UHAL - Earnings call transcript Q2 2025

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Operator

Good day, everyone, and welcome to the U-Haul Holding Company Second Quarter Fiscal Year 2025 Investor Call. [Operator Instructions] Please note, this call may be recorded. I'll be standing by if you should need any assistance. It is my pleasure to turn the conference over to Sebastien Reyes.

Sebastien Reyes

Good morning, and thank you for joining us today. Holding Quarter U-Haul Call. XXXX the to Company Fiscal Second Investor Welcome

limitation, forward-looking expenses, we to our during the without like I business, this regarding everyone including, the Exchange amended. Section and XXE Before the the would Securities of may meaning safe remind Section constitute as provisions begin, of amended, statements of growth and XXXX income the as of general that certain call statements of revenue, statements within Act XXXX XXA Securities of harbor Act of of

which risks differ Forward-looking factors or be inherently projected. could subject statements Certain from materially are and to uncertainties, quantified. to some of cannot cause those results actual predicted

operating of uncertainties the the For to file may XXXX, and a company's and public and risks U.S. SEC on is Commission. the XX, XX-Q with ended discussion September Please the quarter results. Securities for filings which the refer and that future Form affect company's business Exchange

the Joe turn over now to of Shoen, U-Haul Company. call I'll Holding Chairman

Edward Shoen

Thanks, year measurement, will this manufacturers but gain vehicle in lock remain up we've is that the income getting If around. administration big successful be on time equipment new for and mandates on with truck EV us we some of been CapEx. unknown trader the the help modest uncertainty, can Sebastien. our our that us moving moving Rental to is teams down will try results. how strategy. the slightly. getting focused very turned This is The My

upon units. storage it are product promotions. new to faster online than industry by The develop move-in -- filling continuing industry are bringing unrealistic the storage remains [indiscernible] We we and

U-Box, consumers all our strategy, watching still this which of making that and . needs both the holding but addresses is with the our We time the is progress. are place service we're time.

word on place some. We [indiscernible]. expect the of I Holding position by growth a reliably on update to I we're our see going have an now significant handle can the infrastructure transactions, have a U-Haul that shares in in and company --

Trion August shareholders. Trion XX, regarding a with know, [ June with XX-page PowerPoint communicated Since once met have as sent with representatives, company you Company they filed Holding has of the and [ XX. XXF Trion Berg As ] ] then, their Holding presentation. holdings has Jason other us stock U-Haul in U-Haul SEC on also

course, regularly We precedes consider so. inputs Of will Trion's them. factors continue to and multiple and do reputation

changes our business our will place. have any input. plans be not We plans There to to Trion's in due

you work to accurate. more look to contributing helpful We investors, the things to and to to regarding air continue new administration do ability just to to little future the see forward he accurate in a make get as information this, our are confidence. will Jason consumer Many continues up the will positively which so.

that, turn it over With Jason numbers. I'll take to to the you through

Jason Berg

prior that at EBITDA almost interest depreciation, due recur. in entirely the we are million our nonvoting From million Yesterday, second per Joe. going by to adjust to unlikely to have I'm of $XX.X Earnings share and and to translates the operating storage per taxes to from of $X.XX $XXX earnings same to rest earnings quarter the interest, segment of compared per [indiscernible] and income for to perspective, the second reported $X.XX compared to year. last year. for decreased That this costs quarter last share moving remove Thanks, amount share the year. nonvoting before quarter million $XXX

to first moment. This year-over-year revenue slightly of a a trough, Equipment have points rental we in growth had should and was. a likely quarter than to further our consecutive in $XX increase return hopefully that trajectory. revenues, second rental equipment on quarter results, now touch million an a is better increases more we up it sustained our or about I'll And X.X%, what improvement

increase the per quarter. generate an on able did we we and the also see moving during to towing increases revenue While in-town And fleet increased one-way trailer transaction average in and In-Town for the revenues lows. transactions, in our weren't both one-way

October year and revenue compared projection. the last to week last trend the million year. That's our saw the Capital XXXX time first for continue of rental increased year. to months were same equipment $X.XXX. We've for period X-month same net the $XXX November CapEx to fiscal compared positively full expenditures X new increase first

from we from availability is the of cargo on spending down of and total equipment We've a lower gross equipment combination increased approximately this it sales that's $X.XXX sold, some the manufacturers to $X.XX less pickups that billion, to of average $XXX purchase sales. that proceeds can billion due million from the was retired So This million. our additional that's fewer Proceeds and of vans a we sales along $XX rental did with to sell. units year.

