U-Haul (UHAL) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net earnings were $67.2M, down from $99.2M year-over-year, with EPS at $0.35 per non-voting share; revenue rose 3.7% to $1.39B, driven by growth in self-moving equipment and self-storage revenues.

• For the nine months ended Dec 31, 2024, revenue was $4.60B, up 1.4% year-over-year; net earnings were $449.4M, down from $629.6M.

• The company continues to expand its moving equipment fleet and self-storage footprint, adding 2.3M net rentable square feet in Q3 and 7.4M in the last 12 months.

• U-Box and self-storage segments showed continued expansion, with significant investments in new units and warehouse capacity.

• Management remains optimistic about consumer sentiment and business outlook, despite industry headwinds and regulatory uncertainties.

Financial highlights

• Q3 FY2025 self-moving equipment rental revenue rose $38.8M (4.5%) year-over-year; self-storage revenue increased $17M (8%).

• Q3 consolidated revenue was $1.39B, up from $1.34B; Q3 earnings from operations were $150.7M, down from $197.6M.

• EBITDA for moving and storage segments increased by $47.8M, driven by revenue growth.

• Decline in EPS primarily due to higher fleet depreciation, lower gains on equipment sales, and reduced interest income.

• Capital expenditures for new rental equipment reached $1,587M for the first nine months, up $237M year-over-year.

Outlook and guidance

• Management expects continued investment in truck fleet and self-storage expansion, with FY2025 capex for rental equipment projected at $1.1B.

• Revenue growth in January continued to trend positively year-over-year.

• Management expects the pace of new self-storage deliveries to remain elevated into the next quarter, with 16.8M net rentable square feet in development or pending.

• Anticipates future borrowing to fund growth, aiming to keep net debt to EBITDA under 5x.

• Inflationary pressures and higher repair/maintenance costs may challenge operating margins.