RYDER SYSTEM INC
For the period ended Mar 31, 2026. Filed Apr 23, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 23, 2026
R$266.39-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-23.
0001628280-25-046075
ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-23.
0001628280-26-026847
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 203 previous paragraphs and 194 current paragraphs.
124 unchanged; 49 reworded; 21 added; 29 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 37 previous and 37 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
During the three months ended March 31, 2026, the strength and resiliency of our transformed business model enabled the business to deliver solid results in the current environment. FMS had earnings growth driven by its contractual business, reflecting benefits from the ongoing execution of our strategic initiatives. In addition, SCS delivered another quarter of strong earnings performance, although results were down relative to a record quarter in the prior year. DTS continued to be impacted by a lower fleet count due to the prolonged freight downturn.
Current report
We continue to benefit from favorable long-term secular trends in logistics and transportation solutions and have experienced positive momentum in contractual sales in the first quarter of 2026, with record sales performance in SCS and stronger sales in FMS and DTS above prior year and ahead of expectations, in segments that had been experiencing sales headwinds from freight market conditions. We also experienced improving trends in used vehicle sales, and rental demand reflected historical seasonal patterns. We remain on track to deliver $70 million in expected earnings benefits from strategic initiatives this year, and are well positioned for growth from a cycle upturn with the largest impact expected in our transactional rental and used vehicle sales businesses. Favorable secular trends and the value our solutions bring to our customers remain strong and provide long-term revenue and earnings growth opportunities for all of our business segments.
Current report
EBT and comparable EBT (a non-GAAP measure) decreased in the first quarter of 2026, primarily due to lower automotive results in SCS.
Current report
Services gross margin decreased in the first quarter of 2026, primarily due to lower automotive results and productivity of new business ramping up in SCS. Service gross margin as a percentage of revenue remained consistent.
Current report
Lease & related maintenance and rental gross margin decreased 3% in the first quarter of 2026, primarily due to lower commercial rental demand and unfavorable development of prior year rental insurance claims, partially offset by improved contractual performance. Lease & related maintenance and rental gross margin percentage remained at 31% in the first quarter of 2026.
Current report
SG&A expenses increased 3% in the first quarter of 2026. The increase in SG&A expenses in the first quarter of 2026 primarily reflects higher incentive-based compensation expenses. SG&A expenses as a percentage of total revenue remained at 12% for the first quarter of 2026.
Current report
NM - Denotes Not Meaningful throughout the MD&A
Current report
Interest expense decreased 3% in the first quarter of 2026, primarily reflecting a lower average debt balance and effective interest rate.
Current report
Miscellaneous Loss, net
Current report
FMS total revenue increased 1% in the first quarter of 2026, due to higher fuel pricing passed through to customers. FMS operating revenue (a non-GAAP measure excluding fuel) was consistent with prior year as contractual revenue growth was offset by lower rental demand.
Current report
FMS EBT increased 6% in the first quarter of 2026, primarily from higher contractual business performance, which benefited from strategic initiatives. Higher used vehicle sales results reflected improving market conditions. Used truck and tractor pricing decreased 5% and increased 6%, respectively. Rental power fleet utilization was 68% in the first quarter, compared to 66% in the prior year, on a 13% smaller average fleet.
Current report
SCS total revenue increased 2% in the first quarter of 2026, reflecting higher operating revenue (a non-GAAP measure excluding subcontracted transportation and fuel). SCS operating revenue increased 3% in the first quarter of 2026, driven by new business in omnichannel retail, partially offset by lost business and lower volumes in automotive.
Current report
SCS EBT decreased to $72 million in the first quarter of 2026, primarily reflecting lower automotive results and, to a lesser extent, productivity of new business ramping up.
Current report
DTS EBT decreased 15% in the first quarter of 2026, primarily reflecting lower operating revenue, partially offset by benefits from strategic initiatives.
Current report
Total CSS and Unallocated CSS costs increased 4% and 7%, respectively, in the first quarter of 2026, primarily due to higher incentive-based compensation costs.
Current report
(1) In April 2026, the long-term rating was upgraded to Baa1 with a stable outlook.
Current report
(1)Refer to the table below for a composition of Other items impacting comparability, net, for the 12-month rolling period.
Current report
(2)Represents income taxes on other items impacting comparability.
Current report
(3)Represents the impact of other items impacting comparability, net of tax, to equity for the respective periods.
