Ryder Reports Third Quarter 2026 Results
RYDER SYSTEM INC (R) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release Ryder Reports Third Quarter 2026 Results Delivers strong results and raises 2026 outlook; Strategic initiatives and improving freight market conditions driving momentum Third Quarter 2026 Highlights • GAAP EPS from continuing operations of $4.16, up 25% from prior ye
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to drive short‑term buying interest, while the increased leverage may temper longer‑term enthusiasm.
Market read
Ryder's strong Q3 performance and raised outlook provide a clear catalyst for the stock, with potential spillover to the broader logistics sector.
What to watch
Higher debt-to-equity ratio and capital expenditure timing could constrain future cash flow.
Ryder Reports Third Quarter 2026 Results Delivers strong results and raises 2026 outlook; Strategic initiatives and improving freight market conditions driving momentum
Third-quarter total revenue increased 8%, comparable EPS from continuing operations increased 21%, and all three segments reported higher total revenue. Ryder raised its full-year comparable EPS and ROE outlook while maintaining operating revenue growth, operating cash flow, free cash flow and capital-expenditure forecasts.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $3.43B | – | 8% |
| Operating revenue, three months ended September 30, 2026non-GAAP | $2.76B | – | 6% |
| Services revenue, three months ended September 30, 2026GAAP | $2.27B | – | – |
| Lease & related maintenance and rental revenue, three months ended September 30, 2026GAAP | $1.01B | – | – |
| Fuel services revenue, three months ended September 30, 2026GAAP | $154M | – | – |
| Cost of services, three months ended September 30, 2026GAAP | $1.94B | – | – |
| Cost of lease & related maintenance and rental, three months ended September 30, 2026GAAP | $664M | – | – |
| Cost of fuel services, three months ended September 30, 2026GAAP | $148M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $375M | – | – |
| Earnings from continuing operations before income taxes, three months ended September 30, 2026GAAP | $226M | – | 19% |
| Comparable earnings before income taxes, three months ended September 30, 2026non-GAAP | $234M | – | – |
| Earnings from continuing operations, three months ended September 30, 2026GAAP | $162M | – | 17% |
| Comparable earnings from continuing operations, three months ended September 30, 2026non-GAAP | $169M | – | – |
| Net earnings, three months ended September 30, 2026GAAP | $162M | – | – |
| Diluted EPS from continuing operations, three months ended September 30, 2026GAAP | $4.16 | – | 25% |
| Comparable EPS from continuing operations, three months ended September 30, 2026non-GAAP | $4.33 | – | 21% |
| Net earnings per diluted common share, three months ended September 30, 2026GAAP | $4.15 | – | – |
| Effective tax rate on continuing operations, three months ended September 30, 2026GAAP | 28.1% | – | – |
| Comparable tax rate on continuing operations, three months ended September 30, 2026non-GAAP | 27.7% | – | – |
| Comparable EBITDA, three months ended September 30, 2026non-GAAP | $749M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $9.91B | – | 4% |
| Operating revenue, nine months ended September 30, 2026non-GAAP | $8.02B | – | 3% |
| Earnings from continuing operations, nine months ended September 30, 2026GAAP | $389M | – | 5% |
| Diluted EPS from continuing operations, nine months ended September 30, 2026GAAP | $9.88 | – | – |
| Comparable EPS from continuing operations, nine months ended September 30, 2026non-GAAP | $10.57 | – | – |
| Comparable EBITDA, nine months ended September 30, 2026non-GAAP | $2.15B | – | – |
| Net cash provided by operating activities from continuing operations, nine months ended September 30, 2026GAAP | $1.99B | – | – |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $992M | – | – |
| Capital expenditures paid, nine months ended September 30, 2026other | $1.38B | – | – |
| Gross capital expenditures, nine months ended September 30, 2026other | $1.45B | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $198M | – | – |
| Total debt (including current portion), September 30, 2026GAAP | $7.21B | – | – |
| Shareholders' equity, September 30, 2026GAAP | $2.98B | – | – |
| Debt to equity, September 30, 2026other | 242% | – | – |
