Financial Analysis

ACQUISITIONS On February 1, 2024, we acquired all the outstanding equity of Cardinal Logistics for a purchase price of $302 million. Cardinal Logistics is a leading customized dedicated contract carrier in North America, providing dedicated fleets and professional drivers, as well as complementary freight brokerage services, last-mile delivery and contract logistics services. We expect that the acquisition will increase our scale and network density and further advance our strategy to accelerate growth in DTS. The purchase price allocation of estimated fair values resulted in additions of goodwill and intangible assets of $200 million and $116 million, respectively, for the Cardinal Logistics acquisition. All of the intangible assets acquired relates to customer relationship and is expected to be amortized over 6 to 11 years. None of the goodwill is expected to be deductible for income tax purposes. During 2024, we also acquired a business in our FMS segment for a purchase price of $15 million. In 2025, we reclassified $9 million of goodwill to customer intangibles in completing the purchase price allocation. On November 1, 2023, we acquired all the outstanding equity of IFS, which specializes in contract packaging, contract manufacturing and warehousing, primarily in the consumer packaged goods, retail, and healthcare industries, for an approximate purchase price of $254 million. The purchase price allocation of estimated fair values resulted in additions to goodwill and int …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"DEBT Weighted Average Interest Rate (Dollars in millions) December 31, 2025 December 31, 2024 Maturities December 31, 2025 December 31, 2024 Debt: Trade receivables financing program 4.31% 5.06% 2026 $ 20 $ 20 U.S. commercial paper 4.07% 4.78% 2030 865 868 Unsecured medium term note issued April 2020 4.63% 4.63% 2025 400 Unsecured medium term note issued May 2020 3.35% 3.35% 2025 400 Unsecured medium term note issued December 1995 6.95% 6.95% 2025 150 Unsecured medium term note issued November 2021 4.81% 5.53% 2026 300 300 Unsecured medium term note issued November 2019 2.90% 2.90% 2026 400 400 Unsecured medium term note issued February 2022 3.94% 4.27% 2027 450 450 Unsecured medium term note issued May 2022 4.30% 4.30% 2027 300 300 Unsecured medium term note issued February 2024 5.30% 5.30% 2027 350 350 Unsecured medium term note issued February 2023 5.65% 5.65% 2028 500 500 Unsecured medium term note issued May 2023 5.25% 5.25% 2028 650 650 Unsecured medium term note issued November 2023 6.30% 6.30% 2028 400 400 Unsecured medium term note issued February 2024 5.38% 5.38% 2029 550 550 Unsecured medium term note issued May 2024 5.50% 5.50% 2029 300 300 Unsecured medium term note issued August 2024 4.95% 4.95% 2029 300 300 Unsecured medium term note issued November 2024 4.90% 4.90% 2029 300 300 Unsecured medium term note issued February 2025 5.00% % 2030 300 Unsecured medium term note issued May 2025 4.85% % 2030 300 Unsecured medium term note issued November 2025 4.30% % 203 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Our FMS revenue disaggregated by line of service is as follows: (In millions) 2025 2024 2023 ChoiceLease $ 3,510 $ 3,446 $ 3,181 Commercial rental 937 976 1,178 SelectCare and other 680 694 694 Fuel services revenue 718 772 877 Fleet Management Solutions $ 5,845 $ 5,888 $ 5,930 Our SCS business segment included revenue from the following industries: (In millions) 2025 2024 2023 Omnichannel retail $ 1,878 $ 1,726 $ 1,757 Automotive 1,542 1,580 1,600 Consumer packaged goods 1,213 1,182 965 Industrial and other 826 812 553 Total SCS revenue $ 5,459 $ 5,300 $ 4,875

