Ryder Posts Strong Third-Quarter 2026 Earnings and Raises Full-Year Forecast
Ryder System. reported strong financial results for the third quarter of 2026, delivering double-digit earnings growth and raising its full-year financial outlook as improving freight market conditions and strategic initiatives continued to support business performance. The company recorded higher revenue across its business segments, reflecting contractual growth, improved used-vehicle sales and stronger performance in rental operations.
Ryder reported GAAP earnings per share (EPS) from continuing operations of $4.16, representing a 25% increase compared with the same period last year. Comparable EPS from continuing operations, a non-GAAP measure, reached $4.33, up 21% year over year. The improvement reflected higher earnings in Fleet Management Solutions (FMS) and the impact of share repurchases.
Total revenue for the quarter increased 8% from the prior-year period to $3.4 billion, supported by higher revenue across all business segments. Operating revenue, excluding fuel and subcontracted transportation costs passed through to customers and measured on a non-GAAP basis, grew 6% to $2.8 billion. Contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions contributed to the increase.
The results marked Ryder’s eighth consecutive quarter of earnings-per-share growth, demonstrating the company’s ability to maintain earnings momentum while pursuing operational improvements and responding to changing market conditions.
Ryder Raises Its Full-Year 2026 Financial Outlook
Following its third-quarter performance, Ryder increased its full-year 2026 outlook for return on equity and comparable earnings per share. The revised forecast reflects confidence in the company’s operating performance, the contribution of strategic initiatives and improving conditions in the freight market.
The company now expects full-year return on equity (ROE), measured on a non-GAAP basis, to reach 18% to 19%. Its comparable EPS forecast has also been raised to a range of $14.85 to $15.05.
Ryder maintained its expectation for operating revenue growth of approximately 3% for the full year, primarily driven by Supply Chain Solutions. The company also reaffirmed its forecast for net cash provided by operating activities from continuing operations at $2.6 billion.
Full-year free cash flow, a non-GAAP measure, remains forecast at $700 million to $800 million. Capital expenditures are expected to total $2.4 billion, unchanged from the company’s previous forecast.
The outlook reflects Ryder’s focus on balancing business growth, operational efficiency, capital investment and cash generation while continuing to support customers across its transportation and logistics operations.
Management Highlights Strategic Progress and Improving Market Conditions
Ryder Chief Executive Officer John Diez said the company delivered double-digit earnings growth during the quarter, extending its consecutive run of year-over-year earnings-per-share improvements.
According to Diez, strong operating results reflected continued execution of strategic initiatives, alongside improving performance in used-vehicle sales and rental operations. Ryder remains on track to deliver return on equity above 18% and generate more than $70 million in benefits from strategic initiatives during 2026.
Diez also noted that all business segments delivered earnings in line with their long-term targets. Within Fleet Management Solutions, pretax earnings as a percentage of operating revenue increased to 13.2%, reflecting the strength of Ryder’s lease portfolio and early benefits from the recovery in freight markets.
Contractual sales activity remained strong across all three business segments during the quarter, with activity accelerating in leasing and dedicated transportation. The company also reported that used-vehicle sales exceeded expectations, supported by better-than-anticipated pricing and higher sales volumes.
Ryder believes its established customer relationships, broad transportation and logistics capabilities, and transformed operating model position it to respond to customers’ growing requirements. Management expects these strengths to remain important drivers of long-term earnings growth.
Fleet Management Solutions Benefits From Higher Revenue and Used-Vehicle Pricing
Fleet Management Solutions delivered strong results in the third quarter, with total revenue increasing 10% year over year and operating revenue rising 5%.
The increase in total revenue reflected higher fuel prices passed through to customers, together with growth in operating revenue. Operating revenue benefited from contractual revenue growth, highlighting continued demand for Ryder’s fleet leasing and related services.
