Ryder Reports Q4, Full-Year Revenue Growth

Ryder truck
The number of used vehicles sold in Q4 declined to 5,400 compared with 7,000 a year earlier, but the average tractor sale price was up 111% compared with 15% in 2020. (Ryder)

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Vehicle leasing and rental company Ryder System Inc. reported strong fourth-quarter and full-year 2021 earnings Feb. 16 that easily exceeded Wall Street analysts’ expectations.

Q4 net income rose to $181.1 million, or $3.35 per share, compared with $25.6 million, 48 cents, in the same period in 2020. For the full year Ryder reported net income of $519 million, $9.66, compared with a loss of $122.3 million or negative $2.34 a share for the entire year of 2020.

Ryder’s earnings per share price of $3.35 exceeded projections of $2.49, according to Zacks Consensus Estimate.


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The Miami-based company saw fourth-quarter revenue jump 17.6% to $2.60 billion from $2.21 billion a year ago. For the full year, revenue surged by 14.7% to $9.66 billion from $8.42 billion in 2020.

“I am very pleased with record fourth-quarter and full-year comparable earnings driven by strong FMS [Fleet Management Solutions] results,” CEO Robert Sanchez said in a statement. “For the full year, we generated record ROE [return on equity] of 21%, reflecting strong demand and pricing in used vehicle sales and rental, as well as benefits from our multiyear lease pricing and maintenance cost-savings initiatives.

“We also generated operating cash flow of $2.2 billion and free cash flow of $1.1 billion, our second consecutive year of very strong free cash flow.”


Ryder said with truck capacity tight for all of 2021 and the demand for used vehicles climbing, the company was able to capitalize on those market conditions. The result was higher rental revenue and higher pricing, and additional gains on used vehicles sold.

Data in the report showed the number of used vehicles sold in the quarter declined to 5,400 compared with 7,000 a year earlier. However, the average tractor sale price in the fourth quarter was up 111% compared with 15% in 2020. For trucks, the used vehicle sales price in the fourth quarter was up 99%, while a year ago it was 22%. On a full-year basis, tractors brought in 78% more revenue, while truck prices were up 70%.

“We expect a strong used vehicle sales and rental environment to continue in 2022, slowly moderating in the second half of the year,” Sanchez said. “We plan to continue to benefit from our lease pricing initiative. We also expect our supply chain and dedicated businesses to achieve their high single-digit earnings targets in the second half of the year.

“This reflects the benefits of growth from new contract signings and pricing adjustments addressing labor and supply chain disruptions.”


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• The Fleet Management Solutions segment, which includes its ChoiceLease division, commercial rental, SelectCare and fuel-service revenue, saw quarterly revenue increase 12% to $1.49 billion from $1.33 billion a year ago. For the full year revenue increased 10% to $5.67 billion compared with $5.17 billion in 2020.

Fleet Management Solutions is the core of Ryder’s business. In 2021, it totaled nearly 58% of total revenues. The segment includes vehicle leasing, maintenance of those vehicles and sales of used vehicles.

• Supply Chain Solutions reported a quarterly year-over-year increase of 22% to $870.1 million from $711.2 million. Full-year revenue increased 24% to $3.15 billion compared with $2.54 billion in 2020.

• Dedicated Transportation Solutions saw fourth-quarter revenue increase 33% year-over-year to $401.6 million from $300.9 million. Full-year revenue gained 19% to $1.45 billion from $1.23 billion a year ago.

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“We made significant progress on our strategy to create long-term shareholder value by improving returns in fleet management and accelerating growth in supply chain and dedicated. Tight truck capacity fueled an exceptionally strong rental and used vehicle sales market,” Sanchez said.

“In supply chain and dedicated, we achieved record new contract wins that are expected to generate profitable growth in 2022 and beyond,” he added. “We also recently completed two acquisitions that provide us enhanced capabilities in the fast-growing e-commerce and omnichannel fulfillment segment, as well as in multiclient warehousing.”

Even with the increase in revenue, Sanchez said earnings in Dedicated Transportation Solutions and Supply Chain Solutions were “negatively impacted” by a tight labor market and higher wages. Disruptions in the automotive supply chain also played a part.

Ryder Supply Chain Solutions ranks No. 11 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. It also ranks No. 11 on the TT Top 50 list of the largest logistics companies.