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SHARE-BASED COMPENSATION PLANS The following table provides information on Share-based compensation expense and related income tax benefits recognized: (In millions) 2025 2024 2023 Unvested stock awards $ 36 $ 40 $ 42 Stock option and employee stock purchase plans 3 2 2 Share-based compensation expense 39 42 44 Income tax benefit (4) (5) (6) Share-based compensation expense, net of tax $ 35 $ 37 $ 38 Total unrecognized pre-tax compensation expense related to share-based compensation arrangements as of December 31, 2025 was $40 million and is expected to be recognized over a weighted-average period of approximately 1.8 years. The total fair value of equity awards vested was $32 million, $33 million, and $41 million, during 2025, 2024, and 2023, respectively. The total cash received from employees under all share-based employee compensation arrangements was $20 million, $33 million, and $38 million during 2025, 2024, and 2023, respectively. Share-Based Incentive Awards Share-based incentive awards are provided to employees under the terms of various share-based compensation plans (collectively, the Plans). The Plans are administered by the compensation committee of the board of directors and principally include grants of RSUs. Restricted Stock Units RSUs entitle the holder to receive one share of Ryder common stock for each RSU granted. Under the terms of our Plans, dividends on RSUs are paid only upon vesting of the award, and the amount of dividends paid is equal to the aggre …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"GOODWILL The carrying amount of goodwill attributable to each business segment with changes therein was as follows: (In millions) FMS SCS DTS Total Balance as of January 1, 2024 $ 245 $ 654 $ 41 $ 940 Acquisitions (1) 15 18 186 219 Foreign currency translation adjustment (1) (1) Balance as of December 31, 2024 260 671 227 1,158 Acquisitions (1) (9) 1 2 (6) Balance as of December 31, 2025 $ 251 $ 672 $ 229 $ 1,152 _______________ (1) Refer to Note 23, ""Acquisitions,"" for additional information."

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"INCOME TAXES One Big Beautiful Bill Act On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. OBBBA permanently reinstated 100% tax bonus depreciation, restored earnings before interest, taxes, depreciation and amortization as the basis for calculating the business interest expense limitation, restored immediate expensing for domestic research and experimental expenditures, and modified the Global Intangible Low-Taxed Income regime, among other items. OBBBA has multiple effective dates, with certain provisions effective in 2025, and others implemented through 2027. These changes reduced our annual U.S. federal cash tax liability by approximately $200 million in 2025 and had no material impact on our effective income tax rate. The components of ""Earnings from continuing operations before income taxes"" and the ""Provision for income taxes"" from continuing operations in the Consolidated Statements of Earnings were as follows: (In millions) 2025 2024 2023 Earnings from continuing operations before income taxes United States $ 576 $ 555 $ 479 Foreign 109 106 139 Total $ 685 $ 661 $ 618 Provision for income taxes Current tax expense from continuing operations: Federal $ 6 $ 112 $ 35 State 22 15 45 Foreign 26 24 17 54 151 97 Deferred tax expense (income) from continuing operations: Federal 114 (13) 88 State 14 28 (8) Foreign 2 6 35 130 21 115 Total $ 184 $ 172 $ 212 Federal, state, and foreign net operating losses were utilized to offset current income tax …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"LEASES Leases as Lessor The components of revenue from leases were as follows: (In millions) 2025 2024 2023 Operating leases Lease income related to ChoiceLease (1) $ 1,606 $ 1,551 $ 1,483 Lease income related to commercial rental (2) $ 883 $ 928 $ 1,123 Sales-type leases Interest income related to net investment in leases $ 90 $ 75 $ 56 Variable lease income excluding commercial rental (1) (2) $ 292 $ 304 $ 308 ________________________ (1) In 2024, amounts have been revised. (2) Lease income related to commercial rental includes both fixed and variable lease income. Variable lease income is approximately 15% of total commercial rental income based on management's internal estimates. The components of the net investment in sales-type leases, which are included in ""Receivables, net"" and ""Sales-type leases and other assets"" in the Consolidated Balance Sheets, were as follows: December 31, (In millions) 2025 2024 Net investment in the lease - lease payment receivable $ 860 $ 818 Net investment in the lease - unguaranteed residual value in assets 54 49 914 867 Estimated loss allowance (5) (5) Total $ 909 $ 862 Maturities of sales-type lease receivables as of December 31, 2025, were as follows: Years ending December 31, (In millions) 2026 $ 261 2027 225 2028 207 2029 159 2030 115 Thereafter 136 Total undiscounted cash flows 1,103 Present value of lease payments (recognized as lease receivables) (860) Difference between undiscounted cash flows and discounted cash flows $ 243 O …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

RECENT ACCOUNTING PRONOUNCEMENTS In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The amendments expand annual tax disclosure requirements, including additional disaggregation in the effective tax rate reconciliation and cash taxes paid. We adopted the new standard effective January 1, 2025, and applied the amendments retrospectively. This ASU did not impact our consolidated financial position, results of operations, or cash flows. In November 2024, the FASB issued ASU No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The amendments provide for more detailed disaggregation of expenses. The standard is effective for fiscal years beginning in 2027, with early adoption permitted. We are currently evaluating the disclosure impact of the adoption of this update. This ASU does not impact our consolidated financial position, results of operations, or cash flows. In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments - Credit Losses (Topic 326). The amendments provides a practical expedient for entities to assume current conditions as of a balance sheet date do not change for the remaining life of the financial assets. We adopted the practical expedient prospectively on December 31, 2025, and this ASU did not impact our consolidated financial position, results of operations or cash flows.

