Ryder System Q2 Earnings Call Highlights

Ryder posted its seventh straight quarter of comparable EPS growth , with Q2 2026 revenue up 3% to $2.7 billion and comparable EPS up 12% to $3.73.

Management said the results were driven by contractual revenue, strategic initiatives, and stronger used vehicle sales.

Fleet Management Solutions was the biggest earnings driver, as EBT rose 20% year over year to $150 million.

Used tractor and truck pricing improved, rental utilization returned to the 75% target, and used vehicle inventory fell within Ryder’s target range.

Ryder raised the low end of full-year EPS guidance to $14.40 from $14.05, citing a better outlook for used vehicle sales, while keeping free cash flow guidance unchanged at $700 million to $800 million.

The company also boosted its dividend by 11% and authorized a new 2 million share repurchase program.

Ryder System NYSE: R reported its seventh consecutive quarter of comparable earnings-per-share growth, with management pointing to contractual revenue, strategic initiatives and improving used vehicle sales as the main contributors to second-quarter 2026 results.

Chief Executive Officer John Diez said Ryder’s “transformed model” continued to outperform prior cycles, supported by a shift toward less capital-intensive businesses and long-term customer contracts. He said more than 90% of Ryder’s revenue is generated through long-term contracts, which management views as a key factor in the company’s resilience during the freight cycle.

For the quarter, Ryder posted total operating revenue of $2.7 billion, up 3% from the prior year. Comparable earnings per share from continuing operations were $3.73, up 12% year over year. Return on equity was 17%, in line with the prior year.

Free cash flow rose to $684 million from $461 million, which Executive Vice President and Chief Financial Officer Cristy Gallo-Aquino attributed to lower capital expenditures.

Fleet Management Solutions was the primary driver of higher earnings in the quarter. The segment’s operating revenue increased, reflecting contractual revenue growth, partially offset by lower rental demand. Earnings before taxes rose 20% from the prior year to $150 million.

Gallo-Aquino said the improvement reflected benefits from strategic initiatives in the ChoiceLease business, along with strengthening used vehicle market conditions. Fleet Management EBT as a percentage of operating revenue was 11.5%, up from a year earlier but still below Ryder’s long-term target of the low teens over the cycle.

Rental utilization returned to Ryder’s targeted level of 75% on a 15% smaller average fleet. Gallo-Aquino said demand remained below the prior year and historical seasonal trends, but the quarter represented the strongest sequential increase in four years. Rental pricing increased 1% from the prior year.

Used vehicle sales showed improvement as well. Year-over-year used tractor pricing increased 3%, while truck pricing rose 6%. Sequentially, overall pricing was stable, but retail pricing improved 7% for trucks and 3% for tractors. Ryder sold 5,100 used vehicles in the quarter, up 500 units sequentially but down 1,100 units from a year earlier, largely reflecting elevated wholesaling activity in the prior ye...