the that at up entire the was look up Average if across resale depreciation last the our XX,XXX in declining quarter. occupied end at foot portfolio, units million, Switching X.X% And increase you up time we over an response year. Occupied $XX portfolio, per improvement. of our models. revenue for to of same up the to values were these compared X%. the unit self-storage. continues nearly of just is were about Revenues X% to to same-store seeing is portion about you're count which A September improve

time in that's frame, differential the what's for new whole to ratio XX,XXX to led added same were units, the we've XX.X% average and occupancy down about our portfolio. during Now the

decreased we saw the just out points XX basis split XX.X%. to you portion, occupancy average If same-store

real months acquisitions million of X costs $XXX warehouses. X million with estate we with the invested development over associated That's last in year, first and self-storage $XXX U-Box this of along increase year. first the months During

I just compared was have to developed. increase we would about being see During feet, locations. newly that new rentable of next XXX,XXX quarter. to million net square over feet did quarter expect net approximately square new what developed this we We the deliveries added feet the quarter, XXX,XXX from square currently X.X rentable

this to large Our was included at separately, expenses other Operating major break are out Storage XX-Q in increased a U-Box contributor. yet results Moving $XX U-Box revenue over million, million. in are increased line which but $X and our revenue item of enough just filing not

the about the $XX million. Personnel building on million As decline fleet and repair $X.X quarter's increased last we million and costs little a going over were million. it property mentioned associated down call, taxes in was quarter. $X up $X.X were up maintenance and maintenance slow, for was the combined Liability and with fleet to costs

$XX.X cardboard box supplies. to new supplier the cost a we During our moving had for transition million quarter, to related our a

to While lower time we expense we this sold, service in the over and opted in to expect improved quarter. goods result cost amount this of

our this year, cash with moving we availability and storage of along As segment, existing loan from had billion. of September $X.XXX facilities at of

in portion release them. Relations posted On the the With some supplemental I begin filing. materials call. to the website, to helpful We that, to it'd hand the question-and-answer addition of earnings to be hope to you would investors.uhaul.com.com we I operator, Leo, XX-Q look back to and call our encourage a that at you. would our Investor take the like

Operator

Zacks. We'll Instructions] Ralston take first of our [Operator Steve from question

Steven Ralston

a consecutive the quarters and have I interesting in is [indiscernible], X self-moving X quarter business, year-over-year self-storage. business the X that think, you see know over In business you renal quite that also of next he -- which morning. near might expected that But of strengthening you questions your trends because mentioned the feeling slow the term. your X I rental you the quarters? the if Good I but the next I'm improvement, foresee have concerning X what's ago, second had on. modest you improvement wondering for over anything can quarters. later

Edward Shoen

but -- results. big all you're getting the changes. doing time, I see it's or minuscule fine don't any stuff We're changes

doesn't we won't that Now something works. cut upon that mean significantly

start may I think turmoil fashion, I in a the to really predictable country in and that down, that and into don't But model, additional see dial move that's probably I act more all. us. this the rentals window which at will to trader results settle in quarter, -- more in business in I have it sometime on may We're people fourth but any bit, all little going for late hope default. quarter the have a fourth trader we introduce the

manufacture to have We them.

a something is if it's So But looking that be pick I'm to to I for to slowly. But success. don't as over ramp modest up days. to going the going . blind I'm XXX up anything. see next

Steven Ralston

business, comment digits and that self-storage nice It upper are year-over-year start the single it. to it's In on mathematically And think lot size of your are been I portfolio And the it improving? point digits. situation. now Okay. going growing, factors a used double trend Could has There into gain be pricing stabilize year-over-year you out part and this. the when you that's and to and deteriorating. of solid alluded will you the of a rate you know that that that's is

Edward Shoen

Well, of are on of you low filling can product, fine. some Jason others. in we That's to imbalance. very of than to it adding course, places XXs middle faster where And rooms. all as are course, that. winners rooms specific basic more we're our point new location and But bring we're gets doing plenty the than

that's new on to product it's XX% be I think coming winners. our going

industry I on, digits So industry. hesitate it's to next predict going things going and know to that The which even But don't between got many whole go the say and funky is probably kind I themselves there's of double for to outperform summer, back that. to look now many, about.

