Executive Summary
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.
Key Performance Indicators
QoQ: 73.80% | YoY:-66.35%
QoQ: -4.41% | YoY:-31.70%
QoQ: -4.21% | YoY:-33.09%
Key Insights
Revenue: $1.658 billion in QQ2 2025; YoY change +0.5%, QoQ +7.08%. Gross Profit: $532.217 million; Gross Margin 32.10%; YoY margin decline vs prior year (-66.35% YoY) but QoQ rebound +73.80%. Operating Income: $301.956 million; Operating Margin 18.21% (0.13% QoQ change). Net Income: $186.798 million; Net Margin 11.27%; EPS: $0.91 (diluted $0.91); Weighted Avg Shares: 196.078 million.
EBITDA: $568.013 million; EBITDA Margin 34.26% (EBITDAR 34.26%). Interest Expense: $71.674 million; Depreciatio...
Financial Highlights
Revenue: $1.658 billion in QQ2 2025; YoY change +0.5%, QoQ +7.08%. Gross Profit: $532.217 million; Gross Margin 32.10%; YoY margin decline vs prior year (-66.35% YoY) but QoQ rebound +73.80%. Operating Income: $301.956 million; Operating Margin 18.21% (0.13% QoQ change). Net Income: $186.798 million; Net Margin 11.27%; EPS: $0.91 (diluted $0.91); Weighted Avg Shares: 196.078 million.
EBITDA: $568.013 million; EBITDA Margin 34.26% (EBITDAR 34.26%). Interest Expense: $71.674 million; Depreciation & Amortization: $244.825 million. Operating Cash Flow: $530.375 million. Free Cash Flow: -$433.464 million (capital expenditures of $963.839 million in the period).
Balance Sheet / Liquidity: Cash and equivalents $1.4356 billion; Cash + Short-Term Investments $2.0652 billion; Total Assets $20.1265 billion; Total Liabilities $12.607 billion; Total Stockholders’ Equity $7.519 billion; Net Debt $5.378 billion; Debt to Capitalization ~47.5%; Interest Coverage ~4.21x.
Cash Flow Profile: Net cash provided by operating activities $530.4 million; Net cash used in investing activities $-794.5 million (PPE capex $-963.8 million; acquisitions net $218.2 million); Net cash provided by financing activities $542.0 million; Net change in cash $282.5 million; Free cash flow negative due to heavy capex and property acquisitions/new development in self-storage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.66B |
0.50% |
7.08% |
| Gross Profit |
532.22M |
-66.35% |
73.80% |
| Operating Income |
301.96M |
-28.51% |
0.13% |
| Net Income |
186.80M |
-31.70% |
-4.41% |
| EPS |
0.91 |
-33.09% |
-4.21% |
Key Financial Ratios
operatingProfitMargin
18.2%
operatingCashFlowPerShare
$2.7
freeCashFlowPerShare
$-2.21
dividendPayoutRatio
4.72%
Management Commentary
Key management insights from QQ2 2025 earnings call:
- Strategy and operations: Joe Shoen noted that rental income on moving equipment is up modestly and emphasized ongoing development of storage products and U-Box, which continues to gain traction. He highlighted capacity investments and the potential for a late-Q4 trailer model to modestly lift trailer rentals, albeit with a slow ramp due to manufacturing timelines. Quote: “Rental income on moving equipment is up slightly... U-Box… still making progress.†(Joe Shoen)
- Evidence of improvement in equipment rentals: Jason Berg stated the six-month trend shows two consecutive quarters of YoY increases in equipment rental revenues, suggesting we may be at or near a trough with a path toward more sustained growth. Quote: “This is now our second consecutive quarter of year-over-year increases in equipment rental revenues and it points to a likely trough.†(Jason Berg)
- Self-storage dynamics: Management acknowledged that while revenues in self-storage rose about 8% YoY, occupancy efficiency remains mixed as the portfolio expands. They reported 8.1 million sq ft under development and expect net rentable square feet deliveries to increase next quarter. Quote: “Revenues were up $16 million, about an 8% improvement... we currently have approximately 8.1 million new square feet being developed.†(Jason Berg)
- U-Box integration and cross-sell: U-Box revenue is contained in other revenue but contributed ~$7 million during the quarter, signaling meaningful cross-sell potential across the expanding self-storage footprint. Sam Shoen indicated U-Box provides strategic upside for both moving and storage segments.
- Capital allocation and guidance: The company signaled an elevated capex environment, noting six-month equipment capex of $1.156 billion and raising the net capex guidance to roughly $1.115 billion for FY2025 due to additional equipment availability. The commentary stressed that near-term profitability will reflect ongoing investment rather than near-term cash flow strength. Quote: “Capital expenditures for new rental equipment for the first six months were $1.156 billion... We’ve increased our fiscal 2025 full year net CapEx projection… to approximately $1.115 billion.†(Jason Berg)
"Rental income on moving equipment is up slightly. My teams remain focused on this measurement but we've been getting very modest results. We are continuing to develop new storage product and bringing it online faster than we are filling units. U-Box, which is our service that addresses both the time and the place needs of consumers is still making progress."
— Joe Shoen
"Yesterday we reported second quarter earnings of $187 million compared to $274 million for the same quarter last year. From an earnings per share perspective this translates to $0.96 per non-voting share... Equipment rental revenue results, we had an $18 million increase or about 1.7% up slightly better than what our first quarter improvement was. This is now our second consecutive quarter of year-over-year increases in equipment rental revenues..."
— Jason Berg
Forward Guidance
There is no formal forward guidance issued in the call beyond qualitative expectations. Management outlined a cautious near-term outlook: (1) equipment rental revenues likely to continue their gradual improvement after a trough, supported by modest gains in one-way and in-town revenue per transaction and a slow ramp in trailer utilization as new models come online in Q4; (2) self-storage remains a growth engine but is currently a drag on earnings due to rapid expansion and cost of new facilities, with occupancy stabilization and higher average occupancy in same-store assets expected to improve gradually; (3) U-Box is a meaningful growth vehicle that will scale with new facilities and enhanced cross-selling capabilities; (4) capex remains a primary use of cash, with a net CapEx program around $1.115 billion for FY2025 (subject to equipment availability and project timing). Our assessment is that execution hinges on: a) stabilizing occupancy and rate capture in newly developed self-storage; b) achieving a favorable mix of U-Box vs traditional storage; c) maintaining liquidity while absorbing the capex burden; and d) macro confidence that supports consumer moving activity. Important monitoring factors for investors: trajectory of equipment rental growth, pace and profitability of new self-storage deliveries, utilization of U-Box in new markets, and the company’s ability to translate development into sustained free cash flow as occupancy scales.