U-Haul Holding Company Q4 FY2026 earnings call

• Fleet Operations - The year-over-year EPS decline was driven in large part by increased depreciation: fleet depreciation rose to $221 million in Q4 2026 from $181 million in Q4 2025, and full year depreciation rose to $879 million from $693 million in 2025. - Depreciation increases stem from higher cost 2023/2024 model cargo vans that did not hold their value in the resale market, and expansion of the box truck fleet by over 14,000 units between 2020 and 2025. The rate of depreciation growth has slowed sequentially over the past two quarters. - April and May 2026 cargo van resale results have been steady, and lower purchase pricing for 2025 and 2026 model year vans will provide partial relief. No box truck fleet growth is planned for fiscal 2027, which will naturally reduce annual depreciation.

• Dealer & Location Expansion - The company added 55 new company-operated locations and a net 1,400 new independent dealers in fiscal 2026, and is roughly one-third of the way through its multi-thousand dealer expansion goal, with equipment distribution to new dealers underway. - 66 new storage locations were added in fiscal 2026, totaling 5.3 million net rentable square feet. There are currently 5.5 million square feet of storage under development across 99 projects, and an additional 6.2 million square feet of planned development on owned, unstarted land.

• Capital Allocation & Governance - The Board of Directors authorized a new $350 million share repurchase program covering both UHAL and UHAL.B share classes, enabled by planned capital expenditure reductions for fiscal 2027. - The company has relaunched its investor relations website to improve access to information, and is seeking user feedback.

Moving and Storage Segment: - Fourth quarter 2026 adjusted EBITDA: $223 million, a $6 million increase year-over-year. Full year 2026 adjusted EBITDA: $1.646 billion, a $26 million increase year-over-year. - Equipment Rental: Fourth quarter revenue increased $12 million year-over-year; full year revenue increased $86 million (just over 2%). Both in-town and one-way revenue grew for the quarter and full year, with more robust in-town growth driven by 55 new company-operated locations and a net 1,400 new independent dealers. - Self Storage: Fourth quarter revenue increased $16 million (7% YoY); full year revenue increased ~$74 million (8% YoY). Average revenue per occupied foot improved over 6% YoY for same-store and non-stabilized portfolios, and new customer rental rates increased 3% YoY. Same-store occupancy decreased 540 basis points to 86.1% YoY, 450 basis points of which came from the company's ongoing delinquent room cleanup program.

Corporate Overall: - Fourth quarter 2026 net loss: $128 million ($0.65 loss per nonvoting share), compared to an $82 million loss ($0.41 loss per nonvoting share) in the year-ago quarter. Full year 2026 net income: $83 million, down from $367 million in fiscal 2025.

• Capital Expenditure: Planned net equipment purchases for fiscal 2027 will decrease by approximately $560 million compared to fiscal 2026's $1.381 billion net equipment spend. Only U-Box container and toy-hauler trailer fleet growth is planned for fiscal 2027, with no box truck or cargo van fleet growth. • Storage: Management expects continued decline in capital spending on self-storage growth in fiscal 2027, as the company already holds the largest storage capacity in its history and will focus on filling existing capacity before resuming large-scale development. • Fleet Depreciation: Management expects fleet depreciation will decline naturally in the second half of fiscal 2027, following the pause in box truck growth. Management expects the combined impact of lower depreciation and improved equipment disposal results will shift from a headwind to a tailwind in fiscal 2028. • Revenue: April and May 2026 revenue has trended in line with fourth quarter 2026 growth rates. Management expects new dealer expansion will contribute to revenue growth during the 2027 peak summer moving season, with a target of 4.5% to 5% overall equipment rental revenue growth.

• Residual value risk: Higher purchase prices for recent model year cargo vans have not been fully offset by current resale market values, leading to unplanned depreciation increases that have pressured near-term profitability. • Self-storage occupancy risk: New storage development is currently running 5 to 10 percentage points behind historical occupancy rent-up targets, and net new tenant move-ins remain slower than pre-2025 levels, limiting near-term storage revenue growth. • One-way moving headwind: Average miles per transaction continue to see small year-over-year declines, which pressures revenue per transaction, and improvement is tied to a rebound in consumer confidence. • Competitive pressure: The moving and portable storage markets have become more competitive than in prior years, forcing the company to match market pricing that has pressured revenue per transaction. • Liability cost risk: Liability insurance costs have historically run above expectations, requiring the company to add $93 million in reserves during fiscal 2026, and future cost increases remain a risk.

Q: U-Box revenue per transaction has declined for two consecutive quarters. What are the drivers of this trend, and what is the outlook for cross-selling between moving and storage and for the new toy-hauler trailer line? A: U-Box total transaction volume and boxes in storage are both up, but revenue per transaction is pressured by a shift to shorter-distance moves, lower freight market rates, and increased competitive pricing. Management sees the current 50% cross-usage rate between moving and storage as a baseline, not a peak, with significant upside for deeper penetration especially for converting existing self-storage customers to U-Box. Toy-hauler trailer usage has expanded beyond the initial target market of large vehicle owners to include commercial uses like transporting small farm equipment; planned growth for the line will continue in 2027 at a slower pace than initial rollout.

Q: What is the core rationale for the new $350 million share repurchase program, and how quickly do you plan to deploy capital? A: The board and management believe the company's stock is currently trading at a meaningful discount. The multi-year period of rapid capacity expansion has left the company with sufficient fleet and storage capacity to absorb current demand, which frees up capital that would otherwise go to growth for repurchases without materially impacting leverage. Management is already completing administrative setup for the program and is eager to deploy capital immediately, rather than waiting for a lower price point.

Q: What share of the recent depreciation pressure comes from lower resale prices for retired fleet versus underestimated depreciation for new higher-cost trucks? A: Lower resale prices for older, held-longer units is not a major driver of current pressure over the past 12 months. The core issue is that resale prices have not increased enough to cover the much higher purchase prices the company paid for 2023 and 2024 model year vans. Resale pricing has improved modestly early in 2026, and new 2026 model van purchase prices have come down, but management has built optionality to extend van holding periods and reduce purchases if resale prices do not improve enough.

Q: The reported U-Box warehouse co-location count declined this quarter. Is this a pullback in the U-Box business, or is there another explanation? A: The decline is a sign of operational progress, not a pullback. The company is consolidating U-Box storage from many small, low-capacity locations into larger purpose-built warehouses. Over the past year, the company added 49 new warehouses with capacity for over 500 containers each, while eliminating 160 small warehouses with capacity for fewer than 100 containers each. Total U-Box storage capacity actually increased by 52,000 to 53,000 containers over the period, and customer access to U-Box remains ubiquitous across all company locations.