Ryder System Inc (NYSE:R) Posts Mixed Q3 2025 Results with EPS Beat and Revenue Miss

Ryder System Inc (NYSE:R) Reports Mixed Q3 2025 Results Amid Challenging Freight Market

Ryder System Inc, a prominent player in logistics and transportation, unveiled its third-quarter financial results for 2025, presenting a performance that narrowly missed analyst revenue expectations while demonstrating resilience in its earnings per share. The company's latest figures arrive against a backdrop of a prolonged downturn in the freight market, testing the durability of its business model.

Earnings and Revenue Versus Estimates

The company reported a performance that fell short of top-line expectations but showed strength in profitability metrics.

• Revenue: Total revenue for the quarter was $3.17 billion, essentially flat compared to the $3.17 billion reported in the same period last year. This figure came in below the analyst consensus estimate of $3.26 billion.
• Earnings Per Share (Non-GAAP): On a non-GAAP basis, which excludes certain one-time items, Ryder reported a comparable EPS of $3.57. This surpassed the GAAP EPS of $3.33 and exceeded the analyst estimate of $3.62 for the quarter.
• Market Reaction: In pre-market trading following the earnings release, Ryder's stock experienced a decline of approximately 0.87%. This initial reaction suggests investor focus may be leaning toward the revenue miss, despite the earnings beat.

Segment Performance Breakdown

The company's results were a tale of three segments, each responding differently to current market conditions.

• Fleet Management Solutions (FMS): This segment saw earnings before tax (EBT) increase by 11% to $146 million, driven by higher performance in the ChoiceLease business. This growth was fueled by strategic pricing and maintenance cost-saving initiatives. However, these gains were partially offset by weaker market conditions impacting used vehicle sales and rental results.
• Supply Chain Solutions (SCS): SCS delivered revenue growth, with total revenue up 5% and operating revenue up 4% year-over-year. Despite this top-line increase, EBT declined by 8% to $86 million. The company attributed this earnings dip to challenges in e-commerce network performance and higher medical costs.
• Dedicated Transportation Solutions (DTS): Reflecting the softer freight environment, DTS experienced a 10% decline in total revenue and a 6% drop in operating revenue. This was primarily due to a lower fleet count. EBT for the segment remained nearly flat at $36 million, as benefits from acquisition synergies helped offset the impact of reduced revenue.

Financial Position and Capital Allocation

Ryder maintained a solid financial footing during the quarter. The company highlighted its strong free cash flow generation and a debt-to-equity ratio of 254%, which sits at the low end of its long-term target range. Demonstrating confidence in its capital deployment strategy, the Board of Directors authorized a new two-million-share repurchase program.

Management Commentary and Forward Outlook

Chairman and CEO Robert Sanchez emphasized the company's fourth consecutive quarter of EPS growth, noting that strategic initiatives and resilient contractual businesses helped counterbalance freight market headwinds. He expressed confidence in the company's transformed business model and its positioning for a future cycle upturn.

Looking ahead, Ryder provided guidance for the full year and the fourth quarter. The company expects full-year 2025 comparable EPS in the range of $12.85 to $13.05. For the upcoming fourth quarter, it forecasts comparable EPS between $3.50 and $3.70. This outlook appears cautiously optimistic, as the Q4 EPS guidance midpoint of $3.60 is slightly below the analyst consensus of $3.76. The company also anticipates full-year free cash flow between $900 million and $1 billion.

Conclusion

Ryder System's Q3 2025 results paint a picture of a company effectively managing controllable factors like pricing and costs to deliver earnings growth, even as it navigates a challenging external freight market. While the revenue miss has drawn initial market skepticism, the earnings beat and sustained profitability underscore the strength of its core contractual operations. Investors will be watching closely to see if the company's strategic initiatives can continue to drive performance as it awaits a broader industry recovery.

For a more detailed look at Ryder's historical earnings and future analyst estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security.