U-Haul’s results for the third quarter reflected modest revenue growth but were notably impacted by higher depreciation expenses and losses on equipment sales, leading to a profit figure well below Wall Street expectations. Management pointed to increased costs associated with refreshing the truck fleet—an issue Chairman Edward Shoen highlighted, saying, “We reported this over two years ago that we were having to pay too much for trucks.” Despite these headwinds, the company continued to invest in expanding its dealer network and self-storage footprint, aiming to offset the operational drag from elevated vehicle costs.
Is now the time to buy UHAL? Find out in our full research report (it’s free for active Edge members).
U-Haul (UHAL) Q3 CY2025 Highlights:
- Revenue: $1.72 billion vs analyst estimates of $1.73 billion (3.7% year-on-year growth, in line)
- EPS (GAAP): $0.49 vs analyst expectations of $0.65 (24.6% miss)
- Adjusted EBITDA: $523.9 million vs analyst estimates of $569.5 million (30.5% margin, 8% miss)
- Operating Margin: 12.9%, down from 18.4% in the same quarter last year
- Market Capitalization: $9.55 billion
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 From U-Haul’s Q3 Earnings Call
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Steven Ralston (Zacks): Asked about the company’s depreciation methodology and timing for expense normalization. CFO Jason Berg explained box truck depreciation uses an accelerated method and expects normalization as fleet growth slows, while Chairman Edward Shoen suggested a year or more until peak depreciation for vans.
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Steven Ramsey (Thompson Research): Inquired about the timeline and potential of the expanded dealer network. CEO Edward Shoen responded that results should be visible by June, with significant opportunity for increased penetration in underperforming markets.
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Steven Ramsey (Thompson Research): Asked about self-storage occupancy and the impact of delinquent tenant cleanout. Shoen confirmed the process is largely complete and efforts now focus on re-renting units, expecting more meaningful gains as demand strengthens in the spring.
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Jeffrey Kauffman (Vertical Research Partners): Questioned the impact of tariffs on vehicle costs. Shoen detailed that U-Haul sources from both domestic and Mexican plants, but so far has not seen material tariff-related cost increases, although vigilance is ongoing.
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James Wilen (Wilen Management): Queried U-Box’s market share gains and profitability. Samuel Shoen confirmed U-Box is increasing share and expects margins to rise as utilization improves, with the segment now a key strategic focus.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will monitor (1) the pace at which depreciation expenses level off and begin to decline as new vehicle pricing stabilizes, (2) the effectiveness of U-Haul’s dealer network expansion in driving moving transaction growth, and (3) trends in self-storage occupancy and U-Box utilization as delinquent unit cleanout efforts transition to revenue growth. Execution on cost control and competitive positioning in storage will also be key signposts for progress.
U-Haul currently trades at $53.57, in line with $53.45 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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