| Adjusted return on equity, twelve months ended September 30, 2026non-GAAP | 18% | – | – |
| Rental utilization - power units, three months ended September 30, 2026other | 77% | – | 700 bps |
| Used vehicle sales pricing change - tractors, three months ended September 30, 2026other | 19% | – | 19% |
| Used vehicle sales pricing change - trucks, three months ended September 30, 2026other | 5% | – | 5% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fleet Management Solutions (FMS)Operating revenue of $1,344 million increased 5%, reflecting contractual revenue growth. EBT was $177 million, up 21%, supported by ChoiceLease strategic initiatives, improving used-vehicle sales conditions and rental. Used truck and tractor pricing increased 5% and 19%, respectively, from prior year. | $1.62B | – | 10% |
| Supply Chain Solutions (SCS)Operating revenue of $1,126 million increased 9%, reflecting new business and higher volumes and pricing, partially offset by lost automotive business. EBT was $91 million, up 7%, with omnichannel retail-network optimization and higher operating revenue partly offset by new-business ramp productivity and lower automotive results. | $1.50B | – | 9% |
| Dedicated Transportation Solutions (DTS)Operating revenue of $455 million decreased 1%, as lower fleet count was partly offset by higher pricing. EBT was $34 million, down 5%, primarily due to lower operating revenue and a prior-year workers’ compensation insurance benefit, partly offset by strategic-initiative cost savings. | $606M | – | 6% |
Full Year 2026 and Fourth Quarter 2026 outlook
- RevenueTotal Revenue Growth 5%; Operating Revenue Growth (non-GAAP) 3%
- NoteFY26 GAAP EPS (includes ~$4.30 non-cash pension settlement charges) (1) $9.75 - $9.95
- NoteFY26 Comparable EPS (non-GAAP) $14.85 - $15.05
- NoteROE (non-GAAP) 18% - 19%
- NoteNet Cash from Operating Activities from Continuing Operations $2.6B
- NoteFree Cash Flow (non-GAAP) $700M - $800M
- NoteCapital Expenditures $2.4B
- NoteDebt-to-Equity 245%
- Note4Q26 GAAP EPS (includes ~$4.30 non-cash pension settlement charges) (1) $(0.15) - $0.05
- Note4Q26 Comparable EPS (non-GAAP) $4.25 - $4.45
- NoteFull-year investment in the rental fleet to $500 million, up $300 million from our prior forecast.
- Note2026 Forecast Total cash generated $3,100 million; Purchases of property and revenue earning equipment $(2,300) million; Free cash flow $800 million.
What drove it
- Higher revenue in all business segments drove total revenue growth.
- SCS and FMS generated contractual revenue growth.
- Strengthening freight market conditions supported contractual sales activity, with accelerating activity in lease and dedicated.
- Used vehicle sales exceeded expectations due to stronger-than-expected pricing and sales volumes.
- Rental power-fleet utilization improved to 77% compared to 70% in the prior year, on a 12% smaller average fleet.
- Strategic initiatives are expected to provide over $70 million in benefits in 2026.
Concerns
- DTS operating revenue decreased 1% and DTS EBT decreased 5%.
- SCS operating revenue growth was partially offset by lost business in automotive, while SCS earnings were partly offset by new-business ramp productivity and lower automotive results.
- DTS operating revenue reflected lower fleet count.
- Fourth-quarter and full-year GAAP EPS guidance includes estimated non-cash pension settlement charges of $4.30 related to transfers of U.K. and Canadian defined benefit pension plan obligations to insurance companies.
- The company identified risks including lower-than-expected contractual sales activity, customer retention, new business conversion, rental demand, utilization or pricing, and demand for used vehicles.
What to watch
- Execution against the full-year comparable EPS outlook of $14.85 - $15.05 and ROE outlook of 18% - 19%.
- The planned $500 million full-year rental-fleet investment and expected rental demand in 2027.
- Used vehicle pricing, sales volumes and rental utilization as freight market conditions develop.
- FMS and SCS contractual revenue growth, as well as DTS fleet count and operating revenue.
- Completion and financial impact of the anticipated U.K. and Canadian pension plan settlements.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $198 million, compared to $198 million as of December 31, 2025.
