UHAL — U-Haul Holding Company

U-Haul Holding Company (UHAL) Q2 Fiscal 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Earnings: U-Haul reported Q2 earnings of $106 million, down from $187 million in the same quarter last year. Earnings per share (EPS) were $0.54, compared to $0.96 in Q2 2025.
• Adjusted EBITDA: Increased by 6% to nearly $32 million, driven by revenue growth across Moving and Storage segments.
• Depreciation and Losses: The company reported a $38 million loss on the disposal of retired rental equipment, contrasting with an $18 million gain in the previous year. Total depreciation costs increased by $107 million year-over-year.
• Revenue: Equipment rental revenue rose by $23 million (2%), while self-storage revenues increased by nearly $22 million (10%). However, same-store occupancy decreased by 350 basis points to 90.5%.

2. Strategic Updates and Business Highlights

• Expansion of Dealer Network: U-Haul is aggressively expanding its dealer network, adding nearly 1,000 new locations in the past year, aiming to enhance truck and trailer inventory balance and increase demand.
• Self-Storage Focus: The company is prioritizing expanding its self-storage footprint over increasing depth, despite facing strong competition and a challenging market.
• U-Box Growth: U-Box revenue increased significantly, with the company gaining market share and positioning itself as a leader in the segment.

3. Forward Guidance and Outlook

• Depreciation Trends: Management anticipates that depreciation expenses will peak by the end of this year and may begin to decline thereafter, contingent on the resale market for vehicles.
• Market Penetration: The company expects to see visible improvements in moving transactions by mid-2026 as the dealer network expansion takes effect.
• Self-Storage Strategy: U-Haul plans to continue focusing on increasing occupancy and revenue through better management practices and targeted rate increases.

4. Bad News, Challenges, or Points of Concern

• Depreciation Impact: The significant increase in depreciation and losses from equipment sales is a major drag on earnings, with costs expected to remain high due to the current market conditions.
• Competitive Pressures: The self-storage market is highly competitive, with rivals engaging in aggressive pricing strategies that may impact U-Haul's ability to increase occupancy and rental rates effectively.
• Transaction Volume Decline: There has been a decrease in overall moving transactions, which management noted has been a trend throughout the quarter and into October.

5. Notable Q&A Insights

• Depreciation Methodology: Management clarified that they use a dynamic depreciation model for box trucks, which can lead to fluctuations in quarterly depreciation based on purchase patterns and market conditions.
• Market Dynamics: There is uncertainty regarding how external factors, such as tariffs and regulatory changes, may impact vehicle pricing and overall operational costs moving forward.
• Self-Storage Management: Management indicated that they have successfully navigated through the removal of delinquent tenants and are now focused on re-renting those spaces to paying customers, although the timing may affect occupancy rates due to seasonal demand fluctuations.
• U-Box Profitability: U-Box is expected to reach an inflection point in profitability as occupancy increases, with management optimistic about its growth trajectory and market share gains.

Overall, while U-Haul is facing significant challenges related to depreciation and competitive pressures, strategic initiatives in expanding its dealer network and self-storage footprint, along with growth in U-Box, provide a balanced outlook for the company moving forward.