Slide 1: Third Quarter 2024 Earnings Conference Call
Third Quarter 2024 Earnings Conference Call October 24, 2024
Slide 2: Safe Harbor and Non-GAAP Financial Measures
Safe Harbor and Non-GAAP Financial Measures Note Regarding Forward-Looking Statements: Certain statements and information included in this presentation are "forward-looking statements" under the Federal Private Securities Litigation Reform Act of 1995, including: our forecast; our outlook; our expec
Slide 3: Contents
Contents 3Q24 Earnings Release Conference Call 2024 Highlights & Strategic Update Slides 4 - 5 3Q24 Results Slides 6 - 10 Capex, Cash Flow & Capital Allocation Slides 11 - 13 Outlook Slides 14 - 17 Appendix & Non-GAAP Financial Measures SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLU
Slide 4: Key Updates
Key Updates • Transformed business model and strategy execution are driving outperformance relative to prior cycles Strategy Update • Integration of recent acquisitions remains on track • Secular trends, large addressable markets, and value proposition support long-term growth opportunities • Adjust
Slide 5: Higher Earnings and Return Profile Reflects Transformative Changes
Higher Earnings and Return Profile Reflects Transformative Changes Expected post-transformation trough returns (2024F) well above pre-transformation peak returns (2018) Note: See Appendix for reconciliations of non-GAAP financial measures, including Comparable EPS and ROE. SUPPLY CHAIN | DEDICATED T
Slide 6: Results Overview
Results Overview OPERATING REVENUE COMPARABLE EPS Third Quarter Third Quarter +9% Primarily reflects weaker $2.4B $2.6B $3.58 -4% $3.44 market conditions in rental and Reflects acquisitions used vehicle sales (UVS), partially offset by higher contractual earnings1 3Q23 3Q24 3Q23 3Q24 ROE FREE CASH F
Slide 7: 3rd Quarter Results Overview – FMS
3rd Quarter Results Overview – FMS OPERATING REVENUE $1.3B $1.3B Higher ChoiceLease revenue, partially offset by lower rental demand 3Q23 3Q24 EARNINGS BEFORE TAX (EBT) Earnings decline: $169M • decreased rental results due to weaker freight conditions $132M • lower gains in UVS, compared to elevate
Slide 8: 3rd Quarter Used Vehicle Sales Update – FMS
3rd Quarter Used Vehicle Sales Update – FMS % CHANGE IN PROCEEDS Sequentially: 4% • Tractor pricing was down partly due to sales of newer equipment in the prior quarter (22)% (19)% (12)% • Truck pricing was up vs. 3Q23 vs. 2Q24 USED VEHICLES SOLD USED VEHICLE INVENTORY Inventory reflects higher leas
Slide 9: 3rd Quarter Results Overview – SCS
3rd Quarter Results Overview – SCS OPERATING REVENUE $909M $996M 10% increase driven by acquisitions 3Q23 3Q24 EARNINGS BEFORE TAX (EBT) $81M $93M 14% increase primarily reflects stronger omnichannel retail performance and lower overhead spending EBT as % of 3Q23 3Q24 Operating Revenue 9.0% 9.3% Sol
Slide 10: 3rd Quarter Results Overview – DTS
3rd Quarter Results Overview – DTS OPERATING REVENUE $486M $325M 49% increase due to acquisition 3Q23 3Q24 EARNINGS BEFORE TAX (EBT) 31% increase reflects improved operating performance $36M and acquisition benefits $28M 3Q23 3Q24 EBT as % of Operating Revenue 8.5% 7.5% Strong operating performance
Slide 11: Capital Expenditures
Capital Expenditures LEASE RENTAL $2.0B Year-to-date Year-to-date $1.5B $388M $401M 3Q23 3Q24 3Q23 3Q24 Reduced investments due to lower sales activity Limited to replacement capex Capital FY23 FY24F Expenditures Lease Vehicles $ 2.6 $ 2.2 (billions) Rental Vehicles 0.4 0.5 Operating Property & Equi
Slide 12: Earnings Power Expected to Increase Capital Capacity (2024-2026F)
Earnings Power Expected to Increase Capital Capacity (2024-2026F) 1 Debt capacity based on 2.75x leverage (midpoint of target range) Earnings power of business expected to provide $4.3B of flexible deployment capacity to support growth and return capital to shareholders Capital allocation priorities
Slide 13: Cash Flow
Cash Flow OPERATING CASH FLOW AND FREE CASH FLOW HISTORY FREE CASH FLOW SUMMARY (billions) (billions) Operating Cash Flow Free Cash Flow 2023 2024F Cash Flow from Operations $ 2.4 $ 2.4 $2.1B $2.2B $2.2B $2.3B $2.4B $2.4B Proceeds from Sales (Primarily Revenue Earning $1.6B $1.1B Equipment) 0.8 0.6
Slide 14: 2024 Outlook
2024 Outlook FULL YEAR EPS FOURTH QUARTER EPS (Earnings Per Share from Continuing Operations) 2023 2024 Forecast 2023 2024 Forecast GAAP $8.73 $11.10 - $11.30 $2.74 $3.13 - $3.33 Comparable $12.95 $11.90 - $12.10 $2.95 $3.32 - $3.52 • Year-over-year earnings growth expected in the 4th quarter of 202
Slide 15: Favorably Positioned for Cycle Upturn
Favorably Positioned for Cycle Upturn Execution through cycle upturn expected to add significant incremental benefits at next cycle peak SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 15 All Rights Reserved
Slide 16: Strategic Initiatives to Further Increase Returns
Strategic Initiatives to Further Increase Returns Ongoing execution of strategy lifting returns profile SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 16 All Rights Reserved
Slide 17: Delivering Shareholder Value
