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UH

U-Haul Holding Co /NV/ (UHAL)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 FY2025 revenue was $1.658B (+0.5% YoY) and EPS (Non-Voting) was $0.96, down from $1.40 YoY; net income fell to $186.8M from $273.5M YoY, driven by higher depreciation and lower gains on disposals .
  • Self-moving equipment rental revenue rose 1.7% YoY (second straight quarter of growth) and self-storage revenue rose 7.5% YoY; management highlighted improved revenue per transaction and sustained strength in U-Box .
  • Operating costs increased, including a one-time $16.5M expense tied to transitioning to a new cardboard box supplier; EBITDA for Moving & Storage decreased by $18.1M YoY, largely due to non-recurring operating costs and higher depreciation; October–early November revenues trended positively YoY, a near-term catalyst to watch .
  • FY2025 net CapEx projection was raised from $1.09B to ~$1.115B on additional OEM availability; management reaffirmed long-term storage expansion while acknowledging near-term occupancy pressure as new units outpace fill .

What Went Well and What Went Wrong

What Went Well

  • Second consecutive quarter of equipment rental revenue growth (+$17.9M, +1.7% YoY), with higher revenue per transaction across one-way and in-town; October/early November revenue continued trending positively YoY .
  • Self-storage delivered +$15.6M (+7.5% YoY); revenue per occupied foot improved ~1.6% across the portfolio and just over 2% in same-store, and occupied rooms were up ~31,933 YoY .
  • “U-Box is steadily gaining” and Moving & Storage cash and availability remain robust ($1.775B); management continues focusing on superior customer service to drive share .

What Went Wrong

  • Earnings from operations decreased $120.4M YoY, driven by reduced gains on retired equipment (-$29.2M), higher fleet depreciation (+$36.0M) and higher real estate depreciation (+$7.9M), pressuring profitability despite revenue growth .
  • Operating expenses increased by just over $55M, including a one-time $16.5M expense from the cardboard box supplier transition; personnel costs, liability costs and property taxes/building maintenance were also higher .
  • Same-store occupancy fell 80 bps to 94.1%; average occupancy across the total portfolio was 80.9% as U-Haul is adding rooms faster than it is filling them, creating near-term occupancy drag .

Financial Results

Consolidated P&L Summary

MetricQ4 FY2024Q1 FY2025Q2 FY2025
Revenue ($USD Billions)$1.179 $1.548 $1.658
Earnings from Operations ($USD Millions)$41.37 $306.24 $301.96
Net Income ($USD Millions)-$0.86 $195.42 $186.80
EPS (Non-Voting, $USD)$0.00 $1.00 $0.96
EPS (Voting, $USD)-$0.05 $0.95 $0.91
Consensus EPS (Qtr)N/A (SPGI unavailable)N/A (SPGI unavailable)N/A (SPGI unavailable)

Margins (calculated from cited revenues and earnings from operations)

MetricQ4 FY2024Q1 FY2025Q2 FY2025
EBIT Margin %3.5% 19.8% 18.2%
Net Income Margin %-0.1% 12.6% 11.3%
Note: Margins calculated using earnings from operations and net income divided by total revenues from the cited filings.

Segment Breakdown

Segment Revenues ($USD Millions)Q4 FY2024Q1 FY2025Q2 FY2025
Moving & Storage$1,092.70 $1,469.16 $1,573.64
Property & Casualty Insurance$34.09 $28.18 $31.46
Life Insurance$55.28 $53.75 $56.16
Eliminations-$2.90 -$2.60 -$3.15
Consolidated$1,179.17 $1,548.49 $1,658.11
Segment Earnings from Operations ($USD Millions)Q4 FY2024Q1 FY2025Q2 FY2025
Moving & Storage (pre-insurance equity)$10.82 $295.06 $280.70
Property & Casualty Insurance$25.69 $11.48 $13.82
Life Insurance$5.11 -$0.05 $7.69
Eliminations (pre-insurance equity)-$0.25 -$0.25 -$0.25
Consolidated$41.37 $306.24 $301.96

KPIs

Operating KPIsQ4 FY2024Q1 FY2025Q2 FY2025
Self-moving equipment rental revenues ($USD Millions)$716.28 $1,014.33 $1,087.35
Self-storage revenues ($USD Millions)$212.70 $215.74 $224.52
Other revenue ($USD Millions)$81.93 $133.24 $164.84
U-Box contribution to “Other revenue” increase ($USD Millions)N/A+$9 +$7
Self-Storage Portfolio MetricsQ4 FY2024Q1 FY2025Q2 FY2025
Unit count (quarter-end)728,673 748,683 758,691
Square footage (MM sq ft)61.857 63.586 64.499
Avg monthly occupancy rate79.8% 80.0% 80.9%
End of period occupancy rate79.3% 81.0% 80.0%
Same-store occupancy92.3% 93.9% 94.1%

Balance Sheet and Liquidity

Debt & LiquidityQ4 FY2024Q1 FY2025Q2 FY2025
Total debt ($USD Billions)$6.304 $6.312 $6.795
Moving & Storage cash ($USD Billions)$1.380 $1.072 $1.279
Moving & Storage cash + availability ($USD Billions)$1.886 $1.567 $1.775

