Detailed Narrative
Fleet Depreciation and Resale Market Dynamics
U-Haul experienced a significant increase in truck fleet depreciation, rising $40 million in Q4 to $221 million and $186 million for the full year to $879 million. This was primarily driven by the higher cost of 2023 and 2024 model year cargo vans, which depreciated into a less receptive resale market. While the rate of depreciation growth has slowed, the company is not planning truck fleet growth for the upcoming fiscal year. Future decisions on cargo van purchases will be guided by the resale market performance and manufacturer pricing, with optionality to extend holding periods or reduce purchases if conditions are unfavorable.
Equipment Rental Performance and Dealer Network Expansion
Equipment rental revenue increased by $12 million in Q4 and $86 million (2%) for the full fiscal year, with both In-Town and One-Way markets contributing to growth, though In-Town was more robust. The company added 55 new company-operated locations and a net increase of 1,400 independent dealers between March 2025 and March 2026. April and May revenue trends have been consistent with Q4, and management expects the expanded dealer network to contribute positively during the busy summer season, aiming for a return to 4.5%-5% growth.
Self-Storage Revenue Growth and Occupancy Management
Storage revenues grew $16 million (7%) in Q4 and $74 million (8%) for the full year. Average revenue per occupied foot improved over 6% for both same-store and non-stabilized portfolios, and new customer rental rates increased by approximately 3% year-over-year. Same-store occupancy declined 540 basis points to 86.1%, with 450 basis points attributed to a deliberate cleanup of delinquent rooms. Net tenant move-ins remain slower but show incremental improvement, supported by a strategy of straightforward pricing and a 1-year price lock guarantee.
Strategic Capital Allocation Shift
The U-Haul Holding Company Board of Directors authorized a $350 million share repurchase plan, covering both UHAL and UHAL.B share classes. This decision reflects management's belief that the stock is undervalued and is enabled by projected decreases in growth CapEx for the upcoming fiscal year. The company views this as a wise allocation of capital, leveraging the significant investments made in the business over recent years to return value to shareholders while assets mature and demand catches up to expanded capacity.
U-Box and Toy Hauler Fleet Expansion
U-Haul plans to continue growing its U-Box container fleet and new toy hauler trailer fleet in the upcoming fiscal year, albeit at a slower pace than the previous year. The toy hauler trailers have seen diverse usage beyond initial expectations, including for smaller tractors. For U-Box, the company is consolidating warehouse space, adding 49 warehouses with over 500-box capacity while reducing smaller ones, increasing total container storage capacity by 52,000-53,000 units for greater efficiency and customer availability.
Operational Cost Management and Balance Sheet Strength
Operating expenses for storage increased $17 million in Q4, with personnel costs up $13 million and fleet maintenance up $1 million. Self-insurance liability decreased $2 million in Q4, following a $93 million increase in reserves for FY26, indicating improved reserving. Management is focused on managing liability costs and expects stability in the coming year. The company maintains a strong liquidity position, with $8.479 billion in cash and availability in its moving and storage segment at the end of March.