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UH

U-Haul Holding Co /NV/ (UHAL)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 revenue rose to $1,388.6M (+3.7% y/y) while EPS (Non-Voting) fell to $0.35 from $0.51, as stronger top-line was offset by higher fleet depreciation and materially lower gains on equipment sales; net income was $67.2M vs $99.2M y/y .
  • Moving & Storage segment EBITDA increased $47.8M y/y to $376.7M; growth came from equipment rental revenue (+$38.8M, +4.6% y/y) and U-Box, though GAAP earnings compressed given depreciation and reduced gain-on-sale dynamics .
  • Self-storage revenues grew 7.9% y/y to $227.1M, same-store occupancy dipped to 92.4% (from 92.9%) while revenue per foot rose 3.0%; portfolio added 34 new locations and 2.3M NRSF in the quarter, with 16.8M NRSF in development/pending .
  • Management flagged rising consumer optimism and accelerating in-town activity; January continued to trend positively y/y. Key headwinds were fleet depreciation, lower resale proceeds on pickups/vans, and reduced interest income as cash balances fell .
  • Catalyst: accelerating rental revenue growth and U-Box momentum vs. near-term margin pressure from depreciation and gain-on-sale normalization; elevated delivery cadence in storage pipeline into next quarter can support revenue trajectory .

What Went Well and What Went Wrong

What Went Well

  • Equipment rental revenue up ~$39M (+~4.5%) with in-town transaction growth and higher revenue per transaction; momentum carried into January on a y/y basis .
  • Self-storage revenue +$16.6M (+7.9% y/y); same-store revenue per foot +3.0% and portfolio occupied rooms +39,055 (+6.8% y/y) with 34 new locations and 2.3M NRSF added .
  • Moving & Storage segment EBITDA increased $47.8M y/y to $376.7M; trailing twelve-month EBITDA reached $1,614.1M .
    • Quote: “Moving activity increased over the quarter as demand for our products and services ticked up… reduce friction with the customer” – Chairman Joe Shoen .

What Went Wrong

  • EPS compressed to $0.35 (Non-Voting) vs $0.51 y/y; EBITDA-to-EPS disconnect driven by higher fleet depreciation, lower gains on sales of retired equipment, and reduced interest income from lower cash balances .
  • Average monthly occupancy rate (company-wide) declined to 78.7% from 81.8% y/y as new units outpaced fill, pressuring near-term storage margins .
  • Moving & Storage earnings from operations down $25.5M y/y after adjusting for interest income; fleet depreciation +$34.2M and real estate depreciation +$5.6M, while gains on disposal decreased by $32.7M y/y .

Financial Results

Consolidated P&L: Revenue, Earnings, EPS, Operating Income

Metric ($USD Thousands unless noted)Q3 2024Q1 2025Q2 2025Q3 2025
Total Revenues1,339,514 1,548,490 1,658,108 1,388,558
Earnings Available to Common (Net Income)99,224 195,417 186,798 67,166
EPS – Non-Voting ($)0.51 1.00 0.96 0.35
Earnings from Operations (EBIT)197,588 306,242 301,956 150,732
Other Interest Income— 18,235 16,131 15,638
Interest Expense67,450 67,218 71,498 76,581

Segment Breakdown (Quarter)

SegmentQ3 2024 Revenues ($000)Q3 2024 Ops Earnings ($000)Q3 2025 Revenues ($000)Q3 2025 Ops Earnings ($000)
Moving & Storage1,260,677 180,467 1,296,556 127,277
Property & Casualty Insurance29,303 9,421 38,141 19,463
Life Insurance52,715 8,075 56,762 4,244
Eliminations(3,181) (375) (2,901) (252)
Consolidated1,339,514 197,588 1,388,558 150,732

KPIs – Self-Storage (Company-Owned)

KPIQ3 2024Q3 2025
Avg Monthly Occupancy Rate (unit count)81.8% 78.7%
End-of-Period Occupancy (unit count)81.0% 78.1%
Avg Monthly Sq Ft Occupied (000s)49,515 53,444
Square Footage as of Period End (000s)59,433 66,792
Same-Store Occupancy92.9% 92.4%
Same-Store Revenue per Foot (TTM)$16.77 $17.28

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend (Non-Voting)Q3 FY2025$0.05 declared Jun 5, 2024 $0.05 declared Dec 4, 2024; paid Dec 27, 2024 Maintained
Net Debt / EBITDA TargetOngoing<5x internal target <5x internal target Maintained
Storage Deliveries PaceNext QuarterElevated deliveries expected (Q2 commentary) “Remain elevated into next quarter” Maintained (directional)
Formal Revenue/EPS/Tax/OpEx Guidance—None providedNone providedN/A

