U-Haul Holding Co. 10-Q Summary: Fiscal Q2 2026 (Ended Sept 30, 2025)
Business Context and Reporting Period
This filing covers the second quarter of fiscal year 2026, ended September 30, 2025. U-Haul Holding Co. operates three primary segments: Moving and Storage (rental trucks, trailers, self-storage), Property and Casualty Insurance, and Life Insurance. The company reported a significant decline in net earnings compared to the prior year, primarily driven by increased depreciation and equipment disposal losses within the Moving and Storage segment.
Key Financial Metrics
| Metric | Q2 2026 (Current) | Q2 2025 (Prior Year) | 6 Months 2026 (YTD) | 6 Months 2025 (YTD) |
|---|---|---|---|---|
| Total Revenues | $1,719.9 million | $1,658.1 million | $3,350.4 million | $3,206.6 million |
| Net Earnings (Common Stockholders) | $105.6 million | $186.8 million | $247.9 million | $382.2 million |
| Earnings Per Share (Voting Common) | $0.49 | $0.91 | $1.17 | $1.86 |
| Operating Cash Flow (6 Months) | $1,150.0 million | |||
| Capital Expenditures (6 Months) | $1,914.5 million (Gross) | |||
| Total Debt (Notes, Loans, Leases) | $7,694.6 million (Net of issuance costs) | |||
| Cash and Equivalents | $1,082.8 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 3.7% year-over-year for the quarter. Self-moving equipment rental revenues rose $23.1 million, and self-storage revenues increased $21.8 million due to occupancy gains and new capacity additions (1.6 million sq. ft. added in Q2).
- Profitability Decline: Net earnings dropped 43.5% year-over-year. Earnings from operations decreased from $302.0 million to $217.6 million.
- Expense Drivers:
- Depreciation: Increased $50.6 million due to a larger fleet and lower expected resale values for certain units.
- Disposal Losses: Net losses on the disposal of rental equipment surged $56.1 million as resale values decreased while the cost of units sold increased.
- Operating Expenses: Increased $19.4 million, driven by higher repair costs ($10.4M), personnel costs ($11.7M), and liability costs ($23.1M), partially offset by a one-time decrease in box supplier transition costs from the prior year.
- Interest Expense: Rose to $90.3 million from $71.5 million due to higher debt levels and increased cost of debt.
Guidance, Outlook, and Risks
- Outlook: Management plans to maintain high capital expenditures in fiscal 2026, focusing on fleet rotation and self-storage expansion. They anticipate investing approximately $1,295 million in the rental fleet (net of sales) for the full year.
- Strategic Focus: Continued investment in the U-Box program and expansion of the Storage Affiliate network. The company aims to increase transaction volume and pricing in the self-moving market.
- Risks and Contingencies:
- Fleet Economics: Declining residual values of used trucks and rising repair costs pose a margin risk.
- Interest Rates: The company has $820.1 million in variable rate debt; a 100 basis point increase in SOFR would increase annual interest expense by $5.5 million.
- Regulatory: The company is awaiting processing of a $129 million IRS tax refund plus interest.
- Insurance: Life Insurance premiums decreased due to policy lapses outweighing sales in the Medicare supplement and final expense markets.
Investor Verification Checklist
- Fleet Residual Values: Verify the assumptions regarding the declining resale value of rental trucks and the impact on future depreciation and disposal losses.
- Capital Allocation: Confirm the funding sources for the projected $1.3 billion fleet investment and $526 million real estate spend, specifically the mix of debt vs. operating cash flow.
- IRS Refund Status: Monitor the status of the $129 million tax refund and associated interest, currently recorded as a receivable.
- Insurance Segment Performance: Assess the sustainability of the Life Insurance segment given the trend of policy lapses exceeding new sales.
- Debt Maturities: Review the annual maturities of the $7.7 billion debt portfolio to ensure liquidity coverage for upcoming principal payments.