MIAMI — Ryder has reported first quarter earnings — before taxes — of $114 million, down from $201 million in 2023’s first quarter.
It’s diluted per-share amount came in at $1.89, down from $2.95 in the first quarter of 2023.
Meanwhile, total revenue increased to $3.1 billion in 2024, up from $2.9 in the first quarter of 2023, according to the company’s financial report.
“Ryder delivered solid first-quarter results amid a challenging freight environment by continuing to execute on our balanced growth strategy,” said Ryder Chairman and CEO Robert Sanchez. “The outperformance in the quarter was driven by better-than-expected used vehicle results and benefits from our ongoing maintenance cost savings initiative. The actions we’ve taken to de-risk the model, enhance returns, and drive profitable growth are delivering improved results relative to prior cycles. ROE was 17% and in line with our target, reflecting the transformation of our business model and increased resiliency.
The company’s operating revenue sat at $2.4 billion, up from the first quarter in 2023 of $2.3 billion.
First-quarter capital expenditures decreased to $716 million in 2024, compared to $802 million in 2023, primarily reflecting lower investments in commercial rental.
First-quarter net cash provided by operating activities from continuing operations was $526 million compared to $478 million in 2023, primarily reflecting lower working capital needs.
Free cash flow (non-GAAP) of $13 million, compared to $101 million in 2023, reflects lower proceeds from sales of property and revenue-earning equipment.
Debt-to-equity as of March 31, 2024, was 246%, compared to 232% at year-end 2023, and remains below the company’s long-term target of 250% to 300%, the company’s financial report states.
Ryder’s Fleet Management Solutions (FMS) saw earnings reflect weaker market conditions in used vehicle sales and rental, partially offset by ChoiceLease results.
FMS total revenue and operating revenue decreased 3% and 1%, respectively, while total revenue reflects lower fuel costs passed through to customers and lower operating revenue.
Ryder’s Supply Chain Solutions (SCS) arm saw earnings reflect better operating performance.
SCS total revenue and operating revenue increased 8% and 11%, respectively. Total revenue reflects increased operating revenue and higher subcontracted transportation costs passed through to customers, while the increase in operating revenue was driven primarily by recent acquisitions, according to Ryder.
“We remain focused on profitable growth of our contractual lease, supply chain and dedicated businesses as part of our balanced growth strategy,” Sanchez said. “Higher ChoiceLease results and our maintenance cost saving initiative benefited FMS results. Strong automotive performance as well as earnings from recent acquisitions benefited SCS. In DTS, integration of the Cardinal acquisition is on track and we expect to achieve planned synergies.”
Sanchez reiterated that the company’s “strong balance sheet continues to provide us with capacity to fund organic growth, share repurchases and strategic acquisitions.”
“Throughout the current freight cycle downturn, our transformed business model has consistently outperformed prior cycles,” he concluded. “We remain confident that the changes we’ve made to the business will continue to generate higher highs and higher lows while positioning us to benefit from the cycle upturn.”
Born in Pine Bluff, Arkansas, and raised in East Texas, John Worthen returned to his home state to attend college in 1998 and decided to make his life in The Natural State. Worthen is a 20-year veteran of the journalism industry and has covered just about every topic there is. He has a passion for writing and telling stories. He has worked as a beat reporter and bureau chief for a statewide newspaper and as managing editor of a regional newspaper in Arkansas. Additionally, Worthen has been a prolific freelance journalist for two decades, and has been published in several travel magazines and on travel websites.