Current report
•our expectations regarding trends in used vehicle sales and commercial rental, including pricing, volumes and sales channel mix;
Current report
•our expectations regarding ChoiceLease performance, including revenue and earnings;
Removed paragraphs (29)
Previous report
During the three and nine months ended September 30, 2025, the strength and diversification of our contractual portfolio and execution of strategic initiatives helped mitigate the impact of weak market conditions on used vehicle sales and commercial rental demand. We continue to benefit from favorable long-term secular trends in logistics and transportation solutions; however, we are experiencing near-term revenue growth headwinds that reflect the extended freight downturn and overall economic uncertainty. The favorable secular trends provide long-term revenue and earnings growth opportunities for all of our business segments.
Previous report
In our FMS business, solid ChoiceLease performance, driven by our lease pricing and maintenance cost-savings initiatives, delivered strong portfolio returns. Used vehicle sales and rental demand declined from the prior year during the three and nine months ended September 30, 2025, reflecting weaker freight market conditions. Rental utilization was 70% and 69% during the three and nine months ended September 30, 2025, respectively, compared to 71% and 69%, respectively, in the prior year, on a smaller fleet in 2025. We do not anticipate significant improvement in the current freight market conditions for the remainder of the year.
Previous report
Our SCS business benefited from operating revenue growth and improved operating performance from the optimization of the omnichannel retail network during the nine months ended September 30, 2025, despite unfavorable e-commerce network performance and increased medical costs during the third quarter of 2025. Our Dedicated Transportation Solutions (DTS) business continued to benefit from synergies related to the prior year acquisition of Cardinal Logistics, but generated less revenue given a reduction in fleet count resulting from the prolonged freight market downturn. We expect to realize further benefits from the acquisition for the remainder of 2025.
Previous report
EBT and comparable EBTincreased in thethird quarter andnine months ended September 30, 2025, primarily due to higher contractual earnings, partially offset by lower used vehicle sales and rental results reflecting weaker market conditions.
Previous report
Services gross margin decreased in the third quarter primarily reflecting e-commerce network performance and higher medical costs. Services gross margin increased for the nine months ended September 30, 2025, primarily reflecting improved operating performance from strategic initiatives despite third quarter unfavorable e-commerce performance and higher medical costs. Service gross margin percentage remained consistent in the third quarter and for the nine months ended September 30, 2025.
Previous report
Lease & related maintenance and rental gross margin and gross margin percentage increased in the third quarter and the nine months ended September 30, 2025, primarily due to higher ChoiceLease pricing and maintenance cost-savings initiatives.
Previous report
SG&A expenses increased 3% in the third quarter of 2025, primarily reflecting higher incentive compensation costs, intangible amortization expenses and information technology costs, partially offset by lower bad debt. SG&A expenses increased 1% for the nine months ended September 30, 2025, primarily reflecting higher incentive compensation costs, intangible amortization expenses and information technology costs, partially offset by lower travel expenses. SG&A expenses as a percentage of total revenue remained consistent at 12% for the third quarter and for the nine months ended September 30, 2025.
Previous report
(1) Represents percentage change compared to prior year period in average sales proceeds on used vehicle sales using constant currency.
Previous report
Average proceeds per unit remained consistent for tractors and increased 7% for trucks in the third quarter of 2025, sequentially from the second quarter, reflecting higher retail mix.
Previous report
Interest expense increased 4% and 6% in the third quarter and for the nine months ended September 30, 2025, respectively, primarily reflecting higher average debt.
Previous report
Miscellaneous Income, net
Previous report
"NM" - not meaningful
Previous report
Restructuring and other items, net for the nine months ended September 30, 2024, primarily reflects acquisition-related costs.
Previous report
FMS total revenue was relatively consistent in the third quarter of 2025 and decreased 1% for the nine months ended September 30, 2025, due to lower fuel service revenue, reflecting fewer gallons sold and lower fuel costs passed through to customers, offset by higher operating revenue. FMS operating revenue remained consistent in the third quarter of 2025 and increased 1% for the nine months ended September 30, 2025, primarily reflecting higher ChoiceLease revenue offset by weaker rental demand.
