U-Haul (UHAL) Q2 2025 earnings summary

Executive summary

• Net earnings for Q2 FY2025 were $186.8 million, down from $273.5 million year-over-year, with EPS for Non-Voting Shares at $0.96 versus $1.40 last year.

• Q2 FY2025 revenue was $1.66 billion, up slightly from $1.65 billion year-over-year, driven by higher self-moving equipment and self-storage revenues, offset by lower product sales and investment income.

• The company continues to expand its moving equipment fleet and self-storage footprint, adding 0.9 million net rentable square feet and 11 new storage locations in Q2.

• U-Box contributed to a $7 million increase in other revenue, with steady growth noted.

• A $5.1 million cybersecurity settlement was finalized, fully covered by insurance, with no material impact on financials.

Financial highlights

• Self-moving equipment rental revenues increased by $18 million (1.7%) year-over-year; self-storage revenues rose $16 million (8%), with a 5.5% increase in average monthly occupied units.

• EBITDA for the moving and storage segment decreased by $18.1 million, mainly due to non-recurring operating costs.

• Q2 earnings from operations decreased to $302 million from $422 million year-over-year.

• Q2 depreciation expense rose to $245 million from $201 million; net gains on disposals of rental equipment fell to $18 million from $47 million.

• Total costs and expenses rose $128.6 million, driven by higher operating expenses, non-recurring box supplier transition costs, and increased depreciation.

Outlook and guidance

• Management expects continued investment in truck fleet and self-storage expansion, with capital expenditures for rental equipment projected at $1.115 billion for FY2025.

• Modest improvements in rental business are expected, with no major changes anticipated in the next two quarters.

• Self-storage growth is expected to outperform peers, but a return to double-digit growth is uncertain.

• Real estate capital expenditures are expected to remain high, with ongoing investment in the U-Box program and new storage locations.