Ryder Lifts 2026 Adjusted EPS Forecast To $14.85-$15.05 After Third-Quarter Earnings Rise
Used truck pricing and a freight recovery lifted Fleet Management earnings 21% to $177 million, and Ryder is adding $300 million of rental fleet spending.
Ryder raised its 2026 adjusted earnings forecast to $14.85 to $15.05 a share after third-quarter earnings per share from continuing operations rose 25% to $4.16, according to the results release attached to an 8-K filed Thursday. Adjusted EPS was $4.33, up 21%.
What the results show
Total revenue was $3.4 billion, up 8%, with all three segments growing. Operating revenue, which strips out fuel and subcontracted transportation, rose 6% to $2.8 billion.
Fleet Management Solutions drove the gain. Its pre-tax earnings rose 21% to $177 million, from $146 million a year earlier. Used truck prices rose 5% and used tractor prices 19% from a year earlier; sequentially they rose 6% and 15%.
Rental power-fleet utilization reached 77%, against 70% a year earlier, on an average fleet that was 12% smaller.
The other segments were weaker. Supply Chain Solutions earned $91 million before taxes, up 7%. Dedicated Transportation earned $34 million, down 5%, on lower operating revenue and a prior-year workers' compensation insurance benefit.
Chief Executive John Diez said used vehicle sales "exceeded our expectations, driven by stronger-than-expected pricing and sales volumes." He called it the eighth consecutive quarter of EPS growth.
What changes in the outlook
Besides the higher EPS range, Ryder raised its return-on-equity target to 18% to 19%. Free cash flow guidance is unchanged at $700 million to $800 million, and operating revenue growth stays at 3%.
Full-year GAAP EPS is forecast at $9.75 to $9.95, including about $4.30 of non-cash pension settlement charges tied to moving U.K. and Canadian pension obligations to insurers. Fourth-quarter adjusted EPS is guided to $4.25 to $4.45.
CFO Cristina Gallo-Aquino said the company is lifting full-year rental fleet investment to $500 million, "up $300 million from our prior forecast," to capture higher expected rental demand in 2027. Full-year capital spending stays at $2.4 billion, as lower lease spending offsets the rental increase.
Free cash flow for the first nine months was $992 million, versus $496 million a year earlier, as cash capital spending fell and operating cash rose. Debt-to-equity was 242% at September 30, down from 250% at year-end.
What to watch
Ryder holds its earnings call and webcast at 11:00 a.m. ET Thursday, where management will present the results.
The full-year GAAP forecast carries the roughly $4.30 pension charge, so the gap to the adjusted range is mostly that one item.
Sources
- 8-K Filing — RYDER SYSTEM INC (R) — SEC EDGAR
- Exhibit a3q26pressreleasedocument.htm — RYDER SYSTEM INC 8-K exhibit — SEC EDGAR
- Ryder System Gears Up for Q3 Earnings: What's in Store for the Stock? — Yahoo Finance
- Ryder System, Inc. (R) Stock Price, News, Quote & History - Yahoo Finance — Yahoo Finance
