Wed, Apr 23, 3:54 PM (29 days ago)
**Ryder System, Inc. (R) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $3.131 billion, up 1% YoY, driven by higher operating revenue in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS), partially offset by lower commercial rental revenue. - **Profit Margins:** Gross margin increased by 4% YoY to $308 million, with gross margin percentage rising to 15% from 14%. - **Earnings:** Earnings from continuing operations before income taxes increased by 17% YoY to $134 million. Net earnings rose by 15% YoY to $98 million. - **Cash Flow:** Net cash provided by operating activities increased by 24% YoY to $651 million. Free cash flow surged to $259 million from $13 million in Q1 2024. **Segment Performance:** - **FMS:** Revenue slightly decreased by 1% YoY to $1.447 billion, with EBT down 6% YoY to $94 million. ChoiceLease revenue grew, but commercial rental demand weakened. - **SCS:** Revenue increased by 2% YoY to $1.331 billion, with EBT up 35% YoY to $87 million, driven by strategic initiatives and new business. - **DTS:** Revenue increased by 7% YoY to $602 million, with EBT up 50% YoY to $27 million, benefiting from acquisition synergies. **Trends & Uncertainties:** - **Positive Trends:** Strong contractual portfolio, favorable long-term secular trends in logistics and transportation solutions. - **Headwinds:** Weak market conditions in rental and used vehicle sales, extended freight downturn, economic uncertainty, inflationary cost pressures, labor interruptions, and higher interest rates. - **Future Operations:** Expect to realize further benefits from the Cardinal Logistics acquisition. Focus on strategic initiatives to mitigate market headwinds and drive growth. **Impact on Future Operations:** - **Growth Opportunities:** Long-term revenue and earnings growth opportunities across all business segments. - **Risks:** Potential negative impacts from inflation, labor shortages, vehicle and part production disruptions, tariffs, taxes, and higher interest rates. - **Strategic Initiatives:** Continued focus on lease pricing, maintenance cost savings, and operational efficiency to drive profitability. **Notable Changes:** - **Debt:** Issued an unsecured medium-term note in February 2025 and amended the corporate revolving credit facility in April 2025, increasing borrowing capacity to $1.6 billion. - **Share Repurchases:** Repurchased 1.23 million shares in Q1 2025, totaling $167 million. - **Dividends:** Declared a quarterly cash dividend of $0.81 per share in February 2025.