Previous report
FMS EBT increased 11% in the third quarter primarily due to higher ChoiceLease performance driven by pricing and lower maintenance costs, partially offset by used vehicle sales and rental results reflecting weaker market conditions. FMS EBT was relatively consistent for the nine months ended September 30, 2025. Lower used vehicle results reflect a 15% and 6% decrease in used truck and tractor pricing in the third quarter of 2025 and a 17% and 14% decrease in used truck and tractor pricing, respectively, in the nine months ended September 30, 2025. Rental power fleet utilization was 70% in the third quarter of 2025, compared with 71% in the prior year, and remained consistent at 69% for the nine months ended September 30, 2025 compared with the prior year. The average active power fleet was 6% smaller in the third quarter of 2025 and for the nine months ended September 30, 2025.
Previous report
SCS total revenue increased 5% in the third quarter of 2025 and 3% for the nine months ended September 30, 2025, primarily as a result of higher operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) and subcontracted transportation costs passed through to customers. SCS operating revenue increased 4% in the third quarter of 2025 and 3% for the nine months ended September 30, 2025, driven by new business as well as higher customer volumes.
Previous report
SCS EBT decreased 8% in the third quarter of 2025, as benefits from operating revenue growth were more than offset by e-commerce network performance and higher medical costs. SCS EBT increased 12% for the nine months ended September 30, 2025, primarily reflecting operating revenue growth and improved performance from optimization of our omnichannel retail network.
Previous report
DTS EBT remained consistent in the third quarter of 2025, and increased 10% for the nine months ended September 30, 2025, reflecting acquisition synergies and prior year integration costs, partially offset by lower operating revenue.
Previous report
Total CSS costs increased 5% in the third quarter of 2025, primarily due to higher information technology costs, and increased 6% for the nine months ended September 30, 2025, primarily due to higher information technology costs and incentive compensation.
Previous report
Unallocated CSS costs increased 23% in the third quarter of 2025, primarily due to higher information technology costs. Unallocated CSS costs increased 20% for the nine months ended September 30, 2025, primarily due to higher information technology costs and incentive compensation.
Previous report
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. OBBBA permanently reinstated 100% tax bonus depreciation, restored earnings before interest, taxes, depreciation and amortization as the basis for calculating the business interest expense limitation, restored immediate expensing for domestic research and experimental expenditures, and modified the Global Intangible Low-Taxed Income regime, among other items. OBBBA has multiple effective dates, with certain provisions effective in 2025, and others implemented through 2027. We expect these changes to reduce our annual U.S. federal cash tax liability by approximately $200 million in 2025 and anticipate it will defer the payment of federal tax for several years. There will be no impact on our 2025 effective income tax rate. We are still in the process of evaluating future year impacts of OBBBA on our consolidated financial statements.
Previous report
During the nine months ended September 30, 2025, we prefunded future required contributions of $60 million to our U.S. pension plan.
Previous report
In February 2025, we issued an unsecured medium-term note with aggregate principal amount of $300 million, bearing annual interest of 5.00%, and maturing on March 15, 2030. In May 2025, we issued an unsecured medium-term note with aggregate principal amount of $300 million, bearing annual interest of 4.85%, and maturing on June 15, 2030.
Previous report
In April 2025, we amended and restated our corporate revolving credit facility, which supports U.S. and Canadian commercial paper programs, with a syndicate of eleven incumbent lending institutions. The facility's committed borrowing capacity was increased to $1.6 billion and it now expires in April 2030. The credit facility is primarily used for general corporate purposes and can also be used to issue up to $150 million in letters of credit. As of September 30, 2025, there were no letters of credit outstanding against the facility.
Previous report
(1)For the three and nine months ended September 30, 2025, includes the income tax effects of other items impacting comparability and non-recurring income tax adjustments.
Previous report
(1)Refer to Note 6, "Revenue Earning Equipment, net," in the Notes to Condensed Consolidated Financial Statements for additional information.
Previous report
•our expectations regarding used vehicle sales and commercial rental;
Previous report
•our expectations regarding ChoiceLease revenue and earnings;
Previous report
•our intent to permanently reinvest the earnings of our foreign subsidiaries;
Reworded paragraphs (49)
Previous wording
The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto included under Item 1, as well as our audited consolidated financial statements and notes thereto and related MD&A included in the 2024 Annual Report on Form 10-K. All percentages have been calculated using unrounded amounts.
Current wording
The following Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and notes thereto included under Item 1, as well as our audited consolidated financial statements and notes thereto and related MD&A included in the 2025 Annual Report on Form 10-K. All percentages have been calculated using unrounded amounts. Certain prior period amounts have been reclassified to conform with the current period presentation.
