Ryder tops Q3 expectations as contractual business offsets freight weakness

Investing.com -- Ryder System on Thursday reported third quarter 2025 earnings that exceeded analyst expectations, as the company’s contractual business segments helped offset ongoing weakness in the freight market.

Shares of Ryder rose 0.8% following the announcement.

The transportation and logistics company posted adjusted earnings per share of $3.57, beating the analyst consensus of $3.54. Revenue came in at $3.17 billion, essentially flat YoY and slightly below the $3.18 billion consensus estimate. Operating revenue, which excludes fuel and subcontracted transportation, increased 1% to $2.61 billion.

"Ryder delivered our fourth consecutive quarter of earnings-per-share growth," said Ryder Chairman and CEO Robert Sanchez.

"Earnings were in line with our expectations as operating performance from our resilient contractual businesses and benefits from our strategic initiatives more than offset the impact from freight market conditions."

The company’s Fleet Management Solutions segment saw earnings before tax increase 11% to $146 million, driven by higher ChoiceLease performance from pricing and maintenance cost-saving initiatives.

This growth was partially offset by weaker used vehicle sales, with tractor pricing down 6% and truck pricing down 15% from the prior year.

Supply Chain Solutions revenue increased 5% to $1.38 billion, though earnings before tax declined 8% to $86 million due to e-commerce network performance issues and higher medical costs.

For the full year 2025, Ryder reaffirmed its guidance for adjusted earnings per share of $12.85 to $13.05, in line with the analyst consensus of $12.98. The company expects free cash flow of $900 million to $1 billion.

"The earnings power of our transformed business model continues to provide us with ample capacity for value-enhancing capital deployment," Sanchez added. The company’s board recently authorized a new two-million-share repurchase program.

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