Supply chain firm Ryder's Q2 revenue remains flat

Overview

• Ryder Q2 adjusted EPS rises 11% yr/yr, beating analyst expectations

• Total revenue for Q2 remains flat at $3.2 bln

• Operating revenue grows 2% driven by SCS and FMS contractual growth

Outlook

• Ryder expects FY25 comparable EPS of $12.85 - $13.30

• Company raises FY25 free cash flow forecast by $500 mln

• Ryder anticipates 3Q25 comparable EPS of $3.45 - $3.65

• Company projects FY25 adjusted ROE of 17%

Result Drivers

• CONTRACTUAL PORTFOLIO - Earnings growth driven by resilient contractual portfolio and strategic initiatives

• SCS PERFORMANCE - Record earnings in SCS due to strategic initiatives and new business

• FMS CHALLENGES - Contractual earnings growth in FMS partially offset by weaker used vehicle sales market

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Ryder System Inc is $183.00, about 5.6% above its July 23 closing price of $172.82

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw5tjPgla