Ryder System Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 23 July 2026: press release. Guidance figures: 5 raised, 1 lowered, 3 new, 8 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Comparable EPS up 12%: Comparable EPS from continuing operations was $3.73, up 12%, and GAAP EPS was $3.40, up 8%. The company cited share repurchases and higher FMS earnings. Diluted shares were 38.9 million against 41.8 million. Source
• Total revenue up 5%: Total revenue was $3.3 billion, up 5%, on higher SCS and FMS revenue. Operating revenue, excluding fuel and subcontracted transportation, was $2.7 billion, up 3%. Source
• FMS earnings up 20%: FMS earnings before tax were $150 million, up 20%, at 9.6% of total revenue and 11.5% of operating revenue. Management attributed the gain to contractual businesses and better used vehicle sales. Source
• SCS earnings down 7%: SCS earnings before tax were $92 million, down 7%, against a record prior-year quarter. Management cited lower automotive results and new-business ramp productivity, partly offset by omnichannel network optimization. Source
• Free cash flow up on lower capex: Free cash flow was $684 million for the six months against $461 million, mainly reflecting reduced cash capital expenditures, per the cash flow table. Source
• $70 million benefit target on track: Management said it remains on track to achieve $70 million in benefits from strategic initiatives during 2026. Source

“Our transformed business model has demonstrated its strength and resiliency over the current cycle and provides us with a solid foundation to meaningfully benefit from the cycle upturn.”

Ryder Chief Executive Officer John Diez

Guidance

What changed from last quarter

• Guidance raised: Full-year comparable EPS low end raised to $14.40 from $14.05; high end held at $14.80. Source
• Guidance raised: Full-year GAAP EPS low end raised to $13.50 from $13.15; high end held at $13.90. Source
• Guidance raised: ROE forecast is now a single figure of 18%, from a prior range of 17% to 18%. Source
• Guidance raised: Full-year debt-to-equity forecast increased to 245% from 230%. Source
• Guidance raised: Full-year non-operating pension costs per share in the reconciliation increased to $0.89 from $0.85. Source
• Guidance lowered: Full-year other items, net per share in the reconciliation decreased to $0.01 from $0.05. Source
• New guidance: Third-quarter 2026 GAAP and comparable EPS ranges were given for the first time. Source
• Guidance kept: Total revenue growth, operating revenue growth, operating cash flow, free cash flow and capital expenditures forecasts were kept at prior-release levels. Source
• New: A $10 million non-cash impairment of a finite-lived intangible asset was recorded in the quarter, tied to lower projected cash flows from an acquired customer relationship. Source
• New: The company increased its quarterly dividend; the release gives no dollar figure for the new rate. Source

Results and growth drivers

• Comparable EPS up 12%: Comparable EPS from continuing operations was $3.73, up 12%, and GAAP EPS was $3.40, up 8%. The company cited share repurchases and higher FMS earnings. Diluted shares were 38.9 million against 41.8 million. Source
• Total revenue up 5%: Total revenue was $3.3 billion, up 5%, on higher SCS and FMS revenue. Operating revenue, excluding fuel and subcontracted transportation, was $2.7 billion, up 3%. Source
• Seventh straight quarter of EPS growth: Management credited the seventh consecutive quarter of comparable EPS growth to strategic initiatives and improving used vehicle market conditions. Source

Segment results

• FMS earnings up 20%: FMS earnings before tax were $150 million, up 20%, at 9.6% of total revenue and 11.5% of operating revenue. Management attributed the gain to contractual businesses and better used vehicle sales. Source
• SCS earnings down 7%: SCS earnings before tax were $92 million, down 7%, against a record prior-year quarter. Management cited lower automotive results and new-business ramp productivity, partly offset by omnichannel network optimization. Source
• DTS earnings down 4%: DTS earnings before tax were $36 million, down 4%, on lower operating revenue and adverse development of prior-year insurance claims, partly offset by strategic initiatives. Source

“Our high-quality contractual portfolio continues to generate strong returns and higher operating cash flow, enabling us to support profitable growth while also returning capital to shareholders.”