The segment generated earnings before taxes (EBT) of $177 million. Its performance reflected the contribution of strategic initiatives, improving used-vehicle market conditions and continued strength in the company’s ChoiceLease offering.
Strategic initiatives continued to benefit ChoiceLease performance, supporting the company’s broader efforts to improve operating efficiency and strengthen profitability. The lease portfolio also contributed to the segment’s results, with management pointing to the quality of the portfolio and early signs of a freight market recovery.
Used-Truck and Tractor Prices Improve
Ryder’s used-vehicle sales performance was stronger than anticipated during the quarter. Used-truck prices increased 5% compared with the prior-year period, while used-tractor prices rose 19%.
Sequential comparisons also showed further improvement. Used-truck prices increased 6% from the preceding quarter, while used-tractor prices climbed 15%. These gains indicate stronger pricing conditions in the used commercial vehicle market and contributed to the segment’s overall performance.
The improvement in pricing and sales volumes was an important factor in Ryder’s results, as the company continued to benefit from more favorable conditions for remarketing used vehicles.
Rental Fleet Utilization Strengthens
Ryder also reported an improvement in rental power-fleet utilization, which reached 77% during the third quarter, compared with 70% in the same period last year.
The higher utilization rate was achieved with an average rental fleet that was 12% smaller than in the prior-year period. This combination indicates improved utilization of available equipment and reflects the company’s focus on managing fleet capacity in line with demand.
Better rental performance, stronger used-vehicle pricing and continued benefits from strategic initiatives helped support Fleet Management Solutions’ earnings during the quarter.
Dedicated Transportation Solutions Reports Mixed Revenue Performance
Dedicated Transportation Solutions (DTS) recorded a 6% increase in total revenue during the third quarter, although operating revenue declined 1% compared with the prior-year period.
The increase in total revenue reflected higher fuel and subcontracted transportation costs passed through to customers. These increases were partially offset by lower operating revenue.
Operating revenue was affected by a lower fleet count, although higher pricing provided a partial offset. The results illustrate the difference between reported total revenue, which includes certain pass-through costs, and operating revenue, which more directly reflects underlying business activity.
DTS generated earnings before taxes of $34 million during the quarter.
The segment’s earnings primarily reflected lower operating revenue and the absence of a workers’ compensation insurance benefit recorded in the prior-year period. These factors were partially offset by cost savings generated through Ryder’s strategic initiatives.
The company’s continued emphasis on cost management and operational efficiency helped mitigate some of the pressure from lower operating revenue. However, the segment’s performance remained affected by fleet levels, pricing and comparisons with prior-year items.
Ryder’s results across its business segments demonstrate how revenue trends can vary depending on customer demand, contractual activity, equipment utilization and the mix of transportation services provided.
Tax Rates Increase Compared With the Prior Year
Ryder reported an effective tax rate on continuing operations of 28.1% for the third quarter of 2026. Its comparable effective tax rate on continuing operations, measured on a non-GAAP basis, was 27.7%.
In the prior-year period, the corresponding rates were 27.1% and 25.6%, respectively.
The increase in both measures primarily reflected a discrete tax benefit associated with stock-based compensation recorded in the previous year. The comparison therefore includes a prior-period benefit that did not recur to the same extent in the current quarter.
Although the tax-rate increase affected the year-over-year comparison, Ryder still delivered significant growth in both GAAP and comparable earnings per share, supported by stronger segment performance and share repurchases.
Capital Expenditures Reflect Fleet Investment Timing
Ryder continued to manage capital spending in line with fleet replacement requirements and business investment priorities.
Capital expenditures declined to $1.4 billion in 2026 from $1.6 billion in 2025, primarily reflecting the timing of ChoiceLease fleet replacements.
Despite the lower spending during the period, Ryder maintained its full-year capital expenditure forecast at $2.4 billion. The company expects higher rental investments during the second half of 2026 to be offset by lower lease-related spending associated with the timing of lease sales activity.