Delivering Shareholder Value Transformative changes to our business model and continued execution of our balanced growth strategy have enabled us to achieve long-term targets, increase business model resiliency, and outperform prior cycles Secular trends, operational expertise, and momentum from mul
Slide 18: Q&A
Q&A SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS 18 © 2024 Ryder System, Inc. All Rights Reserved
Slide 19: Appendix
Appendix Financial Targets Residuals Chart Comparable Segment EBITDA Asset Management Non-GAAP Financial Measures & Reconciliations SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 19 All Rights Reserved
Slide 20: Long Term Financial Model
Long Term Financial Model TARGET 2024 FORECAST ROE Long-term average over the cycle Low Twenties Raised from High Teens (Jun '24) at target In line with expectations given freight cycle conditions Component drivers to achieve ROE target include: Operating Operating Revenue Revenue Growth Growth Tota
Slide 21: Historical Sales Price as % of Original Cost & Current Residual Value Estimates
Historical Sales Price as % of Original Cost & Current Residual Value Estimates Truck Residual Index1 Tractor Residual Index1 Range Residual Estimate for Accounting Residual Estimate for Accounting RESIDUAL VALUE Accounting Residuals: Previously lowered by ~30% to address used vehicle volatility ris
Slide 22: Comparable Segment EBITDA
Comparable Segment EBITDA Third Quarter ($ Millions) 2024 YTD FMS SCS DTS Earnings before income tax $ 365 $ 242 $ 91 Interest expense 268 12 6 (1) Depreciation 1,193 78 4 (1) Used vehicle sales, net (54) — — Comparable Segment EBITDA (2) $ 1,772 $ 332 $ 101 2023 YTD FMS SCS DTS Earnings before inco
Slide 23: © 2024 Ryder System, Inc. All Rights Reserved
SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 23 All Rights Reserved
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes “non-GAAP financial measures” as defined by SEC rules. As required by SEC rules, we provide a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure. Non-GAAP financial measures should be considered in addition to,
Slide 25: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) Third Quarter Revenue 2024 2023 % B/(W) ChoiceLease $ 857 $ 799 7% Commercial rental 251 293 (15)% SelectCare and other 173 174 —% FMS operating revenue (1) 1,281 1,266 1% Fuel services revenue (2) 189 221 (15)% FMS total revenue $ 1,470 $ 1,487 (1)% Ear
Slide 26: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) Third Quarter ($ Millions) Revenue 2024 2023 % B/(W) Omnichannel retail $ 295 $ 291 2% Automotive 270 274 (2)% Consumer packaged goods 294 228 29% Industrial and other 137 116 18% SCS operating revenue (1) 996 909 10% Subcontracted transportation and fuel 321 285 13% SCS
Slide 27: Dedicated Transportation Solutions (DTS)
Dedicated Transportation Solutions (DTS) Third Quarter ($ Millions) Revenue 2024 2023 % B/(W) (1) DTS Operating Revenue $ 486 $ 325 49% Subcontracted transportation and fuel 147 123 20% DTS Total Revenue $ 633 $ 448 41% Earnings Before Tax DTS Earnings Before Tax (EBT) $ 36 $ 28 31% DTS EBT as a % o
Slide 28: Total Revenue to Operating Revenue Reconciliation
Total Revenue to Operating Revenue Reconciliation ($ Millions) Third Quarter 2024 2023 Total Revenue $ 3,168 $ 2,924 Subcontracted Transportation and Fuel (575) (545) (1) Operating Revenue $ 2,593 $ 2,379 Year-to-Date Note: Amounts may not be additive due to rounding. (1) Non-GAAP financial measure.
Slide 29: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions, Except Per Share Amounts) 3Q24 3Q24 3Q23 3Q23 Earnings EPS Earnings EPS Continuing operations (GAAP) $ 143 $ 3.25 $ 160 $ 3.44 Non-operating pension costs, net 7 0.17 8 0.17 Acquisition costs 1 0.01 — — FMS U.K. exit — — (3) (0.
Slide 30: Comparable EPS Reconciliation
Comparable EPS Reconciliation Fourth Quarter 2024 Full Year 2024 Forecast Forecast EPS from continuing operations forecast (GAAP) $3.13 - $3.33 $11.10 - $11.30 Non-operating pension costs, net 0.19 0.74 Restructuring and other, net — 0.05 Comparable EPS from continuing operations forecast (non-GAAP)
Slide 31: Adjusted Return on Equity Reconciliation
Adjusted Return on Equity Reconciliation (1) Twelve months ended September 30, ($ Millions) 2018 2023 2024 2024 Forecast Net earnings $ 285 $ 488 $ 477 $ 495 Other items impacting comparability, net 22 128 7 5 Tax impact (1) 1 25 — — Adjusted net earnings [A] $ 308 $ 641 $ 484 $ 500 Average sharehol
Slide 32: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) Nine months ended September 30, 2023 2024 Cash Provided by Operating Activities from Continuing Operations $ 1,842 $ 1,707 Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 647 433 Total Cash Generated (2) 2,489 2,140 Purchases of Property and Re
Slide 33: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 2019 2020 2021 2022 2023 2024 Forecast Net Cash Provided by Operating Activities from Continuing Operations $ 2,141 $ 2,181 $ 2,175 $ 2,310 $ 2,353 $ 2,400 Proceeds from Sales (Primarily Revenue Earning Equipment) (1) 518 552 822 1,235 827 600 Other, net (1) — —