U-Haul Holding Co. 10-Q Summary: Fiscal Q1 2026 (Ended June 30, 2025)
Business Context and Reporting Period
This filing covers the first quarter of U-Haul Holding Company's fiscal year 2026, ended June 30, 2025. The company operates three primary segments: Moving and Storage (rental trucks, trailers, self-storage), Property and Casualty Insurance, and Life Insurance. The Moving and Storage segment drives the majority of revenue and capital expenditures, while the insurance segments provide ancillary coverage and long-term capital growth.
Key Financial Metrics
| Metric | Q1 2026 (Current) | Q1 2025 (Prior Year) |
|---|---|---|
| Total Revenues | $1,630.5 million | $1,548.5 million |
| Net Earnings (Common Stockholders) | $142.3 million | $195.4 million |
| Earnings Per Share (Voting Common) | $0.68 | $0.95 |
| Operating Cash Flow | $598.4 million | $453.9 million |
| Cash and Cash Equivalents | $877.2 million | $988.8 million (Mar 31, 2025) |
| Total Debt (Notes, Loans, Leases) | $7,249.9 million | $7,193.9 million (Mar 31, 2025) |
| Capital Expenditures (Gross) | $916.6 million | $963.2 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 5.3% year-over-year. Self-moving equipment rental revenue rose $43.9 million, and self-storage revenue increased $18.5 million due to occupancy gains and new capacity additions (1.2 million sq. ft. added in the quarter).
- Profitability Decline: Despite revenue growth, net earnings dropped 27.2% to $142.3 million. This was primarily driven by a $50.7 million increase in depreciation expense related to the rental fleet and a $29.7 million increase in net losses on the disposal of rental equipment due to lower resale values.
- Expense Increases: Total costs and expenses rose $130.8 million. Personnel expenses increased $20.2 million, and liability costs rose $17.2 million. Interest expense increased to $82.3 million from $67.2 million due to higher debt levels and interest rates.
- Segment Performance: Moving and Storage operating earnings decreased to $242.9 million from $295.1 million. Life Insurance premiums decreased $1.6 million, while Property and Casualty premiums increased slightly.
Guidance, Outlook, and Risks
- Capital Investment: Management estimates fiscal 2026 reinvestment in the rental fleet will be approximately $1.275 billion (net of sales). Real estate capital expenditures are expected to remain high as the company pursues new storage acquisitions and development.
- Liquidity: The company holds $877.2 million in cash and has $465.0 million in available borrowing capacity under existing credit facilities. Management believes liquidity is sufficient to meet operational and capital needs.
- Outlook Risks: Management warns that inflationary pressures may challenge operating margins. Revenue could be adversely impacted by the inability to acquire enough new rental equipment, which would increase repair costs. The company also faces risks related to used vehicle disposition values and general economic conditions affecting moving demand.
- Tax Update: The company is awaiting processing of a $129 million IRS tax refund (plus interest) for tax years 2014-2021. Additionally, the company is evaluating the impact of the "One Big Beautiful Bill Act" enacted in July 2025.
Investor Verification Checklist
- Fleet Resale Values: Verify the trend in net losses on disposal of rental equipment ($21.9 million loss in Q1 2026 vs. $7.8 million gain in Q1 2025) and its impact on future depreciation assumptions.
- Interest Rate Exposure: Review the $447.5 million of variable rate debt not fixed by swaps and the sensitivity of earnings to SOFR rate increases.
- IRS Refund Status: Confirm the timeline for the receipt of the $129 million tax refund currently in processing.
- Self-Storage Occupancy: Monitor occupancy rates (78.1% average monthly in Q1 2026 vs. 80.0% in Q1 2025) to assess the sustainability of revenue growth in the storage segment.
- Capital Allocation: Track the execution of the $1.275 billion fleet investment plan and the funding mix between debt, leases, and cash flow.