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net CapEx (gross spend less sales)FY2025~$1.09B (Q1 call) ~$1.115B (Q2 call) Raised
Net rentable square feet deliveriesNext quarterNot specifiedExpect increase vs Q2 Raised
Dividend (Non-Voting UHAL.B)FY2025$0.05 declared June 2024 $0.05 declared Aug 15, paid Sep 27, 2024 Maintained

Earnings Call Themes & Trends

TopicQ4 FY2024 (two quarters ago)Q1 FY2025 (prior quarter)Q2 FY2025 (current)Trend
Equipment rental trajectoryRevenue down YoY; gains on sale fell, depreciation up First YoY increase in 8 quarters; momentum uneven; July flat, early Aug improved Second consecutive YoY increase; Oct–early Nov positive Improving
Self-storage pricing/occupancyRevenue +9% YoY; avg occupancy 79.8%; caution on industry rate cutting Revenue per occupied foot resilient (+~3%); same-store occupancy 93.9% Revenue +7.5% YoY; rev/ft +1.6%; same-store occupancy 94.1% Stable pricing, occupancy pressured
U-Box growthLimited disclosure in Q4 PR +$9M contribution to “Other revenue”; strong growth +$7M contribution; management: A in moving, C in storage execution (opportunity) Growing, execution focus
CapEx & depreciationGross fleet CapEx $1.619B FY2024; depreciation rising; gains on sale declining Net CapEx guide raised to ~$1.09B; depreciation up; resale values pressured Net CapEx guide raised to ~$1.115B; depreciation elevated; one-time $16.5M supplier cost Elevated spend, margin drag
OEM supply chain/EV mandatesNot highlighted in Q4 PR OEM pricing pinch; EV subsidization hurting resale values Uncertainty around EV mandates; OEM availability improved Mixed, watch policy
Activist engagement (Trion)N/AN/AAcknowledged, no plan changes due to activist input New, neutral stance

Management Commentary

  • “We are continuing to fine tune our U-Move efforts. Customers remain uncertain and conservative. U-Box is steadily gaining, U-Store is growing… We will continue to focus on serving customers in a superior fashion.” — Joe Shoen, Chairman .
  • “This is now our second consecutive quarter of year-over-year increases in equipment rental revenues… October and the first week of November saw revenue continue to trend positively compared to the same time last year.” — Jason Berg, CFO .
  • “During the quarter, we had a $16.5 million cost related to our transition to a new cardboard box supplier… we opted to expense this amount in the quarter.” — Jason Berg .
  • “The big unknown… is how successful the new administration will be in getting EV mandates turned around… Rental income on moving equipment is up slightly… U-Box… is still making progress.” — Joe Shoen .

Q&A Highlights

  • Near-term outlook: management does not foresee big changes in the next 180 days; expects modest improvements and a new trailer model in late Q4 to provide incremental lift .
  • Storage dynamics: adding rooms faster than filling; expects to outperform peers, but industry remains “funky” with heavy promotions; strategy focuses on customer service over discounting .
  • U-Box strategy: storage component is a competitive advantage; ~8 of 10 new storage builds include U-Box, though storage execution has room to improve (moving graded “A”, storage “C”) .
  • Value gap/portfolio actions: management acknowledges short-term earnings drag from excess capacity and aggressive development; limited appetite for partitioning assets given complexity and one-time nature of benefits .
  • Cost drivers: OpEx up just over $55M; key items included personnel, liabilities, property taxes/maintenance, and the $16.5M supplier transition .

Estimates Context

  • S&P Global consensus estimates for EPS and revenue were unavailable at the time of query; therefore, comparisons to consensus and beat/miss determinations are not provided (SPGI rate-limit error) [GetEstimates errors].

Key Takeaways for Investors

  • Equipment rental revenue appears to be at/near trough, with two consecutive YoY increases and October/early November continuing positively; watch sustainability into winter and the late-Q4 trailer introduction for incremental lift .
  • Profitability is constrained by higher depreciation and lower gains on sales; resale values for pickups/vans are pressuring depreciation rates, a headwind likely to persist near term .
  • Self-storage remains structurally attractive for U-Haul, with revenue per foot rising and same-store occupancy above 94%, but portfolio occupancy is diluted by rapid capacity additions; near-term EBIT margins likely remain pressured as new facilities ramp .
  • U-Box shows strong growth and strategic integration with new builds; execution improvements on the storage component can unlock margin and growth tailwinds over time .
  • CapEx guidance raised to ~$1.115B reflects OEM availability; balance sheet liquidity is solid ($1.775B cash + availability), supporting continued investment amid activist scrutiny and macro uncertainty .
  • Watch management’s emphasis on customer service (vs. promotional discounting) to preserve pricing power in storage, and monitor EV policy shifts that could influence OEM supply/pricing and fleet economics .
  • With consensus estimates unavailable, trading setups should focus on intra-quarter revenue cadence (Oct/Nov strength), margin drivers (depreciation/gains on sale), and occupancy progression (same-store vs new-store dilution) as near-term stock catalysts .