UHAL Q1 Earnings Call: Growth in U-Box and Self-Storage, Margin Pressures Persist

Moving and storage solutions provider U-Haul (NYSE:UHAL) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 12.5% year on year to $1.23 billion. Its GAAP loss of $0.46 per share decreased from -$0.05 in the same quarter last year.

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StockStory’s Take

U-Haul’s first quarter results reflected continued momentum in its core moving and storage businesses, led by higher transaction volumes across both one-way and in-town rentals. Management identified improved revenue per transaction and increased activity in its trailer and towing fleets as positive contributors. CEO Joe Shoen noted that “storage remains a bright spot wherever we execute with precision,” while also highlighting that recent decisions—such as deflating a significant portion of the pickup fleet—impacted fleet mix and associated gains from equipment sales. Ongoing investments in fleet and real estate expanded capacity but contributed to higher depreciation and lower overall margins.

Looking ahead, U-Haul’s leadership anticipates further growth in its U-Box portable storage segment and continued expansion of its self-storage footprint. Management expects the U-Box business to maintain a higher growth rate than traditional truck rentals, with CEO Joe Shoen stating, “I see that the U-Box has a higher growth rate than the truck share operation for many years to come.” However, executives remain cautious about headwinds including fleet depreciation, construction input costs, and regulatory uncertainties. CFO Jason Berg emphasized that “cost of construction have been gradually coming down for us,” but warned that occupancy gains in self-storage may slow as facilities mature.

Key Insights from Management’s Remarks

Management attributed the quarter’s results to increased moving and storage activity and ongoing investment in fleet and real estate, while margin pressures were driven by higher depreciation and lower resale gains from equipment sales.

• U-Box segment acceleration: U-Box portable moving containers delivered year-over-year growth exceeding 20% in both moving and storage transactions, outpacing the company’s traditional truck rental business. Management credited expanded warehouse capacity and customer adoption as key drivers.
• Fleet mix adjustments: U-Haul reduced its pickup truck fleet, citing a lack of profitability in maintaining a large pickup segment. This decision led to lower gains on equipment sales and contributed to increased depreciation expense, as recent fleet acquisitions were at higher cost levels.
• Self-storage expansion: The company added 82 new storage locations and 6.5 million net rentable square feet during fiscal year 2025. While early lease-up of new facilities remains on track, management noted a modest slowdown in occupancy gains as properties mature beyond the initial ramp-up phase.
• Operating expense trends: Personnel costs grew largely in line with revenue, but liability costs associated with the fleet rose significantly. Declines in repair and maintenance expenses partly offset these increases, reflecting a newer average fleet age.
• OEM and regulatory environment: CEO Joe Shoen highlighted improved pricing and reliability from original equipment manufacturers (OEMs) for internal combustion engine vehicles, but cautioned that regulatory developments around emissions and tariffs could impact future fleet acquisition costs.

Drivers of Future Performance

U-Haul expects continued growth in U-Box adoption and self-storage development to drive future performance, but higher costs and industry trends may weigh on margins.

• U-Box and storage momentum: Management projects U-Box to remain the company’s fastest-growing segment, benefiting from expanded warehouse capacity and customer demand for flexible moving solutions. Self-storage development will continue, with a substantial pipeline of projects in progress.
• Margin headwinds from depreciation: Elevated fleet acquisition costs in prior years and a shift in equipment mix are expected to keep depreciation expense high, limiting operating margin improvement despite revenue growth. Gains from equipment sales may remain subdued if resale markets do not strengthen as anticipated.
• External risks and input costs: While recent construction input costs for storage development have stabilized or declined, management remains wary of potential increases from tariffs or supply chain disruptions. Regulatory changes affecting vehicle emissions and fleet composition could also introduce new cost pressures.

Catalysts in Upcoming Quarters

Key areas to watch in the coming quarters include (1) sustained transaction growth in both U-Box and self-storage businesses, (2) progress toward improved operating margins as fleet depreciation normalizes, and (3) management’s ability to control construction and input costs in a volatile regulatory environment. Developments in OEM supply and emissions policy will also be closely monitored.

U-Haul currently trades at a trailing 12-month price-to-sales ratio of 2.1×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it’s free).

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