Ryder System, Inc. reported third-quarter 2026 earnings that exceeded prior year levels, prompting the company to raise its full-year financial outlook. The Miami-based logistics firm delivered GAAP earnings per share from continuing operations of $4.16, a 25 percent increase over the same period in 2025. Comparable non-GAAP earnings per share rose 21 percent to $4.33, driven by higher earnings in the Fleet Management Solutions segment and share repurchases.
Total revenue for the quarter reached $3.4 billion, up 8 percent from the prior year. Operating revenue, a non-GAAP measure excluding fuel services, grew 6 percent to $2.8 billion. Chief Executive Officer John Diez noted that the company achieved double-digit earnings growth for the eighth consecutive quarter. Diez attributed the performance to the execution of strategic initiatives and improving conditions in used vehicle sales and rental markets.
The Fleet Management Solutions segment led revenue growth, with total revenue increasing 10 percent and operating revenue rising 5 percent. Earnings before tax in this division rose 21 percent to $177 million. Used truck pricing increased 5 percent year over year, while used tractor pricing climbed 19 percent. Rental power-fleet utilization improved to 77 percent from 70 percent in the prior year, despite a 12 percent smaller average fleet. Supply Chain Solutions revenue grew 9 percent, with earnings before tax rising 7 percent to $91 million. Dedicated Transportation Solutions saw total revenue increase 6 percent, though operating revenue declined 1 percent due to a lower fleet count.
Ryder raised its full-year 2026 forecast for comparable non-GAAP earnings per share to a range of $14.85 to $15.05. The company also increased its target for non-GAAP return on equity to between 18 percent and 19 percent. Full-year operating revenue growth remains expected at 3 percent, primarily driven by Supply Chain Solutions. Net cash provided by operating activities from continuing operations is forecast to remain at $2.6 billion, with free cash flow unchanged at $700 million to $800 million.
Chief Financial Officer Cristina Gallo-Aquino stated that the company is increasing its full-year investment in the rental fleet to $500 million, an increase of $300 million from the previous forecast. Gallo-Aquino said this investment positions Ryder to capture higher expected returns as market conditions improve. Capital expenditures for the full year remain forecast at $2.4 billion, reflecting timing differences in ChoiceLease fleet replacements.
The company's effective tax rate on continuing operations was 28.1 percent for the quarter, up from 27.1 percent in the prior year due to a discrete stock-based compensation tax benefit recorded in the previous period. Debt-to-equity stood at 242 percent as of September 30, down from 250 percent at the end of 2025 and slightly below the company's long-term target range of 250 percent to 300 percent.