Executive Summary

Q1 FY2025 consolidated revenue was $1.55B, up 0.5% YoY, with net income of $195.4M and Non‑Voting EPS of $1.00 (Common $0.95); operating margin compressed sharply YoY due to lower gains on equipment sales and higher depreciation .
Self‑moving equipment rental revenue rose 1.5% YoY, marking the first year‑over‑year improvement in eight quarters; transactions and revenue per transaction improved across In‑Town and One‑Way moves, with utilization aided by fleet rotation progress .
Self‑storage revenue increased 8.4% YoY; same‑store revenue per foot rose 4.7% and same‑store occupancy was 93.9%, but portfolio‑wide occupancy fell given outsized new unit additions versus rentals .
Moving & Storage segment EBITDA (adjusted to remove interest income) increased $16.5M YoY despite declines in gains on disposals and higher depreciation; fleet maintenance and repair costs fell $20.8M YoY, a tailwind unlikely to persist at the same pace .
Near‑term catalysts: continued sequential progress in moving transactions, U‑Box momentum, and the Aug 15 investor day; risks include continued pressure from OEM pricing (depreciation and gains on sale), wage and property cost inflation, and competitive storage pricing behavior .

What Went Well and What Went Wrong

What Went Well
- First YoY increase in self‑moving equipment rental revenue in eight quarters (+$15.1M, 1.5%) as transactions and revenue per transaction improved; “This is a race, and the customer is the eventual winner” (Joe Shoen) underscoring customer‑service focus .
- Self‑storage strength: revenue +8.4% YoY; same‑store revenue per foot +4.7%; occupied rooms +31,582 YoY; continued network expansion with 17 new locations and 1.7M net rentable square feet added in the quarter .
- Operating cash dynamics and liquidity management: Moving & Storage cash and availability totaled $1.57B; storage revenue per occupied foot remained resilient vs expectations .
What Went Wrong
- Operating margin compression: earnings from operations fell to $306.2M (from $399.7M), driven by a $47.9M decline in gains on sales of retired equipment, +$22.3M fleet depreciation, and +$6.8M real estate depreciation .
- Portfolio occupancy down ~280 bps to ~80% as new units outpaced rentals; same‑store occupancy decreased 120 bps to 93.9% amid competitive discounting in the industry .
- Inflationary cost pressures: personnel +$11M, liability costs +$13M, property taxes/building maintenance +$10M; management noted the intense wage/regulatory environment and OEM pricing headwinds driving depreciation and lower gains on sale .

Financial Results

YoY comparison (Q1 FY2024 → Q1 FY2025)

Metric	Q1 FY2024 (Quarter ended Jun 30, 2023)	Q1 FY2025 (Quarter ended Jun 30, 2024)
Revenue ($USD Millions)	$1,540.3	$1,548.5
Earnings from Operations ($USD Millions)	$399.7	$306.2
Net Income ($USD Millions)	$256.8	$195.4
EPS – Non‑Voting ($)	$1.31	$1.00
EPS – Common ($)	$1.27	$0.95
EBIT Margin %	25.9% (399.7/1,540.3)	19.8% (306.2/1,548.5)
Net Income Margin %	16.7% (256.8/1,540.3)	12.6% (195.4/1,548.5)

QoQ comparison (Q4 FY2024 → Q1 FY2025)

Metric	Q4 FY2024 (Quarter ended Mar 31, 2024)	Q1 FY2025 (Quarter ended Jun 30, 2024)
Revenue ($USD Millions)	$1,179.2	$1,548.5
Earnings from Operations ($USD Millions)	$41.4	$306.2
Net Income ($USD Millions)	$(0.9)	$195.4
EPS – Non‑Voting ($)	$0.00	$1.00
EPS – Common ($)	$(0.05)	$0.95
EBIT Margin %	3.5% (41.4/1,179.2)	19.8% (306.2/1,548.5)
Net Income Margin %	(0.1%) (−0.9/1,179.2)	12.6% (195.4/1,548.5)

