# Ryder System Inc. (R) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/R/thesis · /stocks/R/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: R
step: "04"
title: Financial Snapshot — Ryder System
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Three-Year P&L Summary

| Metric | FY2022 | FY2023 | FY2024E |
|--------|--------|--------|---------|
| Total Revenue | $12.4B | $12.0B | $11.5-12.0B |
| — FMS Revenue | $6.8B | $6.5B | $6.3-6.5B |
| — SCS Revenue | $3.5B | $3.5B | $3.5-3.7B |
| — DTS Revenue | $1.8B | $1.9B | $1.9-2.0B |
| Gross Profit | $2.6B | $2.4B | $2.3-2.5B |
| Gross Margin | 21% | 20% | 20-21% |
| Operating Income | $1,100M | $780M | $750-850M |
| Operating Margin | 8.9% | 6.5% | 6.5-7.5% |
| EBITDA | ~$2.4B | ~$2.0B | ~$2.0-2.1B |
| Interest Expense | ($250M) | ($290M) | ($300-310M) |
| Pre-Tax Income | $840M | $490M | $450-550M |
| Income Tax | ($195M) | ($115M) | ($105-130M) |
| Net Income | ~$640M | ~$375M | ~$350-420M |
| Diluted EPS | ~$12.00 | ~$7.50 | ~$7.00-8.50 |
| Diluted Shares | ~53M | ~50M | ~49-51M |

*Note: FY2022 earnings were materially elevated by extraordinary used vehicle sales gains ($400-600M pre-tax). FY2023 represents a more normalized earnings baseline as used vehicle prices compressed.*

#### Adjusted vs. GAAP Earnings

Ryder provides "Adjusted" EPS figures that exclude:
- Used vehicle sales gains/losses (called "gains on vehicle sales" or "USG")
- Restructuring charges
- Non-operating pension adjustments
- Tax reform impacts

**Why this matters**: In FY2021, reported EPS exceeded $25 due largely to used vehicle gains — a figure wildly unrepresentative of sustainable earnings power. Adjusted EPS (stripping used vehicle gains above historical norms) was ~$12-14 in FY2021, a more appropriate baseline.

Similarly, FY2022's reported EPS of ~$12 included material used vehicle gains; adjusted EPS was somewhat lower (~$10-11 on a normalized basis).

For FY2023-2024, used vehicle prices have normalized below peak, potentially creating a modest negative "comparable" versus prior years. Ryder's adjusted EPS guidance range for FY2024 was $11.50-12.50, reflecting the underlying fleet and logistics business performance.

#### Segment Profitability

| Segment | FY2022 Op. Earnings | FY2022 Op. Margin | FY2023 Op. Earnings | FY2023 Op. Margin |
|---------|--------------------|--------------------|--------------------|--------------------|
| FMS | ~$750M | ~11% | ~$500M | ~7.7% |
| SCS | ~$130M | ~3.7% | ~$130M | ~3.7% |
| DTS | ~$105M | ~5.8% | ~$115M | ~6.1% |
| Unallocated | (~$30M) | — | (~$30M) | — |
| **Total** | **~$955M** | **~7.7%** | **~$715M** | **~6.0%** |

*FMS margin compression from FY2022 to FY2023 reflects the normalization of used vehicle sales gains rather than deterioration of the underlying lease business.*

#### Key Margin Drivers

##### FMS Margin Drivers
1. **Used vehicle sales gains**: Largest single swing factor — historically ran 1-3% of FMS revenue as gains; peaked at 8-10% in 2021; normalized to near-zero or slight losses in 2023-2024
2. **Lease fleet utilization and pricing**: Stable at high utilization (~96-98% for ChoiceLease) with modest price escalators
3. **Maintenance cost trends**: Labor inflation and parts costs pressured FMS costs in 2022-2024; partially offset by price increases
4. **Depreciation policy**: Ryder periodically adjusts residual value assumptions — if used truck prices decline further, accelerated depreciation could hit FMS margins

##### SCS Margin Drivers
1. **Labor efficiency**: SCS is labor-intensive (~50-60% of costs are labor); tight labor markets in 2022-2023 compressed margins
2. **Contract start-up costs**: New large contracts initially have negative margins that improve over 6-18 months as operations ramp
3. **Volume leverage**: As SCS contracts scale, fixed-cost leverage improves
4. Target SCS margin: 4-5% operating margin; currently running slightly below that level

