Jeff Kaufman

Jeff Kaufman asked why Ryder's 2026 forecast appears more conservative than broader market optimism, noting the declining ratio of rental to lease equipment. He also sought clarification on what differentiates Baton, Ryder's technology lab, from external AI solutions.

Answer

Robert Sanchez, Chairman and Chief Executive Officer, stated that the guidance does not assume a significant market pickup due to a lack of current evidence in Ryder's business. John Diez, Executive Vice President and Chief Financial Officer, added that Ryder typically sees a six-month lag before market improvements show in rental, and the company is tightening its rental fleet. Regarding Baton, John Diez explained it was a Ryder Ventures investment acquired for its business know-how and technology to optimize fleets and create digital solutions, enhancing RyderShare from a visibility tool to a transportation optimization platform using AI.

Jeff Kaufman asked about Ryder's market outlook compared to broader industry optimism, particularly concerning rental equipment ratios, and sought clarification on the differentiation and advantages of Ryder's technology lab, Baton.

Answer

Robert E. Sanchez, Chairman and CEO, stated that Ryder's guidance does not assume a significant market pickup due to a lack of current evidence, but acknowledged potential upside if conditions improve. John Diez, Executive Vice President and Chief Financial Officer, explained that Ryder typically sees a six-month lag before market improvements impact rental, and that the company plans to tighten its rental fleet in H1 2026 to improve utilization. Regarding Baton, John Diez described it as a Ryder Ventures investment acquired to optimize and create digital solutions for customers, enhancing RyderShare into a transportation optimization tool and leveraging AI for future value.