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Ryder Q2 earnings, revenue beat expectations

Logistics giant sold 10,500 used vehicles during the second quarter

Ryder benefited from its recent acquisitions of Whiplash and Midwest Warehouse and Distribution System, which expanded the company’s delivery capabilities in its nationwide e-fulfillment network. (Photo: Ryder)

Ryder System Inc. rode a strong leasing and supply chain solutions market to achieve healthy quarterly earnings results, Chairman and CEO Robert Sanchez said. 

The Miami-based company announced its second-quarter earnings before the market opened Wednesday, followed by a call with analysts.

Ryder (NYSE: R) posted total revenue of $3.03 billion and adjusted earnings per share of $4.43 during Q2, beating analysts’ estimates of $2.85 billion and $4.10, respectively.

“We’re excited about what’s going on here. Obviously it was a great quarter for us,” Sanchez said. “We’re seeing really strong organic growth in our supply chain and dedicated businesses. With fleet management services, the most important thing is that the core leasing business is really generating some good returns and we still have some runway there.”

The leasing, fleet management, transportation and supply chain solutions provider increased its full-year 2022 outlook for adjusted earnings per share of $14.30 to $14.80, up from $13.40 to $14.40.

Ryder also adjusted its full-year return on equity (ROE) forecast to 25% to 26%, up from 24% to 26%; a net cash from continuing operations forecast of $2.3 billion; and an adjusted free cash flow forecast increase of $750 million to $850 million.


“These increases reflect higher than expected results for the balance of the year in rental and supply chain solutions,” Sanchez said. “The Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS) are on track to achieve their high single digit target for earnings before tax as a percent of operating revenue in the second half of the year, reflecting pricing adjustments to recover higher labor costs, as well as growth. Earnings in both segments increased sequentially, and DTS already reached its high single digit target in the second quarter.” 

Ryder System Inc.Q2/22Q2/21Y/Y% Change
Total revenue$3.03B$2.3B27%
Fleet Management Solutions$1.6B$1.4B15%
Supply Chain Solutions $1.1B$776M51%
Dedicated Transportation Solutions$450M$355M27%
Earnings per share$4.43$2.4085%
Information provided by Ryder System Inc.

Ryder’s flagship Fleet Management Solutions (FMS) segment saw revenue during the second quarter increase 15% on a year-over-year (y/y) basis to $1.6 billion. Revenue for the SCS segment rose 51% to $1.1 billion, and the DTS segment jumped 27% y/y in Q2 to $450 million.

Ryder’s FMS revenue increased due to greater rental revenue from stronger demand and higher pricing, along with fuel price increases passed through to customers.

As of Dec. 31, 2021, Ryder’s fleet management solutions segment accounted for 52% of annual revenue, while the supply chains solutions segment accounted for 33% and dedicated transportation solutions for 15%.

During the second quarter of 2022, Ryder sold 10,500 used vehicles with 6,500 related to the exit of the company’s FMS business in the United Kingdom announced in February. Excluding the U.K. departure, second-quarter sales of used vehicles were down 2,000 versus the same period last year.

“The lower sales were primarily due to lower inventory levels. We’re down 300 vehicles sequentially from the first quarter,” said John J. Diez, Ryder’s chief financial officer. 

Used inventory levels remain below Ryder’s long-term target range of 7,000 to 9,000 vehicles. Rental results benefited from record Q2 power-fleet utilization of 85% — up from 80% in the prior year — and a 6% increase in power-fleet pricing. 

Ryder also benefited from its recent acquisitions of Whiplash and Midwest Warehouse and Distribution System, which expanded the company’s delivery capabilities in its nationwide e-fulfillment network.

“Our two recent supply chain acquisitions performed above our expectations and continue to be accretive to earnings in the quarter,” Sanchez said. “Whiplash significantly grows our e-fulfillment network with scalable e-commerce and omnichannel fulfillment solutions, and Midwest expands our multi-client warehouse offering.”

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Florida, Maryland and Texas. Contact [email protected]
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