UHAL-B

• Joe Shoen noted earnings were pulled down by excessive acquisition costs of vans/pickups from model years '23 and '24, leading to increased depreciation and losses on sale. Discussed plans to open more U-Haul dealerships to address excess fleet, self-storage surplus with initiatives to improve unit rental, and U-Box presence with over 700 locations and over 200,000 containers in service.
• Jason Berg detailed adjusted EBITDA, fleet depreciation and disposal losses (e.g., $26 million loss on disposal of retired rental equipment vs. $4 million gain last year), equipment rental and storage revenue specifics, capital expenditures ($1.748 billion in first 9 months of fiscal 2026, $162 million increase from prior year), and self-insurance liability costs up $38 million with reserve strengthening.

• Model year 2026 cargo van purchases will be at an average cost 12% lower than last year's model year and 20% lower than 2 years ago.
• Initial estimates for next fiscal year show a decrease in new truck purchases somewhere north of $500 million.

In the moving and storage segment, adjusted EBITDA decreased 11% to nearly $42 million for the quarter. Equipment rental revenues increased $8 million or just under 1% compared to the same time the year before, with the majority from the in-town portion. Storage revenues were up $18 million or 8% for the quarter. Average revenue per foot across the entire portfolio improved by just under 7%, while same-store revenue per occupied foot was up 5%.

• Supply chain disruptions due to COVID and electrification push causing fleet imbalances.
• Labor cost increases, including rising minimum wages in certain jurisdictions affecting store profitability.
• Uncertainty in resale values of rental equipment impacting earnings through depreciation and disposal losses.

Q: Taking into account seasonality, pressures in one-way market and U-Box program, does U-Box track the one-way rental market?

A: Edward Shoen said when consumers get anxious, they shorten transaction distances, and U-Box has greatest success with long-distance transactions, so it tracks U-Haul but maybe more exaggerated. Samuel Shoen added U-Box operates primarily in long zones where U-Haul's one-way business is 20%, for U-Box it's 80%.

Q: Explain depreciation line, as it went down sequentially from second to third fiscal quarter?

A: Jason Berg said box truck fleet has dynamic depreciation where after 1-year anniversary, depreciation rate steps down. Pickup and cargo van fleet depreciation rates adjusted based on resale market; model year '23 units sold at higher cost than current market resale values causing loss.

Q: Your thoughts on competitors reducing fleet and outlets, and U-Haul's position?

A: Edward Shoen said competitors like Penske and Budget are reducing fleet and outlets, and U-Haul has 24,000+ locations vs. Budget's 3,000 and Penske's 3,500, dominating customer accessibility. Discussed supply chain disruptions from COVID and electrification affecting fleet mix.

Q: U-Box construction in major markets and usage potential?

A: Edward Shoen said U-Box has property owned in major markets like D.C., L.A., etc., with construction in progress. Samuel Shoen added U-Box product fits metro areas with challenges, has differentiators like container size fitting apartment parking and license plate for trailer allowing legal parking.

Q: Cargo van cohorts, how many left and differential in acquisition vs. depreciation?

A: Jason Berg said ~6,000 model year '24 cargo vans left, more pricey than '23s; ~19,000 model year '25s, ~$3,000 cheaper than '24s. Expect loss on sale for '24s, and adjustments made due to market resale value changes.

Q: Fleet expenditures reduction and self-storage development pace?

A: Edward Shoen said reducing fleet expenditures to rebalance, with modest buys to address truck age and mix issues. On self-storage, development pace slowed, but strategic U-Box warehouses still being built, and some opportunistic purchases like in Olive Branch, Mississippi.

Q: Profit margins excluding depreciation and plan to restore profitability?

A: Jason Berg said 2016 was a high point, EBITDA margins have cycled but structurally improved, with factors like COVID revenue recognition and self-insurance reserve issues affecting recent margins. Aims to continue improving through growth in self-storage and U-Box and addressing revenue and cycle-related factors.