Ryder System (R) JPMorgan Industrials Conference 2026 summary

Company overview and business transformation

• Operates in three segments: Fleet Management Solutions (FMS), Dedicated, and Supply Chain, with a shift toward asset-light models and significant growth in Supply Chain and Dedicated segments over the past six years.

• Revenue grew from $8.4 billion in 2018 to $12.7 billion, with FMS now 40% of business, Dedicated 20%, and Supply Chain 40%.

• Transformation included de-risking lease pricing, exiting underperforming markets, and enhancing returns through pricing and cost initiatives.

• Over $1 billion invested in acquisitions, expanding last mile, e-commerce, and co-packaging capabilities.

• Comparable EPS doubled and return on equity increased from 13% to 17% since 2018.

Strategic initiatives and financial outlook

• Ongoing initiatives include lease repricing, maintenance cost savings, acquisition synergies, and operational optimization, targeting $170 million in additional value.

• $100 million of these initiatives achieved by end of last year; $70 million expected in 2026, supporting EPS guidance of $13.45–$14.45 and 8–12% earnings growth.

• Guidance for 2026 does not assume market recovery; potential $250 million upside if freight and used vehicle markets rebound.

• Supply Chain expected to grow 3% in 2026, with targets for higher growth in future upturns.

• Strong cash generation and low leverage provide $14 billion capital capacity, with $5 billion available for M&A or shareholder returns.

Market dynamics and segment performance

• Fuel costs are largely passed through to customers, minimizing direct impact from energy price volatility.

• Rental and used vehicle recovery typically lags spot rate increases by about six months; current guidance assumes no significant recovery.

• $250 million earnings sensitivity to market upturn: $50 million from used vehicles, $200 million from rental, with room to grow fleet utilization.

• Dedicated segment faces headwinds from customers shifting between spot and dedicated markets, but expects stabilization by year-end.

• Supply Chain segment saw record sales, especially in omni-channel retail, with growth expected to accelerate through the year.