U-Haul Holding Company Reports Third Quarter Fiscal 2025 Financial Results
U-Haul Holding Company, the parent company of U-Haul International, Inc., Oxford Life Insurance Company, Repwest Insurance Company, and Amerco Real Estate Company, has announced its financial results for the third quarter of fiscal year 2025, which ended on December 31, 2024. The company reported net earnings available to shareholders of $67.2 million, 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 quarter, down from $0.51 in fiscal 2024.
For the nine-month period ending December 31, 2024, net earnings available to shareholders totaled $449.4 million, compared with $629.6 million for the same period last year. Earnings per share for Non-Voting Shares (UHAL.B) were $2.31, down from $3.22 in fiscal 2024.
Joe Shoen, Chairman of U-Haul Holding Company, commented on the quarter’s performance: “Moving activity increased over the quarter as demand for our products and services ticked up. We are making steady improvements to reduce friction with the customer so that it’s easier for the public to choose U-Haul.”
Key Highlights of Third Quarter Fiscal 2025 Results
Moving and Storage EBITDA
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the Moving and Storage segment, adjusted to exclude interest income, rose by $47.8 million to $376.7 million compared to the third quarter of fiscal 2024. For the trailing twelve months ending December 31, 2024, EBITDA increased by $20.7 million to $1,614.1 million compared to the same period in the previous year.
Self-Storage Revenues
Self-storage revenues grew by $16.6 million, or 7.9%, compared to the third quarter of fiscal 2024. Same-store occupancy decreased by 0.5% to 92.4%, while revenue per foot increased by 3.0%. The number of locations qualifying for the pool increased by 50. The total portfolio of occupied rooms expanded by 39,055, or 6.8%, compared to December 31, 2023.
During the third quarter, U-Haul added 34 new storage locations with 2.3 million net rentable square feet (NRSF). Twenty-three of these were acquisitions of existing storage locations totaling 1.3 million NRSF, while eleven were internally developed. Expansion projects at existing facilities accounted for an additional 1.0 million NRSF. The company has approximately 16.8 million NRSF in development or pending.
Self-Moving Equipment Rental Revenues
Self-moving equipment rental revenues increased by $38.8 million, or 4.6%, compared to the third quarter of fiscal 2024, marking the third consecutive quarter of steadily improving year-over-year results. In-Town transactions improved, and revenue per transaction increased for both In-Town and one-way markets. Compared to the third quarter of last year, U-Haul increased the size of the box truck fleet while reducing the number of trucks in the pickup fleet.
Moving and Storage Other Revenue
Revenue from other moving and storage operations increased by $9.6 million, or 9.6%, compared to the third quarter of fiscal 2024. This growth was primarily driven by increases in both moving and storage transactions related to the U-Box program. U-Haul continues to expand the reach of this program through additional warehouse space, moving and storage containers, and delivery equipment.
Operating Earnings and Expenses
Moving and Storage earnings from operations, before consolidation of the equity in earnings of the insurance subsidiaries and adjusted to remove interest income, decreased by $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, while fleet depreciation expense increased by $34.2 million and real estate-related depreciation expense rose by $5.6 million. Fleet maintenance and repair costs declined by $10.2 million compared to the third quarter of fiscal 2024.
Cash and Credit Availability
Cash and credit availability at the Moving and Storage segment stood at $1,348.1 million as of December 31, 2024, compared with $1,886.3 million at March 31, 2024.
Dividend Declaration
On December 4, 2024, U-Haul declared a cash dividend on its Non-Voting Common Stock of $0.05 per share to holders of record on December 16, 2024. The dividend was paid on December 27, 2024.
Analysis of U-Haul’s Q3 FY2025 Performance
Revenue Growth and Operational Improvements
Despite a decline in net earnings compared to the prior year, U-Haul demonstrated significant progress in several key areas during the third quarter of fiscal 2025. Self-storage revenues saw a notable increase of 7.9%, reflecting strong demand for U-Haul’s storage solutions. The addition of 34 new storage locations and 2.3 million NRSF underscores the company’s commitment to expanding its footprint and meeting customer needs. With 16.8 million NRSF in development or pending, U-Haul is well-positioned to continue growing its self-storage business.
The self-moving equipment rental segment also performed well, with revenues increasing by 4.6%. This marks the third consecutive quarter of year-over-year growth, driven by higher transaction volumes and improved pricing. The strategic decision to increase the size of the box truck fleet while reducing the number of pickup trucks aligns with shifting customer preferences and operational efficiencies.
Challenges and Cost Pressures
While revenue growth was robust, U-Haul faced challenges in managing costs. The reduction in gains from the disposal of retired rental equipment, coupled with higher fleet and real estate depreciation expenses, weighed on operating earnings. These factors contributed to a $25.5 million decline in earnings from operations compared to the third quarter of fiscal 2024. However, the company managed to offset some of these pressures by reducing fleet maintenance and repair costs by $10.2 million.
Strategic Initiatives and Customer-Centric Approach
Chairman Joe Shoen emphasized the importance of reducing customer friction to enhance the overall experience. By streamlining processes and improving accessibility, U-Haul aims to make it easier for customers to choose its services. The expansion of the U-Box program, which combines moving and storage solutions, reflects the company’s focus on innovation and customer satisfaction. Additional investments in warehouse space, containers, and delivery equipment further demonstrate U-Haul’s commitment to meeting evolving customer demands.
Financial Position and Dividend Policy
U-Haul’s cash and credit availability decreased from $1,886.3 million at the end of March 2024 to $1,348.1 million as of December 31, 2024. This decline may reflect increased capital expenditures and investments in growth initiatives. Despite this, the company maintained its dividend policy, declaring a $0.05 per share dividend for Non-Voting Common Stock. This demonstrates U-Haul’s confidence in its financial stability and ability to generate consistent returns for shareholders.
