Ryder’s Q2 Success: Year Over Year
Surging Profit And New Revenue Records

Ryder System Inc. shared their earnings report for the second quarter of 2024, showing a big increase in profit and a steady rise in revenue. The company’s strategies and recent acquisitions have clearly paid off.

Main Financial Highlights

Big Profit Increase: Ryder had a profit of $127 million, or $2.84 per share. This is a big change from last year when they had a loss of $18 million. This improvement is partly because they didn’t have to deal with a $183 million charge related to their Fleet Management Services (FMS) division in the UK, which affected last year’s results.

Revenue Growth: Ryder’s total revenue went up by 10% to $3.182 billion from $2.884 billion last year. They did fall short of the expected $3.24 billion, but the growth is still impressive.

Performance by Division

Fleet Management Solutions (FMS): This is Ryder’s biggest division. It saw a small revenue increase of 1% to $1.478 billion. The fleet size also grew by 6% year-over-year to 146,000 vehicles.

Used Vehicle Sales: Ryder sold 6,000 used vehicles in Q2, which is 9% more than the 5,500 sold last year. However, prices for used tractors and trucks dropped by 19% and 27%, respectively​.

Supply Chain Solutions (SCS): The SCS division had a strong performance with a 14% revenue increase to $1.341 billion. This was helped by a strong automotive sector and more companies looking to outsource.

Dedicated Transportation Solutions (DTS): This division had the biggest growth, with a 44% increase in revenue to $635 million, thanks to buying Cardinal Logistics.

Future Plans and Outlook

Ryder’s CEO, Robert Sanchez, talked about how the company’s new business model is strong and performing well. He mentioned that the return on equity (ROE) was 16%, which matches their expectations even during tough economic times. The integration of Cardinal Logistics is going well and has contributed to their growth​.

Looking ahead, Sanchez is hopeful about long-term growth in all business areas. He pointed out favorable market trends and large addressable markets. However, he also noted the current economic uncertainty and weak freight conditions, which are causing some customers to delay fleet decisions​.

Looking Ahead

Ryder’s Q2 success shown in their earnings report highlights the company’s strong performance and successful strategy. Despite economic challenges, Ryder is set for continued growth, supported by their strong operational performance and strategic initiatives.

For more details on Ryder System Inc. financial performance and future plans, visit Ryder’s official investor relations page.