8-K: U-Haul Reports Q3 Loss Amid Rising Depreciation, Debt

U-Haul Holding Company reported a net loss of $37.0 million for its third fiscal quarter, a significant decline from the prior year's profit, primarily due to increased fleet depreciation and disposal losses.

Summary

• U-Haul Holding Company reported a net loss of ($37.0) million for the third quarter ended December 31, 2025, compared to net earnings of $67.2 million in the same period last year.
• Earnings per share for Non-Voting Shares (UHAL.B) were ($0.18) for Q3 fiscal 2026, down from $0.35 in Q3 fiscal 2025.
• For the nine-month period, net earnings available to shareholders decreased to $210.9 million compared with $449.4 million for the same period last year.
• Moving and Storage earnings from operations, before consolidation of equity in earnings of insurance subsidiaries, decreased by $120.2 million to $7.1 million compared to the third quarter of fiscal 2025.
• Increased losses from the disposal of retired rental equipment combined with fleet depreciation expense accounted for $74.6 million of the decrease in Moving and Storage earnings for the third quarter.
• Liability costs increased by $37.9 million for the third quarter compared with the prior year.
• Consolidated revenue increased to $1,415,608 thousand for the quarter, up from $1,388,558 thousand in the prior year.
• Self-storage revenues increased by $17.9 million, or 7.9%, versus the third quarter of fiscal year 2025.
• Self-moving equipment rental revenues increased by $7.6 million, or 0.9%, compared with the third quarter of fiscal year 2025, primarily from In-Town rentals.
• Same store occupancy for self-storage decreased 4.9% to 87.2%, while revenue per foot increased 5.2%.
• During the third quarter, 16 new self-storage locations were added, contributing 1.5 million net rentable square feet (NRSF), with approximately 12.9 million NRSF in development or pending.
• Cash and credit availability at the Moving and Storage segment was $1,475.0 million as of December 31, 2025, compared with $1,347.5 million at March 31, 2025.
• Total debt increased to $8,058,179 thousand as of December 31, 2025, from $6,929,591 thousand at December 31, 2024.
• Net debt to adjusted EBITDA increased to 4.3x as of December 31, 2025, from 3.7x at December 31, 2024.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative report due to the significant decline in net earnings and operational profits, coupled with rising debt. While revenue growth and self-storage expansion are positive, they are overshadowed by the substantial profitability issues.

Positives

• Consolidated revenue increased by $27.05 million (1.9%) to $1.42 billion for the quarter.
• Self-storage revenues grew by $17.9 million (7.9%) compared to the prior year's third quarter.
• Self-moving equipment rental revenues increased by $7.6 million (0.9%), primarily from In-Town rentals.
• The company added 16 new self-storage locations and 1.5 million net rentable square feet during the quarter, indicating continued expansion.
• Approximately 12.9 million net rentable square feet are in development or pending, suggesting future growth in the self-storage segment.
• Cash and credit availability at the Moving and Storage segment improved to $1,475.0 million as of December 31, 2025, from $1,347.5 million at March 31, 2025.
• A Property and Casualty Insurance subsidiary paid a $100 million dividend to U-Haul Holding Company during the quarter.

Negatives

• Net earnings available to common shareholders swung to a loss of ($37.0) million in Q3 fiscal 2026 from a profit of $67.2 million in Q3 fiscal 2025.
• Earnings per share for Non-Voting Shares (UHAL.B) decreased significantly to ($0.18) from $0.35 year-over-year.
• Moving and Storage earnings from operations plummeted by $120.2 million to $7.1 million, a substantial 94.4% decrease.
• Increased losses from the disposal of retired rental equipment combined with fleet depreciation expense accounted for $74.6 million of the decrease in Moving and Storage earnings.
• Liability costs increased by $37.9 million in the third quarter.
• Fleet maintenance and repair costs experienced a $13.1 million increase.
• Same store occupancy for self-storage decreased by 4.9% to 87.2%.
• Total debt increased by over $1.1 billion year-over-year to $8.06 billion as of December 31, 2025.
• Net debt to adjusted EBITDA worsened to 4.3x from 3.7x year-over-year, indicating increased leverage.
• Net debt to total assets increased to 37.7% from 35.0% year-over-year.

