Ryder Reports Growth From Strong Operations During Q4
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Ryder System Inc. reported Feb. 12 that its contractual lease, supply chain and dedicated business operations helped drive growth during the fourth quarter of 2024.
The Miami-based transportation and logistics company posted net earnings of $135 million, or $3.12 a diluted share, for the three months ending Dec. 31. That compared with $124 million, or $2.72, during the same time the previous year. Total revenue increased by 5% to $3.19 billion from $3.02 billion.
“We are pleased to report that this quarter is the first quarter in the last eight with year-over-year comparable earnings growth, driven by double-digit earnings growth in each of our business segments,” Ryder CEO Robert Sanchez said during a call with investors. “I’m extremely proud of our team for delivering solid results throughout 2024 despite challenging freight market conditions.”
Sanchez noted that the results were driven by double-digit earnings growth in each of the segments. This reflected the strength of the contractual lease, supply chain and dedicated businesses. He highlighted that the business continues to outperform prior cycles due to its contractual portfolio and balanced growth strategy.
“We’re encouraged by the strong performance of our transformed business model, and believe that executing our balanced growth strategy will continue to deliver higher highs and higher lows over the cycle,” Sanchez said. “ Our transport business model continues to drive outperformance relative to prior cycles. The integration of our recent acquisitions is on track.”
The company’s balanced growth strategy focuses on de-risking operations while accelerating growth in asset-light businesses. Current initiatives emphasize operational excellence, customer-centric innovation, improved cycle returns and profitable growth.
“We continue to see long-term growth opportunities in all three of our business segments, supported by secular trends that favor outsourcing decisions, large addressable markets, and the value of our solutions,” Sanchez said. “ Generating [return on equity] of 16% during an extended freight cycle downturn reflects the benefits of our initiatives focused on enhancing returns.”
Sanchez expressed confidence that executing this strategy and positioning for the next up cycle should enhance full-cycle returns. He pointed out that the earnings power of the contractual portfolio continues to provide increased capital deployment capacity. He also highlighted several recent acquisitions that are on track being integrated.
“In 2024, a year we believe will represent trough freight cycle conditions, our transformed business model generated meaningfully higher earnings and returns than it did during the 2018 peak. Through organic growth, strategic acquisitions and innovative technology, we have shifted our revenue mix towards supply chain and dedicated with 61% of 2024 revenue coming from these asset-light businesses compared to 44% in 2018.”
Ryder System Q4 2024 Earnings Report
For the full year, Ryder reported net income of $489 million, or $11.06 a share, on revenue of $12.6 billion, compared with net income of $406 million, or $8.73, on revenue of $11.8 billion in 2023.
Fleet Management Solutions total revenue increased 0.3% to $1.49 billion from $1.48 billion during the previous year. Earnings before tax increased 13% to $152 million from $134 million. ChoiceLease performance helped drive the earnings growth by offsetting weaker rental market conditions. Rental power-fleet utilization was slightly lower at 73%. Used truck pricing declined 12% from prior year, while tractor pricing fell 13%.
Supply Chain Solutions revenue increased 3% to $1.34 billion from $1.3 billion. Earnings before tax increased 58% to $90 million from $57 million. The report noted that the earnings growth reflected strong operating performance. The revenue increase primarily reflected acquisition growth and was partially offset by lower sales activity. The earnings growth primarily reflected stronger omnichannel retail performance from higher customer volume and improved productivity.
Dedicated Transportation Solutions revenue increased 39% to $615 million from $443 million. Earnings before tax increased 10% to $34 million from $31 million. The report credited the revenue increase to acquisitions, while results continued to benefit from strong legacy business performance.
Ryder Supply Chain Solutions ranks No. 8 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 6 on the for-hire TT 100.
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