0001193125-25-267088
SEC filingU-Haul's Q2 FY26 earnings fell 43% YoY due to higher depreciation and disposal losses from fleet investments, despite 3.7% revenue growth.
For the second quarter of fiscal 2026 (ended September 30, 2025), U-Haul Holding Company reported consolidated revenue of $1.72 billion, a 3.7% increase from $1.66 billion in the same period last year. Growth was led by self-moving equipment rental revenues (+$23.1M), self-storage revenues (+$21.8M), and other revenue (+$12.2M, primarily from the U-Box program). However, earnings from operations declined sharply to $217.6 million from $302.0 million, a 28% drop. The primary drivers were a $50.6 million increase in rental fleet depreciation, a $56.1 million increase in net losses on disposal of rental equipment, and a $19.4 million rise in operating expenses (repair, personnel, and liability costs). Interest expense rose to $90.3 million from $71.5 million due to higher debt and average cost. Net earnings available to common stockholders fell 43.5% to $105.6 million.
Moving and Storage: Segment revenue grew 3.8% to $1.63 billion, but earnings from operations before equity in subsidiaries plunged to $197.4 million from $280.7 million, compressing the operating margin from 17.8% to 12.1%. Self-storage revenues benefited from a 4.9% improvement in average revenue per occupied foot and 1.6 million net new rentable square feet added in the quarter. However, total costs and expenses surged $142.4 million, driven by higher depreciation, disposal losses, and operating costs. The segment's equity in insurance subsidiary earnings was $16.0 million, down slightly from $17.0 million.
Property and Casualty Insurance: Revenue increased 14.1% to $35.9 million, with net premiums rising to $29.2 million from $26.5 million. Net investment and interest income grew to $6.7 million. Operating expenses increased to $12.9 million, but pretax earnings rose to $17.2 million from $13.8 million.
Life Insurance: Revenue declined 3.6% to $54.1 million, as life insurance premiums fell to $18.4 million from $20.5 million. Deferred annuity deposits dropped $104.0 million to $46.2 million. Benefits and losses increased to $42.4 million from $38.7 million, driven by higher interest credited to policyholders. Pretax earnings fell to $2.9 million from $7.6 million.
Management expects fiscal 2026 fleet reinvestment of approximately $1.295 billion net of equipment sales, with $947.1 million already invested in the first six months. Real estate capital expenditures are expected to remain high, with $526.0 million invested in the first half. The company plans to continue expanding its storage portfolio, U-Box program, and dealer network. Inflationary pressures are noted as a challenge to maintaining operating margins. Property and Casualty Insurance will continue underwriting protection packages, while Life Insurance aims to grow its senior market presence through agency expansion and new product offerings.