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Mar 31
Ryder Q1 2025 Earnings Report
Ryder reported higher earnings driven by contractual revenue growth across all segments.
Key Takeaways
Ryder posted solid Q1 2025 results with strong performance in its contractual businesses, achieving growth in adjusted EPS and revenue despite challenges in rental and used vehicle sales.
Adjusted EPS rose to $2.46 from $2.14, supported by higher contractual earnings.
Revenue reached $3.1 billion, up 1% year-over-year.
Net income from continuing operations totaled $98 million.
Free cash flow improved significantly to $259 million from $13 million in Q1 2024.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
ChoiceLease Revenue
CapyFin.comCommercial rental Revenue
CapyFin.comSelectCare & other Revenue
CapyFin.comFuel services Revenue
CapyFin.comSupply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder expects muted economic conditions to challenge rental demand, but sees continued growth through strategic initiatives and strong contractual businesses.
Positive Outlook
- Execution of strategic initiatives expected to continue driving earnings.
- Capital expenditure reductions support higher free cash flow.
- Strong performance from SCS and DTS segments forecast to persist.
- Contractual revenue base continues to expand.
- ROE forecast remains high at 16.5% - 17.5%.
Challenges Ahead
- Weaker rental demand expected due to softer economic environment.
- Used vehicle sales pricing and volume remain under pressure.
- DTS and SCS fleets saw declines in vehicle count year-over-year.
- Reduced investment in ChoiceLease could impact future growth.
- Debt-to-equity remains high, though within target range.
Revenue & Expenses
Visualization of income flow from segment revenue to net income