Previous wording
Selected Operating Performance Items For The Third Quarter 2025
Current wording
Selected Operating Performance Items For The First Quarter 2026
Previous wording
•Diluted EPS from continuing operations of $3.33, up 2% from prior year
Current wording
•Diluted EPS from continuing operations of $2.34, up 2% from prior year
Previous wording
•Comparable EPS (a non-GAAP measure) from continuing operations of $3.57, up 4% from prior year, reflecting higher contractual earnings and share repurchases
Current wording
•Comparable EPS (a non-GAAP measure) from continuing operations of $2.54, up 3% from prior year, reflecting share repurchases, partially offset by lower earnings
Previous wording
•Total revenue of $3.2 billion, consistent with prior yearup —%
Current wording
•Total revenue of $3.1 billion, consistent with prior yearup —%
Previous wording
•Operating revenue (a non-GAAP measure) of $2.6 billion, up 1%, reflecting contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS)
Current wording
•Operating revenue (a non-GAAP measure) of $2.6 billion, consistent with prior year
Previous wording
While we are experiencing positive momentum in our businesses, other unknown effects from inflationary cost pressures, regulatory uncertainty, labor interruptions, introduction of tariffs and taxes and the continued higher interest rate environment may negatively impact demand for our business, financial results and significant judgments and estimates.
Current wording
While we are experiencing positive momentum in our businesses, other unknown effects from inflationary cost pressures, regulatory changes, geopolitical events, labor interruptions, introduction of tariffs and taxes and the continued higher interest rate environment may negatively impact demand for our business, financial results and significant judgments and estimates.
Previous wording
Total revenue was$3.2 billion in the third quarter of 2025, and $9.5 billion in the nine months ended September 30, 2025, consistent with prior year. Operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) increased 1% in the third quarter of 2025, and 2% for the nine months ended September 30, 2025, reflecting contractual revenue growth in SCS and FMS.
Current wording
Total revenue in the first quarter of 2026 was consistent with prior year. Operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) increased 1% in the first quarter of 2026, reflecting new business in SCS, partially offset by lower DTS fleet count.
Previous wording
Services revenue represents all the revenue associated with our SCS and DTS business segments, including subcontracted transportation and fuel, as well as SelectCare and fleet support services associated with our FMS business segment. Services revenue was consistent in the third quarter and increased 1% in the nine months ended September 30, 2025, primarily driven by new business and higher customer volumes in SCS and pricing, partially offset by lost business in DTS.
Current wording
Services revenue represents all the revenue associated with our SCS and DTS business segments, including subcontracted transportation and fuel, as well as SelectCare revenue associated with our FMS business segment. Services revenue decreased 1% in the first quarter of 2026, primarily driven by lower fleet count in DTS, partially offset by new business in SCS.
Previous wording
Cost of services represents the direct costs related to services revenue and is primarily comprised of salaries and employee-related costs, subcontracted transportation (purchased transportation from third parties), fuel, insurance and maintenance costs. Cost of services remained consistent in the third quarter of 2025, and increased 1% for the nine months ended September 30, 2025, consistent with revenue.
Current wording
Cost of services represents the direct costs related to services revenue and is primarily comprised of salaries and employee-related costs, subcontracted transportation (purchased transportation from third parties), fuel, equipment and maintenance costs. Cost of services decreased slightly less than revenue in the first quarter of 2026.
Previous wording
Lease & related maintenance and rental revenue represent revenue from our ChoiceLease and commercial rental product offerings within our FMS business segment. Revenue increased 2% in the third quarter and for the nine months ended September 30, 2025, reflecting ChoiceLease revenue growth, partially offset by lower rental demand.
Current wording
Lease & related maintenance and rental revenue represent revenue from our ChoiceLease and commercial rental product offerings within our FMS business segment. Revenue increased 1% in the first quarter of 2026, reflecting contractual revenue growth, partially offset by lower rental demand.
Previous wording
Cost of lease & related maintenance and rental represents the direct costs related to Lease & related maintenance and rental revenue and is comprised of depreciation of revenue earning equipment, maintenance costs (primarily repair parts and labor), and other costs such as licenses, insurance and operating taxes. Cost of lease & related maintenance and rental excludes interest costs from vehicle financing, which are reported within "Interest expense" in our Condensed Consolidated Statements of Earnings. Cost of lease & related maintenance and rental decreased 3% in the third quarter and 2% in the nine months ended September 30, 2025, primarily reflecting lower maintenance costs and a smaller lease and rental fleet.
