Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Earnings Conference Call February 12, 2025
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 4Q24 Earnings Release Conference Call 2024 Highlights & Strategic Update Slides 4 - 6 4Q24 Results Slides 7 - 11 Capex, Cash Flow & Capital Allocation Slides 12 - 13 Outlook Slides 14 - 20 Appendix & Non-GAAP Financial Measures SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLU
Slide 4: Strong 2024 results driven by high-quality contractual portfolio
Strong 2024 results driven by high-quality contractual portfolio • Comparable EPS of $12.00 reflects strategy execution in a challenging freight market environment ◦ In-line with initial forecast midpoint ◦ Significantly above comparable EPS of $5.95 in 2018 (prior freight cycle peak) • Adjusted ROE
Slide 5: 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 • ROE of 16% in
Slide 6: Higher Earnings and Return Profile Reflects Transformative Changes
Higher Earnings and Return Profile Reflects Transformative Changes 2024 Post-transformation returns (expected trough) well above 2018 pre-transformation peak returns Note: See Appendix for reconciliations of non-GAAP financial measures, including Comparable EPS and ROE. SUPPLY CHAIN | DEDICATED TRAN
Slide 7: Results Overview
Results Overview OPERATING REVENUE COMPARABLE EPS Fourth Quarter Fourth Quarter +7% +17% Reflects higher earnings Reflects acquisitions across all business segments ROE FREE CASH FLOW Trailing 12 Months Full Year Decline reflects weaker rental and UVS market conditions, partially offset by higher co
Slide 8: 4th Quarter Results Overview – FMS
4th Quarter Results Overview – FMS OPERATING REVENUE 3% increase driven by higher ChoiceLease revenue, partially offset by lower rental demand EARNINGS BEFORE TAX (EBT) 13% increase primarily reflects higher ChoiceLease performance, partially offset by weaker rental demand EBT as % of Operating Reve
Slide 9: 4th Quarter Used Vehicle Sales Update – FMS
4th Quarter Used Vehicle Sales Update – FMS % CHANGE IN PROCEEDS • Narrowing year-over-year pricing declines • Single-digit sequential pricing declines vs. 4Q23 vs. 3Q24 USED VEHICLES SOLD USED VEHICLE INVENTORY In line with 7-9K long-term target range Used vehicle prices remain above residual value
Slide 10: 4th Quarter Results Overview – SCS
4th Quarter Results Overview – SCS OPERATING REVENUE 4% increase driven by acquisitions, partially offset by lower sales activity EARNINGS BEFORE TAX (EBT) 58% increase primarily reflects stronger omnichannel retail performance from higher customer volumes and improved productivity EBT as % of 5.8%
Slide 11: 4th Quarter Results Overview – DTS
4th Quarter Results Overview – DTS OPERATING REVENUE 46% increase due to acquisition of Cardinal Logistics EARNINGS BEFORE TAX (EBT) • 10% increase reflects acquisition • Results continue to benefit from strong performance of legacy business EBT as % of Operating Revenue 9.4% 7.1% Earnings growth re
Slide 12: Capital Expenditures
Capital Expenditures LEASE RENTAL Higher replacement activity expected in 2025 Lower planned replacement activity in 2025 Capital FY23 FY24 FY25F Expenditures Lease Vehicles $ 2.6 $ 2.0 $ 2.2 (billions) Rental Vehicles 0.4 0.5 0.4 Operating Property & Equipment 0.3 0.1 0.2 Gross Capital Expenditures
Slide 13: Earnings Power Expected to Increase Capital Capacity (3-Yr Outlook)
Earnings Power Expected to Increase Capital Capacity (3-Yr Outlook) 1 Debt capacity based on 2.75x leverage (midpoint of target range) Earnings power of business expected to provide ~$4B of flexible capital deployment capacity to support growth and return capital to shareholders SUPPLY CHAIN | DEDIC
Slide 14: Introducing 2025 Outlook
Introducing 2025 Outlook 2024 RESULTS 2025 FORECAST MARKET ASSUMPTIONS Operating Revenue 8% Muted growth environment ~2% Growth Top end of forecast range assumes very modest improvement in rental demand later in the year $12.00 $13.00 - $14.00 Comparable EPS Down 7% YoY Up 8% - 17% YoY Secular trend
Slide 15: 2025 Outlook Highlights
