U-Haul (UHAL) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net earnings were $186.8 million, down from $273.5 million year-over-year, with EPS for Non-Voting Shares at $0.96 versus $1.40 last year.

• Q2 revenue was $1.66 billion, up slightly from $1.65 billion year-over-year, driven by higher self-moving equipment and self-storage revenues.

• Equipment rental and self-storage revenues increased modestly, with self-storage revenues up $16 million (7.5%) and average revenue per occupied foot up 1.6%.

• The company continues to expand its moving equipment fleet and self-storage footprint, adding 0.9 million net rentable square feet and 11 new storage locations in Q2.

• A $5.1 million cybersecurity settlement was finalized, fully covered by insurance, with no material impact on financials.

Financial highlights

• Self-moving equipment rental revenues increased $18 million (1.7%) year-over-year; self-storage revenues rose $16 million, with a 5.5% increase in average monthly occupied units.

• Q2 earnings from operations decreased to $302 million from $422 million year-over-year, with higher depreciation and lower gains on equipment disposals.

• Net investment and interest income fell $26.9 million year-over-year, mainly due to lower market value of common stock investments and reclassification of interest income.

• Total costs and expenses rose $128.6 million, driven by higher operating expenses, non-recurring box supplier transition costs, and increased depreciation.

• Capital expenditures for new rental equipment reached $1.156 billion for the first six months, up $182 million year-over-year.

Outlook and guidance

• Management expects continued investment in truck fleet and self-storage expansion, with capital expenditures for rental equipment projected at $1.115 billion for FY2025.

• Inflationary pressures and competition may challenge operating margins; focus remains on increasing transaction volume and improving pricing and utilization.

• Net rentable square feet deliveries are expected to increase next quarter, with ongoing U-Box and U-Store expansion.

• No changes to business plans are anticipated due to Trian Fund Management's input.