Risks

• Actual results may differ materially from forward-looking statements due to various risks and uncertainties.
• A brief discussion of the risks and uncertainties that may affect U-Haul Holding Company's business and future operating results is available in their Form 10-Q for the quarter ended December 31, 2025, which is on file with the SEC.

Future Outlook

Management expects fleet depreciation and poor resale results to 'bottom out' this calendar year. They anticipate improving market penetration in U-Move and aim to differentiate the self-storage segment to boost top-line revenue, acknowledging current parity with peers and underutilized capacity in both fleet and self-storage.

Management Comments

• "We continue to undermine earnings with fleet depreciation and poor resale results. I expect that this will bottom out this calendar year."
• "We have underutilized capacity in both fleet and self-storage."
• "I anticipate improving market penetration in U-Move."
• "Today, we are even with our self-storage peers and need to set ourselves apart to impact top line revenue."
• "As always, the customer will determine the winners and losers."

Industry Context

StockSavvy.ai notes that U-Haul's challenges with fleet depreciation and resale values reflect broader industry trends where vehicle lifecycles and secondary market conditions can significantly impact profitability for companies reliant on large equipment fleets. The self-storage sector, while showing revenue growth, faces increasing competition, as indicated by U-Haul's declining same-store occupancy and management's stated need to 'set ourselves apart to impact top line revenue.' The company's expansion in net rentable square feet suggests a long-term commitment to the self-storage market, despite current occupancy pressures.

Comparison to Industry Standards

• U-Haul's self-storage same-store occupancy of 87.2% for Q3 fiscal 2026, while a decrease, remains competitive within the self-storage industry. For instance, major REITs like Public Storage (PSA) or Extra Space Storage (EXR) often report occupancies in the high 80s to low 90s, though direct comparisons require adjusting for portfolio mix and market specifics. U-Haul's decline suggests a softening in demand or increased competition in its specific markets.
• The increase in net debt to adjusted EBITDA to 4.3x from 3.7x indicates a rising leverage profile. This level of leverage is higher than some of its more mature, asset-light peers but might be comparable to other capital-intensive real estate or logistics companies undergoing significant expansion. For example, some real estate development companies might operate with similar or higher leverage during growth phases, but it warrants close monitoring for a company in the rental and storage sector.

Stakeholder Impact

• Shareholders: Experienced a significant decline in earnings per share, moving from a profit to a loss, which could negatively impact stock valuation and future dividend expectations.
• Employees: No direct impact mentioned, but operational challenges could lead to future efficiency drives.
• Customers: Management's focus on 'improving market penetration in U-Move' and 'setting ourselves apart' in self-storage suggests potential initiatives to enhance customer experience or offerings.
• Creditors: Increased total debt and worsening net debt to adjusted EBITDA ratios indicate a higher leverage profile, which could be a concern for creditors, though cash availability remains strong.
• Suppliers: No direct impact mentioned.

Next Steps

• U-Haul Holding Company will hold its investor call for the third quarter of fiscal 2026 on Thursday, February 5, 2026, at 8 a.m. Arizona Time (10 a.m. Eastern).

Key Dates

Recommendation

The significant decline in net earnings and operational profitability, coupled with increasing debt and worsening leverage ratios, presents a concerning financial picture. While revenue growth in self-storage and moving equipment is positive, it is insufficient to offset the substantial increase in costs, particularly fleet depreciation and disposal losses. Management's acknowledgment of 'undermining earnings' and 'underutilized capacity' suggests ongoing challenges that may persist in the near term. A seasoned investor would likely view these results as a strong indicator of deteriorating financial health and operational efficiency, warranting a 'sell' recommendation until clear signs of a turnaround in profitability and leverage are evident.

Keywords

U-Haul, UHAL, Earnings Report, Financial Results, Q3 2026, Self-Storage, Moving Equipment Rental, Fleet Depreciation, Net Loss, EBITDA, Debt, Real Estate