2025 Outlook Highlights Operating revenue growth at target due to higher pricing FMS EBT% slightly below target, reflective of freight cycle timing Operating revenue growth below target reflecting ongoing economic uncertainty SCS EBT% at target primarily due to operating efficiencies in omnichannel
Slide 16: 2025 Causes of Comparable EPS Change
2025 Causes of Comparable EPS(1) Change ($ Earnings Per Share) (2) (1) Represents Comparable EPS (Non-GAAP Metric) (2) Represents high end of $13.00 - $14.00 Comparable EPS forecast range 16 © 2025 Ryder System, Inc. Note: See Appendix for reconciliations of non-GAAP financial measures, including Co
Slide 17: Balanced Growth Strategy Expected to Further Increase Returns
Balanced Growth Strategy Expected to Further Increase Returns ~$100M benefit by 2025 (incremental ~$70M in 2025) Ongoing execution of strategy expected to lift returns profile SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2025 Ryder System, Inc. 17 All Rights Reserved
Slide 18: Favorably Positioned for Cycle Upturn
Favorably Positioned for Cycle Upturn ~$15M(1) included in 2025 (1) At the high end of $13.00 - $14.00 comparable EPS forecast range Significant incremental benefits expected by next cycle peak; Minimal upturn benefit expected in 2025 SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTI
Slide 19: EPS – Continuing Operations
EPS – Continuing Operations FULL YEAR EPS FIRST QUARTER EPS (Earnings Per Share) 2024 2025 Forecast 2024 2025 Forecast GAAP $11.06 $12.40 - $13.40 $1.89 $2.15 - $2.40 Comparable $12.00 $13.00 - $14.00 $2.14 $2.30 - $2.55 Note: See Appendix for reconciliations of non-GAAP financial measures, includin
Slide 20: Delivering Shareholder Value
Delivering Shareholder Value Transformative changes to our business model and execution of our balanced growth strategy are enabling us to achieve long-term targets, increase business model resiliency, and outperform prior cycles Secular trends, operational expertise, and momentum from multi-year in
Slide 21: Q&A
Q&A SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS 21 © 2025 Ryder System, Inc. All Rights Reserved
Slide 22: Appendix
Appendix Financial Targets Residuals Chart Comparable Segment EBITDA Cash Flow Balance Sheet Asset Management Non-GAAP Financial Measures & Reconciliations SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2025 Ryder System, Inc. 22 All Rights Reserved
Slide 23: Long Term Financial Model
Long Term Financial Model TARGET 2025 FORECAST ROE Long-term average over the cycle Low Twenties at target Reflective of cycle timing; within cycle range of Component drivers to achieve ROE target include: high-teens to mid-twenties Operating Operating Revenue Revenue Growth Growth Total Ryder High
Slide 24: Historical Sales Price as % of Original Cost & Current Residual Value Estimates
Historical Sales Price as % of Original Cost & Current Residual Value Estimates Truck Residual Index1 Tractor Residual Index1 Range Residual Estimate for Accounting Residual Estimate for Accounting RESIDUAL VALUE Accounting Residuals: Previously lowered by ~30% to address used vehicle volatility ris
Slide 25: Comparable Segment EBITDA
Comparable Segment EBITDA Fourth Quarter ($ Millions) 2024 YTD FMS SCS DTS Earnings before income tax $ 516 $ 332 $ 125 Interest expense 362 17 8 Depreciation (1) 1,583 104 5 Used vehicle sales, net (1) (72) — — Comparable Segment EBITDA (2) $ 2,389 $ 453 $ 138 2023 YTD FMS SCS DTS Earnings before i
Slide 26: Cash Flow
Cash Flow OPERATING CASH FLOW AND FREE CASH FLOW HISTORY FREE CASH FLOW SUMMARY (billions) (billions) 2024 2025F(1) Cash Flow from Operations $ 2.3 $ 2.5 Proceeds from Sales (Primarily Revenue Earning Equipment) 0.6 0.5 Total Cash Generated $ 2.8 $ 3.0 Less: Fleet Replacement Capex 2.6 2.4 FY21 Oper
Slide 27: Select Segment Balance Sheet Items
Select Segment Balance Sheet Items ($ Millions) December 31, 2024 FMS (1) SCS DTS Total Assets Excluding Goodwill & Intangibles $ 11,963 $ 2,630 $ 464 $ 15,057 Goodwill and Intangibles 271 1,043 301 1,615 Total Assets 12,234 3,673 765 16,672 Debt (2) 6,877 678 224 7,779 Equity (3) $ 1,557 $ 1,350 $
Slide 28: SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2025 Ryder System, Inc.
