U-Haul Holding Company Reports Mixed Third Quarter Fiscal 2025 Financial Results Amid Steady Growth in Key Segments
U-Haul Holding Company (NYSE: UHAL, UHAL.B), the parent company of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company, and Amerco Real Estate Company, has released its financial results for the third quarter of fiscal 2025, which ended on December 31, 2024. While the company demonstrated growth in several key areas, including self-storage revenues and equipment rental transactions, net earnings available to shareholders declined compared to the same period last year.
Net Earnings Decline Year-over-Year
For the third quarter of fiscal 2025, U-Haul reported net earnings available to shareholders of $67.2 million, a significant decrease from $99.2 million during the same period in fiscal 2024. This decline translated to earnings per share (EPS) for Non-Voting Shares (UHAL.B) of $0.35, down from $0.51 in the prior-year quarter. Over the nine-month period ending December 31, 2024, net earnings also fell to $449.4 million, compared to $629.6 million in the first three quarters of fiscal 2024. EPS for the nine-month period stood at $2.31, versus $3.22 in the previous fiscal year.
Despite these declines, Chairman Joe Shoen expressed optimism about the company’s progress. “Moving activity increased over the quarter as demand for our products and services ticked up,” he stated. “We are making steady improvements to reduce friction with the customer so that it’s easier for the public to choose U-Haul.”
Strong Performance in Self-Storage and Equipment Rentals
One of the standout performers in the third quarter was U-Haul’s self-storage segment. Revenues from this division rose by $16.6 million, or 7.9%, compared to the third quarter of fiscal 2024. The company attributed this growth to an increase in revenue per square foot and the expansion of its storage footprint. Although same-store occupancy rates dipped slightly by 0.5% to 92.4%, the total portfolio of occupied rooms grew by 39,055, or 6.8%, compared to December 31, 2023.
During the quarter, U-Haul added 34 new storage locations, contributing 2.3 million net rentable square feet (NRSF). Of these, 23 were acquisitions of existing facilities totaling 1.3 million NRSF, while the remaining 11 were internally developed projects. Additionally, ongoing expansion efforts at existing sites added another 1.0 million NRSF. As of December 31, 2024, the company had approximately 16.8 million NRSF in development or pending completion.
The self-moving equipment rental segment also showed promising signs of recovery. Revenues from this division increased by $38.8 million, or 4.6%, compared to the third quarter of fiscal 2024. This marked the third consecutive quarter of year-over-year improvement. Notably, In-Town transactions saw gains, while revenue per transaction rose in both In-Town and one-way markets. To support this growth, U-Haul expanded its box truck fleet while reducing the number of pickup trucks.
Challenges in Fleet Management and Depreciation Costs
While revenue growth was evident across multiple segments, operational challenges weighed on profitability. Moving and Storage earnings from operations, adjusted to exclude interest income and consolidated earnings from insurance subsidiaries, declined by $25.5 million compared to the third quarter of fiscal 2024. Several factors contributed to this decrease:
- Reduced gains from the disposal of retired rental equipment accounted for $32.7 million of the drop.
- Fleet depreciation expenses surged by $34.2 million, reflecting higher costs associated with maintaining and upgrading the rental fleet.
- Real estate-related depreciation expenses rose by $5.6 million.
On a positive note, fleet maintenance and repair costs decreased by $10.2 million compared to the third quarter of fiscal 2024, providing some relief to operating margins.
Growth in Ancillary Services
U-Haul’s “Other Revenue” category, which includes ancillary services such as its U-Box program, posted strong growth of $9.6 million, or 9.6%, compared to the third quarter of fiscal 2024. The U-Box program, which offers portable moving and storage solutions, benefited from increased warehouse capacity, additional containers, and enhanced delivery capabilities. These investments have allowed U-Haul to expand the reach and accessibility of its services, further solidifying its position in the market.
Cash Position and Dividend Payout
As of December 31, 2024, the Moving and Storage segment’s cash and credit availability stood at $1,348.1 million, down from $1,886.3 million at the end of March 2024. Despite this reduction, the company maintained a robust liquidity position to support ongoing operations and strategic initiatives.
In line with its commitment to returning value to shareholders, U-Haul declared a cash dividend of $0.05 per share on its Non-Voting Common Stock. The dividend was paid on December 27, 2024, to shareholders of record as of December 16, 2024.
