Ryder System Inc

Equity Research 23 July 2026 | 6:53PM EDT

Ryder System Inc. (R) 2Q26 EPS Beat; FMS to Drive EBT Growth Partially Offset by SCS Timing; Buy

R 12m Price Target: $287.00 Price: $267.91 Upside: 7.1% BUY Jordan Alliger Bottom Line: Comparable EPS from operations came in at $3.73 p/s | Goldman Sachs & Co. LLC which was ahead of GS/Visible Alpha Consensus Data at Paul Stoddard $3.65/$3.69. Results came in ahead of forecast largely on stronger | Goldman Sachs & Co. LLC EBT in FMS and SCS as operating EBT of $202M was above our $198M forecast. Results at FMS and SCS exceeded expectations on Andrzej Tomczyk, CFA | Goldman Sachs & Co. LLC operating revenue and EBT, which mitigated somewhat less EBT at DTS. Ryder raised its full year outlook to $14.40-$14.80 per share, or ~$0.18 higher at the midpoint. We are encouraged by continued Key Data _____________________________________ Market cap: $10.5bn favorable EPS growth trajectory and EBT performance at FMS Enterprise value: $17.3bn 3m ADTV: $103.9mn and what we would think should be a step-up in DTS demand United States especially given issues with driver workforce in truckload at Americas Transportation M&A Rank: 3 large, as well as eventual step up in SCS margin as the project GS Forecast __________________________________ pipeline begins to better season. We are Buy rated on Ryder 12/25 12/26E 12/27E 12/28E

based on valuation, as well as operating leverage through the Revenue ($ mn) EBITDA ($ mn) 12,666.0 2,838.0 13,155.3 2,918.9 14,020.4 3,230.0 15,019.6 3,502.5 cycle. EBIT ($ mn) 1,135.0 1,166.1 1,290.5 1,377.7 EPS ($) P/E (X) n Generally Solid Results: Ryder’s 2Q results beat GSe on EV/EBITDA (X) 5.1 5.9 5.3 4.8

overall operating revenue, with EBT ahead of estimates : FCF yield (%) 6.6 6.2 (3.0) (2.1) Dividend yield (%) 2.1 1.2 0.9 0.9

o Operating revenue excluding eliminations at $2.69B vs Net debt/EBITDA (X) 2.6 2.4 2.1 2.0

$2.63B GSe/Street 6/26 9/26E 12/26E 3/27E EPS ($) o Operating EBT at $202M vs $198M forecasts GSe/Street GS Factor Profile ______________________________ EBT as % of operating revenue at 7.5% compared to Growth o 7.5% forecasts for GSe/Consensus Financial Returns

§ FMS EBT Margin 11.5% vs 10.4% GSe Multiple

§ SCS EBT Margin 8.4% vs 7.6% GSe Integrated

§ DTS EBT Margin 7.9% vs 8.3% GSe Percentile 20th 40th 60th 80th 100th

n Current trends: Total operating revenue of $2.69B was up ~3% R relative to Americas Coverage R relative to Americas Transportation YoY, with FMS +1%, SCS +7.5%, partially offset by DTS down ~3%. Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

o Within FMS, the +1% YoY operating revenue was driven by

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Goldman Sachs Ryder System Inc. (R)

Ryder System Inc. (R) Balance Sheet ($ mn) _______________________________________ BUY Rating since Jan 13, 2021 12/25 12/26E 12/27E 12/28E Cash & cash equivalents Accounts receivable 1,897.0 1,995.8 1,980.1 2,125.1 Inventory Ratios & Valuation __________________________________________ Other current assets /25 12/26E 12/27E 12/28E Total current assets 2,473.0 3,070.4 3,022.6 3,270.0 P/E (X) Net PP&E 10,166.0 9,858.2 10,382.7 10,689.7 EV/EBITDA (X) 5.1 5.9 5.3 4.8 Net intangibles 1,564.0 1,539.0 1,539.0 1,539.0 EV/sales (X) 1.1 1.3 1.2 1.1 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) 6.6 6.2 (3.0) (2.1) Other long-term assets 2,184.0 2,230.2 2,290.5 2,368.8 EV/DACF (X) 3.4 4.5 4.5 4.1 Total assets 16,387.0 16,697.8 17,234.8 17,867.4 CROCI (%) ROE (%) Accounts payable 689.0 1,003.5 1,069.3 1,147.6 Net debt/EBITDA (X) 2.6 2.4 2.1 2.0 Short-term debt 819.0 1,965.0 1,965.0 1,965.0 Net debt/equity (%) Current lease liabilities -- -- -- -- Interest cover (X) 2.8…