Current wording
Cost of lease & related maintenance and rental represents the direct costs related to Lease & related maintenance and rental revenue and are comprised of depreciation of revenue earning equipment, maintenance costs (primarily repair parts and labor), and other costs such as licenses, insurance and operating taxes. Cost of lease & related maintenance and rental excludes interest costs from vehicle financing, which are reported within "Interest expense" in our Condensed Consolidated Statements of Earnings. Cost of lease & related maintenance and rental increased 2% in the first quarter of 2026, reflecting revenue growth, higher equipment costs and unfavorable development of prior year rental insurance claims.
Previous wording
Fuel services revenue represents fuel services provided to our FMS customers. Fuel services revenue decreased 4% in the third quarter primarily reflecting fewer gallons sold offset by higher fuel costs passed through to customers, and decreased 12% in the nine months ended September 30, 2025, primarily reflecting lower fuel costs passed through to customers and fewer gallons sold.
Current wording
Fuel services revenue represents fuel services provided to our FMS customers. Fuel services revenue increased 5% in the first quarter of 2026, primarily reflecting higher fuel prices passed through to customers, partially offset by lower gallons sold.
Previous wording
Cost of fuel services includes the direct costs associated with providing our customers with fuel. These costs include fuel, salaries and employee-related costs of fuel island attendants, and depreciation of our fueling facilities and equipment. Cost of fuel services decreased 6% in the third quarter and 13% in the nine months ended September 30, 2025, reflecting lower fuel costs and fewer gallons sold.
Current wording
Cost of fuel services includes the direct costs associated with providing our customers with fuel. These costs include fuel, salaries and employee-related costs of fuel island attendants and depreciation of our fueling facilities and equipment. Cost of fuel services remained unchanged in the first quarter of 2026, due to higher fuel prices offset by lower gallons sold.
Previous wording
Fuel services gross margin and fuel services gross margin as a percentage of revenue increased in the third quarter and for the nine months ended September 30, 2025. Fuel is largely a pass-through to customers for which we realize minimal changes in margin during periods of steady market fuel prices. However, fuel services margin is impacted by sudden increases or decreases in market fuel prices during a short period of time, as customer pricing for fuel is established based on current market fuel costs. Fuel services gross margin and fuel services gross margin as a percentage of revenue in the third quarter of 2025 and for the nine months ended September 30, 2025 were positively impacted by these price change dynamics.
Current wording
Fuel services gross margin and gross margin as a percentage of revenue increased in the first quarter of 2026, compared to prior year. Fuel is largely a pass-through to customers for which we realize minimal changes in margin during periods of steady market fuel prices. However, fuel services margin is impacted by sudden increases or decreases in market fuel prices during a short period of time, as customer pricing for fuel is established based on current market fuel costs. Fuel services gross margin and gross margin as a percentage of revenue for the first quarter of 2026 were impacted by these price change dynamics as fuel prices rapidly increased during the period.
Previous wording
Non-operating pension costs, net include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized.
Current wording
Non-operating pension costs, net include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized. Non-operating pension costs, net remained consistent in the first quarter of 2026.
Previous wording
Used vehicle sales, net includes gains or losses from sales of used vehicles, selling costs associated with used vehicles and write-downs of vehicles held for sale to fair market values (referred to as "valuation adjustments"). Used vehicle sales, net decreased in the third quarter and nine months ended September 30, 2025, due to lower pricing, reflecting weaker market conditions and lower retail mix.
Current wording
Used vehicle sales, net includes gains or losses from sales of used vehicles, selling costs associated with used vehicles and write-downs of vehicles held for sale to fair market values (referred to as "valuation adjustments"). Used vehicle sales, net increased primarily due to higher pricing from improved retail sales mix in the first quarter of 2026.
Previous wording
Average proceeds per unit decreased in the third quarter and for the nine months ended September 30, 2025. The following table presents the average used vehicle pricing changes compared to the prior year:
Current wording
The following table presents the average used vehicle proceeds per unit changes, using constant currency, compared to the prior year:
Previous wording
Miscellaneous income, net consists of investment income on securities used to fund certain benefit plans, interest income, gains on sales of operating property, foreign currency transaction remeasurement and other non-operating items. Miscellaneous income, net increased to $14 million in the third quarter of 2025, primarily due to higher investment income. Miscellaneous income, net decreased to $21 million for the nine months ended September 30, 2025, due to prior year gain on the sale of assets and insurance recoveries.