SUPPLY CHAIN | DEDICATED TRANSPORTATION | FLEET MANAGEMENT SOLUTIONS © 2025 Ryder System, Inc. 28 All Rights Reserved
Slide 29: 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 30: Fleet Management Solutions (FMS)
Fleet Management Solutions (FMS) Fourth Quarter ($ Millions) Revenue 2024 2023 % B/(W) ChoiceLease $ 890 $ 825 8% Commercial rental 249 279 (11)% SelectCare and other 169 167 1% FMS operating revenue (1) 1,308 1,271 3% Fuel services revenue (2) 177 210 (15)% FMS total revenue $ 1,485 $ 1,481 —% Earn
Slide 31: Supply Chain Solutions (SCS)
Supply Chain Solutions (SCS) Fourth Quarter ($ Millions) Revenue 2024 2023 % B/(W) Omnichannel retail $ 324 $ 330 (2)% Automotive 262 271 (3)% Consumer packaged goods 289 257 12% Industrial and other 132 115 16% SCS operating revenue (1) 1,007 972 4% Subcontracted transportation and fuel 333 328 1%
Slide 32: Dedicated Transportation Solutions (DTS)
Dedicated Transportation Solutions (DTS) Fourth Quarter ($ Millions) Revenue 2024 2023 % B/(W) DTS Operating Revenue (1) $ 472 $ 324 46% Subcontracted transportation and fuel 143 119 20% DTS Total Revenue $ 615 $ 443 39% Earnings Before Tax DTS Earnings Before Tax (EBT) $ 34 $ 31 10% DTS EBT as a %
Slide 33: Total Revenue to Operating Revenue Reconciliation
Total Revenue to Operating Revenue Reconciliation ($ Millions) Fourth Quarter 2024 2023 Total Revenue $ 3,189 $ 3,023 Subcontracted Transportation and Fuel (572) (576) Operating Revenue (1) $ 2,617 $ 2,447 Full Year Note: Amounts may not be additive due to rounding. (1) Non-GAAP financial measure. S
Slide 34: Earnings and EPS from Continuing Operations Reconciliation
Earnings and EPS from Continuing Operations Reconciliation ($ Millions, Except Per Share Amounts) 4Q24 4Q24 4Q23 4Q23 Earnings EPS Earnings EPS Continuing operations (GAAP) $ 135 $ 3.11 $ 124 $ 2.74 Non-operating pension costs, net 8 0.18 7 0.16 Acquisition costs 1 0.01 2 0.04 FMS U.K. exit — — 1 0.
Slide 35: Comparable EPS Reconciliation
Comparable EPS Reconciliation First Quarter 2025 Full Year 2025 Forecast Forecast EPS from continuing operations forecast (GAAP) $2.15 - $2.40 $12.40 - $13.40 Non-operating pension costs, net 0.15 0.60 Comparable EPS from continuing operations forecast (non-GAAP) $2.30 - $2.55 $13.00 - $14.00 First
Slide 36: Adjusted Return on Equity Reconciliation
Adjusted Return on Equity Reconciliation (1) Twelve months ended December 31, ($ Millions) 2018 2023 2024 2025 Forecast Net earnings $ 285 $ 406 $ 489 $ 550 Other items impacting comparability, net 22 157 13 — Tax impact (1) 1 8 (2) 5 Adjusted net earnings [A] $ 308 $ 571 $ 500 $ 555 Average shareho
Slide 37: Cash Flow Reconciliation
Cash Flow Reconciliation ($ Millions) 2020 2021 2022 2023 2024 2025 Forecast (4) Net Cash Provided by Operating Activities from Continuing Operations $ 2,181 $ 2,175 $ 2,310 $ 2,353 $ 2,265 $ 2,500 Proceeds from Sales (Primarily Revenue Earning Equipment) (1) 552 822 1,235 827 551 500 Other, net (1)