R · Ryder System, Inc.

Ryder System, Inc. reported first quarter 2026 results that exceeded expectations, with GAAP EPS from continuing operations of $2.34 (up 2% YoY) and comparable EPS of $2.54 (up 3% YoY). Total revenue was $3.126 billion, essentially flat year-over-year, while operating revenue (non-GAAP) grew 1% to $2.573 billion. The outperformance was driven by the Fleet Management Solutions (FMS) segment, where earnings before tax (EBT) rose 6% to $99 million, benefiting from strategic initiatives and improving used vehicle market conditions. Used tractor pricing increased 6% year-over-year, and rental power-fleet utilization improved to 68% from 66% on a smaller fleet. Supply Chain Solutions (SCS) posted EBT of $72 million, down 17% from a record prior-year quarter, primarily due to lower automotive results and productivity ramp-up costs for new business. Dedicated Transportation Solutions (DTS) EBT declined 15% to $23 million, reflecting a lower fleet count amid a prolonged freight downturn, partially offset by strategic initiative benefits. Management highlighted positive momentum in contractual sales, with record performance in SCS and stronger sales in FMS and DTS. The effective tax rate decreased to 21.0% from 26.8%, driven by excess tax benefits on stock-based compensation. Capital expenditures declined to $409 million from $536 million, and free cash flow improved to $273 million from $259 million. The company raised its full-year 2026 comparable EPS guidance to $14.05-$14.80 (from prior range), reflecting stronger first-quarter results and expectations for modest improvement in used vehicle market conditions. Other full-year guidance remains unchanged: operating revenue growth of 3%, ROE of 17%-18%, net cash from operations of $2.7 billion, free cash flow of $700-$800 million, and capital expenditures of $2.4 billion. Debt-to-equity stood at 269% as of March 31, within the long-term target of 250%-300%. The company also provided second quarter 2026 guidance: GAAP EPS of $3.20-$3.45 and comparable EPS of $3.50-$3.75.