U-Haul Holding Company Q1 FY2026 earnings call

Management Statement and Operational Highlights

• Earnings Overview: First quarter earnings were $142 million vs. $195 million last year. EPS was $0.73 per nonvoting share this quarter vs. $1 last year. Adjusted EBITDA in Moving and Storage increased 6% due to strong revenue growth across product lines.
• Rental Equipment: There was a $22 million loss on the disposal of retired rental equipment in the first quarter vs. an $8 million gain last year. Higher initial costs of cargo vans purchased over the last 2 years and lower resale values contributed to the loss. The pace of depreciation for remaining units was increased.
• Self-storage Details: Storage revenues up 9%, average revenue per foot up over 1%, but same-store occupancy down 100 basis points. The company invested in real estate acquisitions and added storage locations.
• U-Box Update: U-Box revenue up 16%, part of the increase in other revenue. Cash and availability from the corporate revolver at the Moving and Storage segment totaled $1.19 billion as of June 2026.

Segment Performance

• Moving and Storage: First quarter earnings were $142 million compared to $195 million in the same quarter last year. Adjusted EBITDA in the Moving and Storage segment increased 6% (nearly $31 million) driven by strong revenue growth across all product lines. Equipment rental revenue had a $44 million increase (+4%). Capital expenditures for new rental equipment in the first quarter were $585 million, a $46 million increase from the same period last year.
• Self-storage: Storage revenues were up $19 million (+9%). Average revenue per foot increased over 1%, while same-store occupancy decreased by 100 basis points to just under 93%. The company invested $294 million in real estate acquisitions, down $108 million from the first quarter of last year, and added 15 storage locations with 1.2 million new net rentable square feet.
• U-Box: U-Box revenue was up about 16%, and this line item in other revenue increased $21 million.

Guidance

• Investor Meeting: The 19th Annual Virtual Analyst and Investor Meeting is on August 21 at 2:00 p.m. Eastern Time at investors.uhall.com.
• U-Box Growth Potential: Sam Shoen stated U-Box has potential to grow significantly but is in the infancy stage; too early to determine exact growth extent.
• Storage Revenue Impact: Future storage revenue from existing non-same-store locations (not at 90% occupancy) is expected to be ~$260 million, with approximately 80% of additional revenue likely to fall to the bottom line.

Risks

• Forward-Looking Statements: Statements are subject to risks and uncertainties; refer to SEC filings for details.
• Fleet Depreciation and Rental Equipment: Loss on disposal of retired rental equipment due to higher initial costs vs. lower resale values. Increased pace of depreciation for remaining units.
• Liability and Maintenance Costs: Increase in liability costs and fleet repair/maintenance expenses.

Question and Answer

• **Q: How much of U-Box locations have functionality?

A: Sam Shoen said between 5% and 10% of outlets (including dealers) have U-Box functionality, and closer to half for company stores, but further build-out is needed.**

• **Q: Are U-Box One-Way moves growing faster than rental segment One-Way moves?

A: Sam Shoen stated U-Box One-Way transactions are leading the way, exceeding truck rental transactions as a percentage.**

• **Q: Margin trends and Storage segment dynamics?

A: Jason Berg discussed margin profile, future storage revenue from existing locations, and capital allocation for storage development.**

• **Q: Transaction volume month-to-month trends?

A: Jason Berg said revenue is up year-over-year, but transactions are still flat, with challenges in placing new equipment and opening locations.**

• **Q: Storage development spend and yield?

A: Jason Berg discussed capital investment in storage, a proxy of ~$150 per foot, and unlevered IRR around 7.5-8% for storage developments.**