MIAMI, Fla. — Ryder System Inc. has reported $3.2 billion total revenue for Q2 in 2024 compared to $2.9 billion for Q2 2023.
“Ryder delivered solid second-quarter results and continued to outperform prior cycles,” said Robert Sanchez, Ryder chairman and CEO. “Comparable EPS were above our forecast primarily reflecting better-than-expected ChoiceLease results. ROE of 16% demonstrated the increased resilience of our transformed business model and is in line with our expectations for the latter stage of a freight-cycle downturn.
Sanchez added that contractual lease, dedicated, and supply chain businesses generated higher year-over-year earnings. Higher ChoiceLease results and maintenance cost-savings initiatives benefited FMS. Strong automotive performance benefited SCS. In DTS, integration of the Cardinal Logistics acquisition remains on track and the company continues to expect to achieve planned synergies.
“Long-term secular growth trends remain intact for all of our contractual businesses, although we are experiencing near-term sales headwinds that include customer fleet reductions and delayed decision-making that reflect the extended freight downturn and overall economic uncertainty,” Sanchez said. We remain well positioned to grow with our customers as conditions improve.
According to Sanchez, a strong balance sheet and increased return profile gives the company ample capacity to support organic growth and strategic acquisitions and return capital to shareholders through share repurchases and dividends. Ryder recently announced a 14% increase to its quarterly dividend which Sanchez said demonstrates continued confidence in the earnings power of the company’s transformed business model.
Looking Forward
“Our high-performing contractual portfolio and transformed business model have enabled us to deliver solid results amid a challenging freight environment,” said John Diez, Ryder CFO. “The business remains well positioned to benefit from the expected cycle upturn with ample capacity to fund growth, pay a reliable dividend, and return capital to shareholders. The high end of our full-year forecast range continues to assume a gradual recovery in rental and used vehicle sales in the second half, while the bottom end reflects ongoing weak conditions. We now expect to generate higher free cash flow for the year reflecting lower capital spending due to softer lease sales activity.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
