Executive Summary
UHaul Holding Company reported a solid top-line in QQ3 2025, with revenue of $1.389 billion, a year-over-year rise of 3.66% driven by stronger in-town rental activity and ongoing price realization, supported by a robust move-related services mix. EBITDA was $417.9 million, yielding an EBITDA margin of approximately 30.1%, while gross margin remained high at 85.85%. Despite these strengths, net income declined to $58.3 million and EPS to $0.30, reflecting a combination of elevated depreciation from fleet expansion, lower gains on the sale of older equipment, and a substantial negative swing in other income/expenses. The quarterly results also featured meaningful cash flow dynamics: operating cash flow of $271.6 million but free cash flow of -$664.9 million due to $936.5 million of capex in the quarter and a year-to-date capex cadence focused on real estate and UBox infrastructure.
Management signaled a growth-centric stance in a still-fragile macro environment. The company added 2.3 million net rentable square feet in the quarter, bringing total development activity to roughly 8.5 million square feet, and disclosed a first-nine-month real estate investment of $1.214 billion. UBox and self-storage are central to the growth narrative, with UBox revenue contributing meaningfully to the “other revenue†line and storage density improving through higher container utilization and better space efficiency. Management underscored a strong pipeline, highlighted ongoing cost-control initiatives, and reiterated a target to keep net debt to EBITDA under 5x while acknowledging a potential for up to an additional $2 billion of debt against real estate if needed to finance growth. The commentary also acknowledged competitive pricing dynamics, reliance on a broad store footprint, and the potential for continued cost discipline to sustain earnings progression in a high-capex environment.
Key Performance Indicators
QoQ: -50.08% | YoY:-23.71%
QoQ: -68.77% | YoY:-41.20%
QoQ: -67.03% | YoY:-34.78%
Key Insights
Revenue: $1.389B (+3.66% YoY; -16.26% QoQ). Gross Profit: $1.192B (+2.98% YoY; +123.98% QoQ). Gross Margin: 85.85%. Operating Income: $150.7M (-23.71% YoY; -50.08% QoQ). EBITDA: $417.9M (margin ~30.1%). Net Income: $58.3M (-41.20% YoY; -68.77% QoQ). Net Income Margin: 4.20%. EPS: $0.30 (diluted $0.30). Weighted avg shares: 196.08M.
Segment/Portfolio Highlights: In-town revenue growth contributed to a ~4.5% lift in equipment rental revenue in the quarter; Last-mile revenue expanded toward quarte...
Financial Highlights
Revenue: $1.389B (+3.66% YoY; -16.26% QoQ). Gross Profit: $1.192B (+2.98% YoY; +123.98% QoQ). Gross Margin: 85.85%. Operating Income: $150.7M (-23.71% YoY; -50.08% QoQ). EBITDA: $417.9M (margin ~30.1%). Net Income: $58.3M (-41.20% YoY; -68.77% QoQ). Net Income Margin: 4.20%. EPS: $0.30 (diluted $0.30). Weighted avg shares: 196.08M.
Segment/Portfolio Highlights: In-town revenue growth contributed to a ~4.5% lift in equipment rental revenue in the quarter; Last-mile revenue expanded toward quarter-end; UBox revenue was a notable positive offset within other revenue; Self-storage revenues rose by 8% for the quarter, with overall occupancy at 78.7% and same-store occupancy at 92.4%. Net rentable SF added in the quarter: +2.3M; Total new space under development: ~8.5M SF; Nine-month capex on real estate: $1.214B (up $245M YoY).
Cash Flow and Balance Sheet: Net cash provided by operating activities: $271.6M; Capex: -$936.5M; Free cash flow: -$664.9M; Net cash used in investing activities: -$840.6M; Net cash provided by financing activities: $161.3M; Cash at end of period: $1.017B; Total debt: $6.946B; Net debt: $5.929B; Cash and cash equivalents: $1.018B; Short-term investments: $0.708B; Total assets: $20.332B; Total stockholders’ equity: $7.631B. Leverage targets remain under 5x net debt/EBITDA with the ability to access up to ~$2B of additional debt secured by real estate, subject to earnings progression.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.39B |
3.66% |
-16.26% |
| Gross Profit |
1.19B |
2.98% |
123.98% |
| Operating Income |
150.73M |
-23.71% |
-50.08% |
| Net Income |
58.34M |
-41.20% |
-68.77% |
| EPS |
0.30 |
-34.78% |
-67.03% |
Key Financial Ratios
operatingProfitMargin
10.9%
operatingCashFlowPerShare
$1.39
freeCashFlowPerShare
$11.21
dividendPayoutRatio
15.1%
Management Commentary
Key management insights from the QQ3 2025 call: 1) Strategy and market conditions: 'I'm the most optimistic I have been in some time' reflects management's confidence in a favorable macro backdrop for self-move and UBox growth. 2) Pricing and cost discipline: 'We needed the price increase' and 'cost controls' have contributed to revenue growth outpacing expense growth, with operating expenses up only ~1.6% despite revenue gains. 3) UBox and density: 'The density is the exciting part of the U-Box storage solution' and 'our U-Box business continues to grow' highlight the material growth and margin potential from container density in existing footprints. 4) Capacity and development: '2.3 million net rentable square feet added this quarter' and '8.5 million new square feet being developed' indicate an elevated pace of expansion and a pipeline that could sustain growth through next year. 5) Capital structure and funding: 'we could easily go out with the assets that we have and borrow another $2 billion against real estate' underscores the financing flexibility used to fund growth, while management also emphasized staying under a 5x net debt-to-EBITDA framework. 6) Competitive dynamics and occupancy: management acknowledged industry-wide price and occupancy pressures but asserted UHaul’s differentiation through network density and value pricing: 'swimming against that tide successfully so far.'
"I'm the most optimistic I have been in some time."
— Joe Shoen
"The density is the exciting part of the U-Box storage solution... we're getting increased density in the same footprint that you would in a traditional facility."
— Sam Shoen
Forward Guidance
Outlook assessment: Management does not provide formal forward-looking earnings guidance in the QQ3 2025 call, but articulates a growth framework underpinned by heavy real estate and UBox/storage development. The key directional signals are: (a) continued elevated capex cadence into next quarters, supported by a robust pipeline of 8.5M SF under development and ~2.3M SF added this quarter, (b) ongoing UBox expansion and higher density driving long-run unit economics and marginal profitability, (c) a willingness to utilize leverage (potentially up to $2B additional secured by real estate) while targeting net debt/EBITDA below 5x, and (d) a continued focus on price realization and selective pricing increases tied to consumer value. Risks to the outlook include persistent capex requirements, potential pressure on utilization and pricing in a choppy macro environment, competitive intensity in moving and fleet management, and regulatory or tariff changes affecting supply chains. Investors should monitor: (i) occupancy normalization and density gains in UBox and self-storage (especially same-store occupancy, rent per square foot, and conversion rates); (ii) progress on fleet modernization/depreciation and the resulting impact on depreciation expense and asset impairment risk; (iii) progress toward the 5x net debt/EBITDA target and any shifts in leverage strategy; (iv) capex cadence and free cash flow trajectory as new facilities come online; and (v) sensitivity to macro demand in moving services and storage demand across regions.