5 Must-Read Analyst Questions From Ryder’s Q1 Earnings Call

Ryder’s first quarter results were shaped by the continued strength of its contractual businesses, which helped offset softer demand in commercial rental and used vehicle sales. Management pointed to disciplined pricing, ongoing cost savings initiatives, and a shift toward asset-light supply chain and dedicated solutions as major contributors. CEO Robert Sanchez noted, “Earnings growth in our contractual businesses reflects the value proposition and pricing discipline embedded in our high-quality contractual portfolio.” The company also highlighted the resilience of its transformed business model amid a muted freight market and economic uncertainty.

Is now the time to buy R? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Ryder’s Q1 Earnings Call

• Jordan Alliger (Goldman Sachs) asked about the outlook for used vehicle pricing and the approach to lease contract pricing; CEO Robert Sanchez explained that current used pricing trends are within expectations and lease pricing targets a spread above Ryder’s cost of capital.
• Christyne McGarvey (Morgan Stanley) questioned the company’s performance in a potential recession scenario; Sanchez replied that earnings growth is now much less dependent on transactional businesses, citing the stability of contractual segments.
• Jeff Kauffman (Vertical Research Partners) inquired about early demand indicators and M&A priorities; President John Diez noted softness in rental but signs of stabilization in sleeper tractors, while Sanchez confirmed ongoing interest in acquisitions that add new capabilities.
• Scott Group (Wolfe Research) asked about supply chain exposure to tariffs and end market risk; President Steve Sensing said most customer manufacturing is U.S.-based, limiting tariff impact, and omnichannel retail is being closely monitored.
• Brian Ossenbeck (JPMorgan) sought clarity on residual value risk and the effect of future EPA standards; CFO Cristy Gallo-Aquino said there is a cushion before residual values would require adjustments, and Sanchez noted new EPA standards are not baked into current assumptions.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace at which Ryder works through its aged truck and tractor inventory and any stabilization in used vehicle pricing, (2) the resilience of contractual revenue streams in the face of ongoing freight market softness, and (3) the impact of Ryder’s operational initiatives, such as maintenance cost savings, on margins and return on equity. Acquisition activity and capital allocation decisions will also be important indicators of management’s execution.

Ryder currently trades at $151.49, up from $137.86 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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