Ryder System, Inc. Reports Strong First Quarter 2026 Results

For the three months ending March 31, 2026, Ryder reported the following results:

Ryder's Fleet Management Solutions segment reported total revenue of $1.461 billion, a 1% increase from $1.447 billion in the first quarter of 2025. Operating revenue remained steady at $1.265 billion. Key highlights include:

The Supply Chain Solutions segment generated total revenue of $1.360 billion, up 2% from $1.331 billion in Q1 2025. Operating revenue rose by 3% to $1.029 billion. However, earnings faced pressure:

In contrast, the Dedicated Transportation Solutions segment experienced a downturn, with total revenue falling 8% to $553 million and operating revenue down 5% to $438 million. Key points include:

John Diez, Ryder’s Chief Executive Officer, expressed optimism about the company’s performance, stating, "The Ryder team delivered solid first quarter results that exceeded our expectations. Our outperformance was driven by used vehicle sales in FMS and positive momentum in contractual sales across our segments."

He added, “Despite challenges in the freight market, we are confident that Ryder will benefit from a meaningful earnings uplift by the next cycle peak, particularly in our transactional rental and used vehicle sales businesses.”

Ryder’s effective income tax rate for the first quarter was 21.0%, down from 26.8% in the previous year, primarily due to excess tax benefits on stock-based compensation. Capital expenditures for the quarter decreased to $409 million from $536 million in 2025, reflecting a strategic shift in fleet replacement timing.

Free cash flow increased to $273 million, compared to $259 million in the prior year, indicating strong operational cash generation despite higher working capital needs.

Looking ahead, Ryder has raised its EPS forecast for 2026, projecting full-year GAAP EPS in the range of $13.15 to $13.90 and comparable EPS (non-GAAP) between $14.05 and $14.80. The company anticipates total revenue growth of around 3% for the year, supported by strategic initiatives expected to yield $70 million in incremental benefits.

Cristina Gallo-Aquino, Ryder's Chief Financial Officer, stated, “We are on track for another year of earnings growth in 2026, driven by our execution on strategic initiatives and a positive outlook for capital deployment that supports profitable growth and returns to shareholders.”

Ryder System, Inc.'s first quarter results reflect a company well-positioned to navigate the complexities of the logistics and transportation sector. With a focus on strategic growth initiatives and a commitment to shareholder returns, Ryder remains a key player in the industry, poised for continued success in 2026 and beyond.