Ryder's Q2 2025 Earnings Call: Navigating Contradictions in Pricing, Maintenance, and Fleet Strategy

Tractor pricing and residual value expectations, outsourced maintenance growth strategy, rental market recovery and seasonality, fleet management and rental fleet strategy, used truck pricing and market conditions are the key contradictions discussed in Ryder's latest 2025Q2 earnings call.



Strong Financial Performance Despite Market Challenges:
- Ryder Systems reported operating revenue of $2.6 billion in Q2 2025, with a 2% increase from the previous year, driven by contractual revenue growth in SCS and FMS.
- The company achieved comparable earnings per share of $3.32, up 11% from the prior year, reflecting higher contractual earnings and share repurchases.
- The growth was supported by Ryder's resilient contractual portfolio, which remains consistent despite market downturns.

Supply Chain Segment Performance:
- Operating revenue in the supply chain segment increased by 3%, driven by new business, customer volumes, and pricing improvements.
- Supply chain earnings rose by 16% from the previous year, reflecting operational efficiencies and improved omnichannel retail network performance.
- This segment's financial strength is attributed to its value proposition, continuous improvement efforts, and pricing discipline.

Used Vehicle Sales and Pricing Strategy:
- Ryder sold 6,200 used vehicles in Q2, up sequentially and year-over-year, despite wholesale volumes impacting used vehicle pricing.
- Used tractor pricing saw a 3% sequential increase, while used truck pricing decreased 10%, with an overall decline of 17% year-over-year.
- The company managed its aged inventory levels by increasing wholesale volumes, impacting short-term pricing, while expecting improvements in the second half of the year.

Capital Expenditure and Cash Flow Outlook:
- Ryder's 2025 capital expenditure forecast was revised to $2.3 billion, reflecting lower lease and rental spending, with $500 million in proceeds from used vehicle sales.
- The company increased its free cash flow forecast to a range of $900 million to $1 billion due to lower capital spending and the tax bonus depreciation benefit.
- This outlook is supported by operating cash flow improvements and strategic capital deployment focused on profitable growth and shareholder returns.