U-Haul (UHAL) Q1 2027 earnings summary

Executive summary

• Revenue for the quarter ended June 30, 2026, increased to $1.68 billion, up 3.2% year-over-year, driven by growth in self-moving equipment rentals and self-storage revenues.

• Net earnings available to common stockholders were $122.9 million, down from $142.3 million in the prior year quarter, reflecting higher operating and interest expenses.

• The company continued to expand its rental fleet and self-storage capacity, adding 1.1 million net rentable square feet and 18 new storage locations during the quarter.

• Earnings per share for Non-Voting Shares were $0.63, down from $0.73 in Q1 FY2026.

• Moving and Storage segment saw a decrease in earnings from operations and adjusted EBITDA compared to the prior year.

Financial highlights

• Self-moving equipment rental revenues rose $29.3 million year-over-year to $1.09 billion; self-storage revenues increased $15.9 million to $250.2 million, with a 6.2% improvement in average revenue per occupied foot.

• Operating expenses increased $54.9 million, driven by higher personnel, repair, liability, and freight costs.

• Depreciation expense rose $13.5 million due to fleet expansion; net gains on equipment disposals improved by $24.0 million.

• Interest expense increased to $97.9 million from $82.3 million, reflecting higher debt levels and average cost of debt.

• Adjusted EBITDA for Moving and Storage was $536.7 million, down $8.5 million year-over-year.

Outlook and guidance

• Management expects continued investment in the rental fleet (~$855 million for fiscal 2027) and stable real estate capital expenditures.

• Focus remains on increasing transaction volume, improving pricing, and expanding storage locations, with potential for decreased acquisition spending in storage.

• Inflationary pressures and competition may challenge operating margins.

• Expansion of independent dealer teams is expected to drive future transactions and fleet utilization.

• Storage unit rent-up pace is increasing, but occupancy rates are under pressure due to rapid expansion.