Ryder Reports Second Quarter 2026 Results

Strategic initiatives drive earnings growth;
Transformed business model well positioned to benefit from cycle upturn

Second Quarter 2026 Highlights

• GAAP EPS from continuing operations of $3.40, up 8% from prior year
• Comparable EPS (non-GAAP) from continuing operations of $3.73, up 12% from prior year, reflects share repurchases and higher earnings in Fleet Management Solutions (FMS)
• Total revenue of $3.3 billion, up 5% from prior year, due to higher revenue in Supply Chain Solutions (SCS) and FMS
• Operating revenue (non-GAAP) of $2.7 billion, up 3% from prior year, primarily reflecting contractual revenue growth in SCS

Full Year 2026 Forecast

• ROE (non-GAAP) of 18%
• Comparable EPS (non-GAAP) range raised to $14.40 - $14.80
• Operating revenue (non-GAAP) growth remains at 3%, primarily driven by SCS
• Net cash provided by operating activities from continuing operations remains at $2.7 billion and free cash flow (non-GAAP) unchanged at $700 million - $800 million

MIAMI--(BUSINESS WIRE)--#RyderEverbetter--Ryder System, Inc. (NYSE: R) reported results for the three months ended June 30 as follows:

Total and operating revenue for the three months ended June 30 were as follows:

CEO Comment

“Consistent execution on our strategic initiatives as well as improving used vehicle market conditions drove our 7th consecutive quarter of comparable EPS growth,” says Ryder Chief Executive Officer John Diez. “Results for the quarter were solid, and we remain on track to achieve $70 million in benefits from strategic initiatives during 2026.

“Year-over-year earnings growth in FMS was driven by strong performance in our contractual businesses as well as better used vehicle sales results. SCS and DTS delivered solid pre-tax earnings in their high-single-digit target ranges.

“During the quarter, we continued to see improving freight market trends. Contractual sales activity remained strong across all three business segments reflecting customer confidence. In used vehicle sales, results outperformed our expectations as market conditions continued to strengthen. Rental utilization returned to normalized levels driven by our planned asset management actions.

“Our transformed business model has demonstrated its strength and resiliency over the current cycle and provides us with a solid foundation to meaningfully benefit from the cycle upturn.”

Second Quarter 2026 Segment Review

Fleet Management Solutions: Earnings Growth Driven by Contractual Business Performance and Used Vehicle Sales

• FMS total revenue and operating revenue increased 6% and 1%, respectively
  • Total revenue reflected higher fuel prices passed through to customers and higher operating revenue
  • Operating revenue reflects contractual revenue growth, partially offset by lower commercial rental demand
• FMS EBT of $150 million
  • Strategic initiatives continue to benefit ChoiceLease performance
  • Higher used vehicle sales results reflect improving market conditions and elevated wholesale activity in the prior year
  • Used truck and tractor pricing increased 6% and 3%, respectively, from prior year
  • Sequentially, pricing was stable as used truck and tractor retail pricing increased 7% and 3%, respectively, on a lower retail sales mix
  • Rental power-fleet utilization was 75% compared to 70% in the prior year, on a 15% smaller average fleet

Supply Chain Solutions: Earnings Reflect Lower Automotive Results Partially Offset by Benefits from Strategic Initiatives

• SCS total revenue increased 8% and operating revenue increased 7%
  • Total revenue primarily reflects increased operating revenue
  • Operating revenue reflects new business, partially offset by lost business in automotive
• SCS EBT of $92 million
  • Earnings impacted by lower automotive results and, to a lesser extent, productivity of new business ramping up, partially offset by the optimization of omnichannel retail network
  • Year-over-year comparison reflects record quarter in prior year

Dedicated Transportation Solutions: Earnings Reflect Lower Fleet Count Partially Offset by Execution on Strategic Initiatives

• DTS total revenue and operating revenue decreased 1% and 3%, respectively
  • Total revenue reflects lower operating revenue and subcontracted transportation costs passed through to customers, partially offset by higher fuel revenue
  • Operating revenue reflects lower fleet count, partially offset by higher pricing
• DTS EBT of $36 million
  • Primarily reflects lower operating revenue and adverse development of prior-year insurance claims, partially offset by benefits from strategic initiatives

Corporate Financial Information

Central Support Services and Other

During the second quarter ended June 30, 2026, we recorded a $10 million non-cash impairment charge of a finite-lived intangible asset due to the reduction in projected cash flows from an acquired customer relationship.

