Ryder System, Inc.

Ryder reported second-quarter 2026 operating revenue of $2.7 billion, up 3% year over year, and comparable EPS from continuing operations of $3.73, up 12%. Return on equity was 17%, and free cash flow rose to $684 million from $461 million in the prior year. In fleet management solutions, earnings before taxes were $150 million, up 20%, with rental utilization back to 75% and used vehicle pricing up 3% for tractors and 6% for trucks year over year. In supply chain, revenue increased 7% but EBT fell 7%; in dedicated, revenue declined 3% and EBT was below prior year. Management raised full-year 2026 comparable EPS guidance to $14.40-$14.80 from a prior low end of $14.05, kept free cash flow guidance at $700 million-$800 million, and set 2026 ROE at 18%. Third-quarter comparable EPS guidance was $4.00-$4.20 versus $3.57 a year ago.

John Diez framed the quarter as evidence that Ryder’s transformed, more contractual and less capital-intensive model is working through the cycle. He emphasized 90%+ long-term contract revenue, strong sales pipelines, and the company’s use of AI, automation, and robotics to improve service and efficiency. His tone was constructive, but he also noted that market conditions remain below normalized levels and that the pace of recovery still depends on macro and geopolitical factors.

Cristina Gallo-Aquino highlighted the quarter’s financial progress, including $2.7 billion of operating revenue, $3.73 comparable EPS, 17% ROE, and $684 million of free cash flow. She pointed to lower capital expenditures as a driver of cash generation, with year-to-date lease capex of $605 million and rental capex of $94 million, and reiterated full-year capex of about $2.4 billion and net capex of about $1.9 billion. She also outlined strong balance-sheet flexibility, including leverage of 259% at quarter end, $406 million returned to shareholders year to date, a new 2 million share repurchase authorization, and an 11% dividend increase.

Analysts pressed management on supply chain competition from Amazon, dedicated contract renewals, rental fleet sizing, and the pace of used-vehicle and OEM-related pricing changes. Management said it has not yet seen Amazon in its RFQs and believes Ryder’s highly customized, multi-service solutions remain differentiated. On dedicated, Ryder said pipelines are at record levels and customer demand is improving as capacity leaves the market; on supply chain, it said some new projects are ramping slower and some wins have slipped into 2027, while auto-related volume headwinds and plant retooling are still affecting results. On rental and used vehicles, management said it is prepared to add fleet if demand accelerates, but wants clearer OEM pricing visibility before changing the outlook further.