Ryder sees strongest sequential rental demand rise in 4 years

Ryder’s used vehicle sales in Q2 fell 18% year over year to 5,100 from 6,200 but rose 10.9%, or 500 vehicles, compared with the first three months of 2026. (Ryder System Inc.)

The second quarter of 2026 saw the strongest increase in truck and tractor rental demand in four years on a sequential basis, according to a key Ryder System executive.

Rental demand is often seen as a leading indicator of a freight upcycle, but not in every case.

Although rental demand fell year on year and remained below historical seasonal levels, positive rental market signs began to emerge in the most recent three months, Chief Financial Officer Cristy Gallo-Aquino told analysts during Ryder’s Q2 earnings call.

That said, the ongoing freight market recovery remains a supply side-led phenomenon, as capacity constraints — particularly in the truckload segment — continue to be the most significant element in the rebound, executives said.

“We typically see demand accelerate in rental first. I think we’re still waiting for that to happen. As soon as that happens, we could add equipment and add fleet and really capitalize on the momentum of that product line,” said Ryder CEO John Diez.

Ryder’s rental fleet is weighted toward straight trucks versus tractors at a 60:40 ratio, but positive indicators for the latter are there, Diez and fellow executives said.

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Diez 

“Today, I would tell you, clearly we’re seeing probably better signs on the tractor [rental] side. We haven’t seen an acceleration, [but] we are starting to see stronger demand on the tractor side,” he told analysts.

The average size of Ryder’s commercial rental fleet fell 15% year on year to 29,200 vehicles in the most recent quarter from 34,300 vehicles in Q2 2025. However, utilization rose to 75% from 70%.

Diez said Ryder has access to truck maker build slots if a hike in rental, lease or dedicated transportation demand were to transpire. That said, he noted, Ryder and its customers are still waiting to see what prices look like.

NPRM on NOx emissions 

“I think we’re still sitting on the fact that we’re waiting for the OEMs to reveal what the price increases are going to be” in the second half following the Environmental Protection Agency’s unveiling of its draft notice of proposed rulemaking (NPRM) on nitrogen oxide emissions, Ryder’s top executive said.

The EPA previously said it expects truck buyers to see up to $6,000 per vehicle in emissions-related warranty savings as a result of the NPRM. But some original equipment manufacturers told carriers in May that potential price hikes — estimated at $20,000 — could be cut in half if the 100,000-mile or five-year warranty terms were in place.

BREAKING: The Trump EPA is proposing to fix the last administration's unworkable truck rule — saving truckers $12B, up to $6,000 per new truck. Lower costs for truckers means lower prices for your family, and more consumer choice. https://t.co/jhpTVP1pmb — U.S. EPA (@EPA) July 9, 2026

“I don’t think it’s going to be dramatically different than what we’ve been planning for, which is the fact that we’re still expecting significant increases to not only deal with the EPA regulatory change, but also with some of the inflation and tariff-related activity that the OEMs are looking to pass on to the customer,” said Diez.

Carriers are also likely to benefit from truck and engine manufacturers staggering the introduction of model-year 2027 engines as Cummins said it would and International Motors parent company Traton Group said was under consideration.

Pricing clarity souight

Clarity on pricing also would be positive for lease activity and used vehicle sales, Ryder executives said.

Ryder’s used vehicle sales in the most recent quarter fell 18% year over year to 5,100 from 6,200 but rose 10.9%, or 500 vehicles, compared with the first three months of 2026.

Used tractor pricing increased 6%, and truck pricing rose 3% year on year, the company said. And compared with the first quarter of 2026, used tractor and truck pricing increased 7% and 3%, respectively, after declining sequentially in the first three months of the year.

Both used vehicle sales and rentals are part of Ryder’s largest division — fleet management solutions.

The FMS division posted a 6% increase in revenue to $1.56 billion in the most recent quarter from $1.467 billion a year earlier. Diez cited better-than-expected used vehicle sales for the rise in revenue in comments accompanying the results.

Overall, Ryder’s Q2 revenue totaled $3.347 billion, an increase of 5% compared with $3.189 billion a year earlier.

Ryder’s supply chain solutions unit reported an 8% rise in revenue to $1.472 billion in Q2 from $1.366 billion in the same period 12 months earlier.

A slight profit increase

The company posted a $133 million profit in the second quarter, compared with a $131 million profit a year earlier.

Historically known for its used vehicle sales and leasing operations, Ryder ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

Ryder Dedicated Transportation Solutions ranks No. 6 among truckload/dedicated carriers. A company initiative over the past few years boosted the company’s dedicated operations substantially as it sought to lock in a steadier and higher return on equity.

The company also ranks No. 8 on the TT Top 100 list of the largest logistics companies in North America.