Current wording
Miscellaneous loss, net consists of investment income or loss on securities used to fund certain benefit plans, interest income, gains or losses on sales of operating property, foreign currency transaction remeasurement and other non-operating items. Miscellaneous loss, net was $1 million in the first quarter of 2026, compared to $6 million in prior year, primarily due to reduced investment portfolio losses.
Previous wording
In the third quarter of 2025, our effective tax rate on continuing operations was 27.1% compared to 24.0% in the prior year, and our comparable tax rate was 25.6% compared to 23.9% in the prior year. For the nine months ended September 30, 2025, our effective tax rate on continuing operations was 27.5% compared to 26.2% in the prior year, and our comparable tax rate was 26.5% and 26.1% in the prior year. The increase in tax rates for both periods was primarily due to discrete tax benefits in the third quarter of 2024.
Current wording
Our effective tax rate on continuing operations and comparable effective tax rate on continuing operations was 21.0% and 20.9% in the first quarter of 2026, respectively, compared to 26.8% and 25.6%, respectively, in the prior year. The decrease in tax rates was primarily due to excess tax benefits on stock-based compensation in the first quarter of 2026.
Previous wording
Our FMS segment leases revenue earning equipment, and provides rental vehicles, fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-segment EBT allocated to SCS and DTS includes earnings related to equipment used in providing services to SCS and DTS customers. EBT related to inter-segment equipment and services billed to SCS and
Current wording
Our FMS segment leases revenue earning equipment, and provides rental vehicles, fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-segment EBT allocated to SCS and DTS includes earnings related to equipment used in providing services to SCS and DTS customers. EBT related to inter-segment equipment and services billed to SCS and DTS customers (Equipment Contribution) are included in both FMS and the segment that served the customer and then eliminated upon consolidation (presented as "Eliminations").
Previous wording
(1)For the three months ended September 30, 2025 and 2024, rental revenue from lease customers in place of a lease vehicle represented 28% and 30% of commercial rental revenue, respectively. For the nine months ended September 30, 2025 and 2024, rental revenue from lease customers in place of a lease vehicle represented 29% and 32% of commercial rental revenue, respectively.
Current wording
(1)For the three months ended March 31, 2026 and 2025, rental revenue from lease customers in place of a lease vehicle represented 31% of commercial rental revenue for both periods.
Previous wording
DTS total revenue decreased 10% in the third quarter of 2025 and 3% for the nine months ended September 30, 2025, primarily due to lower operating revenue (a non-GAAP measure excluding fuel and subcontracted transportation) and subcontracted transportation costs passed through to customers. DTS operating revenue decreased 6% in the third quarter of 2025, and 1% in the nine months ended September 30, 2025, primarily due to lower fleet count reflecting the prolonged freight market downturn.
Current wording
DTS total revenue decreased 8% in the first quarter of 2026, primarily due to lower subcontracted transportation costs and operating revenue (a non-GAAP measure excluding subcontracted transportation and fuel). DTS operating revenue decreased 5% in the first quarter of 2026, reflecting lower fleet count due to prolonged freight market downturn.
Previous wording
Net cash provided by operating activities from continuing operations was $1.8 billion for the nine months ended September 30, 2025, compared to $1.7 billion in the prior year, primarily reflecting lower income tax payments. Net cash used in investing activities from continuing operations decreased to $1.4 billion for the nine months ended September 30, 2025, compared with $1.8 billion in 2024, primarily reflecting the prior year acquisition of Cardinal Logistics and lower capital expenditures. Net cash used in financing activities from continuing operations was $469 million for the nine months ended September 30, 2025, compared with cash provided by financing activities from continuing operations of $65 million in 2024, primarily reflecting lower borrowing needs and higher share repurchases.
Current wording
Net cash provided by operating activities from continuing operations was $583 million for the three months ended March 31, 2026, compared to $651 million in the prior year, primarily reflecting working capital needs. Our working capital needs are primarily influenced by the timing of receivable collections and vendor payments, as well as other changes in operating assets and liabilities. During the period, we had unfavorable impacts from the timing of receivable collections in our DTS and SCS segments and the timing of vendor payments. Net cash used in investing activities from continuing operations decreased to $321 million for the three months ended March 31, 2026, compared with $393 million in 2025, primarily reflecting lower capital expenditures. Net cash used in financing activities from continuing operations was $277 million for the three months ended March 31, 2026, compared with $261 million in 2025, primarily reflecting higher share repurchases partially offset with net borrowings in 2026 compared to net debt payments in 2025.