Segment breakdown (Q1 FY2024 → Q1 FY2025)

Segment	Revenue Q1 FY2024 ($MM)	Revenue Q1 FY2025 ($MM)	Op. Earnings Q1 FY2024 ($MM)	Op. Earnings Q1 FY2025 ($MM)
Moving & Storage	$1,459.5	$1,469.2	$386.7	$295.1
P&C Insurance	$27.8	$28.2	$12.0	$11.5
Life Insurance	$55.7	$53.7	$1.4	$(0.05)
Eliminations	$(2.7)	$(2.6)	$(0.37)	$(0.25)
Consolidated	$1,540.3	$1,548.5	$399.7	$306.2

KPIs (Self‑Storage and Fleet)

KPI	Q1 FY2024	Q1 FY2025
Self‑storage revenue ($MM)	$199.0	$215.7
Avg monthly occupancy – portfolio	82.8%	80.0%
End‑of‑period occupancy – portfolio	83.9%	81.0%
Avg monthly sq ft occupied (MM)	48.6	51.7
Rentable sq ft (MM)	57.5	63.6
Same‑store occupancy	95.1%	93.9%
Same‑store revenue per foot (TTM)	$16.30	$17.05
Self‑moving equipment rental revenue ($MM)	$999.2	$1,014.3
Gains on disposals of rental equipment ($MM)	$55.8	$7.9
Fleet maintenance & repair change YoY ($MM)	—	−$20.8
Moving & Storage EBITDA (TTM, $MM)	$1,789.0 (Jun 30, ’23)	$1,584.5 (Jun 30, ’24)
Liquidity (cash + availability, $MM)	—	$1,566.8 (Jun 30, ’24)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net CapEx for rental equipment	FY2025	Not disclosed	~$1.09B	Raised by ~$$40M (from prior outlook)
Fleet size	FY2025	Considered reducing by 3–4k (discussed prior)	Roughly flat; “somewhere in between [March and June], within a couple thousand trucks”	Maintained/neutral stance
Financing	FY2025	Not disclosed	Private placement of ~$500M	New financing plan
Dividend (Non‑Voting)	Q1 FY2025	$0.05 declared Mar’24	$0.05 declared Jun 5’24; paid Jun 28’24	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 & Q4 FY2024)	Current Period (Q1 FY2025)	Trend
OEM pricing impact on depreciation and gains on sale	Management highlighted OEM price inflation driving lower gains and higher depreciation; expected gains to recede over next 12 months	“Increased cost of new rental trucks… decrease in gain on sale and increased depreciation”; gains down, fleet depreciation up	Continued headwind
Moving equipment revenue and transactions	Q4: first month (Mar) YoY improvement; April/May flattened; aiming for catch‑up and utilization	First YoY increase in 8 quarters; transactions and rev/transaction improved; July flat, early Aug picking up	Stabilizing with nascent momentum
Self‑storage pricing and occupancy	Competitive discounting noted; same‑store occupancy down; portfolio occupancy near 80%	Same‑store revenue/foot +4.7%; same‑store occupancy 93.9%; portfolio occupancy ~80% amid large new unit additions	Pricing resilient; occupancy mixed
Cost inflation (personnel, liability, property)	Personnel, liability, property taxes rising; repair/maintenance improved in Q4	Personnel +$11M; liability +$13M; property taxes/building maintenance +$10M; repair/maintenance −$20.8M YoY	Mixed: some relief, structural inflation persists
Liquidity, financing, interest income presentation	Reclass of moving/storage interest income below operating line; strong cash balances; plan to keep liquidity for development	$1.567B cash + availability; planning $500M private placement; interest expense +$6.6M; interest income down with lower cash	Adequate liquidity; higher net interest burden
U‑Box growth	Outperforming; margins roughly near moving/storage margin, faster growth	Revenue within “Other” up $9M; U‑Box a major contributor; growing faster than core	Positive structural growth

Management Commentary

“We are making incremental progress serving more moving customers and filling storage rooms… This is a race, and the customer is the eventual winner.” – Joe Shoen, Chairman .
“Increased cost of new rental trucks is expressing itself… in a decrease in gain on sale and increased depreciation… automakers have been inflating the cost of internal combustion vehicles to subsidize electric vehicles.” – Joe Shoen .
“This is our first year‑over‑year increase in equipment rental revenue in 8 quarters… transactions and revenue per transaction in both our in‑town and one‑way markets improved.” – Jason Berg, CFO .
“Average revenue per occupied foot continued to improve… we added nearly 64,000 new units… average occupancy across the entire portfolio declined about 280 bps to 80%.” – Jason Berg .

