0001193125-26-037685
SEC filingRevenue grew 2% but operating profit plunged 78% due to surging repair and depreciation costs from fleet expansion and lower resale values, leading to a net loss.
Consolidated revenue for the third quarter of fiscal 2026 increased 2% YoY to $1.42 billion. Self-moving equipment rental revenues rose $7.6 million to $886 million, driven by in-town transaction growth and fleet expansion. Self-storage revenues jumped $17.9 million to $245 million, benefiting from a 6.7% improvement in average revenue per occupied foot and the addition of 1.5 million net rentable square feet. Life insurance premiums declined $5.1 million due to lower Medicare supplement and life policies, while property and casualty insurance premiums grew $2 million. Net investment and interest income increased $6.7 million to $47.3 million, primarily from mortgage loan gains and derivative gains.
Operating earnings plummeted 78% to $33.7 million from $150.7 million. The primary driver was a $144.1 million increase in total costs and expenses, including a $66.6 million rise in Moving and Storage operating expenses (repair costs +$13.1 million, personnel +$16.2 million, liability costs +$37.9 million). Depreciation on rental fleet surged $44.8 million due to more trucks and lower expected resale values, and net losses on disposal of rental equipment increased $29.8 million. Interest expense rose $18.9 million to $95.5 million. As a result, net earnings available to common stockholders swung to a loss of $37.0 million, compared to income of $67.2 million in the prior year quarter.
Moving and Storage segment revenue grew 1.8% to $1.32 billion, but earnings from operations before equity in subsidiaries collapsed 94% to $7.1 million. The sharp decline reflects the cost pressures noted above. Property and Casualty Insurance (quarter ended September 30) saw revenue increase 11.5% to $42.5 million and operating earnings rise 7% to $20.8 million, driven by higher premiums and investment income. Life Insurance revenue edged down 1% to $56.2 million, yet operating earnings improved 37% to $5.8 million due to lower operating expenses and higher investment income.
Management's outlook emphasizes continued investment in the rental fleet and storage expansion. Fleet CapEx is expected to remain elevated, and the company anticipates further increases in repair and depreciation costs until fleet rotation normalizes. Self-storage development and acquisitions will continue, with likely increased spending in fiscal 2026. The company also plans to expand the U-Box program. Inflationary pressures may challenge margins. No specific numerical guidance was provided.
As of December 31, 2025, U-Haul Holding Company reported total assets of $21.62B, up from $20.48B at March 31, 2025. Cash and cash equivalents increased to $1.03B from $988.8M. Total debt (notes, loans and finance leases payable, net) was $8.02B, up from $7.19B, an increase of 11.5%. Deferred income taxes, net was $1.61B. Total shareholders' equity was $7.74B, up from $7.50B, driven by retained earnings of $8.12B partially offset by accumulated other comprehensive loss of $(168.1M).
No purchase commitments for inventory or capacity were disclosed in the Notes section. Lease liabilities (finance and operating) were $52.9M in present value. There were no material environmental or other contingencies.
During the nine months ended December 31, 2025, the company paid $26.5M in Series N Non-Voting Common Stock dividends ($0.15 per share). No share buybacks were reported. Gross capital expenditures for the period were $2.60B, all within the Moving and Storage segment. Net debt financing activities included $1.76B in borrowings from credit facilities and $902.2M in principal repayments, resulting in a net increase of $857.8M of debt. Interest expense totaled $268.2M, up from $215.3M in the prior period.
Three reportable segments: Moving and Storage, Property and Casualty Insurance, and Life Insurance. For Q3 FY2026, Moving and Storage revenue was $1.32B, Property and Casualty $42.5M, and Life Insurance $56.2M. Net earnings (losses) available to common stockholders: Moving and Storage $(37.0M), Property and Casualty $16.5M, Life Insurance $4.6M. All capital expenditures and net depreciation are recorded within the Moving and Storage segment. Revenues were predominantly from the United States ($1.34B) versus Canada ($74.0M) for the quarter.