AMERCO ((UHAL)) has held its Q3 earnings call. Read on for the main highlights of the call.
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AMERCO’s latest earnings call painted a cautious picture, balancing solid operational growth in storage and U‑Box with sharp profit pressure from an overbuilt truck fleet, higher depreciation, and rising operating and insurance costs. Management emphasized that while the business fundamentals remain sound, the earnings drag from recent capital decisions will take several quarters to fully work through.
Storage Revenue Growth and Pricing Power
Storage continued to be a bright spot, with revenues up $18 million, or 8% year over year, for the quarter as AMERCO pushed through effective rate increases. Average revenue per foot rose just under 7%, and same‑store revenue per occupied foot climbed 5%, underscoring solid pricing power even as broader demand cooled.
U‑Box Scale and Expansion Projects
The U‑Box portable storage franchise has reached notable scale, with more than 700 locations, roughly 200,000 containers in service, and over 100,000 containers currently with customers. Management is targeting underserved metros such as Washington, D.C., Los Angeles, Boston, New York City, the Bay Area, and select Canadian markets to add capacity and support future growth.
Network and Distribution Growth
AMERCO continues to deepen its distribution footprint, adding 65 new company‑operated locations and a net 365 independent dealers between December 2024 and December 2025. This expanded network is designed to put the fleet to work more efficiently, drive higher transaction volumes, and help absorb excess truck capacity built up over the last year.
Capital Deployment and Planned Fleet Pullback
Over the last 12 months, gross fleet spending reached about $2.025 billion, with net investment after equipment sales at $1.331 billion. Management now plans to cut new truck purchases by more than $500 million next fiscal year, a significant pullback aimed at correcting an overfleeted position and easing future depreciation pressure.
Improving Unit Economics on New Vehicles
Looking ahead, AMERCO expects better unit economics on incoming vehicles, with model‑year 2026 cargo vans projected to be roughly 12% cheaper than last year’s models and about 20% below those bought two years ago. If resale values stabilize, these lower acquisition costs should help improve long‑term returns on the fleet and soften future margin headwinds.
Liquidity and Capital Flexibility
The company highlighted a solid liquidity cushion, with $1.475 billion in cash and available borrowing capacity at the moving and storage segment as of December 2025. A $100 million dividend from the property and casualty insurance subsidiary also bolsters corporate flexibility, giving AMERCO room to manage through near‑term earnings volatility.
Net Loss and EPS Under Pressure
Financial results reflected the fleet and cost overhang, with a third‑quarter net loss of $37 million versus a $67 million profit in the prior‑year period. Loss per nonvoting share was $0.18 compared with earnings of $0.35 a year ago, marking a sharp swing into the red and underscoring the near‑term profitability challenge.
Depreciation and Disposal Losses Weigh on Results
Depreciation and truck disposal losses were a key drag, with a $26 million loss on retired equipment this quarter compared with a $4 million gain a year ago. Overall, fleet‑related depreciation and disposal costs rose by about $75 million year over year, an impact management pegged at roughly $0.24 per share for the quarter.
Adjusted EBITDA and Cash Flow Softness
Adjusted EBITDA in the moving and storage segment declined 11% to nearly $42 million, mirroring a similar drop in operating cash flows. The weaker EBITDA reflects softer demand in certain lines, higher maintenance and insurance expenses, and the heavier depreciation load from recent fleet expansion.
Overfleeted Cargo Vans and Loss‑Making Cohorts
AMERCO acknowledged that excess acquisition costs on 2023 and 2024 cargo vans and pickups are driving elevated depreciation and losses on sale. Management expects continued high disposition activity, including losses on remaining 2024 units, with about 6,000 still to move and around 19,000 model‑year 2025 vans also on the books, keeping pressure on margins near term.
Storage Occupancy and Move‑In Headwinds
Despite revenue growth, storage occupancy weakened, with same‑store occupancy down 490 basis points to just over 87%. Management noted that almost 4 percentage points of the decline came from a policy change that removed delinquent units, and while net move‑ins are slower than last year, trends look better when adjusted for this clean‑up.
Rising Storage Operating Expenses and Insurance Reserves
Storage operating expenses jumped $66 million in the quarter, including a $16 million increase in personnel costs and $13 million higher fleet maintenance and repair. The biggest swing came from a $38 million increase in self‑insurance liability reserves, bringing total reserve increases to nearly $79 million since March 2025 and adding to overall cost intensity.
High Capital Intensity from Rental Equipment
Capital spending on new rental equipment reached $1.748 billion in the first nine months, up $162 million from the prior‑year period. Management conceded that this elevated capex helped create today’s overfleet and earnings pressure, even as it builds capacity intended to support longer‑term growth once demand normalizes.
Demand and Market Mix Pressure on One‑Way and U‑Box
AMERCO is seeing softer long‑distance, one‑way moves as customers shorten relocations, a shift that disproportionately hurts U‑Box and long‑haul truck transactions. Management also cited severe weather in January as a temporary drag on recovery trends, further weighing on volumes in already pressured market segments.
Forward‑Looking Fleet Reset and Storage Strategy
Looking forward, AMERCO plans to rebalance its fleet by cutting new truck purchases by over $500 million next fiscal year while leaning on network expansion and stepped‑up sales of older, high‑mile trucks to absorb excess capacity. On the storage side, the company is taking a measured approach, with $770 million invested in real estate over nine months, 16 new locations adding about 1.5 million net rentable square feet, and a 106‑project development pipeline totaling roughly 5.7 million square feet.
AMERCO’s earnings call showcased a company in active transition, absorbing the cost of past fleet expansion while leaning on storage growth, U‑Box scale, and a strong balance sheet to navigate the reset. Investors will be watching how quickly the fleet rightsizing, cost controls, and disciplined storage investments translate into a rebound in margins and a return to sustainable earnings growth.