Capital Expenditures, Cash Flow, and Leverage

Capital expenditures decreased to $832 million in 2026 compared to $1.2 billion in 2025, primarily reflecting the timing of ChoiceLease fleet replacement and reduced investments in the rental fleet.

Net cash provided by operating activities from continuing operations was $1.3 billion, compared to $1.4 billion in 2025, primarily reflecting higher working capital needs from revenue growth and the timing of vendor payments. Free cash flow (non-GAAP) of $684 million, compared to $461 million in 2025, primarily reflecting reduced cash capital expenditures.

Debt-to-equity as of June 30, 2026 was 259%, up from 250% as of December 31, 2025, and is in the company's long-term target of 250% to 300%.

Outlook

“Execution on our strategic initiatives remains the key driver of expected earnings growth in 2026,” says Ryder Chief Financial Officer Cristina Gallo-Aquino. “Our high-quality contractual portfolio continues to generate strong returns and higher operating cash flow, enabling us to support profitable growth while also returning capital to shareholders. Since 2021, we have repurchased 26% of shares outstanding and increased our quarterly dividend by 74%. The recent increase in our quarterly dividend marked the fourth consecutive year with a double-digit raise, reflecting our commitment to shareholders as well as our confidence in Ryder’s long-term outlook.”

Supplemental Company Information

Business Description

Ryder System, Inc. is a leading supply chain, dedicated transportation, and fleet management solutions company. Ryder's stock (NYSE: R) is a component of the Dow Jones Transportation Average and the S&P MidCap 400^® index. The company's financial performance is reported in the following three, inter-related business segments:

• Supply Chain Solutions – Ryder's SCS business segment optimizes logistics networks to make them more responsive and able to be leveraged as a competitive advantage. Globally-recognized brands in the automotive, consumer goods, food and beverage, healthcare, industrial, oil and gas, technology, and retail industries rely on Ryder's leading-edge technologies and world-class logistics engineers to help them deliver the goods that consumers use every day.

• Dedicated Transportation Solutions – Ryder's DTS business segment combines the best of Ryder's leasing and maintenance capabilities with the safest and most professional drivers in the industry. With a dedicated transportation solution, Ryder helps customers increase their competitive position, reduce risk, and integrate their transportation needs with their overall supply chain.

• Fleet Management Solutions – Ryder's FMS business segment provides a broad range of services to help businesses of all sizes, across virtually every industry, deliver for their customers. From leasing, maintenance, and fueling, to rental and used vehicle sales, customers rely on Ryder's expertise to help them lower their costs, redirect capital to other parts of their business, and focus on what they do best – so they can grow.

For more information on Ryder System, Inc., visit investors.ryder.com and ryder.com.

