Ryder Reports Third-Quarter 2026 Results, Delivers Double-Digit Earnings Growth and Raises Rental Fleet Investment
Ryder Achieves Eighth Consecutive Quarter of Earnings-per-Share Growth
Ryder System, has reported its financial and operating results for the third quarter ended September 30, 2026, highlighting continued earnings growth, stronger operating performance, and progress in executing its strategic initiatives. The company delivered double-digit earnings growth during the quarter, marking its eighth consecutive quarter of earnings-per-share growth.
According to Ryder Chief Executive Officer John Diez, the company’s strong performance reflected consistent execution of its strategic priorities, alongside improving results in used vehicle sales and rental operations. Ryder remains on track to achieve a return on equity (ROE) exceeding 18% and generate more than $70 million in benefits from its strategic initiatives during 2026.
The company also reported that all business segments delivered earnings in line with their long-term targets. Improving freight market conditions, strong contractual sales activity, and continued demand for transportation and logistics services contributed to the quarter’s performance.
Ryder’s operating revenue growth rates continued to improve, with Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) recording strong contractual growth. In addition, used vehicle sales results exceeded management’s expectations, supported by stronger-than-anticipated pricing and sales volumes.
Fleet Management Solutions Benefits From Improving Market Conditions
Ryder’s Fleet Management Solutions segment demonstrated improving profitability during the third quarter. Pre-tax earnings as a percentage of operating revenue increased to 13.2%, reflecting the strength of the company’s lease portfolio and the early benefits of a recovering freight market.
The results demonstrate Ryder’s ability to maintain profitability while responding to changing transportation market conditions. As freight activity improves, the company expects its fleet management operations to benefit from customer demand and stronger performance across vehicle leasing and related services.
Contractual sales activity remained strong across all three business segments during the quarter, with activity accelerating in lease and dedicated transportation operations. These results reinforce the importance of Ryder’s customer relationships and its ability to deliver integrated transportation and fleet management solutions.
Supply Chain Solutions Reports 9% Revenue Growth
Ryder’s Supply Chain Solutions segment recorded a 9% increase in both total revenue and operating revenue during the third quarter.
The increase in total revenue primarily reflected higher operating revenue. Growth in operating revenue was supported by new business, increased customer volumes, and improved pricing. These gains were partially offset by lost business in the automotive sector.
SCS generated earnings before taxes (EBT) of $91 million during the quarter. The segment’s earnings benefited from the optimization of its omnichannel retail network and higher operating revenue.
However, these positive factors were partially offset by productivity challenges associated with newly launched business operations that were still ramping up, along with weaker results in automotive-related activities.
Ryder’s continued focus on optimizing its retail distribution network and expanding contractual business is intended to strengthen operating performance and support profitable growth. The company’s ability to manage customer volumes, improve network efficiency, and maintain service quality remains important as demand for supply chain and logistics services evolves.
Dedicated Transportation Solutions Records Mixed Revenue Performance
Ryder’s Dedicated Transportation Solutions segment reported a 6% increase in total revenue during the third quarter, while operating revenue decreased by 1%.
The increase in total revenue primarily reflected higher fuel and subcontracted transportation costs passed through to customers. These increases were partially offset by lower operating revenue.
Operating revenue performance was affected by a lower fleet count, although improved pricing provided a partial offset. The results highlight the influence of fleet utilization, pricing, and operating costs on the segment’s financial performance.
DTS reported earnings before taxes of $34 million for the quarter. The earnings result primarily reflected lower operating revenue and the absence of a workers’ compensation insurance benefit recorded in the prior-year period. These pressures were partially offset by cost savings generated through Ryder’s strategic initiatives.
The company continues to emphasize operational efficiency and disciplined cost management throughout its transportation businesses. These efforts are intended to help offset market-related pressures and improve profitability as customer demand and freight conditions change.
Corporate Financial Performance and Income Taxes
Ryder’s effective tax rate on continuing operations was 28.1% in the third quarter of 2026, compared with 27.1% in the prior-year period. The company’s comparable effective tax rate on continuing operations was 27.7%, compared with 25.6% a year earlier.
