Ryder Reports First Quarter 2025 Results | R Stock News

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Apr 23, 2025
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  • Ryder System, Inc. (R, Financial) reported a 21% increase in GAAP EPS for Q1 2025, reaching $2.29 per share.
  • Total revenue for Ryder grew by 1% year-over-year to $3.1 billion.
  • Free cash flow for 2025 is forecasted between $375-475 million, reflecting reduced capital expenditures.

Ryder System, Inc. (R), a leader in supply chain, dedicated transportation, and fleet management solutions, announced their financial results for the first quarter of 2025, showcasing significant strides in earnings and cash flow management. The company reported a GAAP earnings per share (EPS) of $2.29, marking a 21% increase from the previous year, while the comparable EPS (non-GAAP) stood at $2.46, a 15% year-over-year rise. This growth is primarily attributed to enhanced contractual earnings across all segments, despite facing challenging conditions in rental and used vehicle sales markets.

Total revenue increased marginally by 1% to $3.1 billion, with operating revenue (non-GAAP) rising by 2% to $2.6 billion. This growth is reflective of prior acquisitions and the robust performance of Ryder's Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) segments. Notably, SCS achieved record first-quarter earnings, with a 35% increase in earnings before taxes (EBT) to $87 million, driven by strategic initiatives and new business ventures. Similarly, Dedicated Transportation Solutions (DTS) saw a 50% jump in EBT, which reached $27 million, benefiting from acquisition synergies and strong foundational performance.

However, the company faced a challenging market for used vehicles, with truck and tractor pricing experiencing declines of 17% and 16% respectively compared to the same quarter in 2024. Despite these market challenges, Ryder's financial forecast for the full year of 2025 remains optimistic, with a projected free cash flow between $375 million and $475 million, driven by lower capital spending and strategic initiatives aimed at bolstering profitability and shareholder returns.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.