Note: Regarding Forward-Looking Statements

Certain statements and information included in this news release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, statements regarding: our forecasts, guidance and outlook; market conditions, including macroeconomic uncertainty and geopolitical events; rental demand, utilization and pricing; used vehicle sales volumes, pricing and inventory levels; the freight cycle, including cycle timing and the pace and strength of any recovery; expected financial performance, including total revenue, operating revenue, EPS, comparable EPS, adjusted ROE, earnings before income tax, net cash provided by operating activities from continuing operations, free cash flow, capital expenditures and debt-to-equity; expectations regarding execution of our business model, including our ability to achieve long-term targets and outperform prior cycles; expected benefits of our strategic initiatives; omnichannel network optimization; customer demand, contractual sales activity, customer retention and new business opportunities; performance of our contractual businesses and contractual portfolio; fleet size and asset utilization; used vehicle inventory levels; capital deployment capacity and capital allocation priorities; the valuation and expected performance of acquired intangible assets; long-term growth opportunities and secular growth trends; our ability to increase returns and create long-term value; and our ability to return capital to shareholders, including through share repurchases and dividends. Our forward-looking statements also include estimates regarding the impact of residual value assumptions on earnings and depreciation expense. These estimates are based, in part, on our current assessment of the residual values and useful lives of revenue-earning equipment informed by multi-year trends and our outlook for near- and long-term used vehicle market conditions. A variety of factors, many of which are outside of our control, could cause residual value estimates to differ from actual used vehicle sales pricing, such as changes in supply and demand of used vehicles; volatility in market conditions; changes in vehicle technology; competitor pricing; regulatory requirements, including changes to taxes or tariffs; driver shortages; customer requirements and preferences; and changes in underlying assumption factors.

All of our forward-looking statements should be evaluated by considering the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause such differences include: changes in and uncertainty regarding financial, economic and market conditions; geopolitical events; supply chain disruptions, labor challenges and vehicle production constraints; our ability to adapt to changing market conditions, including lower than expected contractual sales activity, customer retention, new business conversion, rental demand, utilization or pricing, demand for used vehicles, or our anticipated mix of retail versus wholesale used vehicle sales; failure to realize anticipated benefits of our strategic initiatives, pricing actions, sales and marketing efforts, new product offerings or acquisitions; our ability to retain profitable customer accounts and attract new business; higher than expected maintenance costs; impact of changing laws and regulations, such as taxes, tariffs, trade restrictions or trade agreements; difficulty in obtaining adequate profit margins for our services; inability to maintain current pricing levels due to, for example, economic conditions, business interruptions, expenditures, labor disputes and extreme weather or other natural occurrences; competition from other service providers; changes in technology and new entrants; workforce availability and labor costs; higher than expected bad debt reserves or write-offs; decrease in credit ratings; increased debt costs; the adequacy of, and impact of changes in, accounting estimates, residual value estimates, assumptions and policies, including our depreciation policy; higher than expected reserves and accruals particularly with respect to pension, taxes, insurance and revenue; adverse insurance claim developments; changes in fuel and alternative energy prices, currency exchange rates, inflation or interest rates; our ability to manage our cost structure; the inability of our information technology systems to provide timely and accurate access to data or of our information security program to safeguard our or our stakeholders' data; and the risks described in our filings with the Securities and Exchange Commission (SEC). The risks included here are not exhaustive. New risks emerge from time to time, and it is not possible for management to predict all such risk factors or to assess their impact on our business. Accordingly, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Note: Regarding Non-GAAP Financial Measures

This news release includes certain non-GAAP financial measures as defined under SEC rules. Refer to Appendix - Non-GAAP Financial Measure Reconciliations at the end of the tables following this press release for reconciliations to the most comparable GAAP measure. Additional information regarding non-GAAP financial measures as required by Regulation G and Item 10(e) of Regulation S-K can be found in our most recent Form 10-K, Form 10-Q and Form 8-K filed with the SEC as of the date of this release, which are available at investors.ryder.com.

CONFERENCE CALL AND WEBCAST INFORMATION

Ryder’s earnings conference call and webcast is scheduled for July 23, 2026 at 11:00 a.m. ET. To join, click here.

LIVE AUDIO VIA PHONE

WEBCAST REPLAY

An audio replay including the slide presentation will be available within four hours following the call. Click here, then select Financials/Quarterly Results and the date.

Media:
Amy Federman
afederman@ryder.com

Investor Relations:
Calene Candela
ccandela@ryder.com