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"EMPLOYEE BENEFIT PLANS Pension Plans We sponsor several defined benefit pension plans covering most employees not covered by union-administered plans, including certain employees in foreign countries. These plans generally provided participants with benefits based on years of service and career-average compensation levels. In past years, we made amendments to defined benefit retirement plans that froze the retirement benefits for non-grandfathered and certain non-union employees in the U.S., Canada and the U.K. As of December 31, 2025, our U.S., Canadian and U.K. pension plans are frozen for all remaining active employees. These employees have ceased accruing further benefits under the defined benefit pension plans and began receiving benefits under enhanced defined contribution plans. All pension benefits earned were fully preserved and will be paid in accordance with plan and legal requirements. We maintain an active $16 million statutory unfunded pension plan in Mexico. In September 2023, we executed a bulk annuity contract with a U.K. insurance company to fully settle our $287 million U.K. pension benefit obligation. The bulk annuity transaction will not impact our financial position or statement of earnings until administrative rights for the annuity payments are transferred to the U.K. insurance company. The transfer is expected to occur within the next two years and will result in the elimination of any remaining funded obligations related to the U.K. pension plan. At …

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"REVENUE Disaggregation of Revenue Primary Geographical Markets The following tables disaggregate our revenue recognized by primary geographical market by our business segments. 2025 (In millions) FMS SCS DTS Eliminations Total United States $ 5,548 $ 4,830 $ 2,343 $ (939) $ 11,782 Canada 297 294 (43) 548 Mexico 335 335 Total revenue $ 5,845 $ 5,459 $ 2,343 $ (982) $ 12,665 2024 (In millions) FMS SCS DTS Eliminations Total United States $ 5,585 $ 4,697 $ 2,446 $ (955) $ 11,773 Canada 303 278 (43) 538 Mexico 325 325 Total revenue $ 5,888 $ 5,300 $ 2,446 $ (998) $ 12,636 2023 (In millions) FMS SCS DTS Eliminations Total United States $ 5,616 $ 4,295 $ 1,785 $ (764) $ 10,932 Canada 314 267 (43) 538 Mexico 313 313 Total revenue $ 5,930 $ 4,875 $ 1,785 $ (807) $ 11,783 Product Line Our FMS revenue disaggregated by line of service is as follows: (In millions) 2025 2024 2023 ChoiceLease $ 3,510 $ 3,446 $ 3,181 Commercial rental 937 976 1,178 SelectCare and other 680 694 694 Fuel services revenue 718 772 877 Fleet Management Solutions $ 5,845 $ 5,888 $ 5,930 Industry We have a diversified portfolio of customers across a full array of transportation and logistics solutions and across many industries. We believe this will help to mitigate the impact of adverse downturns in specific sectors of the economy. Our portfolio of ChoiceLease and commercial rental customers, as well as our DTS business, is not concentrated in any one particular industry or geographic region. Our SCS business se …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT REPORTING Our operating segments are aggregated into reportable business segments based upon similar economic characteristics, products, services, customers and delivery methods. Our primary measurement of segment financial performance, defined as Earnings from continuing operations before income taxes (Segment EBT), includes an allocation of costs from Central Support Services (CSS) and excludes Non-operating pension costs, net, Intangible amortization expense, and certain other items as discussed in Note 20, ""Other Items Impacting Comparability."" The objective of the Segment EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment accountable for their allocated share of CSS costs. CSS represents those costs incurred to support all business segments, including information technology, finance, marketing, human resources, legal, and safety. These costs are allocated based on various methods, including resource utilization, personnel supported and utilization-related metrics. Certain costs are not attributable to any segment and remain unallocated in CSS, including costs for investor relations, public affairs and certain executive compensation. Our FMS segment leases revenue earning equipment and provides fuel, maintenance and other ancillary services to the SCS and DTS segments. Inter-Segment EBT allocated to SCS and DTS includes earnings related to equipment used to provide ser …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Consolidation and Presentation The