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Jun 30, 2022
Ryder Q2 2022 Earnings Report
Ryder's Q2 2022 results reflected record performance driven by earnings growth in all three business segments, with better-than-expected results in rental and SCS.
Key Takeaways
Ryder System, Inc. reported record performance in the second quarter of 2022, driven by strong earnings growth in all three business segments. The company's earnings were higher than its most recent forecast due to better-than-expected results in rental and Supply Chain Solutions (SCS). Ryder generated a record ROE of 28%, reflecting ongoing truck capacity constraints in the market and benefits from initiatives to increase returns and drive higher core earnings.
GAAP EPS from continuing operations was $4.72, compared to $2.78 in the prior year, driven primarily by significantly higher results in Fleet Management Solutions.
Comparable EPS (non-GAAP) from continuing operations was $4.43, compared to $2.40 in the prior year.
Total revenue reached $3.0 billion, and operating revenue (non-GAAP) was $2.3 billion, up 27% and 20%, respectively, reflecting organic revenue growth in all business segments and Supply Chain Solutions acquisitions.
The company increased its GAAP EPS forecast to $14.45 - $14.95 from $13.23 - $14.23 and its comparable EPS (non-GAAP) forecast to $14.30 - $14.80 from $13.40 - $14.40 for the full year 2022.
Ryder
Ryder
Ryder Revenue by Segment
Revenue by Segment
Supply Chain Solutions Revenue
CapyFin.comDedicated Transport Revenue
CapyFin.com Forward Guidance
Ryder increased its full-year 2022 financial outlook, expecting revenue growth of approximately 22% and operating revenue growth of around 16%. The company projects FY22 GAAP EPS to be between $14.45 and $14.95, and comparable EPS (non-GAAP) to be between $14.30 and $14.80. They also anticipate net cash from operating activities to be around $2.3 billion and free cash flow between $750 million and $850 million.
Positive Outlook
- FY22 GAAP EPS forecast increased to $14.45 - $14.95
- FY22 Comparable EPS (non-GAAP) forecast increased to $14.30 - $14.80
- Net Cash from Operating Activities from Continuing Operations forecasted at ~$2.3B
- Free Cash Flow (non-GAAP) forecasted at $750M - 850M
- Strong balance sheet enables targeted acquisitions and investments
Challenges Ahead
- OEM delivery delays expected to defer approximately $200 million of planned lease capital to 2023
- Expects used vehicle sales and rental market environment will moderate in the second half of the year
- Unallocated Central Support Services costs increased primarily reflecting increased professional fees and incentive-based compensation costs.
- Effective income tax rate from continuing operations increased due to incremental U.S. tax on higher foreign earnings related to the exit of our UK FMS business.
- Free cash flow decreased primarily due to an increase in capital expenditures, partially offset by higher proceeds from the sale of revenue-earning equipment, including the sale of UK vehicles related to our exit plan.
Revenue & Expenses
Visualization of income flow from segment revenue to net income