Ryder Chief Financial Officer Cristina Gallo-Aquino

Fleet, rental and used vehicles

• Used truck pricing up 6%: Used truck and tractor pricing rose 6% and 3% from prior year, respectively, within FMS. Source
• Rental utilization rose to 75%: Rental power-fleet utilization was 75% against 70% on a 15% smaller average fleet. Management said utilization returned to normalized levels through planned asset management actions. Source
• ChoiceLease and SelectCare revenue up: ChoiceLease revenue was $885 million, up 2%, and SelectCare and other revenue rose 5% to $189 million. Source

Costs, margins and tax

• Interest expense down: Interest expense was $97 million against $102 million, and the effective interest rate was 5.1% against 5.3%. Source
• Pension costs rose, excluded from comparable: Non-operating pension costs were $0.33 per share against $0.18 a year earlier. Comparable EPS excludes these costs. Source
• Tax rate roughly flat: The tax rate on continuing operations was 28.2% against 28.3%, and the comparable tax rate was 27.7% against 28.0%. Source
• Intangible amortization up 87%: Intangible amortization expense was $23 million against $12 million, up 87%. Source

Demand and contractual sales

• Contractual sales held across segments: Management said contractual sales activity held up across all three segments, reflecting customer confidence. Source
• Freight market trends improving: Management said freight market trends continued to improve during the quarter. Source
• Commercial rental demand lower: FMS operating revenue growth was partly offset by lower commercial rental demand. Source
• DTS operating revenue lower on fleet count: DTS operating revenue fell 3% on a lower fleet count, partly offset by higher pricing. Source

Capital, cash and returns to shareholders

• Free cash flow up on lower capex: Free cash flow was $684 million for the six months against $461 million, mainly reflecting reduced cash capital expenditures, per the cash flow table. Source
• Operating cash flow lower on working capital: Operating cash flow from continuing operations was $1.3 billion for the six months against $1.4 billion, reflecting higher working capital needs and vendor payment timing. Source
• Capex down on fleet replacement timing: Capital expenditures were $832 million for the six months against $1.2 billion, mainly due to ChoiceLease fleet replacement timing and lower rental fleet investment. Source
• Debt-to-equity up within target range: Debt-to-equity was 259% at June 30, up from 250% at December 31, 2025, within the long-term target range of 250% to 300%. Source
• Shares and dividend up since 2021: Since 2021 the company has repurchased 26% of shares outstanding and increased its quarterly dividend by 74%. Source

Strategy and investment

• $70 million benefit target on track: Management said it remains on track to achieve $70 million in benefits from strategic initiatives during 2026. Source
• Initiatives drive expected 2026 growth: Management described execution on strategic initiatives as the key driver of expected earnings growth in 2026. Source
• Used vehicle results above expectations: Management said used vehicle sales results were above its expectations as market conditions kept strengthening. Source

Coming up, as management said on 23 July 2026

• Earnings uplift expected at next cycle peak: Management said it expects a meaningful earnings uplift by the next cycle peak, with the largest impact in transactional rental and used vehicle sales.

Figures management reported

Risks management discussed

• Operational: Adverse development of prior-year insurance claims weighed on DTS earnings in the quarter. Source
• Operational: Lower automotive results and productivity of new business ramping up reduced SCS earnings. Source
• Demand: Lower commercial rental demand partly offset contractual revenue growth in FMS operating revenue. Source
• Financial: A $10 million impairment was recorded after projected cash flows from an acquired customer relationship were reduced. Source

Earlier plans management reported on

• On track: Management said it remains on track for $70 million in benefits from strategic initiatives during 2026. Source
• Met: Management said SCS and DTS delivered pre-tax earnings within their high-single-digit target ranges. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.