U-Haul Reports Slight Revenue Growth, Decline in Profitability in Q2 and H1 Fiscal 2025

U-Haul Holding Company reported its financial results for the second quarter and the first six months of fiscal 2025, ending September 30, 2024. The company experienced a slight increase in total revenues, which reached $1,658.1 million for the quarter, up from $1,649.9 million in the same period last year. For the six months, total revenues were $3,206.6 million, compared to $3,190.2 million in the prior year. The growth in revenue was primarily driven by increases in self-moving equipment rental and self-storage revenues, which rose to $1,087.3 million and $224.5 million, respectively, for the quarter.

Despite the revenue growth, U-Haul's profitability faced challenges. Earnings from operations for the quarter decreased to $302.0 million from $422.4 million year-over-year, while net earnings available to common stockholders fell to $186.8 million from $273.5 million. For the six-month period, net earnings were $382.2 million, down from $530.3 million in the previous year. The decline in profitability was attributed to rising costs, which increased significantly by $128.6 million in the quarter and $230.2 million over the six months, driven by higher operating expenses, depreciation, and non-recurring costs related to supplier transitions.

The Moving and Storage segment, which includes truck and trailer rentals, reported revenues of $1,573.6 million for the quarter, a slight increase from $1,565.6 million in the prior year. However, earnings from this segment dropped to $280.7 million from $401.7 million. The Life Insurance segment saw a modest revenue increase to $56.2 million, with earnings rising to $7.7 million.

U-Haul's total assets increased to $20,126.6 million as of September 30, 2024, up from $19,058.8 million at the end of the previous fiscal year. The company’s cash and cash equivalents decreased to $1,435.6 million from $1,534.5 million, reflecting increased investments in property, plant, and equipment, which totaled $1,927.0 million for the first six months.

Strategically, U-Haul is focused on expanding its rental equipment fleet and self-storage capabilities, with plans to reinvest approximately $1,115 million in fiscal 2025. The company also aims to enhance its distribution and customer service through increased availability of moving equipment and storage units. The Life Insurance segment is targeting growth in the senior market through various insurance products.