Ryder System, Inc.

What they do

Ryder provides port-to-door logistics and transportation services across North America, integrating inbound international flows, fleet management, warehousing and final delivery. It reports three segments: Fleet Management Solutions (full service leasing, commercial rental, maintenance, fuel services), Supply Chain Solutions (integrated logistics) and Dedicated Transportation Solutions (dedicated vehicles, drivers and management). It also sells used vehicles and offers digital technology support for asset performance and compliance.

Revenue drivers

• Fleet Management Solutions (FMS) — Largest segment at $5,845M total revenue in 2025 (down 1% year over year), built on ChoiceLease contractual leasing ($3,510M in 2025) plus commercial rental, maintenance and fuel services.
• Supply Chain Solutions (SCS) — Second-largest segment at $5,459M total revenue in 2025, up 3% year over year and up 9% in 2024, providing integrated logistics and warehousing; generated $355M segment EBT in 2025.
• Dedicated Transportation Solutions (DTS) — Smallest segment at $2,343M total revenue in 2025, down 4% from a 2024 that grew 37%, providing turnkey dedicated vehicles, professional drivers and administrative support; $140M segment EBT in 2025.
• Used vehicle sales and ancillary services — FMS also sells used trucks and provides maintenance and fuel services; management cited better used vehicle sales results as a driver of second quarter 2026 FMS earnings growth.

Recent performance

Second quarter 2026 total revenue was $3,347M, up 5% from $3,189M, with operating revenue (non-GAAP) of $2,686M, up 3%. GAAP diluted EPS from continuing operations was $3.40 versus $3.15, and comparable EPS (non-GAAP) was $3.73 versus $3.32, up 12%. FMS total revenue rose 6% to $1,560M with EBT up 20% to $150M, SCS total revenue rose 8% to $1,472M, and DTS total revenue fell 1% to $600M. Full year 2025 revenue was $12,665M, essentially flat versus 2024, with net income of $499M and diluted EPS of $11.94.

Strategy

Ryder describes a balanced growth strategy focused on de-risking and optimizing the business model, enhancing returns and free cash flow, and driving long-term profitable growth. Three stated priorities are operational excellence, customer-centric innovation, and improving full-cycle returns. The company targets growth with existing customers and new prospects who currently manage supply chain services internally, supported by disciplined capital allocation including organic growth, targeted acquisitions and shareholder returns. Management said it remains on track to achieve $70 million in benefits from strategic initiatives during 2026.

Risks

• Cyclical demand — Ryder states the transportation industry is highly cyclical and its FMS, SCS and DTS revenue is tied directly to customer production, volumes and confidence in economic conditions.
• Used vehicle and rental sensitivity — The company specifically flags demand for used vehicles, rental and contractual sales as particularly susceptible to economic and market conditions.
• Tariffs and trade policy — The 10-K notes that tariffs or changes in international trade policy could reduce customer volumes and materially affect results.
• Debt and ratings — Debt-to-equity was 259% at June 30, 2026 versus 250% at year-end 2025, and Ryder states a significant downgrade of short-term ratings would impair commercial paper access and raise borrowing costs.

Outlook

For full year 2026 Ryder forecasts ROE (non-GAAP) of 18% and raised its comparable EPS (non-GAAP) range to $14.40-$14.80. Operating revenue (non-GAAP) growth is expected at 3%, primarily driven by SCS, with net cash from continuing operating activities of $2.7 billion and free cash flow (non-GAAP) of $700-$800 million. Management cited improving freight market trends, strong contractual sales activity across all three segments and strengthening used vehicle market conditions.