Ryder System, Inc. (NYSE:R) reported adjusted earnings for the second quarter on Thursday that surpassed analyst expectations.
Following the announcement, the company’s shares rose 2.07% in pre-market trading.
The transportation and logistics firm posted adjusted earnings per share of $3.32, beating the analyst consensus of $3.12. Revenue reached $3.19 billion, slightly above the forecasted $3.17 billion.
Ryder’s earnings growth was fueled by strong performance in its Supply Chain Solutions (SCS) division, which marked its ninth straight quarter of earnings improvement. The company’s Q2 adjusted EPS rose 11% year-over-year, driven by increased contractual earnings and the impact of share buybacks that have cut the share count by 21% since 2021.
“The Ryder team delivered our third consecutive quarter of double-digit growth in earnings per share,” said Ryder Chairman and CEO Robert Sanchez. “Earnings in the second quarter were above our expectations driven by better supply chain performance, partially offset by additional used vehicle wholesale volumes.”
Total revenue remained steady compared to last year at $3.2 billion, while non-GAAP operating revenue increased 2% to $2.6 billion, reflecting contract revenue gains in both the Supply Chain Solutions and Fleet Management Solutions segments.
The Supply Chain Solutions business led the way, with earnings before tax rising 16% to $99 million. Conversely, earnings in the Fleet Management Solutions segment declined 6% to $126 million, as stronger ChoiceLease results were offset by weaker used vehicle sales in a tough market.
Looking ahead, Ryder raised its 2025 free cash flow forecast by $500 million, to a range of $900 million to $1 billion, citing reduced capital expenditures and the permanent reinstatement of tax bonus depreciation. For Q3, the company expects adjusted EPS between $3.45 and $3.65, while full-year adjusted EPS is projected at $12.85 to $13.30.
“We continue to expect earnings growth in 2025 reflecting ongoing execution on our initiatives and the strength of our contractual businesses,” said Ryder Chief Financial Officer Cristina Gallo-Aquino.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.