Nucor earnings beat by $0.08, revenue fell short of estimates
MIAMI - Ryder System, Inc. (NYSE:R) reported second-quarter adjusted earnings that exceeded analyst expectations on Thursday.
The company’s shares rose 2.07% in pre-market trading following the announcement.
The transportation and logistics company posted adjusted earnings per share of $3.32, surpassing the analyst estimate of $3.12, while revenue reached $3.19 billion, slightly above the consensus estimate of $3.17 billion.
The company’s earnings growth was driven by strong performance in its Supply Chain Solutions (SCS) segment, which delivered its ninth consecutive quarter of earnings growth. Ryder’s second-quarter adjusted EPS increased 11% YoY, reflecting higher contractual earnings and the impact of share repurchases that have reduced the company’s share count by 21% since 2021.
"The Ryder team delivered our third consecutive quarter of double-digit growth in earnings per share," said Ryder Chairman and CEO Robert Sanchez. "Earnings in the second quarter were above our expectations driven by better supply chain performance, partially offset by additional used vehicle wholesale volumes."
Total (EPA:TTEF) revenue remained consistent with the prior year at $3.2 billion, while operating revenue (non-GAAP) increased 2% to $2.6 billion, reflecting contractual revenue growth in both Supply Chain Solutions and Fleet Management Solutions segments.
The company’s Supply Chain Solutions business was the standout performer, with earnings before tax increasing 16% to $99 million. Meanwhile, the Fleet Management Solutions segment saw earnings decline 6% to $126 million, as higher ChoiceLease performance was offset by weaker used vehicle sales amid challenging market conditions.
Looking ahead, Ryder raised its 2025 free cash flow forecast by $500 million to a range of $900 million to $1 billion, citing lower capital spending and the permanent reinstatement of tax bonus depreciation. For the third quarter, the company expects adjusted EPS of $3.45-$3.65, while full-year adjusted EPS is projected at $12.85-$13.30.
"We continue to expect earnings growth in 2025 reflecting ongoing execution on our initiatives and the strength of our contractual businesses," said Ryder Chief Financial Officer Cristina Gallo-Aquino.
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