consolidated financial statements include the accounts of Ryder System, Inc. (Ryder), all entities in which Ryder has a controlling voting interest (subsidiaries) and variable interest entities (VIEs) where Ryder is determined to be the primary beneficiary in accordance with generally accepted accounting principles in the United States (U.S. GAAP). All significant intercompany accounts and transactions have been eliminated in consolidation. We report our financial performance based on three business segments: (1) Fleet Management Solutions (FMS), which provides full service leasing, commercial rental and vehicle maintenance services; (2) Supply Chain Solutions (SCS), which provides fully integrated logistics solutions; and (3) Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions, including dedicated vehicles, professional drivers, management and administrative support. Dedicated transportation services provided as part of an operationally integrated, multi-service supply chain solution to SCS customers are primarily reported in the SCS business segment. Use of Estimates The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. These estimates are based on managements best knowledge of historical trends, a …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"DEBT Weighted Average Interest Rate (Dollars in millions) June 30, 2026 Maturities June 30, 2026 December 31, 2025 Debt: Trade receivables financing program 4.07% 2027 $ 20 $ 20 U.S. commercial paper 4.08% 2030 723 865 Unsecured medium term note issued November 2021 4.44% 2026 300 300 Unsecured medium term note issued November 2019 2.90% 2026 400 400 Unsecured medium term note issued February 2022 3.73% 2027 450 450 Unsecured medium term note issued May 2022 4.30% 2027 300 300 Unsecured medium term note issued February 2024 5.30% 2027 350 350 Unsecured medium term note issued February 2023 5.65% 2028 500 500 Unsecured medium term note issued May 2023 5.25% 2028 650 650 Unsecured medium term note issued November 2023 6.30% 2028 400 400 Unsecured medium term note issued February 2024 5.38% 2029 550 550 Unsecured medium term note issued May 2024 5.50% 2029 300 300 Unsecured medium term note issued August 2024 4.95% 2029 300 300 Unsecured medium term note issued November 2024 4.90% 2029 300 300 Unsecured medium term note issued February 2025 5.00% 2030 300 300 Unsecured medium term note issued May 2025 4.85% 2030 300 300 Unsecured medium term note issued November 2025 4.30% 2030 300 300 Unsecured medium term note issued November 2023 6.60% 2033 600 600 Unsecured U.S. obligations 5.14% 2027 275 275 Asset-backed U.S. obligations (1) 4.27% 2026-2030 57 120 Finance lease obligations and other 2026-2033 117 113 7,492 7,693 Fair market value adjustments on medium-term notes (2) (4) (1 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Our FMS revenue disaggregated by product line is as follows: Three months ended June 30, Six months ended June 30, (In millions) 2026 2025 2026 2025 ChoiceLease $ 885 $ 871 $ 1,763 $ 1,738 Commercial rental 229 239 440 458 SelectCare and other 189 178 365 352 Fuel services revenue 257 179 453 366 Total FMS revenue $ 1,560 $ 1,467 $ 3,021 $ 2,914 Our SCS business segment included revenue from the following industries: Three months ended June 30, Six months ended June 30, (In millions) 2026 2025 2026 2025 Omnichannel retail $ 521 $ 439 $ 1,015 $ 873 Automotive 397 406 760 801 Consumer packaged goods 306 309 599 610 Industrial and other 248 212 458 413 Total SCS revenue $ 1,472 $ 1,366 $ 2,832 $ 2,697

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RECENT ACCOUNTING PRONOUNCEMENTS In November 2024, the FASB issued Accounting Standards Update (ASU) No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). The amendments provide for more detailed disaggregation of expenses. The standard is effective for fiscal years beginning in 2027, with early adoption permitted. We are currently evaluating the disclosure impact of the adoption of this update. This ASU is not expected to impact our consolidated financial position, results of operations, or cash flows. In September 2025, the FASB issued ASU No. 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40). The amendments modernize how companies account for software development costs to a flexible principles-based framework that aligns with modern software development practices. The standard is effective for fiscal years beginning in 2028, with early adoption permitted. We are currently evaluating the disclosure impact of the adoption of this update. This ASU is not expected to impact our consolidated financial position, results of operations, or cash flows.

