Ryder System (R) Investor presentation summary

Transformative business model and strategic execution

• Achieved significantly higher earnings and returns through a de-risked model, reduced reliance on used vehicle proceeds, and exit from underperforming geographies and services.

• Enhanced annual returns and cash flow with initiatives like ChoiceLease pricing and maintenance savings, resulting in positive free cash flow over the cycle.

• Accelerated growth in asset-light businesses and focused on higher-return segments and verticals.

• Outperformed prior cycles with a more resilient business mix and scalable operations.

• Leveraged proprietary technology and AI-powered platforms to drive operational excellence and customer-centric innovation.

Financial performance and capital allocation

• Revenue increased from $8.4B in 2018 to ~$13B in 2026F, with a shift toward higher-margin segments.

• Comparable EPS more than doubled from $5.95 in 2018 to $14.40–$14.80 in 2026F; ROE rose from 13% to 18%.

• Operating cash flow grew from $1.7B to $2.7B, supporting increased capital deployment.

• Majority of operating revenue (~90%) is contractual, providing multi-year recurring cash flow and stability.

• Free cash flow forecasted at $700M–$800M in 2026, with disciplined capital allocation for organic growth, acquisitions, dividends, and share repurchases.

Market leadership and growth opportunities

• Holds a leadership position in North American logistics and transportation outsourcing, serving large addressable markets with favorable secular trends.

• Operates three scaled business segments: Fleet Management Solutions, Supply Chain Solutions, and Dedicated Transportation Solutions.

• Provides port-to-door solutions, leveraging technology and omnichannel capabilities to connect every step of the supply chain.

• Business segment synergies drive revenue and margin growth, with significant upsell opportunities and shared resources.

• Well positioned to address industry challenges such as dynamic supply chains, labor constraints, regulatory changes, and disruptive technologies.