UHaul reported QQ2 2025 results with revenue of $1.658 billion and a solid EBITDA of $568.0 million, producing net income of $186.8 million and diluted EPS of $0.91. Margin discipline remains favorable, with gross margin around 32.1% and operating margin near 18.2%, but a high capital expenditure cadence and higher near-term operating costs contributed to negative free cash flow in the quarter. The Moving & Storage segment showed modest year-over-year improvement in equipment rental revenues (up about 1.7%), while the Self-Storage unit count and square footage delivered continued to drive top-line growth in that portfolio, with revenues up about 8% year over year and occupancy metrics showing a mix of portfolio-wide expansion and select-location dynamics. U-Box added $7 million to revenue (captured in “Other revenueâ€) and reinforces the company’s integrated cross-sell across its self-storage footprint.
Management signaled a cautious but constructive near-term outlook: continued modest gains in moving equipment rentals, a ramp in trailer capacity later in Q4, and ongoing self-storage development that is expected to lift net rentable square feet as deliveries accelerate next quarter. However, the company also highlighted the drag from aggressively adding new storage capacity, which has depressed near-term earnings versus the longer-term discipline required to monetize this asset class. The leadership reinforced that there would be no changes to strategic plans due to external input (including Trian), underscoring a steady, long-horizon investment thesis focused on scale advantages, cross-selling via U-Box, and a broader consumer move/storage ecosystem.
From a risk/reward perspective, UHAL operates with strong liquidity (cash ~$1.435B and total liquidity around $1.775B) but a high capital expenditure trajectory and sizable debt burden (gross debt ~$6.813B, net debt ~$5.378B) that weighs on near-term free cash flow. The stock appears attractively valued on several traditional metrics (e.g., price-to-book ~2.02x, P/S ~9.16x, EV/EBITDA ~36.2x) versus some self-storage peers, although the valuation gap discussion remains a live topic amid multiple large-cap players and activist interest. Investors should monitor capex cadence, occupancy stabilization across new self-storage facilities, utilization of U-Box as a growth lever, and macroeconomic sentiment that could influence demand for moving and storage services.