10-Q · July 23, 2026
Ryder delivered Q2 revenue of $3.347 billion and comparable EPS of $3.73, exceeding consensus by $55 million and $0.06, respectively. Revenue improved both sequentially and year over year, and management raised FY2026…
Earnings analysis · 10-Q
R earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Ryder delivered a strong third quarter, with revenue up 8% to $3.433 billion, reported diluted EPS of $4.15, comparable EPS of $4.33, and FMS-led segment earnings growth. Cash generation improved substantially, with…
Read full summary
Ryder delivered a strong third quarter, with revenue up 8% to $3.433 billion, reported diluted EPS of $4.15, comparable EPS of $4.33, and FMS-led segment earnings growth. Cash generation improved substantially, with nine-month free cash flow of $992 million versus $496 million, while lower capital spending supported liquidity. The main offsets are continued DTS weakness, lower year-to-date SCS profitability, higher short-term debt maturities, and an expected approximately $240 million non-cash pension settlement charge in Q4.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.15
- Gross margin
- 19.9%
What stood out
-
Revenue and EPS accelerated
Third-quarter revenue was $3.433 billion, up 8% from $3.171 billion in the prior-year quarter and up from $3.35 billion in 2026 Q2. Diluted EPS from continuing operations was $4.16 versus $3.33, while comparable EPS was $4.33 versus $3.57.
-
Services margin improved
Derived consolidated gross profit was $685 million, or approximately 19.9% of revenue, versus approximately 21.0% in 2025 Q3 based on the reported segment cost categories. Services gross margin was $330 million, up 7% year over year, while lease and rental gross margin was $349 million versus $350 million.
-
FMS drove earnings growth
FMS was the strongest segment: revenue increased to $1,616 million from $1,465 million and EBT rose to $177 million from $146 million. Used tractor and truck pricing increased 19% and 5%, respectively, and rental utilization improved to 77% from 70%.
-
Cash generation strengthened
Nine-month operating cash flow increased to $1,985 million from $1,845 million, while free cash flow doubled to $992 million from $496 million. Capital expenditures declined to $1,375 million of cash purchases from $1,730 million, with gross capital expenditures of $1,448 million versus $1,605 million.
-
SCS growth came with execution costs
SCS revenue grew to $1,504 million from $1,380 million and EBT rose 7% to $91 million in the quarter, supported by omnichannel retail revenue growth of 26% to $404 million. Nine-month SCS EBT nevertheless declined 6% to $255 million due to lower automotive results and new-business ramp costs.
-
Leverage and liquidity remained manageable
Debt-to-equity improved to 242% from 250% at December 31, 2025, and interest expense declined 6% year over year to $96 million. Ryder had $1,513 million of available borrowing capacity at September 30, 2026.
What to watch
-
Large Q4 pension charge
Management expects approximately $240 million of non-cash, pre-tax pension settlement charges, or $4.30 per share, in Q4 2026 related to the U.K. and Canadian plans. The charge will not affect cash flow but could materially depress GAAP EPS.
-
DTS contraction continued
DTS operating revenue declined 1% to $455 million in the quarter and 3% to $1,348 million for nine months; DTS EBT fell 5% to $34 million quarterly and 7% to $93 million year to date. The DTS fleet declined to 16,800 vehicles from 18,200 a year earlier.
-
SCS profitability weakened
SCS nine-month EBT decreased 6% to $255 million, and its EBT margin fell to 5.9% from 6.7%. Management cited lower automotive results, productivity costs from ramping new business, and adverse operating execution.
-
Near-term refinancing exposure
Revenue earning equipment, net declined to $8,565 million from $8,898 million at year-end, while total debt remained $7,205 million. Short-term debt and current maturities increased to $1,668 million from $819 million, increasing refinancing needs over the next twelve months.
-
Working-capital requirements elevated
Receivables increased to $2,097 million from $1,897 million, while accounts payable rose to $835 million from $689 million and accrued current liabilities rose to $1,379 million from $1,270 million. Operating cash flow benefited from lower working-capital needs, but receivables still consumed $183 million of cash in the first nine months.
-
Macro and impairment risks persist
Management identifies inflation, higher fuel costs, regulatory changes, geopolitical events, labor interruptions, tariff and tax policies, and higher interest rates as potential headwinds. The filing also reports a $10 million non-cash impairment charge on an acquired customer-relationship intangible asset due to reduced projected cash flows.
Management's outlook
The 10-Q does not provide explicit numerical EPS or revenue guidance. Management states it remains on track to deliver over $70 million of earnings benefits from strategic initiatives in 2026 and expects approximately $240 million, or $4.30 per share, of non-cash pre-tax pension settlement charges in Q4 2026.
Earlier filings 2
10-Q · April 23, 2026
Ryder reported Q1 results with total revenue of $3,126,000,000 and GAAP diluted EPS of $2.54, beating the EPS estimate of $2.28 while missing the revenue estimate of $3,146,882,440 by $20,882,440. The 10-Q discloses…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.