Previous wording
Free cash flow (a non-GAAP measure) increased to $496 million for the nine months ended September 30, 2025, compared to $218 million in 2024, primarily reflecting reduced cash capital expenditures and higher cash provided by operating activities.
Current wording
Free cash flow (a non-GAAP measure) increased to $273 million for the three months ended March 31, 2026, compared to $259 million in 2025, primarily reflecting reduced cash capital expenditures, partially offset by lower cash provided by operating activities.
Previous wording
Gross capital expenditures decreased to $1.6 billion for the nine months ended September 30, 2025, compared to $2.0 billion in 2024, primarily reflecting reduced investments in ChoiceLease and rental vehicles.
Current wording
Gross capital expenditures decreased to $409 million for the three months ended March 31, 2026, compared to $536 million in 2025, primarily reflecting the timing of ChoiceLease fleet replacement and reduced investments in the rental fleet.
Previous wording
Cash and cash equivalents totaled $189 million as of September 30, 2025. As of September 30, 2025, $148 million was held outside the U.S. and is available to fund operations and growth of non-U.S. subsidiaries. We consider the historical earnings of our former U.K. business to be no longer indefinitely reinvested. We consider the historical earnings of Mexico, along with our remaining foreign jurisdictions to be permanently reinvested. Federal, state and foreign income taxes, withholding taxes and the tax impact of foreign currency exchange gains or losses were considered on the remaining U.K. undistributed earnings as of September 30, 2025, and there was no impact to deferred taxes.
Current wording
Cash and cash equivalents totaled $182 million as of March 31, 2026. As of March 31, 2026, $141 million was held outside the U.S. and is available to fund operations and growth of non-U.S. subsidiaries. We continue to consider the historical earnings of our former U.K. business to be no longer indefinitely reinvested and determined that there was no impact to deferred taxes. We consider the undistributed earnings of our Mexico subsidiary generated through 2023 to be indefinitely reinvested. As of 2024, we no longer assert that the current year earnings of our Mexico subsidiary are indefinitely reinvested. We consider the undistributed earnings of our Canada subsidiary generated through 2024 to be indefinitely reinvested. As of 2025, we no longer assert that current year earnings of our Canada subsidiary are indefinitely reinvested. Our remaining foreign jurisdictions are indefinitely reinvested.
Previous wording
We believe that our operating cash flows, together with our access to the public unsecured bond market, commercial paper market and other available debt financing markets, will be adequate to meet our operating, investing and financing needs in the foreseeable future. However, volatility or disruption in the public unsecured debt market or the commercial paper market may impair our ability to access these markets or secure terms commercially acceptable to us. If we cease to have access to public bonds, commercial paper and other sources of unsecured borrowings, we would meet our liquidity needs by drawing upon contractually committed lending agreements or by seeking other funding sources.
Current wording
We believe that our cash generated from operations and our access to the commercial paper and public bond markets will be sufficient to meet our operating, investing and financing needs, including our debt maturities and other short‑term obligations, over the next twelve months. However, volatility or disruption in the commercial paper or public debt market may impair our ability to access these markets or secure terms commercially acceptable to us. If we cease to have access to commercial paper, public bonds and other sources of unsecured borrowings, we would meet our liquidity needs by drawing upon contractually committed lending agreements or by seeking other funding sources.
Previous wording
In April 2025, we extended the trade receivables financing facility for an additional year to April 2026. In September 2025, we amended our trade receivables financing facility to increase our borrowing capacity to $500 million as of September 30, 2025.
Current wording
In April 2026, we extended the trade receivables financing facility for an additional year to April 2027.
Previous wording
In accordance with our funding philosophy, we attempt to align the aggregate average remaining repricing life of our debt with the aggregate average remaining repricing life of our vehicle assets. We utilize both fixed-rate and variable-rate debt to achieve this alignment and generally target a mix of 20% - 40% variable-rate debt as a percentage of total debt outstanding. The variable-rate portion of our total debt (including notional value of swap agreements) was 22% and 18% as of September 30, 2025 and December 31, 2024, respectively.
