Slide 1: Second Quarter 2024 Earnings Conference Call
Second Quarter 2024 Earnings Conference Call July 25, 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 2Q24 Earnings Release Conference Call 2024 Highlights & Strategic Update Slides 4 - 5 2Q24 Results Slides 6 - 10 Capex, Cash Flow & Capital Allocation Slides 11 - 12 Outlook Slides 13 - 15 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 on track • Secular trends, large addressable markets, and value proposition support long-term growth opportunities • Adjusted ROE (
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 Second Quarter Second Quarter +10% Primarily reflecting weaker $2.6B $3.61 -17% market conditions in used $2.3B Primarily reflecting recent $3.00 acquisitions vehicle sales (UVS) and rental, partially offset by higher contractual earnings 2Q23 2Q24 2
Slide 7: 2nd Quarter Results Overview – FMS
2nd Quarter Results Overview – FMS OPERATING REVENUE $1.3B $1.3B Higher ChoiceLease revenue, partially offset by lower rental demand 2Q23 2Q24 EARNINGS BEFORE TAX (EBT) Earnings decline primarily reflects: $180M • decreased rental results due to weaker freight conditions $133M • lower gains in UVS d
Slide 8: 2nd Quarter Used Vehicle Sales Update – FMS
2nd Quarter Used Vehicle Sales Update – FMS % CHANGE IN PROCEEDS 5% Tractor pricing remained relatively stable whereas (10)% truck pricing continued to (19)% (27)% decline vs. 2Q23 vs. 1Q24 USED VEHICLES SOLD USED VEHICLE INVENTORY Inventory reflects higher lease expirations 9,500 Above 7-9K long- 7
Slide 9: 2nd Quarter Results Overview – SCS
2nd Quarter Results Overview – SCS OPERATING REVENUE $865M $989M 14% increase driven by recent acquisitions and organic growth across all industry verticals 2Q23 2Q24 EARNINGS BEFORE TAX (EBT) $76M $85M 13% increase primarily reflects stronger automotive performance EBT as % of 2Q23 2Q24 Operating R
Slide 10: 2nd Quarter Results Overview – DTS
2nd Quarter Results Overview – DTS OPERATING REVENUE $485M $327M 48% increase due to acquisition of Cardinal Logistics 2Q23 2Q24 EARNINGS BEFORE TAX (EBT) Earnings increase reflects improved operating $33M $37M performance, partially offset by Cardinal acquisition integration and other related costs
Slide 11: Capital Expenditures
Capital Expenditures LEASE RENTAL $1.4B Year-to-date Year-to-date $0.9B $310M $294M 2Q23 2Q24 2Q23 2Q24 Reduced investments due to lower sales activity Lower planned rental investments in the quarter Capital FY23 FY24F Expenditures Lease Vehicles $ 2.6 $ 2.2 (billions) Rental Vehicles 0.4 0.5 Operat
Slide 12: Cash Flow and Capital Allocation Priorities
Cash Flow and Capital Allocation Priorities 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 Earni
Slide 13: 2024 Outlook
2024 Outlook FULL YEAR EPS THIRD QUARTER EPS (Earnings Per Share from Continuing Operations) 2023 2024 Forecast 2023 2024 Forecast GAAP $8.73 $11.15 - $11.65 $3.44 $3.12 - $3.32 Comparable $12.95 $11.90 - $12.40 $3.58 $3.30 - $3.50 • Freight conditions remain weak; timing for cycle inflection is unc
Slide 14: Favorably Positioned for Cycle Upturn
Favorably Positioned for Cycle Upturn Execution through cycle upturn expected to add significant incremental benefits at next cycle peak SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 14 All Rights Reserved
Slide 15: Delivering Shareholder Value
Delivering Shareholder Value Transformative changes to our business model and continued execution of our balanced growth strategy have enabled us to achieve long-term targets, increase business model resiliency, and outperform prior cycles Secular trends, operational expertise, and momentum from mul
Slide 16: Q&A
Q&A SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS 16 © 2024 Ryder System, Inc. All Rights Reserved
Slide 17: Appendix
Appendix Financial Targets Residuals Chart Comparable Segment EBITDA Asset Management Non-GAAP Financial Measures & Reconciliations SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 17 All Rights Reserved
Slide 18: Long Term Financial Model