addition of we rooms new think our I right, it's should. think outperform out and -- I products, to going the this clear. addition totally we'll not peer and we're filling But whether But balanced get group,

speaking, in plenty but going of There's we're out relatively course, customers fine. there season. slow season, Of a even that's slow what's the into

So a of at senior location most managers would have out picture, location. this not I macro this country. kind of by say. There's around This fighting my the week point, I'm

right is sales we're who didn't going get to and I I was are to tried how location at it shaking I that, jumbo the into but that the many told we'll the And not course, that failure in always this specifically quite think out they view into, rest know to a goes. little other that's the my group, And peer come were of and entrants expect results. to just anticipate rented of market of I X and ahead that that is we're failing there, -- our they're on connect now you even well, are rooms people what as there to be though I getting in Y where doubling going still many reporting we're shiny them. participants the jumble too believe customers I in he out. how more to all see down presentation. industry of --

Steven Ralston

the the of have and the one attributes that's the mean COVID. of And [indiscernible] I will it is loud, it key out we're last talk all time leverage both all build you in capacity rental you and occurs then storage. capacity benefit U-Haul this and that to from and to business the Just that was . come, in demand

Operator

Wilen Wilen to of Management. next Jamie move We'll

James Wilen

places new Is you about First better for lot And there of the there? advantage U-Box better a self-storage, gaining you? storage obviously, because U-Box question -- or build build in some how it portable is as Or as including customers give as you in for to question that you relative margins you share share? that's seem U-Box? is why to the you for of to you're advantage that And competitive gaining just a storage and new think a business. in competitive self-storage, is much you're you you you be for have does pricing

Edward Shoen

a going a for just speak my to I'm runs to let minute. Sam, [indiscernible] son, Yes. who that

Unknown Executive

Sure. I'm Jamie. answer happy to that,

storage I question is that. competitive doubt component was, No you. think agree I'd with U-Box advantage. the the about of

focus. answer it on a U-Box, say Now segment the U-Haul, the I'd but of would it We give an going U-Box, But us to the to I tell is opportunity gaining that, moving why doing shine. no. segment as forward A is a storage we're -- a better would to if I say us relative competition us. share great I'd C and you job I'd gives storage imagine, on of is on that might us you I I the just give massive can a think quite is us that at give

to so to we should could resources support that know I've take lot a and that And of it see be. got

question. So thanks your for

James Wilen

to for continue we will always as portable component it include And as Okay. build extra storage well? sell-through, an

Edward Shoen

Not always.

that You've traditional the to the out got probably customers U-Box this is a radius self-storage map location and with of serves. larger radius service than

to also of so if we're build project expand the close, pretty out make But look -- it XX, when build so to So can also opportunity of network. out and maybe to try strategic more it's we're building the at be using our ones we U-Box one you self-storage currently, okay? to we X

a -- guess, them we that one-to-one more that's But don't but more at just goal XX -- of think U-Box. in we're that can Jamie, we all, putting But absorb. in X capacity right now, of have we're to what to storage, where be would of going building going we're putting out we I'm

James Wilen

Okay.

that their credit space for $XX it not getting similar for like profile our I value than on it's a I to it say, rate occupancy what and CubeSmart, maintain for they've a which one though want the and similar theirs. and gap have seems what is are added metrics a storage, which to would you think Next, you what growth theirs you more competitors, has to fresh worth. similar go cap does it your trading because so and self to got base billion between revenue that are operation, look self-storage margins not coherent on our market in we're When much all at to

So to no is close And think within be our presentation PowerPoint one lot self-storage what similar gap? Heather that that a for valuation Trion is for our the about Can talk you would would gap? the of value that.

