Ryder System Updates FY25 Revenue Growth Projection and Stock Outlook

Ryder System has revised its FY25 revenue growth projection to 1% and updated its financial outlook. Analysts forecast an average target price of $178.39 with an upside of 3.22% from the current price of $172.82. The consensus recommendation is "Outperform" with an estimated GF Value of $126.99, indicating a downside of 26.52% from the current price.

Ryder System, Inc. (NYSE: R) has revised its full-year 2025 (FY25) revenue growth projection to 1%, down from the previously forecasted 4.3% average annual growth rate. The company reported its second-quarter 2025 (2Q25) results, which showed a strong performance despite a challenging market environment.

Key financial highlights from 2Q25 include:

- Revenue: US$3.2 billion, consistent with the prior year.
- Net income: US$132.0 million, up 5.6% from 2Q2024.
- EPS: US$3.15, up 11% year-over-year.
- Operating revenue (non-GAAP): US$2.6 billion, up 2%.
- Free cash flow: US$461 million, up significantly from the prior year.

The company's CEO, Robert Sanchez, attributed the strong performance to better supply chain performance and strategic initiatives, while noting that weaker market conditions in used vehicle sales partially offset these gains.

Ryder's revised revenue growth projection reflects a more muted second-half recovery for used vehicle sales and contractual sales headwinds from ongoing macroeconomic uncertainty. The company expects earnings growth in 2025, driven by ongoing execution on its initiatives and the strength of its contractual businesses.

Analysts have responded positively to Ryder's updated outlook. The consensus recommendation is "Outperform" with an estimated GF Value of $126.99, indicating a downside of 26.52% from the current price. The average target price is $178.39, with an upside of 3.22% from the current price of $172.82.

Ryder's ability to generate a return on equity (ROE) of 17% in the current environment demonstrates consistent execution and the resilience of its transformed business model. The company continues to invest in profitable growth and strategic initiatives while returning capital to shareholders.

References:
[1] https://finance.yahoo.com/news/ryder-system-second-quarter-2025-124549834.html
[2] https://newsroom.ryder.com/news/news-details/2025/Ryder-Reports-Second-Quarter-2025-Results/default.aspx