U-Haul Sees Light at the End of the Tunnel Amidst Resilient Customer Sentiment and Industry Shifts
As the dust settles on another quarter, U-Haul Holding Company has provided a snapshot into its Q4 2025 performance. Chairman Edward Shoen took center stage during the company's recent investor conference call, shedding light on key takeaways from the financial statements.
A significant shift in original equipment manufacturers' (OEMs) focus towards reliable and fuel-efficient internal combustion engine (ICE) vehicles has been a welcome change for U-Haul. This development is expected to improve pricing and better serve customers with truck product, especially since OEMs are seeking relief from emissions regulations.
U-Haul has taken proactive steps to adapt to these changes by deflating its pickup fleet by three-quarters, as the company sees no path to profitability with more than a small specialized pickup. Resale prices on both vans and pickups have remained steady or improved, paving the way for a clearer future beyond October's potential struggles.
Clients are showing optimism, particularly those in the truck share segment. Storage remains a bright spot whenever U-Haul executes its programs with precision, while it presents challenges when executed less accurately. Both self-move and self-store are expected to continue meeting consumer needs.
On the financial front, the company reported a fourth-quarter loss of $82.3 million compared to a $863,000 loss during the same period last year. Full-year fiscal 2025 earnings stood at $367.1 million, down from $628.7 million in fiscal 2024. Earnings before interest, taxes, and depreciation (EBITDA) for the moving and storage segment increased by $5.6 million to $217.3 million during the quarter, primarily driven by revenue growth.
However, significant differences between EBITDA and GAAP earnings include fleet depreciation due to increased fleet acquisitions and higher cost per truck over several years. The reduced gains on the sales of retired pickups and cargo vans also contributed to the decline in earnings per share. Furthermore, a decrease in interest income at the Moving and Storage segment resulted from U-Haul's reduced short-term cash balances due to reinvestment.
Notably, equipment rental revenue experienced a $29 million increase or approximately 4% during the fourth quarter, with both one-way and In-Town transactions showing growth compared to last year. Revenue per transaction also improved. Trailer and towing fleets saw better revenue results in April and May this year compared to the same period in 2025. Capital expenditures for new rental equipment for fiscal 2025 were $1.863 billion, representing a $244 million increase over fiscal 2024.