Current wording
In accordance with our funding philosophy, we attempt to align the aggregate average remaining repricing life of our debt with the aggregate average remaining repricing life of our vehicle assets. We utilize both fixed-rate and variable-rate debt to achieve this alignment and generally target a mix of 20% - 40% variable-rate debt as a percentage of total debt outstanding. The variable-rate portion of our total debt (including notional value of swap agreements) was 18% as of both March 31, 2026 and December 31, 2025, respectively.
Previous wording
Our debt-to-equity ratio was 254% and 250% as of September 30, 2025 and December 31, 2024, respectively. The debt-to-equity ratio represents total debt divided by total equity.
Current wording
Our debt-to-equity ratio was 269% and 250% as of March 31, 2026 and December 31, 2025, respectively. The debt-to-equity ratio represents total debt divided by total equity.
Previous wording
The following table provides a reconciliation of GAAP earnings before taxes (EBT), earnings, and earnings per diluted share (Diluted EPS) from continuing operations to comparable EBT, comparable earnings, and comparable EPS. Certain items included in EBT, earnings, and Diluted EPS from continuing operations have been excluded from our comparable EBT, comparable earnings and comparable EPS measures. The following table lists a summary of these items, which are discussed in more detail throughout our MD&A and within the Notes to Condensed Consolidated Financial Statements:
Current wording
The following table provides a reconciliation of GAAP Earnings from continuing operations before income taxes (EBT), Earnings from continuing operations, and Earnings from continuing operations per common share — Diluted (Diluted EPS) to comparable EBT, comparable earnings, and comparable EPS. Certain items included in EBT, Earnings from continuing operations, and Diluted EPS have been excluded from our comparable EBT, comparable earnings and comparable diluted EPS measures. The following table lists a summary of these items, which are discussed in more detail throughout our MD&A and within the Notes to Condensed Consolidated Financial Statements:
Previous wording
(1)The effective tax rate on continuing operations and comparable tax rate are based on EBT and comparable EBT, respectively, found on the previous table.
Current wording
(1)The effective tax rate on continuing operations and comparable tax rate are based on EBT and comparable EBT, respectively, found above.
Previous wording
•our expectations with respect to the freight cycle and market conditions, including overall economic uncertainty;
Current wording
•our expectations regarding the freight cycle, market conditions and customer activity levels, including the impacts of overall economic uncertainty;
Previous wording
•our expectations with respect to demand for outsourced logistics and the impacts of outsourcing and other secular trends in our logistics and transportation solutions and on our business and financial results, including long-term revenue and earnings growth opportunities;
Current wording
•our expectations with respect to demand for outsourced logistics and transportation solutions, including the impacts of outsourcing and other secular trends on our business and financial results and related long-term revenue and earnings growth opportunities;
Previous wording
•our expectations regarding the supply of vehicles and vehicle parts and its effect on pricing and demand;
Current wording
•our expectations regarding the availability of vehicles and vehicle parts and the effects of supply conditions on pricing and demand;
Previous wording
•our expectations regarding the impact of labor shortages and interruptions and subcontracted transportation costs;
Current wording
•our expectations regarding the impact of labor market conditions, including shortages, disruptions and subcontracted transportation costs;
Previous wording
•our expectations in our SCS and DTS business segments related to revenue, earnings growth and contract sales activity;
Current wording
•our expectations for our SCS and DTS business segments, including revenue, earnings performance and contract sales activity;
Previous wording
•our expectations of cash flow from operating activities, free cash flow and full-year guidance;
Current wording
•our expectations regarding cash flow from operating activities, free cash flow, capital expenditures and full-year guidance;
Previous wording
•the adequacy of our accounting estimates and reserves for goodwill and other asset impairments, residual values and other depreciation assumptions, deferred income taxes and annual effective tax rates, variable revenue considerations, the valuation of our pension plans, allowance for credit losses and self-insurance loss reserves;
Current wording
•the adequacy of our accounting estimates and reserves, including those related to goodwill and asset impairments, residual values, depreciation assumptions, deferred income taxes, effective tax rates, variable revenue considerations, the valuation of our pension plans, allowance for credit losses and self-insurance loss reserves;
Showing the first 40 of 49 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
DTS customers (Equipment Contribution) are included in both FMS and the segment that served the customer and then eliminated upon consolidation (presented as "Eliminations").