Long Term Financial Model TARGET 2024 FORECAST ROE Long-term average over the cycle Low Twenties Raised from High Teens (Jun '24) at target Component drivers to achieve ROE target include: Operating Operating Revenue Revenue Growth Growth Total Ryder High Single Digit at target Fleet Management Mid
Slide 19: Historical Sales Price as % of Original Cost & Current Residual Value Estimates
Historical Sales Price as % of Original Cost & Current Residual Value Estimates Truck Residual Index1 Tractor Residual Index1 Range Residual Estimate for Accounting Residual Estimate for Accounting RESIDUAL VALUE Accounting Residuals: Previously lowered by ~30% to address used vehicle volatility ris
Slide 20: Comparable Segment EBITDA
Comparable Segment EBITDA Second Quarter ($ Millions) 2024 YTD FMS SCS DTS Earnings before income tax $ 233 $ 149 $ 55 Interest expense 176 8 4 (1) Depreciation 795 54 2 (1) Used vehicle sales, net (39) — — Comparable Segment EBITDA (2) $ 1,165 $ 211 $ 61 2023 YTD FMS SCS DTS Earnings before income
Slide 21: © 2024 Ryder System, Inc. All Rights Reserved
SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2024 Ryder System, Inc. 21 All Rights Reserved
Slide 22: 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 23: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) ($ Millions) Second Quarter Revenue 2024 2023 % B/(W) ChoiceLease $ 856 $ 781 10% Commercial rental 244 301 (19)% SelectCare and other 176 172 2% FMS operating revenue (1) 1,276 1,254 2% Fuel services revenue (2) 202 205 (1)% FMS total revenue $ 1,478 $ 1,459 1% Earn
Slide 24: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) Second Quarter ($ Millions) Revenue 2024 2023 % B/(W) Omnichannel retail $ 287 $ 275 4% Automotive 280 262 7% Consumer packaged goods 286 223 29% Industrial and other 136 105 32% SCS operating revenue (1) 989 865 14% Subcontracted transportation and fuel 352 314 12% SCS
Slide 25: Dedicated Transportation Solutions (DTS)
Dedicated Transportation Solutions (DTS) Second Quarter ($ Millions) Revenue 2024 2023 % B/(W) (1) DTS Operating Revenue $ 485 $ 327 48% Subcontracted transportation and fuel 150 113 33% DTS Total Revenue $ 635 $ 440 44% Earnings Before Tax DTS Earnings Before Tax (EBT) $ 37 $ 33 10% DTS EBT as a %
Slide 26: Total Revenue to Operating Revenue Reconciliation
Total Revenue to Operating Revenue Reconciliation ($ Millions) Second Quarter 2024 2023 Total Revenue $ 3,182 $ 2,884 Subcontracted Transportation and Fuel (621) (558) (1) Operating Revenue $ 2,561 $ 2,326 Year-to-Date Note: Amounts may not be additive due to rounding. (1) Non-GAAP financial measure
Slide 27: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions, Except Per Share Amounts) 2Q24 2Q24 2Q23 2Q23 Earnings EPS Earnings EPS Continuing operations (GAAP) $ 126 $ 2.83 $ (18) $ (0.39) Non-operating pension costs, net 7 0.17 8 0.17 Acquisition costs 1 0.01 — — FMS U.K. exit — — (4)
Slide 28: Comparable EPS Reconciliation
Comparable EPS Reconciliation Third Quarter 2024 Full Year 2024 Forecast Forecast EPS from continuing operations forecast (GAAP) $3.12 - $3.32 $11.15 - $11.65 Non-operating pension costs, net 0.19 0.74 Restructuring and other, net (0.01) 0.02 Comparable EPS from continuing operations forecast (non-G
Slide 29: Adjusted Return on Equity Reconciliation
Adjusted Return on Equity Reconciliation (1) Twelve months ended June 30, ($ Millions) 2018 2023 2024 2024 Forecast Net earnings $ 285 $ 574 $ 495 $ 500 Other items impacting comparability, net 22 96 10 5 Tax impact (1) 1 38 (6) — Adjusted net earnings [A] $ 308 $ 708 $ 499 $ 505 Average shareholder
Slide 30: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ Millions) Six months ended June 30, 2023 2024 Cash Provided by Operating Activities from Continuing Operations $ 1,221 $ 1,078 Proceeds from Sales (Primarily Revenue Earning Equipment)(1) 447 317 Total Cash Generated (2) 1,668 1,395 Purchases of Property and Revenue
Slide 31: 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) — —