- Total debt (including current portion) as of September 30, 2026: $7,205 million, compared to $7,645 million as of December 31, 2025.
- Debt-to-equity as of September 30, 2026: 242%, down from 250% as of December 31, 2025.
- Net cash provided by operating activities from continuing operations was $2.0 billion, compared to $1.8 billion in 2025, primarily reflecting lower working capital needs.
- Free cash flow (non-GAAP) was $992 million, compared to $496 million in 2025, primarily reflecting reduced cash capital expenditures and higher cash provided from operating activities.
- Capital expenditures decreased to $1.4 billion in 2026 compared to $1.6 billion in 2025, primarily reflecting the timing of ChoiceLease fleet replacements.
Analysis
Ryder reported broad third-quarter growth. Total revenue was $3,433 million, up 8%, and operating revenue was $2,759 million, up 6%. GAAP diluted EPS from continuing operations was $4.16, up 25%, while comparable EPS from continuing operations was $4.33, up 21%. Earnings from continuing operations before income taxes increased 19% to $226 million, and comparable EBITDA was $749 million compared with $742 million.
FMS was the principal earnings contributor, with EBT up 21% to $177 million. Its operating-revenue growth was 5%, while used vehicle pricing improved and rental power-unit utilization reached 77% compared with 70% in the prior year. SCS delivered 9% growth in both total and operating revenue, with EBT up 7% to $91 million. DTS total revenue increased 6%, but operating revenue declined 1% and EBT fell 5% amid lower fleet count and the absence of a prior-year workers’ compensation insurance benefit.
Cash generation strengthened through the first nine months. Net cash provided by operating activities from continuing operations was $1,985 million compared with $1,845 million, and free cash flow was $992 million compared with $496 million. Capital expenditures paid were $1,375 million compared with $1,730 million. Total debt declined to $7,205 million from $7,645 million at December 31, 2025, and debt-to-equity was 242%, slightly below the company’s long-term target of 250% to 300%.
The company raised its full-year comparable EPS range to $14.85 - $15.05 and raised non-GAAP ROE to 18% - 19%. It retained its 3% operating-revenue growth forecast, $2.6B net cash from operating activities forecast, $700M - $800M free-cash-flow forecast and $2.4B capital-expenditure forecast. The fourth-quarter GAAP EPS outlook of $(0.15) - $0.05 includes estimated non-cash pension settlement charges of $4.30, while the comparable EPS outlook is $4.25 - $4.45. Ryder also increased its full-year rental-fleet investment to $500 million, up $300 million from its prior forecast, to capture expected rental demand in 2027.
Management, verbatim
Ryder delivered double-digit earnings growth in the third quarter, marking our eighth consecutive quarter of earnings-per-share growth.
John Diez, Chief Executive Officer
During the quarter, the business benefited from strengthening freight market conditions. Contractual sales activity remained strong across all three segments, with activity accelerating in lease and dedicated. Used vehicle sales results exceeded our expectations, driven by stronger-than-expected pricing and sales volumes.
John Diez, Chief Executive Officer
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.
Cristina Gallo-Aquino, Chief Financial Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Operating income and operating margin were not reported.
- Prior-quarter figures for the reported metrics were not reported.
- Share repurchase amount was not reported.
- Dividend amount was not reported.
- Previous-release outlook was not provided, so a comparison of actual results with prior guidance was not available.
- A numerical full-year guidance range for tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Ryder System Inc. filed a Form 8‑K reporting its third‑quarter 2026 financial results, highlighting revenue growth and an upgraded earnings outlook.
Ticker impact
Ryder disclosed Q3 2026 earnings, raised 2026 outlook and provided guidance on revenue and EPS growth.
likely upward pressure as investors price in higher earnings and raised outlook
The 25% YoY EPS increase and raised full-year EPS range indicate stronger profitability, supporting a bullish reaction.
Market effects
Improved freight market conditions may benefit other logistics and transportation providers.
U.S. transportation sector could see modest gains on the back of Ryder's results.
Limited to North American logistics firms; no broad macro impact.
Counterpoint
If the raised outlook is already priced in, the stock may face limited upside.
Key entities
- companyRyder System Inc.
U.S. transportation and logistics provider.