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 FY25)Previous Mentions (Q2 FY25)Current Period (Q3 FY25)Trend
Pricing & Transactions (Moving)First y/y equipment rental revenue increase in 8 quarters; higher revenue/transaction; in-town & one-way improved Second consecutive y/y increase; revenue/transaction up; in-town trailers/towing up ~$39M rental revenue increase; in-town up ~2% transactions; one-way still negative; Jan up y/y Improving sequentially (in-town); cautious on one-way
Fleet Depreciation & Gains on SaleResale proceeds down; depreciation up; gains on disposal down; repair/maintenance declined >$20M Gains on disposal reduced; repair/maintenance down $5.4M; one-time $16.5M box supplier transition cost EPS decline driven by depreciation (+$0.12/share), lower gains (-$0.13), lower interest income (-$0.05) Persistent headwind from depreciation/gain normalization
U-Box Growth & Warehouse DensityU-Box revenue growth strong; building covered capacity; margins roughly similar to M&S Infrastructure can handle growth; adding U-Box at most new builds (~8/10 projects) U-Box moving & storage transactions rising; >20% warehouse space increase; density expected to lift margins Strong secular growth; margin potential improving
Self-Storage PortfolioSame-store occupancy 93.9% (-120bps), revenue/foot +4.7% Same-store occupancy 94.1% (-80bps), revenue/foot +1.6%; added 0.9M NRSF Same-store occupancy 92.4% (-50bps), revenue/foot +3.0%; added 2.3M NRSF; 16.8M NRSF pipeline Continued expansion; near-term occupancy dilution as new supply ramps
Capital & LiquidityCash + availability $1.567B; planning $500M private placement; keep cash heavy to fund growth Cash + availability $1.775B Cash + availability $1.348B; can borrow ~$2B against RE; under 5x net debt/EBITDA guidepost Adequate funding; leverage headroom
Regulatory / EV MandatesOEM price inflation pinches economics; EV not viable for medium-duty use cases Watching new administration on EV mandate changes Detailed critique of EV mandates; OEM pass-through costs; risk to resale values Ongoing regulatory watch; focusing on ICE fleet optimization

Management Commentary

  • “Moving activity increased over the quarter… steady improvements to reduce friction with the customer” – Joe Shoen, Chairman .
  • “Disconnect between EPS and EBITDA… due to fleet depreciation, reduced gains on sales, and decline in interest income as we reduced short-term cash balances” – CFO Jason Berg .
  • “We are getting okay self-storage results, but are having to work hard to achieve them… I tend to continue to drive hard on adding storage product” – Joe Shoen .
  • “U-Box… we’re seeing both moving transactions and storage transactions grow… increased warehouse capacity >20% over 12 months” – Jason Berg .
  • “We still have our guidepost of trying to remain under 5x net debt to EBITDA… could easily borrow another $2B against real estate” – Jason Berg .

Q&A Highlights

  • Pricing and transaction cadence: In-town transactions up ~2%; one-way negative; December boosted by last-mile revenue; January year-over-year improvement maintained .
  • Cost controls: Repair/maintenance down (~$10.5M q/q); personnel and liability costs up; about one-third of truck repair savings from less outside work, two-thirds from newer fleet rotation .
  • U-Box economics: Strategy to increase warehouse density within same footprint; long-term margin potential targeted at or above self-storage .
  • Capital allocation & leverage: Plan normal borrowings; pace of real estate investment likely to slow modestly vs ~$1.5B last 12 months; maintain <5x net debt/EBITDA .
  • Industry dynamics: Company swimming against broader storage erosion in price/occupancy; expects outperformance via customer-service centric approach .

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 FY2025 could not be retrieved due to a daily request limit; as a result, beat/miss vs consensus cannot be determined in this session [GetEstimates error].
  • Given stronger-than-expected equipment rental revenue growth and elevated U-Box contribution, estimate models may need to reflect improving in-town transactions and revenue-per-transaction, while incorporating lower gains on sale and higher depreciation that compress GAAP EPS .

Key Takeaways for Investors

  • Top-line momentum re-emerged: equipment rental revenue growth accelerated vs Q1/Q2, aided by in-town transactions and last-mile; January continued positive y/y trends .
  • EPS headwinds are largely mechanical: higher depreciation from fleet investment and reduced gains on sale; expect continued pressure until resale markets normalize and the fleet mix rotation is absorbed .
  • Self-storage remains a multi-year growth driver: strong revenue per foot and substantial pipeline (16.8M NRSF) support medium-term expansion despite near-term occupancy dilution from new supply .
  • U-Box is scaling: increased moving and storage transactions with expanding covered capacity; focus on density to lift margins closer to or above self-storage over time .
  • Balance sheet capacity intact: cash + availability of $1.35B and ability to lever real estate (~$2B) under a <5x net debt/EBITDA guidepost provide funding flexibility for pipeline execution .
  • Watch regulatory backdrop on EV mandates: management sees material risks to medium-duty viability and OEM pricing behavior; strategy emphasizes customer economics and ICE fleet optimization .
  • Near-term trading: narrative likely driven by sequential rental revenue strength and U-Box growth vs EPS compression from depreciation/gain normalization; updates on storage deliveries next quarter are key catalysts .