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Mar 31, 2024

Ryder Q1 2024 Earnings Report

Ryder delivered solid first-quarter results amid a challenging freight environment, driven by better-than-expected used vehicle results and benefits from ongoing maintenance cost savings initiative.

Key Takeaways

Ryder reported solid first-quarter results with a GAAP EPS of $1.89 and a comparable EPS (non-GAAP) of $2.14. Total revenue increased to $3.1 billion. The company raised its full-year 2024 forecast, reflecting the outperformance in the quarter.

GAAP EPS from continuing operations was $1.89, compared to $2.95 in the prior year.

Comparable EPS (non-GAAP) from continuing operations was $2.14, compared to $2.81 in the prior year.

Total revenue increased to $3.1 billion, compared to $3.0 billion in the prior year.

Operating revenue (non-GAAP) increased by 6%, reflecting recent acquisitions and contractual revenue growth.

Total Revenue
$3.1B
Previous year: $2.95B
+4.9%
EPS
$2.14
Previous year: $2.81
-23.8%
Rental utilization
66%
Previous year: 75%
-12.0%
SCS Average fleet count
14.4K
DTS Average fleet count
20.4K
Gross Profit
$554M
Previous year: $594M
-6.7%
Cash and Equivalents
$234M
Previous year: $253M
-7.5%
Free Cash Flow
-$160M
Previous year: $101M
-258.4%
Total Assets
$16.5B
Previous year: $14.5B
+13.3%

Ryder

Ryder

Ryder Revenue by Segment

Forward Guidance

Ryder raised the lower end of its full-year forecast to reflect the outperformance in the quarter, partially offset by a more modest rental upturn than initially expected. The company is also raising its free cash flow forecast and reducing its rental capital spending forecast by $100 million to align with this revised outlook.

Positive Outlook

  • Operating revenue (non-GAAP) expected to increase by approximately 10%.
  • FY24 GAAP EPS of $10.95 - $11.70
  • FY24 Comparable EPS (non-GAAP) of $11.75 - $12.50
  • Adjusted ROE of 15.5% - 16.5%
  • Net cash provided by operating activities from continuing operations of ~$2.4B

Challenges Ahead

  • Free Cash Flow (non-GAAP) of $(175) - $(275)M
  • Capital Expenditures of ~$3.2B
  • Debt-to-Equity of ~240%
  • 2Q24 GAAP EPS of $2.58 - $2.78
  • 2Q24 Comparable EPS (non-GAAP) of $2.75 - $2.95

Revenue & Expenses

Visualization of income flow from segment revenue to net income