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Jun 30, 2021
Ryder Q2 2021 Earnings Report
Ryder's Q2 2021 results reflected significant improvement in Fleet Management Solutions and double-digit revenue growth across all business segments.
Key Takeaways
Ryder reported strong second-quarter results, exceeding expectations with significant improvement in FMS results driven by higher gains on used vehicles sold, strong lease and rental performance, and strong sales activity across all segments.
GAAP EPS from continuing operations was $2.78, compared to a loss of $(1.41) in the prior year.
Comparable EPS (non-GAAP) from continuing operations was $2.40, compared to a loss of $(0.95) in the prior year.
Total revenue was $2.4 billion, and operating revenue (non-GAAP) was $1.9 billion, up 26% and 18%, respectively.
Increased GAAP EPS forecast to $7.40 - $7.70 from $5.65 - $6.05 and comparable EPS (non-GAAP) forecast to $7.20 - $7.50 from $5.50 - $5.90 for full-year 2021.
Revenue by Segment
Forward Guidance
Ryder increased its full-year 2021 GAAP EPS forecast to $7.40 - $7.70 and comparable EPS forecast to $7.20 - $7.50. Expects to achieve an adjusted ROE of 16% - 17% exceeding our long-term target of 15%. Maintained cash flow from operating activities forecast of $2.2B; increased free cash flow forecast to $650M - $750M to reflect OEM vehicle delivery delays
Positive Outlook
- Strong demand and limited market inventory will improve used vehicle sales results.
- Better pricing in lease and commercial rental businesses.
- Strong demand in commercial rental as the economic outlook continues to improve.
- Expect continued favorable performance in FMS driven by lease, rental, and used vehicle sales.
- Expect nearly all leases to perform above target returns.
Challenges Ahead
- Returns in SCS and DTS are expected to be impacted by increased labor and insurance costs.
- Strategic investments in new technologies.
- Investments in new locations in our Ryder Last Mile network.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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