Ryder Q4 Earnings: Fleet and Supply Chain Drive Performance, CEO Warns of Freight Market Headwinds, Modest 2025 Growth

Ryder System Inc R stock gained Wednesday after it reported fourth-quarter results.

Sales of the transportation and logistics company grew 5% year-on-year to $3.19 billion, missing the analyst consensus estimate of $3.31 billion. The operating revenue grew by 7% to $2.6 billion.

Also Read: SoftBank Q3 Earnings: Revenue Rises, Vision Fund Takes $2.33 Billion Hit As Investments Falter

Revenue from Fleet Management Solutions remained firm at $1.49 billion as lease earnings growth more than offset headwinds in rental and used vehicle sales, Supply Chain Solutions rose 3% to $1.34 billion backed by higher volumes and optimization efforts in its omnichannel retail vertical and Dedicated Transportation Solutions jumped 39% to $615 million reflecting strong performance in its legacy business and the Cardinal acquisition.

Earnings before tax increased to $152 million from $ 134 million a year ago quarter. Adjusted EPS of $3.45 beat the analyst consensus estimate of $3.38.

Operating cash flow for the year ended December 31, 2024, totaled $2.27 billion, with a free cash flow of $133 million. Ryder System held $154 million in cash and equivalents as of December 31.

Chairman and CEO Robert Sanchez flagged ongoing freight market headwinds.

Outlook: Ryder expects fiscal 2025 operating revenue growth of ~2% or $10.50 billion and adjusted EPS of $13.00-$14.00 (versus consensus of $13.46).

For the first quarter, Ryder expects adjusted EPS of $2.30-$2.55, compared to the consensus of $2.47.

Ryder System stock surged 33% in the last 12 months.

Price Action: R stock is up 2.05% at $161.43 premarket at the last check Wednesday.

Also Read:

• Shopify’s Revenue Growth Outpaces Estimates, But PayPal-Related Margin Impact Raises Questions: Analyst

Photo: Shutterstock