The forecast reflects the timing and composition of investment across Ryder’s fleet operations rather than a change in the company’s overall capital expenditure expectations.
Fleet investment remains important to Ryder’s ability to support customer requirements, maintain service quality and manage the availability of vehicles and equipment across its leasing, rental and transportation businesses.
Cash Flow Improves Significantly
Ryder reported a substantial improvement in cash generation during the period. Net cash provided by operating activities from continuing operations reached $2.0 billion, compared with $1.8 billion in 2025.
The increase primarily reflected lower working capital requirements, which supported cash generation from continuing operations.
Free cash flow, a non-GAAP measure, increased to $992 million from $496 million in the prior-year period. The improvement primarily resulted from lower cash capital expenditures and higher cash provided by operating activities.
The increase in free cash flow highlights the company’s ability to generate cash while continuing to invest in its fleet and operating capabilities. It also provides additional financial flexibility as Ryder manages capital requirements and pursues its longer-term growth objectives.
Despite the stronger cash flow reported for the period, the company maintained its full-year free cash flow forecast at $700 million to $800 million. Its outlook for net cash provided by operating activities from continuing operations also remained unchanged at $2.6 billion.
Leverage Moves Below Long-Term Target Range
Ryder’s debt-to-equity ratio stood at 242% as of September 30, 2026, compared with 250% as of December 31, 2025.
The latest ratio was slightly below the company’s long-term target range of 250% to 300%. The reduction reflects a change in the company’s leverage position over the period and provides context for its capital structure as it continues investing in transportation and logistics operations.
The company’s improved cash generation and continued focus on financial discipline remain important elements of its broader financial strategy. Ryder is seeking to balance investment in its operating businesses with sustainable returns and effective management of its balance sheet.
Outlook Supported by Operational Execution and Freight Market Recovery
Ryder’s third-quarter results reflect a combination of improved financial performance, continued execution of strategic initiatives and more favorable conditions in selected transportation-related markets.
Higher contractual revenue in Fleet Management Solutions and Supply Chain Solutions contributed to operating revenue growth, while improved used-vehicle pricing and rental utilization strengthened Fleet Management Solutions. Cost savings helped offset some of the pressures affecting Dedicated Transportation Solutions.
The company also benefited from improved cash generation and a lower debt-to-equity ratio compared with the end of 2025. These developments provide additional context for Ryder’s decision to raise its full-year return-on-equity and comparable-EPS forecasts while maintaining its revenue and cash flow expectations.
Management expects the company’s customer relationships, broad service capabilities and strategic initiatives to continue supporting its performance as freight market conditions improve.
With comparable EPS now forecast at $14.85 to $15.05 and non-GAAP return on equity expected to reach 18% to 19%, Ryder is targeting another year of strong financial performance. The company remains focused on contractual growth, disciplined fleet management, cost efficiency and cash generation as it responds to evolving customer demand across the transportation and logistics sector.
Overall, the third quarter marked another period of earnings growth for Ryder, supported by stronger fleet management results, favorable used-vehicle pricing and ongoing operational improvements. The company’s raised earnings outlook signals confidence in the momentum established during the first nine months of 2026, while its unchanged revenue, capital expenditure and cash flow forecasts reflect a continued emphasis on disciplined execution for the remainder of the year.
About
Ryder System, Inc. delivered strong third-quarter 2026 results, supported by double-digit earnings growth, improved used-vehicle pricing, higher rental fleet utilization and continued progress on strategic initiatives. The company’s stronger cash flow and improved operating performance enabled it to raise its full-year comparable earnings-per-share forecast to $14.85–$15.05 and its return-on-equity outlook to 18%–19%. While performance varied across business segments, Ryder continued to focus on cost efficiency, disciplined fleet management and contractual growth. With improving freight market conditions and a strong customer base, the company remains positioned to pursue sustainable growth and profitability while maintaining its existing revenue, capital expenditure and cash flow forecasts for 2026.