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"EMPLOYEE BENEFIT PLANS Components of net pension expense for defined benefit pension plans were as follows: Three months ended June 30, Six months ended June 30, (In millions) 2026 2025 2026 2025 Company-administered plans: Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 21 22 42 44 Pension settlement expense 8 8 Expected return on plan assets (20) (21) (41) (41) Amortization of net actuarial loss and prior service cost 8 7 16 14 Net pension expense $ 18 $ 9 $ 26 $ 18 Company-administered plans: U.S. $ 5 $ 5 $ 10 $ 11 Non-U.S. 13 4 16 7 Net pension expense $ 18 $ 9 $ 26 $ 18 ""Non-operating pension costs, net"" include the amortization of net actuarial loss and prior service cost, interest cost and expected return on plan assets components of pension and postretirement benefit costs, as well as any significant charges for settlements or curtailments if recognized. We also maintain other postretirement benefit plans that are not reflected in the table above as the amount of postretirement benefit expense for such plans was not material for any period presented. During the second quarter of 2026, we made lump-sum benefit settlement payments totaling $19 million for certain participants in our Canadian defined benefit pension plan. This represented 31% of the plan's projected benefit obligation, and resulted in an $8 million non-cash, pre-tax settlement charge for a portion of the plans actuarial loss in Accumulated other comprehensive loss. The charge was recorded within ""Non-oper …

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"REVENUE Disaggregation of Revenue The following tables disaggregate our revenue recognized by primary geographical market by our reportable business segments, by FMS product line and by SCS industry. Primary Geographical Markets Three months ended June 30, 2026 (In millions) FMS SCS DTS Eliminations Total United States $ 1,478 $ 1,290 $ 600 $ (271) $ 3,097 Canada 82 90 (14) 158 Mexico 92 92 Total revenue $ 1,560 $ 1,472 $ 600 $ (285) $ 3,347 Three months ended June 30, 2025 (In millions) FMS SCS DTS Eliminations Total United States $ 1,391 $ 1,205 $ 606 $ (239) $ 2,963 Canada 76 75 (11) 140 Mexico 86 86 Total revenue $ 1,467 $ 1,366 $ 606 $ (250) $ 3,189 Six months ended June 30, 2026 (In millions) FMS SCS DTS Eliminations Total United States $ 2,863 $ 2,491 $ 1,153 $ (507) $ 6,000 Canada 158 164 (26) 296 Mexico 177 177 Total revenue $ 3,021 $ 2,832 $ 1,153 $ (533) $ 6,473 Six months ended June 30, 2025 (In millions) FMS SCS DTS Eliminations Total United States $ 2,766 $ 2,387 $ 1,208 $ (478) $ 5,883 Canada 148 147 (22) 273 Mexico 163 163 Total revenue $ 2,914 $ 2,697 $ 1,208 $ (500) $ 6,319 Product Line Our FMS revenue disaggregated by product line is as follows: Three months ended June 30, Six months ended June 30, (In millions) 2026 2025 2026 2025 ChoiceLease $ 885 $ 871 $ 1,763 $ 1,738 Commercial rental 229 239 440 458 SelectCare and other 189 178 365 352 Fuel services revenue 257 179 453 366 Total FMS revenue $ 1,560 $ 1,467 $ 3,021 $ 2,914 Industry Our SCS business seg …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"SEGMENT REPORTING Our primary measurement of segment financial performance, defined as segment ""Earnings from continuing operations before income taxes"" (EBT), includes an allocation of costs from Central Support Services (CSS) and excludes Non-operating pension costs, net, Intangible amortization expense, and certain other items. The objective of the EBT measurement is to provide clarity on the profitability of each business segment and, ultimately, to hold leadership of each business segment accountable for their allocated share of CSS costs. Certain costs are not attributable to any segment and remain unallocated in CSS, including costs for investor relations, public affairs and certain executive compensation. Segment results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. The following table sets forth financial information for each of our segments and provides a reconciliation between segment EBT and Earnings from continuing operations before income taxes (in millions): Three months ended June 30, 2026 FMS SCS DTS Elimination (1) Total Revenue $ 1,560 $ 1,472 $ 600 $ (285) $ 3,347 Direct operating costs 1,223 1,316 550 Used vehicle sales, net (7) Other segment items (2) 194 64 14 Segment EBT $ 150 $ 92 $ 36 (34) 244 Unallocated Central Support Services (19) Intangible amortization expense (3) (23) Non-operating pension costs, net (4) (17) Earning …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing