Ryder System (R) investor relations material

Executive summary

• Comparable EPS rose 4% to $3.57, with GAAP EPS up 2% to $3.33, driven by higher contractual earnings and share repurchases, despite freight market headwinds.

• Business model transformation and strategic initiatives since 2018 have increased resilience, with 60% of 2025 revenue expected from asset-light supply chain and dedicated businesses, up from 44% in 2018.

• Total revenue was $3.2 billion, flat year-over-year; operating revenue grew 1% to $2.6 billion, led by SCS and FMS.

• Multi-year strategic initiatives, lease pricing, maintenance cost savings, and acquisition synergies supported earnings growth.

• Board authorized a new two-million-share repurchase program, replacing the prior program.

Financial highlights

• Q3 operating revenue was $2.6 billion, up 1% year-over-year, driven by contractual revenue growth in SCS and FMS.

• Comparable EPS for Q3 increased 4% to $3.57, supported by higher contractual earnings and share repurchases.

• Return on equity reached 17%, up from the prior year, reflecting higher contractual earnings and share repurchases.

• Year-to-date free cash flow increased to $496 million from $218 million, due to reduced CapEx and lower income tax payments.

• Net cash from operating activities was $1.85 billion for the nine months, up 8% year-over-year.

Outlook and guidance

• 2025 comparable EPS forecast updated to $12.85–$13.05, with ROE forecast at 17%.

• Free cash flow forecast for 2025 remains $900 million–$1 billion, reflecting lower CapEx and a $200 million annual benefit from tax bonus depreciation.

• Capital expenditures for 2025 forecasted at $2.3 billion; debt-to-equity ratio targeted at 250%.

• Q4 comparable EPS forecast range is $3.50–$3.70, versus $3.45 prior year.

• No significant improvement in freight market conditions is expected for the remainder of the year.