Ryder System Reports $3.131 Billion Revenue and 15% Earnings Growth in Q1 2025

Ryder System, Inc. reported a total revenue of $3.131 billion for the first quarter of 2025, reflecting a 1% increase from $3.098 billion in the same period last year. The company's earnings from continuing operations rose to $98 million, or $2.29 per diluted share, marking a 15% increase in profitability compared to $85 million, or $1.89 per diluted share, in the prior year. The growth in earnings was attributed to higher contractual earnings across all segments, despite facing challenges in the commercial rental and used vehicle sales markets.

In terms of operational performance, Ryder's Fleet Management Solutions (FMS) segment reported a slight decline in total revenue to $1.447 billion, down 1% from $1.455 billion in the previous year. This decrease was primarily driven by lower fuel services revenue, which fell by 8%. Conversely, the Supply Chain Solutions (SCS) segment experienced a 2% increase in revenue to $1.331 billion, while the Dedicated Transportation Solutions (DTS) segment saw a 7% rise to $602 million. The overall increase in revenue was supported by new business and improved customer volumes, particularly in the SCS segment.

Ryder's operational metrics indicated a stable customer base, with the average rental fleet utilization remaining at 66% for both the first quarters of 2025 and 2024. The company also reported a total of 41,340,792 shares of common stock outstanding as of March 31, 2025. The company’s cash flow from operating activities increased significantly to $651 million, up from $526 million in the prior year, reflecting improved working capital management. Free cash flow surged to $259 million, compared to just $13 million in the same quarter of 2024.

Strategically, Ryder has focused on enhancing its service offerings and operational efficiencies. The company continues to benefit from synergies related to its acquisition of Cardinal Logistics, which was completed in February 2024. Additionally, Ryder has amended its corporate revolving credit facility, increasing its borrowing capacity to $1.6 billion, which is expected to support its operational and growth initiatives through 2030. The company remains cautious about potential headwinds from inflationary pressures, labor shortages, and market volatility, which could impact future performance.

Looking ahead, Ryder anticipates continued growth driven by favorable long-term trends in logistics and transportation solutions. However, the company acknowledges the challenges posed by current economic uncertainties and the extended freight downturn. Management remains focused on executing strategic initiatives to mitigate these impacts and enhance profitability across its business segments.