Q&A Highlights

Pricing power and customer experience: Management emphasized viewing storage as a consumer product; asking rents up YoY; no evidence of decreased pricing power despite competitive discounting .
Sequential cadence: Equipment rental momentum uneven (July flat; early Aug improving); storage steady with resilient revenue per foot .
One‑Way vs In‑Town: Both rose YoY; one‑way improvements tied to consumer optimism, though trend durability uncertain .
Depreciation/gains trajectory: Lower proceeds per unit on vans/pickups; higher new‑unit costs prompting higher depreciation rates; expect continued upward pressure .
Fleet and financing: Fleet expected roughly flat over the year; plan for ~$500M private placement to support robust real estate pipeline and growth .

Estimates Context

S&P Global consensus estimates were not retrievable at the time of analysis (SPGI daily request limit exceeded), so we cannot present a definitive beat/miss vs Wall Street for revenue or EPS. Consensus comparisons are thus unavailable for this quarter using S&P Global data [GetEstimates error].
Given limited coverage and presentation differences (interest income reclass), any third‑party comparisons should normalize for U‑Haul’s reporting changes before assessing operating performance .

Key Takeaways for Investors

Self‑moving rental revenue inflected positively for the first time in eight quarters; if transaction momentum persists into late Q2, narrative could shift toward stabilization in moving demand .
Margin pressure remains principally exogenous: OEM pricing elevates depreciation and compresses gains on sale; monitor fleet mix and gain‑on‑sale trends through FY2025 for signs of normalization .
Self‑storage continues to be the growth engine (revenue +8.4% YoY, same‑store revenue/foot +4.7%); occupancy dilution is a function of aggressive unit additions—watch fill rates and pricing discipline against competitor discounting .
Cost inflation is a structural headwind (personnel/liability/property); productivity initiatives (digital self‑dispatch/return) and repair/maintenance improvements are offsets but may not fully neutralize pressure .
Liquidity and financing flexibility (cash + availability $1.57B; planned $500M private placement) support continued storage development; balance growth pace with occupancy and return metrics to protect ROA/ROE .
U‑Box’s outsized growth vs core moving is a durable vector; leverage U‑Box and co‑located warehousing with storage footprint to capture longer‑distance and convenience‑oriented demand .
Near‑term focus: investor day (Aug 15) and sequential trends in moving transactions/utilization; medium‑term thesis hinges on storage fill‑rate trajectory, disciplined pricing, and fleet economics normalization .

Additional Q1 FY2025 Press Releases (Operational Context)

Continued footprint expansion: acquisition of Able Mini Storage in Maplewood, MN (262 drive‑up units), indicating opportunistic inorganic storage growth to meet local demand .
Dividend continuity: $0.05 per Non‑Voting share declared and paid in June .

Appendix: Select Portfolio and Debt Metrics (for context)

Metric	Mar 31, 2024	Jun 30, 2024
Moving & Storage cash ($MM)	$1,380.2	$1,071.8
Total debt ($MM)	$6,304.0	$6,311.7
Net Debt / EBITDA (TTM)	3.1x	3.3x
Unencumbered asset ratio	4.43x	4.72x

Notes: All period references reflect fiscal quarter timing; operating earnings are “Earnings from operations” per company reporting; Moving & Storage EBITDA adjusted to remove interest income per company’s non‑GAAP reconciliation .

U-Haul Holding Co /NV/ (UHAL)·Q1 2025 Earnings Summary