Ryder System delivered stronger-than-expected first-quarter results, supported by used vehicle sales and continued progress in its broader logistics strategy.
The company’s stock has risen more than 80% over the past year and more than 23% over the past month.
Ryder’s first-quarter report showed a business still facing limited support from underlying freight market conditions, but benefiting from internal initiatives and strong used vehicle sales.
Fleet Management Solutions revenue rose 1% year on year. Supply Chain Solutions revenue increased 2%, while Dedicated Transportation Solutions revenue fell 8%.
Used vehicle sales helped Fleet Management Solutions increase earnings before tax by 6%.
Ryder posted non-GAAP earnings of $2.54 per share, compared with $2.46 a year earlier, beating consensus forecasts by $0.27 per share. Free cash flow rose to $273 million from $259 million, while operating revenue remained flat at $1.3 billion.
Chief executive John Diez said Ryder is a different company than it was in 2018, when vehicle leasing and used vehicle proceeds were far more central to profitability. Today, Supply Chain Solutions and Dedicated Transportation Solutions account for about 60% of revenue, compared with 44% in 2018.
Even so, used vehicle sales remain an important driver. Chief financial officer Cristina Gallo-Aquino said Ryder expects around $500 million in used vehicle sales proceeds in 2026, in line with 2025.
Ryder expects modest improvement in used vehicle market conditions. Diez said higher prices for new equipment later this year could support stronger used vehicle pricing.
The company sold 4,600 vehicles during the quarter, down year on year but up 1,000 sequentially. Retail sales represented 61% of the mix, compared with 56% a year earlier.
Ryder raised its 2026 earnings guidance to $14.05-$14.80 per share, up from $13.45-$14.45.
Wells Fargo raised its price target for Ryder to $260 from $236, citing conservative guidance, strategic initiatives and record sales activity in the Supply Chain Solutions segment.
