U-Haul Holding Company Q2 FY2026 earnings call

• Depreciation and equipment sale losses: Earnings were affected by increased depreciation and shift from gains to losses on equipment sales due to high truck purchase costs. Resale values likely to decline. - Dealer network expansion: Worked to expand dealer network above historical pace since July to balance inventories. - Repair costs: Spent more on repairs than anticipated, working to reel back costs. - Self-storage: Positive but competitive, focused on expanding footprint. Lenders view self-storage positively, attracting new competitors. - Policy impact: Administration reducing ICE regulations benefiting transportation economy, though residual costs from past green regulations exist.

In the Moving and Storage segment, second quarter earnings were $106 million compared to $187 million in the same quarter last year. Equipment rental revenue increased by $23 million, about 2%. Self-storage revenues were up nearly $22 million, approximately 10%. U-Box revenue increased by $12 million. For the Moving and Storage segment, adjusted EBITDA increased 6% or nearly $32 million for the quarter. Cargo van sales resulted in a loss due to higher purchase costs and lower resale values. Depreciation from fleet size increase and disposal loss added to costs.

• Jason Berg: Anticipates box truck depreciation to peak towards end of this year, beginning of next year and then trend down. Cargo van depreciation likely peaking by end of this year, then flattening and possibly coming down. - Edward Shoen: Expecting visible results from dealer network expansion by May, seeing market penetration opportunities, and different strategy in self-storage compared to REIT competitors.

• Equipment costs: High purchase costs for trucks leading to increased depreciation and sale losses, difficult to forecast peak and trough. - Repair costs: Significant repair costs due to high customer mileage, though working to reel back. - Competition: Strong competition in self-storage, with REITs using aggressive pricing strategies. - Tariffs: Impact on vehicle prices and costs, though not yet significantly reflected in net costs.

Q: Clarify method of depreciation for rental fleet A: Box trucks have dynamic depreciation model depreciating faster earlier, cargo vans and pickups have straight-line method more responsive to resale market Q: When expect depreciation expenses to peak quarterly A: Box truck depreciation expected to peak towards end of this year, beginning of next year; cargo van depreciation likely peaking by end of this year Q: Optimism on dealer network expansion A: Expect visible numbers by May, seeing market penetration opportunities as currently overfleeted and able to allocate equipment Q: Impact of existing home sales recovery on moves and box growth A: Don't think existing home sales recovery will be enough of a boost to see significant impact, though some boost exists Q: U-Box positioning and profitability A: U-Box has success with revenue growth, gaining market share, and profitability related to logistics and storage occupancy