Ryder fleet facing possible growth need as EPA ‘27 nears

With the EPA ‘27 engine rules impacting nitrogen oxide (NoX) emissions in heavy duty vehicles getting closer every day, the new rules will have a major impact on anybody who buys new vehicles…like Ryder.

Ryder’s (NYSE: R) third quarter earnings released early Thursday were solid enough that it propelled the stock up 10.49% to $265.53, a gain of 25.22%. It is still below its 52-week high of $284.25 set on June 12.

With the strong quarter in the books leading to a discussion on the company’s earnings call with analysts about its growth prospects, the concurrent issue is what will be Ryder’s strategy to power that growth with new vehicles.

Ryder’s new truck purchases work side-by-side with its activity in its ChoiceLease business, which is the longer-term leasing of vehicles (as opposed to its Rental segment, which are for shorter-term arrangements.) The price of a new vehicle can kick back into the actions of customers, as one analyst noted who asked on the call, “Are your customers hesitant to be placing orders for ‘27 now? Does this impact you?”

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