Ryder System Delivers Double-Digit Earnings Growth in Q1 2025, Cements Position as Leader in Transportation and Logistics Outsourcing
Ryder System, a leading global transportation and logistics company, has reported double-digit earnings growth in its first quarter of 2025. According to the company's recent conference call transcript, Ryder's business continues to outperform prior cycles driven by its high-quality contractual portfolio and execution of its balanced growth strategy.
"We're proud of our team for delivering double-digit earnings growth during the first quarter, in line with our forecast," said Robert Sanchez, Chairman and Chief Executive Officer. "Our transformed business model and execution of our balanced growth strategy continue to drive earnings growth."
Ryder's contractual portfolio has been a key driver of its success, with earnings growth reflecting the value proposition and pricing discipline embedded in this high-quality portfolio. The company's ability to leverage operational expertise and innovative technology has also positioned it well to support customers as they navigate changes to their supply chains and transportation networks.
During the quarter, Ryder returned $202 million to shareholders through share repurchases and dividend payments. This brings the total amount returned since 2021 to approximately $2 billion. The company has increased its forecast for free cash flow in 2025 to a range of $375 million to $475 million, primarily due to lower expected capital spending.
Ryder's transformed business model is expected to continue to outperform prior cycles, with the company generating meaningfully higher earnings and returns than it did during peak freight cycle conditions in 2018. This is despite expectations for near-trough levels of freight market conditions in 2025.
"Our high-quality contractual portfolio and execution of our balanced growth strategy have allowed us to navigate the challenges of a downturned freight cycle while continuing to drive earnings growth," said Sanchez. "We're confident that this momentum will carry through into the remainder of the year."
The company's return on equity (ROE) for the trailing 12-month period stood at 17%, in line with expectations and demonstrating the resilience of its transformed business model. Ryder's contractual businesses have also seen earnings growth, driven by the value proposition and pricing discipline embedded in this high-quality portfolio.
Ryder's balanced growth strategy has included derisking the business, increasing the return profile, and accelerating growth in asset-light segments such as Supply Chain Solutions (SCS) and Dedicated Transportation Solutions (DTS). This strategy has allowed the company to increase its capital deployment capacity, which it expects to use to support profitable growth and return capital to shareholders.
John Diez, President and Chief Operating Officer, highlighted the company's increasing capital expenditures and growing capital deployment capacity. Cristy Gallo-Aquino, Executive Vice President and Chief Financial Officer, provided an update on Ryder's financial performance, including its first quarter results and updated outlook for 2025.
