Moving and storage solutions provider U-Haul (NYSE: UHAL) met Wall Streets revenue expectations in Q3 CY2025, with sales up 3.7% year on year to $1.72 billion. Its GAAP profit of $0.49 per share was 24.6% below analysts’ consensus estimates.

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StockStory’s Take

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.

Looking forward, U-Haul’s leadership set expectations for continued near-term pressure from depreciation and residual values, while emphasizing the opportunity to benefit from lower new vehicle prices as the market resets. CEO Edward Shoen noted that expanding the dealer network should “help us better balance truck and trailer inventories by increasing demand,” and management expects these efforts to drive higher moving transaction volumes by the middle of next year. Additionally, U-Haul is focused on growing its U-Box and self-storage businesses, which are seen as future profit drivers, although competitive intensity remains high in storage.

Key Insights from Management’s Remarks

Management attributed the quarter’s margin compression to increased costs from fleet refreshes and ongoing challenges in equipment resale, while highlighting progress in expanding the dealer network and self-storage operations.

• Fleet depreciation and resale losses: The main drag on profit stemmed from accelerated depreciation and losses on equipment sales. U-Haul’s leadership noted that trucks purchased at high prices in recent years are now being sold into a market with lower resale values, which has driven up depreciation and created losses on disposal. CFO Jason Berg explained, “Cargo vans that we purchased over the last 2 years that are now being sold came into the fleet with a higher cost and the current market resale values are not reflecting that.”

• Expansion of dealer network: U-Haul accelerated the addition of independent dealer locations, surpassing 25,000 sites for the first time. Management believes that expanding dealer reach will enable more efficient inventory deployment and support growth in moving transactions. Edward Shoen stated, “We have equipment I can allocate. So to me, it’s a big opportunity.”

• Self-storage competition and strategy: The self-storage business delivered revenue growth, but management described the environment as a “slugfest” due to aggressive pricing tactics by competitors. U-Haul is focusing on broadening its footprint rather than increasing store depth in established locations, aiming to leverage its national network.

• U-Box segment gains: U-Haul’s portable storage (U-Box) business continued to outpace company averages in both revenue and market share growth. Management noted that shipping, storage rent, and delivery income all increased year-over-year, and U-Box is seen as a cornerstone for future growth.

• Cost control efforts: Repair and maintenance costs rose higher than planned, but management has initiated plans to rein in these expenses. Jason Berg said the company is “working a plan to slightly reel these repair cost increases,” with the goal of stabilizing margins in the coming quarters.

Drivers of Future Performance

U-Haul’s outlook centers on stabilizing depreciation expenses, growing moving transactions through dealer expansion, and advancing its self-storage and U-Box businesses.

• Normalization of depreciation and fleet costs: Management expects depreciation and loss-on-sale pressures to gradually subside as lower-priced vehicles enter the fleet and purchasing activity moderates. CFO Jason Berg commented that box truck depreciation should peak “towards the end of this year, beginning of next year and then start to trend down,” but the timing for vans may lag depending on market conditions.

• Dealer network as growth lever: The company is prioritizing dealer network expansion to increase market penetration and moving transaction volumes. Edward Shoen anticipates “visible numbers by May,” suggesting that the benefits of this initiative should become evident in the next few quarters, provided execution remains strong.

• Self-storage and U-Box as profit drivers: U-Haul aims to grow self-storage revenue by backfilling units vacated through delinquency cleanout and by developing new locations. In U-Box, continued market share gains and higher storage utilization are expected to enhance profitability, especially as management views the segment’s margin potential as similar to core moving and storage.

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 $53.10, in line with $53.45 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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