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Jun 30, 2024
Ryder Q2 2024 Earnings Report
Ryder reported solid second-quarter results, outperforming prior cycles, driven by better-than-expected ChoiceLease results.
Key Takeaways
Ryder delivered solid second-quarter results with Comparable EPS above forecast, primarily reflecting better-than-expected ChoiceLease results. The company's contractual lease, dedicated, and supply chain businesses generated higher year-over-year earnings.
GAAP EPS from continuing operations was $2.83, compared to $(0.39) in the prior year.
Comparable EPS (non-GAAP) from continuing operations was $3.00, compared to $3.61 in the prior year.
Total revenue reached $3.2 billion, up from $2.9 billion in the prior year.
Operating revenue (non-GAAP) increased by 10% to $2.6 billion, driven by recent acquisitions.
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 to generate higher free cash flow for the year reflecting lower capital spending due to softer lease sales activity. The high end of our full-year forecast range continues to assume a gradual recovery in rental and used vehicle sales in the second half, while the bottom end reflects ongoing weak conditions.
Positive Outlook
- Operating revenue (non-GAAP) expected to increase by approximately 8%.
- Adjusted ROE of 16% - 16.5%.
- Comparable EPS (non-GAAP) of $11.90 - $12.40.
- Net cash provided by operating activities from continuing operations of $2.4 billion.
- Free cash flow (non-GAAP) of positive $150 - $250 million.
Challenges Ahead
- Assumes a gradual recovery in rental and used vehicle sales in the second half.
- Bottom end reflects ongoing weak conditions.
- Total Revenue Growth ~8%
- FY24 GAAP EPS $11.15 - $11.65
- Capital Expenditures ~$2.9B
Revenue & Expenses
Visualization of income flow from segment revenue to net income