Ryder Reports Third Quarter 2026 Results

Delivers strong results and raises 2026 outlook; Strategic initiatives and improving freight market conditions driving momentum

Third Quarter 2026 Highlights

• GAAP EPS from continuing operations of $4.16, up 25% from prior year
• Comparable EPS (non-GAAP) from continuing operations of $4.33, up 21% from prior year, reflects higher earnings in Fleet Management Solutions (FMS) and share repurchases
• Total revenue of $3.4 billion, up 8% from prior year, due to higher revenue in all business segments
• Operating revenue (non-GAAP) of $2.8 billion, up 6% from prior year, reflecting contractual revenue growth in Supply Chain Solutions (SCS) and FMS

Full Year 2026 Forecast

• ROE (non-GAAP) raised to 18% - 19%
• Comparable EPS (non-GAAP) range raised to $14.85 - $15.05
• Operating revenue (non-GAAP) growth remains at 3%, primarily driven by SCS
• Net cash provided by operating activities from continuing operations remains at $2.6 billion and free cash flow (non-GAAP) unchanged at $700 million - $800 million

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

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

CEO Comment

“Ryder delivered double-digit earnings growth in the third quarter, marking our eighth consecutive quarter of earnings-per-share growth,” says Ryder Chief Executive Officer John Diez. “Strong operating results reflected execution of strategic initiatives and improving performance in used vehicle sales and rental. We are on track to deliver ROE above 18% and over $70 million in benefits from strategic initiatives in 2026.

“All segments delivered earnings in line with long-term targets. In FMS, pre-tax earnings as a percent of operating revenue rose to 13.2%, reflecting our high-quality lease portfolio and early benefits from the freight market recovery. Operating revenue growth rates continued to improve, with SCS and FMS generating strong contractual growth.

“During the quarter, the business benefited from strengthening freight market conditions. Contractual sales activity remained strong across all three segments, with activity accelerating in lease and dedicated. Used vehicle sales results exceeded our expectations, driven by stronger-than-expected pricing and sales volumes.

“We remain well positioned to support our customers and their increasing needs for logistics and transportation services. Our market-leading solutions, strong customer relationships, and our transformed model will continue to drive long-term earnings growth.”

Third Quarter 2026 Segment Review

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

• FMS total revenue and operating revenue increased 10% and 5%, respectively
  • Total revenue reflected higher fuel prices passed through to customers and higher operating revenue
  • Operating revenue reflects contractual revenue growth
• FMS EBT of $177 million
  • Strategic initiatives continue to benefit ChoiceLease performance
  • Used vehicle sales results reflect improving market conditions
  • Used truck and tractor pricing increased 5% and 19%, respectively, from prior year
  • Sequentially, used truck and tractor pricing increased 6% and 15%, respectively
  • Rental power-fleet utilization improved to 77% compared to 70% in the prior year, on a 12% smaller average fleet

Supply Chain Solutions: Earnings Growth Reflects Benefits from Strategic Initiatives

• SCS total revenue and operating revenue increased 9%
  • Total revenue primarily reflects increased operating revenue
  • Operating revenue reflects new business and higher volumes and pricing, partially offset by lost business in automotive
• SCS EBT of $91 million
  • Earnings reflect benefits from the optimization of omnichannel retail network and higher operating revenue, partially offset by productivity of new business ramping up and lower automotive results

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

• DTS total revenue increased 6% and operating revenue decreased 1%
  • Total revenue reflects higher fuel and subcontracted transportation costs passed through to customers, partially offset by lower operating revenue
  • Operating revenue reflects lower fleet count, partially offset by higher pricing
• DTS EBT of $34 million
  • Primarily reflects lower operating revenue and a prior year workers’ compensation insurance benefit, partially offset by cost savings from strategic initiatives

Corporate Financial Information

Income Taxes

Our effective tax rate on continuing operations and comparable effective tax rate on continuing operations were 28.1% and 27.7%, compared to 27.1% and 25.6%, respectively, in the prior year. The increase in tax rates reflects a prior year discrete stock-based compensation tax benefit.

Capital Expenditures, Cash Flow, and Leverage

Capital expenditures decreased to $1.4 billion in 2026 compared to $1.6 billion in 2025, primarily reflecting the timing of ChoiceLease fleet replacements. Full-year capital expenditures forecast remains unchanged at $2.4 billion, as higher second half 2026 rental investments are offset by lower lease spending reflecting the timing of lease sales activity.

Net cash provided by operating activities from continuing operations was $2.0 billion, compared to $1.8 billion in 2025, primarily reflecting lower working capital needs. Free cash flow (non-GAAP) of $992 million, compared to $496 million in 2025, primarily reflecting reduced cash capital expenditures and higher cash provided from operating activities.

Debt-to-equity as of September 30, 2026 was 242%, down from 250% as of December 31, 2025, slightly below the company's long-term target of 250% to 300%.

Outlook

“Continued earnings growth is driven by consistent execution of our strategic initiatives,” says Ryder Chief Financial Officer Cristina Gallo-Aquino. “We’re encouraged by the opportunities we see for profitable contractual growth and our ability to benefit from improving market conditions in used vehicle sales and rental. As a result, we are increasing our full-year investment in the rental fleet to $500 million, up $300 million from our prior forecast. This investment will position us to capture higher expected rental demand in 2027.”

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, rental fleet investment and expected fleet size; used vehicle sales volumes, pricing and inventory levels; the freight cycle, 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; the expected benefits of our strategic initiatives; customer demand, contractual sales activity, customer retention and new business opportunities; performance of our contractual businesses and contractual portfolio; fleet size and asset utilization; long-term growth opportunities and secular growth trends; capital deployment capacity and capital allocation priorities; the valuation and expected performance of acquired intangible assets; our ability to increase returns and create long-term value; our ability to return capital to shareholders, including through share repurchases and dividends; and our expectations regarding pension plan settlements, including the timing and completion of the anticipated U.K. pension plan settlement and the expected financial impact of the U.K. and Canadian pension plan settlements. 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; changes in the assumptions, timing or other circumstances relating to anticipated pension plan settlements; 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 October 22, 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