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• Operating Revenue: $2.6 billion in Q4, up 7% from the prior year.

• Comparable Earnings Per Share: $3.45 in Q4, up from $2.95 in the prior year.

• Return on Equity: 16% for the year.

• Free Cash Flow: Increased to $133 million from negative $54 million in the prior year.

• ChoiceLease Revenue Growth: 8% increase, with 40% from organic growth.

• Fleet Management Solutions Pre-tax Earnings: $152 million, up year over year.

• Rental Utilization: 73%, down from 75% in the prior year.

• Used Vehicle Sales: 4,700 vehicles sold in the quarter; inventory decreased to 9,000 vehicles.

• Supply Chain Earnings Growth: 58% increase from prior year.

• Dedicated Operating Revenue Increase: 46%, reflecting the acquisition of Cardinal Logistics.

• Capital Expenditures Forecast for 2025: Approximately $2.7 billion.

• Shareholder Returns: $456 million returned in 2024 through share repurchases and dividends.

• Dividend Increase: 14% increase in 2024.

• Warning! GuruFocus has detected 7 Warning Signs with R.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ryder System Inc (NYSE:R) reported double-digit earnings growth in each of its business segments for the fourth quarter of 2024.

• The company achieved a return on equity of 16%, demonstrating resilience during an extended freight cycle downturn.

• Operating revenue grew by 8% in 2024, driven by strategic acquisitions such as Cardinal Logistics and IFS.

• Ryder System Inc (NYSE:R) returned $456 million to shareholders through share repurchases and dividends in 2024.

• The company's transformed business model has resulted in a significant shift towards asset-light businesses, with 61% of 2024 revenue coming from Supply Chain and Dedicated segments.

Negative Points

• Ryder System Inc (NYSE:R) is experiencing a muted growth environment in 2025, reflecting ongoing freight market conditions.

• Rental demand remains weak, with rental utilization on the power fleet decreasing to 73% from 75% in the prior year.

• Used vehicle sales proceeds declined, with tractor proceeds down 13% and truck proceeds down 12% year-over-year.

• The company faces near-term revenue growth headwinds in its Supply Chain and Dedicated segments due to the freight cycle and economic uncertainty.

• Integration costs from acquisitions, such as Cardinal Logistics, have impacted the Dedicated segment's earnings before tax as a percent of operating revenue, which was below the long-term target.

Q & A Highlights

Q: Can you elaborate on the muted revenue growth guidance and the factors contributing to the 2% growth expectation? A: Robert Sanchez, Chairman and CEO, explained that the company expects mid single-digit growth in Fleet Management Solutions (FMS) but anticipates flat lease fleet growth due to a soft freight market. This environment creates growth headwinds in supply chain and dedicated businesses. The earnings growth is primarily driven by initiative-based strategies that the company can control and execute, rather than relying on market conditions.