U-Haul (UHAL) Q1 2025 earnings summary

Executive summary

• Q1 FY25 net earnings were $195.4M, down from $256.8M year-over-year, with EPS at $1.00 for Non-Voting Shares and $0.95 for Voting Shares, compared to $1.31 and $1.27, respectively.

• Revenue for Q1 FY25 was $1.55B, up slightly from $1.54B, driven by growth in self-moving equipment and self-storage revenues.

• Equipment rental revenue rose $15.1M (1.5%), marking the first year-over-year increase in 8 quarters; self-storage revenue increased $16.8M (8.4%), with average revenue per occupied foot up nearly 3%.

• U-Box revenue grew significantly, contributing to a $9M increase in other revenue.

• Incremental progress in serving more moving customers and filling storage rooms; transactions and revenue per transaction improved for both In-Town and One-Way moves.

Financial highlights

• Nearly 60% of the earnings decline was due to lower gains on retired equipment sales; proceeds from retired equipment sales fell $49M to $144M.

• Capital expenditures for new rental equipment were $539M, up $85M year-over-year; net capital expenditures for Moving and Storage were $816.5M in Q1 FY25.

• Total costs and expenses rose by $101.6M, with higher operating and depreciation expenses offset by lower repair costs.

• Interest expense increased to $67.2M from $60.6M year-over-year; interest income decreased by $9M due to lower cash balances.

• Cash and available liquidity at the end of June totaled $1.15B to $1.57B.

Outlook and guidance

• FY25 net CapEx projection increased by $40M to $1.09B due to additional units from manufacturers.

• Management expects continued investment in truck fleet and self-storage expansion, with a focus on occupancy growth and new locations.

• Inflationary pressures and supply chain constraints may impact operating margins and fleet investment.

• Storage projects are expected to take about three years to mature and contribute positively.

• Management remains focused on customer service and product placement to drive growth.