Ryder System’s second-quarter earnings report highlighted the significance of used vehicle prices in its profitability and market outlook. Despite a conservative forecast for the year, stability and potential price increases are expected.

Ryder saw a 3% sequential increase in used tractor pricing but a 10% decrease in overall used truck prices compared to the previous quarter.

Year-on-year comparisons showed a 17% decline in average sales prices for both tractors and trucks from the same quarter in 2024.

Ryder’s executives expressed optimism about the used tractor market, noting a shift to more sales through wholesale channels and increased pricing for sleeper berths.

The company’s decision to move inventory through wholesale channels negatively impacted used vehicle sales in the quarter, but retail sales are expected to increase going forward.

Ryder’s inventory of used vehicles was slightly above the targeted range, but prices obtained in sales were above residual values, indicating a positive trend in the market.

The company is focused on investing in trucks for its rental fleet but is cautious about adding tractors until the market improves.

Ryder’s balance sheet shows higher cash flow generation and debt capacity for capital deployment, including strategic acquisitions and investments.

Ryder is actively seeking acquisition opportunities, focusing on well-run companies within its core businesses for growth.

Recent acquisitions, such as Cardinal Logistics and IFS, have expanded Ryder’s Dedicated and Supply Chain Services segments, respectively.

The company has significant financial capacity for acquisitions and will continue to explore opportunities to grow its business strategically.

Read more at Yahoo Finance: Ryder’s used vehicle numbers show a bullish corner: tractor sales