A changed company at Ryder, but used vehicle sales are still a big driver
Ryder's Q1 2026 earnings showed flat $1.3B revenue but strong profits driven by used vehicle sales, with the company expecting $500M in used vehicle proceeds this year. The logistics company has shifted from 44% to 60% revenue from supply chain and dedicated transport services since 2018.
Strong used vehicle market signals tight commercial vehicle supply, potentially driving up last-mile delivery costs for sellers using third-party logistics. Monitor your 3PL contracts for fuel and vehicle surcharges that could squeeze margins in 2026.
Commercial vehicle scarcity reflects broader supply chain constraints that typically translate to higher fulfillment and shipping costs across all marketplace channels.
Review 3PL contracts for vehicle cost escalation clauses - if present, negotiate caps or consider switching providers before rates increase.
Audit last-mile delivery costs in seller central shipping reports to establish baseline before potential logistics cost increases hit.
Bottom Line
Tight commercial vehicle market signals higher logistics costs ahead for sellers.
Source Lens
Industry Context
Useful background context, but lower-priority than direct platform, community, or operator intelligence.
Impact Level
medium
Tight commercial vehicle market signals higher logistics costs ahead for sellers.
Key Stat / Trigger
$500M in used vehicle sales proceeds expected for 2026
Focus on the operational implication, not just the headline.
Full Coverage
Ryder System’s stock price is up more than 80% in the last year–more than 23% in a month–for a business whose latest earnings report for 2026’s first quarter shows it has had to fight for growth. There was nothing in the quarterly report that was particularly negative.
It showed a company that is not getting that much of a lift from underlying freight market conditions, but had a solid performance on the back of its own initiatives and something it has little control over: used vehicle sales.
All that happened even as its Fleet Management Solutions (FMS) unit, its flagship leasing and rental operations, had just a 1% increase in revenue year-on-year; its contract logistics operations through Supply Chain Solutions (SCS) was up just 2% in revenue; and its Dedicated Transportation Solutions (DTS), which provides dedicated trucking, saw an 8% drop in revenue.
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enableSingleRequest(); googletag. pubads(). collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); But with the help of used vehicle sales, FMS was able to push out a 6% increase in earnings before taxes.
Those used vehicle sales, which come out of FMS, were cited near the top of the company’s earnings announcement as a reason for its performance.
A different company than eight years ago In his first earnings call as CEO since he took over Ryder (NYSE: R) from the retired Robert Sanchez, John Diez made several comparisons to where the company stood in 2018, when its vehicle leasing and sales of those vehicles was far and away the key driver of profitability at Ryder.
Now, SCS and DTS supply about 60% of revenue, compared to 44% in 2018.
But while the fundamental shift has provided long-term stability to the Ryder business, the company’s earnings call with analysts Thursday kept coming back to used vehicle sales, even as Diez said the company’s strategy in recent years has been to “derisk” its fortunes by “significantly reducing our reliance on used vehicle proceeds to achieve our targeted returns.”
The used vehicle sales were featured on the call for a simple reason: Ryder said those sales were key to why the bottom line at the company was strong. Ryder posted non-GAAP earnings of $2. 54 in the first quarter, compared to $2. 46 a year ago. That was also a 27 cents per share “beat” over consensus forecasts, according to SeekingAlpha.
Free cash flow rose to $273 million from $259 million, even as operating revenue was flat at $1. 3 billion. Cristina Gallo-Aquino, Ryder’s CFO, said on the call that the company expects to reap about $500 million in used vehicle sales proceeds this year, which would be in line with what it received in 2025. window. googletag = window.
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collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); Used vehicle market likely to stay firm But although no meaningful increase in that figure is projected, Diez talked at several times during the call as if the used vehicle market might be stronger this year.
He said Ryder expected a “modest improvement in used vehicle market conditions.” And looking to the future, Diez said that by “the next cycle peak,” without putting a date on when that might be, Ryder expected a potential $250 million increase in annual pretax earnings, which were just under $100 million for the first quarter.
One of the drivers of that increase, Diez said: used vehicle sales. “Our increased forecast reflects stronger-than-expected first quarter performance, a modest improvement in used vehicle market conditions and continued strong contractual performance,” Diez said on the call.. window. googletag = window. googletag || {cmd: []}; googletag. cmd.
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enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1709668086344-0'); }); Ryder, in its earnings announcement, increased its forecast for 2026 financial performance. One of the reasons for that, Diez said, was a projection of hi
Original Source
This briefing is based on reporting from Freightwaves. Use the original post for full primary-source context.
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