage and U-Box have higher margin profiles, fleet-related liability and depreciation costs weighed on overall margins. Management expects margin improvement as newer storage assets reach higher occupancy and as fleet-related headwinds subside.

Drivers of Future Performance

Management’s outlook centers on building out U-Box, maturing self-storage assets, and optimizing fleet investments to sustain growth despite near-term cost pressures.

• U-Box expansion strategy: Management plans to continue scaling the U-Box network, with Shoen suggesting the product could eventually match the traditional rental business in size. The company is increasing the number of locations offering U-Box, but consumer education remains a focus to drive adoption.
• Self-storage asset maturation: U-Haul is prioritizing the fill-up of newly developed storage units. Berg estimated that as these units reach higher occupancy, roughly 80% of incremental revenue could flow to the bottom line, supporting EBITDA margin recovery.
• Fleet investment and cost controls: Although the current fleet expansion has created depreciation headwinds, management expects these pressures to moderate as the new truck cohort is absorbed and the pace of purchases slows. The company is also working to optimize the placement and utilization of trucks to maximize productivity and reduce operating inefficiencies.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be monitoring (1) how quickly U-Haul can drive occupancy in newly developed storage units to unlock margin gains, (2) the pace at which U-Box adoption expands across the company’s network and gains consumer awareness, and (3) whether fleet depreciation and liability costs begin to moderate as management expects. Execution against these priorities will be critical for margin recovery and sustained growth.

U-Haul currently trades at $57.36, up from $56.62 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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