Ryder System (R) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered solid results, with GAAP EPS from continuing operations of $2.83, up from a prior-year loss due to a non-cash FMS U.K. exit charge; comparable EPS was $3.00, down from $3.61, reflecting weaker rental and used vehicle sales but higher contractual and logistics results.

• Total revenue rose 10% year-over-year to $3.2 billion, driven by acquisitions and growth in supply chain and dedicated transportation segments.

• Business model transformation and strategy execution are driving outperformance versus prior cycles, with integration of recent acquisitions on track and secular trends supporting long-term growth opportunities.

• Strategic focus remains on operational excellence, customer-centric innovation, and profitable growth, positioning the company for future cycle upturns.

• ROE of 16% demonstrates resilience of the transformed business model amid a freight-cycle downturn.

Financial highlights

• Q2 2024 total revenue: $3.2 billion (up 10% year-over-year); operating revenue (non-GAAP): $2.6 billion.

• Comparable EPS for Q2 2024 was $3.00, down from $3.61, mainly due to weaker used vehicle sales and rental markets.

• Year-to-date free cash flow increased to $71 million from $16 million, driven by lower capital expenditures.

• Adjusted ROE for the trailing 12 months was 16%.

• Net earnings from continuing operations were $126 million in Q2, up from a loss of $18 million last year.

Outlook and guidance

• Full-year 2024 comparable EPS forecast updated to $11.90–$12.40, with the high end assuming gradual recovery in rental and used vehicle sales.

• 2024 ROE forecast is 16%–16.5%.

• Q3 comparable EPS forecast is $3.30–$3.50.

• Free cash flow forecast for 2024 increased to $150–$250 million due to lower lease capital spending.

• Operating revenue expected to grow ~8% for FY24.