Oct 22, 2026 earnings call — Upgraded outlook driven by rental and used vehicle recovery
Ryder raised its full year 2026 comparable EPS forecast to a range of $14.85-$15.05.
Revenue $2.8B (est $3.4B) · EPS $4.33 (est $4.15)
Key quotes
"Over 90% of our revenue is generated by long-term contracts, and this high-quality contractual base has proven to be a key driver of business model resilience over the cycle."
"During the quarter, we sold 5,100 used vehicles, in line with prior quarter, and up 200 units year-over-year."
"As shown on the slide, over a three-year period, we expect to generate approximately $10.5 billion from operating cash flow and used vehicle sales proceeds."
Analyst Q&A 10
driver wages and Dedicated impact
Q (Jordan Alliger · Goldman Sachs): Analyst asked about driver-related cost pressures, difficulty getting drivers in Dedicated, and whether wage inflation forces contract rework or hurts Dedicated margin.
A: Management said Dedicated is mostly specialized private-fleet conversions with experienced drivers and different wage structures. They have introduced inflationary adjusters in many contracts and see only limited, targeted wage pressure; recruiting and contract levers provide protection.
"Overall, we're seeing about a mid-single-digit wage increase in certain regions, so it's very targeted, not a wide range nationwide issue." — Steve Sensing (PRESIDENT)
timing of driver cost recovery; FMS upside split
Q (Brian Ossenbeck · JPMorgan): First, asked if there is a timing mismatch pushing driver wage increases through to customers and whether Cardinal contracts needed changes. Second, asked how the added $20 million to $40 million FMS benefit splits by quarter and into next year.
A: They said there is usually a bit of a lag in recovering wage increases but so far no significant drag, and many acquired contracts already have protection. On the FMS upside, much of the improvement is from used-vehicle performance and better retail/wholesale mix, with early rental inflection contributing and expectations that Q4 will be better than last year's Q4.
"I would say there's usually a bit of a lag. We're not seeing any significant drag in our business as of yet." — John Diez (CEO)
peak season strength across businesses
Q (Nancy · Morgan Stanley): Asked for thoughts on peak season strength across Dedicated, Lease, and Supply Chain businesses.
A: They said demand accelerated in the quarter across businesses. Dedicated continued momentum, lease had good sales activity, supply chain sales were solid, transactional businesses improved, used vehicle pricing strengthened, and rental utilization rose into the high 70s and should carry into Q4.
"We saw Dedicated Transportation Solutions continue to build on the momentum we saw in Q2, as well as lease, where we saw good activity." — John Diez (CEO)
will customers commit to dedicated capacity?
Q (Speaker 9): Asked if customers are more willing to commit to dedicated capacity and what must change for fleet growth to turn positive.
A: They said they are seeing more activity for dedicated as spot rates rose and good quality capacity left the market, so customers seek service at reasonable prices. Pipeline remains healthy, lost business is down year-over-year, and fleet conversions are accelerating due to tighter driver environment and higher insurance and equipment costs.
"What we are seeing is actually more activity from dedicated capacity as the spot rate market has moved up and good quality capacity has been taken out of the market." — John Diez (CEO)
capital priorities and supply chain outlook
Q (Brandon Oglenski · Barclays): Asked how management prioritizes capital (including M&A) given returns, and how supply chain gets back to long-term growth and margin targets after a contract loss.
A: They said they have capacity on the balance sheet and are at the low end of targeted leverage 2.50, so first priority is grow fleet and rebuild rental fleet (down almost 30% from peak), then opportunistic M&A and returning capital. On supply chain, they lapped the lost automotive account, grew revenue 9% year-over-year, delivered above 8% margin, and expect high-single-digit targets to continue; M&A would be needed to reach low double digits.
"Our first priority would be to continue to grow the fleet, rebuild the rental fleet, which is down almost 30% from peak levels." — John Diez (CEO)
why ChoiceLease revenue per active rose; growth outlook
Q (Rob Salmon · Wells Fargo): Asked what drove roughly a 200 basis point acceleration in revenue per active in ChoiceLease and whether ChoiceLease fleet can grow sequentially into Q4 and beyond.
A: They said the pickup reflects two factors: higher inflation on new equipment at renewals and pricing discipline with target spreads, plus record redeployment of equipment. Fleet level has flattened and could uptick in Q4, with the overall business growing mid-single digits today and lease expected to be mid to high single digits as fleet grows while SelectCare stays mid-single digits.
"One, obviously, as we renew the new equipment, you've got higher inflation on that equipment, and then we are making sure that our pricing discipline and hitting our target spreads is showing through." — John Diez (CEO)
investor perception study results
Q (Bascome Majors · Stephens): Asked for early findings from an investor perception study and how board/management will use it.
A: Management said they have not seen or reviewed the study results yet and it would be premature to comment. They added that shareholders have generally been pleased with execution, the business mix change, margin expansion, and they are focused on port-to-door solutions going forward.
"I have not seen the results of that, or reviewed that, so it'll be premature for me to comment on that." — John Diez (CEO)
which equipment and industries are stronger
Q (Jeff Kauffman · Citizens Bank): Asked whether certain equipment types, industry segments, or regions are stronger and about tractor availability and timing to grow rental tractor fleet.
A: They said customers are adding fleet across all three asset classes, with Dedicated seeing higher demand in construction and industrial. Rental showed tractor acceleration and they plan to grow the tractor fleet by 10% as they move into next year; management said the 10% increase is from Q3 to Q4 and they have already placed a significant tractor order and availability of slots is not an issue.
"Just to clarify a point, the 10% increase will be from Q3 to Q4, so we've made a pretty significant tractor order already." — Tom Havens (PRESIDENT)
used vehicle target and dedicated pricing trends
Q (Ben Mohr · Citi Bank): Asked about the used vehicle sales net target and risks to it, and whether dedicated contract pricing is ramping like other truckload carriers.
A: They said they initially signaled about $40 million for the full year and are now signaling closer to $50 million than $60 million, driven by lower market inventories, lower company inventory near the low end of 7,000, and a higher retail mix; they expect retail mix to reach the 70s next year. On Dedicated, they said their business is specialized (not typical truckload) and has contractual levers to recoup wage inflation; they expect disciplined pricing and opportunities as capacity tightens.
"We are now signaling up more closer to, I would say, to $50 million than to $60 million, as you called out." — John Diez (CEO)
is pricing change like-for-like or mix-driven?
Q (Brian Ossenbeck · JPMorgan): Asked whether the sequential pricing gains (15% tractors, mid-single digits trucks) are like-for-like or affected by mix, and how much of the tractor gain is due to retail mix shift.
A: They said there is noise from retail/wholesale mix — the tractor benefit was inflated by retail mix — but like-for-like pricing continues to improve across asset classes. Absent the retail mix shift, the tractor improvement would probably be high to low double digits, and they estimated about 700 basis points of benefit from the mix.
"No, I would say, look, I think absent the retail wholesale mix shift, it will probably be high to low double digits on the tractor side. It is about 700 basis points that it benefited from." — Tom Havens (PRESIDENT)