Ryder raises 2026 comparable EPS range to $14.85 to $15.05 after third quarter

Ryder System Inc. (R) said in a regulatory filing that its comparable earnings per share from continuing operations rose 21% in the third quarter of 2026, and it raised its full-year comparable EPS range. The results cover the three months ended Sept. 30 and were released Oct. 22.

Here's how the company did:

• GAAP EPS from continuing operations: $4.16 vs. $3.33 a year earlier
• Comparable EPS from continuing operations: $4.33 vs. $3.57 a year earlier
• Total revenue: $3,433 million vs. $3,171 million a year earlier
• Operating revenue (non-GAAP): $2,759 million vs. $2,611 million a year earlier

Comparable figures are non-GAAP measures. The company's comparable results exclude non-operating pension costs and other items it says affect comparability. Comparable earnings before income taxes were $234 million, compared with $200 million a year earlier.

Total revenue rose 8% to $3.4 billion. The company said revenue was higher in all three business segments, and that total revenue reflected higher fuel prices passed through to customers. Operating revenue, which excludes fuel and subcontracted transportation, rose 6%.

For the full year, the company raised its return on equity, or ROE, outlook to 18% to 19%. It also raised its comparable EPS range to $14.85 to $15.05. The filing does not state the previous ROE or EPS ranges.

The company left several outlook figures unchanged. Operating revenue growth remains at 3%, net cash from operating activities from continuing operations remains at $2.6 billion, and free cash flow stays at $700 million to $800 million. Full-year capital expenditures remain at $2.4 billion.

The company said its full-year GAAP EPS range of $9.75 to $9.95 includes about $4.30 in non-cash pension settlement charges. The charges relate to the transfer of its U.K. and Canadian defined benefit pension plan obligations to insurance companies. The company said the settlement will have no impact on shareholders' equity.

For the fourth quarter, the company forecasts GAAP EPS of $(0.15) to $0.05 and comparable EPS of $4.25 to $4.45.

“Ryder delivered double-digit earnings growth in the third quarter, marking our eighth consecutive quarter of earnings-per-share growth,” said Chief Executive Officer John Diez. “We are on track to deliver ROE above 18% and over $70 million in benefits from strategic initiatives in 2026.”

In Fleet Management Solutions, total revenue rose 10% to $1,616 million and operating revenue rose 5% to $1,344 million. Earnings before taxes were $177 million, up 21% from $146 million. The company said used truck pricing rose 5% and used tractor pricing rose 19% from a year earlier. Rental utilization of power units reached 77%, compared with 70%, on a fleet that was 12% smaller on average.

In Supply Chain Solutions, total revenue rose 9% to $1,504 million and operating revenue rose 9% to $1,126 million. Earnings before taxes were $91 million, up 7% from $86 million. The company said the increase reflects benefits from optimizing its omnichannel retail network and higher operating revenue, partly offset by new business that is still ramping up and lower automotive results.

In Dedicated Transportation Solutions, total revenue rose 6% to $606 million, while operating revenue fell 1% to $455 million. Earnings before taxes were $34 million, down 5% from $36 million. The company said the decline reflects a lower fleet count and a workers’ compensation insurance benefit recorded a year earlier, partly offset by cost savings from strategic initiatives.

The effective tax rate on continuing operations was 28.1%, compared with 27.1% a year earlier. The company said the increase reflects a prior-year discrete stock-based compensation tax benefit. Debt-to-equity was 242% at Sept. 30, down from 250% at Dec. 31, 2025. The company's long-term target range is 250% to 300%.

For the first nine months, free cash flow was $992 million, compared with $496 million a year earlier. The company said the increase reflects lower cash capital expenditures and higher operating cash flow.

“Continued earnings growth is driven by consistent execution of our strategic initiatives,” said Ryder Chief Financial Officer Cristina Gallo-Aquino. “We’re encouraged by the opportunities we see for profitable contractual growth and our ability to benefit from improving market conditions in used vehicle sales and rental.”

The company said it is increasing its full-year rental fleet investment to $500 million, up $300 million from its prior forecast. It said the investment will position it to capture higher expected rental demand in 2027.

Ryder is hosting an earnings conference call and webcast on Oct. 22 at 11:00 a.m. ET.