Ryder System (R) Citi's Global Industrial Tech & Mobility Conference 2026 summary

Business transformation and strategy

• Shifted from asset-intensive to asset-light model, with supply chain and dedicated services now comprising 62% of revenue, down from 44% in 2018.

• De-risked leasing business by lowering residual value assumptions and raising lease prices, improving returns and stability.

• Exited less profitable geographies and services, focusing on North America and contractual, multi-year revenue streams (90% contractual).

• Targeting low twenties ROE over the cycle, with recent trough-year ROE at 17% and peak at 13%.

• Ongoing transformation initiatives increased from $150M to $170M, with $70M to be delivered in 2026.

Segment performance and outlook

• Fleet Management Solutions (FMS) revenue and margins are closely tied to the freight market; margins expected to improve as market recovers.

• Used truck sales expected to remain flat in 2026, with potential upside if freight market rebounds.

• Supply Chain Solutions (SCS) is the main growth engine, targeting low double-digit growth, with new contracts signed in 2025 expected to drive acceleration in 2026.

• SCS margins remain resilient at around 9% due to strong execution and contractual stability.

• Dedicated Transportation Solutions (DTS) growth and margin improvement depend on tightening driver market and increased outsourcing; contracts now better protect margins against wage volatility.

Management transition and leadership

• CEO transition to John Diez at end of month; he has over 20 years’ experience and has led key transformation initiatives across all business segments.

• Leadership team credited with fostering innovation, operational excellence, and a collaborative culture.

• Focus on innovation through Ryder Ventures and technology adoption to drive future growth.