Ryder System (R) Q4 2025 earnings summary

Executive summary

• 2025 saw 8% growth in comparable EPS to $12.92 and ROE at 17%, driven by a resilient, contract-focused, asset-light business model and strategic initiatives, despite a freight cycle downturn.

• CEO transition planned for March 2026, with continued focus on operational excellence, innovation, and profitable growth.

• Over 90% of revenue now comes from high-quality contractual portfolios, supporting resilience and outperformance versus prior cycles.

• Strategic initiatives and business model transformation increased cash flow and capital deployment capacity.

• $664 million was returned to shareholders in 2025 through buybacks and dividends.

Financial highlights

• 2025 comparable EPS was $12.92, up 8% year-over-year; GAAP EPS was $11.99, also up 8%.

• Return on equity reached 17%, up from 13% in 2018 and prior year.

• Operating cash flow for 2025 was $2.6 billion; free cash flow was $946 million, up from $133 million in 2024.

• Q4 2025 operating revenue was $2.6 billion, flat year-over-year; Q4 comparable EPS was $3.59, up 4%.

• Since 2021, $3 billion in free cash flow generated, ~24% of shares repurchased, and quarterly dividend increased by 57%.

Outlook and guidance

• 2026 operating revenue is expected to grow 3%, with comparable EPS forecasted at $13.45–$14.45 (up to 12% growth at the high end), and ROE projected at 17–18%.

• Free cash flow is expected to be $700–800 million, down from 2025 due to higher lease replacement CapEx.

• Q1 2026 EPS is forecasted at $2.10–$2.35, below prior year due to weak rental and used vehicle sales.

• Capital expenditures for 2026 expected at $2.4 billion; debt-to-equity ratio forecast at 230%.

• SCS segment expected to drive operating revenue growth amid continued freight market softness.