8-K: U-Haul Holding Company Reports Lower Third Quarter Fiscal 2025 Earnings

U-Haul Holding Company's net earnings available to shareholders decreased to $67.2 million for the third quarter of fiscal 2025, compared to $99.2 million for the same period last year.

Summary

• U-Haul Holding Company reported net earnings available to shareholders of $67.2 million for the third quarter ended December 31, 2024, a decrease from $99.2 million in the same period last year.
• Earnings per share for Non-Voting Shares (UHAL.B) were $0.35 for the third quarter of fiscal 2025, down from $0.51 in fiscal 2024.
• For the nine-month period ended December 31, 2024, net earnings available to shareholders were $449.4 million, compared to $629.6 million for the same period last year.
• Earnings per share for Non-Voting Shares (UHAL.B) were $2.31 for the nine-month period, compared to $3.22 in the previous year.
• Moving and Storage EBITDA, adjusted to remove interest income, increased $47.8 million to $376.7 million compared to the third quarter of fiscal 2024.
• Self-storage revenues increased by $16.6 million, or 7.9%, compared to the third quarter of fiscal year 2024.
• Same store occupancy decreased 0.5% to 92.4%, while revenue per foot increased 3.0%.
• The total portfolio of occupied rooms increased by 39,055, or 6.8%, compared to December 31, 2023.
• Self-moving equipment rental revenues increased $38.8 million, or 4.6%, compared with the third quarter of fiscal year 2024.
• Moving and Storage Other revenue increased $9.6 million, or 9.6%, compared with the third quarter of fiscal 2024.
• Cash and credit availability at the Moving and Storage segment was $1,348.1 million as of December 31, 2024, compared with $1,886.3 million at March 31, 2024.
• A cash dividend on Non-Voting Common Stock of $0.05 per share was declared on December 4, 2024, and paid on December 27, 2024.

Sentiment

Score: 5

Explanation: The document presents mixed results, with increased revenues in some areas but decreased earnings overall. The sentiment is neutral as it reports both positive and negative aspects of the company's performance.

Positives

• Moving and Storage EBITDA increased by $47.8 million to $376.7 million compared to the third quarter of fiscal 2024.
• Self-storage revenues increased by $16.6 million, or 7.9%, compared to the third quarter of fiscal year 2024.
• Self-moving equipment rental revenues increased by $38.8 million, or 4.6%, compared with the third quarter of fiscal year 2024.
• Moving and Storage Other revenue increased $9.6 million, or 9.6%, compared with the third quarter of fiscal 2024.
• Fleet maintenance and repair costs declined $10.2 million compared with the third quarter of fiscal 2024.

Negatives

• Net earnings available to shareholders decreased to $67.2 million in Q3 2025 from $99.2 million in Q3 2024.
• Earnings per share for Non-Voting Shares (UHAL.B) decreased to $0.35 in Q3 2025 from $0.51 in Q3 2024.
• Moving and Storage earnings from operations decreased $25.5 million compared to the third quarter of fiscal 2024.
• Reduced gains from the disposal of retired rental equipment accounted for $32.7 million of the decrease.
• Fleet depreciation expense increased $34.2 million and real estate related depreciation expense increased $5.6 million, all compared with the third quarter of fiscal 2024.
• Cash and credit availability at the Moving and Storage segment decreased to $1,348.1 million as of December 31, 2024, from $1,886.3 million at March 31, 2024.

Risks

• The press release contains forward-looking statements that are subject to various risks and uncertainties.
• Actual results may differ materially from those anticipated.
• Readers are cautioned not to place undue reliance on these forward-looking statements.
• The company's Form 10-Q for the quarter ended December 31, 2024, on file with the SEC, provides a discussion of risks and uncertainties that may affect the business and future operating results.

Future Outlook

The company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

Management Comments

• 'Moving activity increased over the quarter as demand for our products and services ticked up,' stated Joe Shoen, Chairman of U-Haul Holding Company.
• 'We are making steady improvements to reduce friction with the customer so that its easier for the public to choose U-Haul.'

Industry Context

U-Haul's performance is indicative of trends in the moving and self-storage industries, with increased moving activity and growing demand for self-storage space.

Comparison to Industry Standards

• Public Storage (PSA) and Extra Space Storage (EXR) are major competitors in the self-storage industry.
• U-Haul's same-store occupancy rate of 92.4% can be compared to the occupancy rates reported by PSA and EXR to assess its competitive position.
• The growth in U-Haul's self-storage revenues and square footage can be benchmarked against the growth rates of PSA and EXR to evaluate its market share gains.
• Companies like Penske and Budget are competitors in the truck rental market, and U-Haul's performance in this segment can be compared to theirs.

Stakeholder Impact

• Shareholders will be impacted by the decrease in net earnings and earnings per share.
• Customers may benefit from improvements to reduce friction with the customer.
• Employees may be affected by changes in the company's financial performance.

Next Steps

• U-Haul Holding Company will hold its investor call for the third quarter of fiscal 2025 on Thursday, February 6, 2025.

Key Dates