Ryder’s second quarter results were shaped by strong performance in its Supply Chain segment and resilient earnings from its multiyear contractual portfolio. Management credited the quarter’s outperformance relative to Wall Street’s expectations to disciplined execution on strategic initiatives and robust performance in supply chain operations. CEO Robert Sanchez highlighted, “The business continues to outperform prior cycles, driven by our resilient contractual portfolio that reflects the actions we’ve taken under our balanced growth strategy.” The quarter also saw Ryder proactively manage used vehicle inventory, which affected segment-level results but was part of its broader efforts to optimize returns and reduce risk.
Is now the time to buy R? Find out in our full research report (it’s free).
Ryder (R) Q2 CY2025 Highlights:
- Revenue: $3.19 billion vs analyst estimates of $3.16 billion (flat year on year, 0.8% beat)
- Adjusted EPS: $3.32 vs analyst estimates of $3.10 (7.3% beat)
- Adjusted EBITDA: $708.5 million vs analyst estimates of $692.5 million (22.2% margin, 2.3% beat)
- Management lowered its full-year Adjusted EPS guidance to $13.08 at the midpoint, a 1.1% decrease
- Operating Margin: 8.6%, in line with the same quarter last year
- Market Capitalization: $7.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Ryder’s Q2 Earnings Call
- Ravi Shanker (Morgan Stanley) asked about deploying balance sheet capacity and timing for acquisitions; CEO Robert Sanchez replied Ryder will remain balanced and opportunistic, investing in both organic growth and strategic M&A as market conditions evolve.
- Scott H. Group (Wolfe Research) inquired about the return to gains in used vehicle sales and offsets in Q3 guidance; Sanchez attributed Q2 losses to intentional wholesale activity and expects improvement as retail sales mix increases.
- Harrison Bauer (Susquehanna) questioned margin cadence and segment pressures; CFO Cristina Gallo-Aquino said margin growth is expected in Fleet Management and Supply Chain, with Dedicated pressured by lower fleet count but benefiting from synergies.
- Jeffrey Asher Kauffman (Vertical Research Partners) asked about the outlook for outsourced maintenance; Sanchez and Fleet Management President Tom Havens emphasized growth in the mobile maintenance “Torque” initiative and renewed focus on retail maintenance offerings.
- Daniel Robert Imbro (Stephens Inc.) probed delays in dedicated contract decisions; Sanchez said improvement has been limited, with pipelines robust but customer hesitancy expected to persist in the near term.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will focus on (1) the pace of used vehicle inventory reduction and improvement in retail sales mix and pricing, (2) the extent to which Ryder’s multiyear strategic initiatives translate into sustained margin and earnings growth, and (3) signals of renewed customer decision-making in lease and dedicated contracts as economic uncertainty resolves. The trajectory of industrial manufacturing activity and further progress on Ryder’s asset-light transformation will also be closely watched.
Ryder currently trades at $178.57, up from $172.70 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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