Ryder System, Inc ( R ). reported its third-quarter results on Thursday before the market opened, topping Wall Street earnings estimates while falling short of revenue expectations.

The company reported third-quarter earnings of $3.57 per share, narrowly topping the consensus estimate of $3.55, marking a 3.8% increase from $3.44 per share in the same quarter last year.

Revenue for the quarter came in at $3.171 billion, slightly below analysts’ expectations of $3.197 billion, and consistent with the prior year.

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Ryder ended the quarter with cash and cash equivalents of $189 million.

Segment Performance

In the third quarter, Ryder’s Fleet Management Solutions (FMS) segment held revenue steady at $1.47 billion, with operating revenue of $1.28 billion. Segment earnings before tax (EBT) rose 11% to $146 million, driven by stronger pricing in the ChoiceLease business and maintenance savings, though used-vehicle sales and rental conditions remained weak.

The Supply Chain Solutions (SCS) segment saw total revenue grow 5% to $1.38 billion and operating revenue increase 4% to $1.03 billion, fueled by new omnichannel retail business, but segment EBT declined 8% to $86 million due to e-commerce network performance and higher medical costs.

Meanwhile, the Dedicated Transportation Solutions (DTS) segment experienced a 10% fall in total revenue to $570 million and a 6 % drop in operating revenue to $458 million, as fleet size contracted amid weak freight market conditions, even as EBT held steady at $36 million, helped by acquisition synergies.

Outlook

For the fourth quarter, the company expects adjusted earnings of $3.50 to $3.70 per share, compared with the consensus estimate of $3.69.

For the full year 2025, Ryder narrowed its adjusted EPS guidance to $12.85 to $13.05, from $12.85 to $13.30, compared with the analyst estimate of $13.00.

Ryder maintained its 2025 sales guidance at $10.37 billion, in line with its previous forecast and below the Street estimate of $12.76 billion.

Additionally, for the full year 2025, Ryder expects an adjusted return on equity (ROE) of 17% and a 1% increase in adjusted operating revenue.

The company anticipates generating approximately $2.8 billion in net cash from operating activities from continuing operations and free cash flow between $900 million and $1 billion.

Management Commentary

Ryder Chairman and CEO Robert Sanchez, stated, “Earnings were in line with our expectations as operating performance from our resilient contractual businesses and benefits from our strategic initiatives more than offset the impact from freight market conditions. We are on track to deliver earnings growth in 2025 driven by benefits from our lease pricing and multi-year maintenance cost-saving initiatives, acquisition synergies, and optimization of our omnichannel retail network.”

Separately, the company announced that its Board of Directors has authorized two new share repurchase programs totaling up to 3.5 million shares through October 2027.

Share Repurchase Plans

Under a new discretionary plan, management may repurchase up to 2.0 million shares over the next two years to support capital structure flexibility, balance sheet management, and shareholder returns. This plan replaces the prior 2024 authorization, which was largely completed.

In addition, a new anti-dilutive plan authorizes the repurchase of up to 1.5 million shares issued under employee stock programs since August 2025, replacing the 2023 plan that expired on October 12, 2025.

Price Action: R shares were trading lower by 9.01% to $166.34 at last check Thursday.

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