The increases in both tax rates primarily reflected a discrete tax benefit related to stock-based compensation that had benefited the prior-year period.
These tax-rate changes formed part of the company’s overall financial results for the quarter. Ryder continues to monitor its corporate financial performance while executing its operating strategy and managing investments across its transportation, fleet management, and supply chain businesses.
Capital Expenditures Decline as Cash Flow Improves
Ryder reported lower capital expenditures during 2026 compared with the previous year. Capital expenditures decreased to $1.4 billion from $1.6 billion in 2025, primarily reflecting the timing of ChoiceLease fleet replacements.
Despite the year-to-date decline, the company maintained its full-year capital expenditure forecast at $2.4 billion. Higher rental investments planned for the second half of 2026 are expected to be offset by lower lease spending associated with the timing of lease sales activity.
The company also reported improvements in cash generation. Net cash provided by operating activities from continuing operations reached $2.0 billion, compared with $1.8 billion in 2025. The increase primarily reflected lower working capital requirements.
Free cash flow, a non-GAAP financial measure, increased to $992 million from $496 million in the prior-year period. The improvement primarily resulted from lower cash capital expenditures and higher cash generated from operating activities.
These results indicate stronger cash generation and provide Ryder with additional financial flexibility to support fleet investments, operational improvements, and future growth opportunities.
Ryder Improves Leverage Position
As of September 30, 2026, Ryder’s debt-to-equity ratio stood at 242%, down from 250% as of December 31, 2025.
The ratio was slightly below the company’s long-term target range of 250% to 300%. The change reflects the company’s capital structure position as it continues to balance financial discipline with investments in its transportation and logistics operations.
Maintaining an appropriate balance between leverage, cash flow, and capital expenditures remains important to Ryder’s long-term strategy. The company intends to continue investing in its business while supporting its financial objectives and customer requirements.
Ryder Increases Rental Fleet Investment to $500 Million
Ryder is increasing its investment in its rental fleet as it anticipates stronger demand in 2027. The company plans to invest $500 million in its rental fleet for the full year, representing an increase of $300 million from its previous forecast.
Chief Financial Officer Cristina Gallo-Aquino said continued earnings growth is being driven by consistent execution of strategic initiatives. She also highlighted opportunities for profitable contractual growth and the potential to benefit from improving conditions in used vehicle sales and rental operations.
The increased rental fleet investment is intended to position Ryder to capture higher expected rental demand in 2027. By expanding its investment in rental vehicles, the company aims to improve its ability to respond to customer requirements while taking advantage of favorable market developments.
The investment decision also reflects Ryder’s assessment of future demand across its transportation and logistics markets. As customers adjust fleet requirements and seek flexible transportation capacity, rental services may provide an important option for meeting changing operational needs.
Outlook: Strategic Execution and Contractual Growth Remain Priorities
Ryder’s third-quarter results reflect the combined benefits of strategic execution, improving used vehicle market conditions, and sustained contractual sales activity. The company continues to focus on profitable growth across its three business segments while improving operational efficiency and strengthening customer relationships.
Management expects strategic initiatives to remain a significant contributor to earnings growth in 2026. The company’s target of achieving ROE above 18% and generating more than $70 million in strategic initiative benefits underscores its focus on profitability and operational improvement.
The outlook also reflects opportunities arising from improving freight market conditions and anticipated growth in rental demand. Strong contractual activity across the business, particularly in lease and dedicated transportation, provides additional support for the company’s growth strategy.
Ryder believes its market-leading solutions, established customer relationships, and transformed operating model position it to address customers’ expanding transportation and logistics needs. The company’s continued emphasis on fleet management, supply chain optimization, cost savings, and capital discipline is expected to support its longer-term financial objectives.
With its increased rental fleet investment, improving cash flow, and continued focus on contractual growth, Ryder is positioning its business to respond to evolving market conditions while pursuing sustainable earnings growth beyond 2026.
