MIAMI, FL– Ryder System, Inc. (NYSE: R), a leading provider of supply chain, transportation, and fleet management solutions, has revealed its third-quarter performance for 2023. Despite a challenging freight environment, the company continues to deliver solid results, prompting an upward revision of its full-year guidance.
Q3 2023 at a Glance
In the third quarter of 2023, Ryder reported a GAAP EPS from continuing operations of $3.44, marking a decline from $4.82 in the prior year. Comparable EPS (non-GAAP) from continuing operations came in at $3.58, compared to a record $4.45 in the previous year. This shift can be attributed to the challenges in the used vehicle sales and rental market. However, the robust performance of Ryder’s Supply Chain Solutions (SCS) segment helped offset these challenges.
Total revenue for the quarter was $2.9 billion, a decrease from the $3.0 billion recorded in the previous year. Operating revenue (non-GAAP) stood at $2.4 billion, reflecting a 1% increase. This growth in operating revenue was primarily due to contractual revenue growth across all segments, partially mitigating the reduction in commercial rental revenue in Fleet Management Solutions (FMS).
Ryder is optimistic about its outlook for the full year of 2023. The company has raised its comparable EPS (non-GAAP) forecast to a range of $12.60 to $12.85, up from the previous projection of $12.20 to $12.70. Additionally, Ryder has increased its adjusted Return on Equity (ROE) forecast to 18% – 19%, surpassing the prior range of 17% – 19%. The company has also reiterated its forecast for operating revenue (non-GAAP) growth, expecting a 2% increase.
Ryder is maintaining its forecasts for net cash provided by operating activities from continuing operations at $2.5 billion and free cash flow (non-GAAP) at approximately $100 million.
Ryder’s Chairman and CEO, Robert Sanchez, emphasized the company’s resilient performance and the adjusted 2023 guidance. He commented, “Our strong third quarter performance and increased 2023 guidance demonstrate the ongoing effectiveness of our balanced growth strategy despite a challenging freight environment. ROE of 21% remained above our high-teens target, and all three business segments achieved their pre-tax earnings targets during the quarter.”
Sanchez also highlighted the strategic changes made to enhance returns and drive profitable growth. The acquisition of Impact Fulfillment Services is a testament to Ryder’s strategy to expedite growth in the supply chain business, adding contract packaging and manufacturing capabilities to their existing logistics services.