Nancy Okola

Nancy Okola asked for further clarification on the lackluster January commentary, specifically whether it reflects a delayed impact from the cycle or a difference in what Ryder is observing compared to others. She also asked how Ryder would perform if a market inflection is predominantly supply-side-driven rather than demand-driven.

Answer

John Diez, Executive Vice President and Chief Financial Officer, explained that Ryder's service offerings, unlike spot truckload, have a lag before market tightening impacts rental and used vehicle businesses, which is why no meaningful market improvement is built into the full-year guidance. Robert Sanchez, Chairman and Chief Executive Officer, added that Ryder would still benefit from a supply-driven inflection, especially in used vehicle sales due to less available vehicles. While a demand-driven improvement is the primary catalyst for the $250 million benefit, supply tightening would also be helpful for driving lease and dedicated sales.

Nancy Okola sought further clarification on Ryder's January commentary, specifically if the lackluster performance indicates a delayed impact from the cycle, and how Ryder would perform if a market inflection is predominantly supply-side-driven rather than demand-driven.

Answer

John Diez, Executive Vice President and Chief Financial Officer, attributed the January performance to a typical lag in Ryder's service offerings (not being in the spot truckload business) before market tightening translates to increased rental and used vehicle activity. Robert E. Sanchez, Chairman and CEO, stated that Ryder would still benefit from a supply-driven inflection, particularly in used vehicle sales due to less available vehicles leading to higher pricing, although a demand-driven improvement is the primary catalyst for the larger expected benefits.