##### DTS Margin Drivers
1. **Driver costs**: Driver wages, benefits, and turnover are the key cost drivers
2. **Contract pricing**: DTS contracts typically have fuel surcharges and some labor escalators; imperfect pass-through
3. Target DTS margin: 6-8% operating margin

#### Balance Sheet Snapshot (FY2023 Year-End)

| Item | Amount |
|------|--------|
| Cash & Equivalents | ~$0.3B |
| Operating Lease Right-of-Use Assets | ~$1.2B |
| Revenue Earning Equipment (net) | ~$9.5B |
| Total Assets | ~$16.5B |
| Short-Term Debt | ~$1.2B |
| Long-Term Debt | ~$5.8B |
| Operating Lease Liabilities | ~$1.2B |
| Pension Liabilities | ~$0.3B |
| Total Debt (excl. operating leases) | ~$7.0B |
| Net Debt | ~$6.7B |
| Total Equity | ~$2.8B |
| Book Value Per Share | ~$55-60 |

#### Cash Flow Summary

| Metric | FY2022 | FY2023 | FY2024E |
|--------|--------|--------|---------|
| Operating Cash Flow | ~$2.8B | ~$2.5B | ~$2.3-2.5B |
| Fleet CapEx (purchases) | (~$3.6B) | (~$2.8B) | (~$2.5-3.0B) |
| Fleet CapEx (proceeds from sales) | ~$1.2B | ~$0.8B | ~$0.7-0.9B |
| Net Fleet CapEx | (~$2.4B) | (~$2.0B) | (~$1.8-2.1B) |
| Non-Fleet CapEx | (~$0.2B) | (~$0.2B) | (~$0.2B) |
| Free Cash Flow (after all CapEx) | ~$0.2B | ~$0.3B | ~$0.1-0.5B |
| Dividends Paid | (~$0.13B) | (~$0.13B) | (~$0.13B) |
| Share Repurchases | (~$0.4B) | (~$0.3B) | (~$0.2-0.3B) |

*FCF is highly dependent on CapEx cycle timing — fleet capex follows new truck availability and replacement schedules. FCF is often negative in fleet growth years and positive when fleet is in maintenance mode.*

#### Profitability Metrics

| Metric | FY2022 | FY2023 | 5-Yr Average |
|--------|--------|--------|--------------|
| EBITDA Margin | ~19% | ~17% | ~17% |
| Operating Margin | ~8.9% | ~6.5% | ~6-8% |
| Net Margin | ~5.2% | ~3.1% | ~3-5% |
| Return on Equity | ~23% | ~13% | ~12-15% |
| Return on Assets | ~3.9% | ~2.3% | ~2-3% |
| ROIC (adjusted) | ~8-9% | ~7-8% | ~7-9% |

#### Dividend & Capital Return History

- **Dividend**: ~$2.52/share annually (raised incrementally over past decade); yield ~2.5-3.5% at normal valuation
- **Buybacks**: Opportunistic; Ryder repurchased ~$300-400M in shares annually during 2021-2023 while stock was perceived cheap
- **Dividend payout ratio**: ~30-35% of adjusted earnings — sustainable

#### Key Analytical Notes

1. **Earnings normalization**: Investors should focus on "through-cycle" adjusted EPS, excluding used vehicle sale gains/losses that are above or below long-run averages. Sustainable adjusted EPS is roughly $10-13/share at mid-cycle conditions.

2. **FCF vs. Earnings**: Ryder's asset-intensity means reported FCF often understates or overstates economic earnings in any given year based on fleet capex timing. EBITDA minus "maintenance capex" (fleet replacement only, not growth) is a more stable cash generation measure.

3. **Leverage caution**: Net debt/EBITDA of ~3-3.5x is manageable for an investment-grade fleet company but leaves limited cushion for a severe freight downturn. The company targets leverage below 3x through the cycle.

4. **EV fleet capex**: If EV truck adoption accelerates, Ryder's fleet replacement capex per vehicle could rise by 30-50% before plateauing — a meaningful upside risk to capital requirements in 2026-2030.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/R/fundamental

## Navigation

- Overview: /stocks/R
- Financials (this page): /stocks/R/financials
- Thesis: /stocks/R/thesis
- Investment Memo: /stocks/R/memo
- Coverage universe: /stocks