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Did U-Haul Holding N beat or miss consensus estimates last quarter?

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- **Depreciation Drag**: Q2 net income fell 43% to $106 million due to $107 million in fleet-related costs, with cargo van depreciation tripling.
- **Dealer Network Expansion**: 1,000+ new locations added in 12 months to boost moving transactions, targeting Q2 2026 for results.
- **U-Box Growth**: Other revenue rose 12%, with U-Box nearing Moving & Storage margins as storage utilization improves.
- **Self-Storage Resilience**: 10% revenue growth despite 350bps occupancy decline, driven by rate increases and delinquency cleanup.
- **Regulatory Relief**: Positive outlook on reduced ICE regulations, potentially stabilizing transportation costs industry-wide.

**【CEO Summary Section】**
- **Depreciation Impact**: Earnings were pressured by $107 million in increased depreciation and losses on equipment sales, driven by higher vehicle costs and declining resale values.
- **Dealer Network Expansion**: Accelerated dealer network growth (1,000+ new locations in 12 months) aims to balance fleet utilization and increase moving transactions, with expected results by Q2 2026.
- **Self-Storage Challenges**: Same-store occupancy declined 350bps due to delinquency cleanup, but revenue per foot rose 5%. Competition remains intense, with REITs using aggressive discounting strategies.
- **Regulatory Relief**: Positive outlook on reduced ICE vehicle regulations, which could stabilize transportation costs and benefit the broader industry.

**【CFO Financial Commentary】**
- **Q2 Results**: Net income of $106 million (-43% YoY), EPS of $0.54 (vs. $0.96 prior). Adjusted EBITDA rose 6% to $532 million, driven by 2% rental revenue growth and 10% self-storage revenue increase.
- **Fleet Costs**: $1.325 billion spent on new equipment (up 14%), with 10,000 additional box trucks. Cargo van depreciation rates tripled due to market declines.
- **U-Box Growth**: Other revenue rose $12 million, with U-Box expanding container count and storage utilization. Management targets U-Box to approach Moving & Storage margins as scale improves.
- **Liquidity**: $1.376 billion in cash and credit facilities, supporting continued fleet and real estate investments.

**【Q&A Key Highlights】**
- **Depreciation Outlook**: CFO expects box truck depreciation to peak Q4 2025, while cargo van costs depend on OEM pricing. Long-term depreciation could stabilize at $700-750 million annually.
- **Dealer Network Strategy**: CEO prioritizes breadth over depth, leveraging U-Haul's existing footprint to expand self-storage without overbuilding moving infrastructure.
- **Tariff Impact**: Minimal direct impact on vehicle costs, but parts inflation remains a concern. Ford's domestic content advantage provides some mitigation.
- **U-Box Profitability**: CFO sees U-Box nearing Moving & Storage margins as storage utilization grows. Q2 showed 12% revenue increase, with containers in storage driving margin expansion.
- **Self-Storage Sales Strategy**: Management rejects selling underperforming locations, citing strong returns in non-traditional markets and the difficulty of reinvesting proceeds effectively.

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