Edward Shoen

Okay. I'll to for it a minute. talk

day, drag you on I -- on the the are Obviously, aggressive capacity paying Of for is but think earnings. development stuff or a of the right resources course, to comes a out pouring both can't excess And we're things to of way, into be we turns we it's the is course, day it a and I all drag. number, now, end point not give or what until of out there, I drag. mathematically unknown just be those whether get that you the development, at is it. it's this wouldn't happy

have As [ and far don't I know like I to send speak him, is work. I his I Mr. Jamie. I to anything. anything if ], speak. don't presentation, Peltz don't for that I as would like know want to don't could don't

James Wilen

we're Okay. adding And than talk you about that filling. within more spaces self-storage we're

So it in impacts really earnings. the short term,

ability the to locations. One of occupancy existing open restricted the we increase COVID not were to about to was rates new but things beautiful locations, able only it that in our be --

of for balance So ever the we'll in term of think much units. we that is be near wonderful term so there opened the Do units to was new to of locations? to near-term cost balance so balance a get newly between more carrying impact existing years going off and -- XX with the back to you out long as opposed filling opening the aggressively can always, this

Edward Shoen

operate. expect Well, where opportunity we I lot There's would and of points ebb is what of I the it a still flow and will of think stronger U-Hauls, one breadth now.

them. very there scope, market already whereas and have within kind okay? of it's would go be shrug in one We're in people reason loser long storage to you up take have products [indiscernible], as to with they [indiscernible]. we're services active and of thing no because whole So competitors, and a is would and they shoulders marginally gear that's as their they have of going fine. So to proportional for our the no Gillette it infrastructure A the to more totally lot

some call New and not hard the looks not Northern get prize turned product I go it. me, Jersey in there working more To they're in ago. You worth just X all is eager to New tax. going to over like I'm Northern it with to product. weeks Jersey, down

XX-year I for you X think this to plenty there's say, if to positioned business. we'll Nobody look of places of want for to saved or places But correct. Now see knows sure. next and us course, self-storage years, think plenty I of make there's in for expand And and expand I of be out has out the them. want a inflation, They everybody the over X to them get to all XX-year run years.

was foot. we bringing first I a for this, When product $X square on doing were

Now cost. That pretty Then abated $X year. course. of we've square rent was storage, a to some a foot it for $XX, in we at point, it bumped won't a expensive up all

they're at for If places spot. you go exact $XXX now, look selling those foot, a same

still are will And so experience. inflation has are pretty trading secondary off in market my Currently, very, trading cost at It's really saved there's some for at just the maybe units self-storage the that but as industry no away of drag. going market that time, to that we're this. very the and and We're high to, pull mentioned, haul, multiples. going some high for into it's produce my long confident in you from drag, fairly as reason long mind, market a results and we're a shy this, it's a over is to in us going as in

turn you But statements. on as like off that. this probably months, Jason or quick different XX as it XX you're I pouring a in soon real financial more it. into as -- flips capital soon just looks could As it the place it about tap mean not quantify

James Wilen

on opportunity self-storage our if -- profitability? And off to areas in the facilities given what of be to would it, Jersey greater of be player that a valuations pond I smaller in sold if small just thought the has you Exactly. put corollary so on build be the versus to new the able part a pace then for big for the into is slow mature Jersey, then in lower. Wyoming. the capital of a big of percentage than existing talk it's units And capital we wonder, in a And process pond. to player about with Exactly. New easier we take that, New we to

Edward Shoen

but some jiggering, we possibly done better you have U-Box, store what new or could financial worse sites is most for haul of these do You there. have

some conceivably a over And interest of Carey, do so here that and the version year deal wacky partitioning it, of call selling partial finally a want could just did rolled you you to however with ago. W. kind some we P. a

we So with have it. some experience

I okay? it interest done seems it that, assets course, I get get try That's my stores a lawsuits people that's know, pretty or bring I experience. the put been but fraud rate, from a this less pop. other And onetime So that got is point, have it as the But our that strategy But things was they penny politely. people. financial to of customer. XXX to out as don't onetime these It's of the the after X pop. something awkward it, turmoil But other I've in partitioning presentation to out is good managing I alleging at one who every combined not of nature. to

not So partition anything tried if we've different seeing these couple guess. and trying -- there really assets things helped very much, that of that a I to

Operator

We I'm for comments. have no further closing to to questions return at management the happy this time. call

Sebastien Reyes

everyone, Thank forward February. Well, support. after much, . you. speaking earnings your in for we report look thanks you to so with We

Operator

This does conclude today's U-Haul Call. Year Investor Holding Company Second Quarter XXXX Fiscal

now You lines, great a may day. have everyone, disconnect and your

U-Haul Holding (UHAL) 7 Nov 242025 Q2 Earnings call transcript