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SEC filingConsolidated revenue grew 5.3% to $1.63B, but earnings fell 27.2% to $142M, pressured by rising fleet depreciation costs and disposal losses.
In Q1 fiscal 2026, U-Haul Holding Company reported consolidated revenue of $1.630 billion, a 5.3% increase compared to $1.548 billion in Q1 fiscal 2025. The revenue gain was driven primarily by a $43.9 million increase in self-moving equipment rental revenues to $1.058 billion, reflecting higher revenue per transaction in both In-Town and one-way markets, as well as fleet and network expansion. Self-storage revenues grew $18.5 million to $234.2 million, supported by occupancy gains and the addition of 1.2 million net new rentable square feet. Other revenue rose $20.8 million to $154.1 million, led by growth in the U-Box program.
Despite top-line growth, total costs and expenses increased $130.8 million. The largest drivers were a $50.7 million increase in depreciation expense on rental equipment, reflecting a larger fleet and lower expected resale values, and a $29.7 million increase in net losses on disposal of rental equipment due to declining resale values and higher average cost of units sold. Operating expenses for Moving and Storage rose $44.4 million, driven by $20.2 million higher personnel costs and $17.2 million in increased liability costs. Interest expense increased $15.1 million to $82.3 million due to higher debt outstanding and average cost of debt.
As a result, earnings from operations declined to $257.4 million from $306.2 million, a drop of 15.9%. Net earnings available to common stockholders fell to $142.3 million from $195.4 million, a 27.2% decline. Income tax expense decreased to $43.1 million from $61.0 million, reflecting lower pretax earnings.
Moving and Storage segment revenue increased 5.8% to $1.554 billion. However, operating income before equity in earnings of insurance subsidiaries fell to $242.9 million from $295.1 million, as costs and expenses escalated by $136.9 million. Depreciation expense on rental equipment rose $50.7 million to $208.2 million, and net losses on disposal of rental equipment swung to a loss of $22.1 million from a gain of $7.9 million in the prior year. Operating expenses increased $44.4 million, with repair, personnel, and liability costs all rising. As a result, the segment’s operating margin contracted significantly.
Property and Casualty Insurance reported a 5.5% increase in revenue to $29.7 million. Pretax earnings from operations were essentially stable at $11.9 million, compared to $11.5 million in the prior year. Premium growth correlated with moving and storage transaction volume.
Life Insurance revenue declined 6.8% to $50.1 million due to lower life and Medicare supplement premiums. However, the segment turned profitable, reporting positive pretax earnings of $2.6 million versus a loss of $0.2 million in the prior year, driven by a sharp reduction in operating expenses (from $10.1 million to $2.8 million). Net investment income fell $2.3 million to $29.5 million, partially offset by a favorable change in provision for expected credit losses. Deferred annuity deposits increased significantly to $127.4 million, up $66.0 million year-over-year.
Management’s outlook for fiscal 2026 focuses on increasing transaction volume and improving pricing, product, and utilization for self-moving equipment. The company expects to reinvest in its rental fleet at an estimated $1.275 billion net of equipment sales, subject to capital availability and OEM supply. Real estate capital expenditures are likely to increase as the company completes current projects and pursues new acquisitions. Inflationary pressures are noted as a potential headwind to operating margins. The company anticipates higher spending on acquisitions and new development for storage, and continued investment in the U-Box program. Life Insurance aims to expand its presence in the senior market through new product offerings and business acquisitions.
As of June 30, 2025, U-Haul Holding Company reported total assets of $20.85B, up from $20.48B at March 31, 2025. Cash and equivalents decreased to $877M from $989M, while marketable securities (fixed maturity and equity) rose to $2.59B. Total debt increased to $7.25B, including $635M in revolving credit facilities. Shareholders' equity grew to $7.66B, driven by net earnings of $142.3M and OCI gains of $29.1M.
No material purchase commitments were disclosed in the notes. Contingencies are limited to environmental and routine litigation, which are not expected to be material. Lease obligations total $89.5M for operating leases and $33.7M for finance leases (remaining 9 months of fiscal 2026).
During the quarter, capital expenditures were $916.6M, entirely in the Moving & Storage segment, representing 56.2% of total revenues. Debt activity included $350M in new borrowings and $286.6M in repayments. Dividends of $0.05 per share on Series N Non-Voting Common Stock totaled $8.8M, unchanged YoY. No share buybacks were reported.
Moving & Storage remains the dominant segment with revenue of $1.55B (95.3% of total), up 5.8% YoY. Its operating income (including equity earnings from insurance) was $254.4M. Property & Casualty Insurance contributed $29.7M revenue and $11.9M operating income, while Life Insurance reported $50.1M revenue and $2.7M operating income. Geographically, US operations generated $1.54B in revenue, with Canada contributing $87.1M.