U-Haul (NYSE:UHAL.B) reported first-quarter fiscal 2027 net earnings of $123 million, down from $142 million a year earlier, as higher operating costs and freight expenses offset growth in equipment rental and self-storage revenue.
Earnings per non-voting share were $0.63, compared with $0.73 in the prior-year quarter. Adjusted EBITDA in the company’s moving and storage segment declined by $9 million to $537 million.
Rental revenue rises as dealer expansion continues
CFO Jason Berg said equipment rental revenue increased by $29 million from the prior-year period, with transactions and revenue rising in both the In-Town and One-Way markets. U-Haul added 75 company-operated locations and more than 1,100 net independent dealers between the end of June 2025 and June 2026.
The dealer growth is part of a broader effort begun about a year ago to add 3,000 net independent dealer locations. Shoen said the company is about halfway toward that target, though he believes the revenue contribution from the new dealers remains at an earlier stage because newly added locations take time to establish themselves.
“The market will support 3,000 dealers if we will thoughtfully open them,” Shoen said, adding that the initiative is intended to increase customer convenience, support equipment utilization and strengthen U-Haul’s connection with local communities.
While rental revenue advanced, Berg said average revenue per transaction did not improve across all measures. In One-Way rentals, transaction growth outpaced revenue growth on a percentage basis, and revenue per mile declined during the past two quarters. In the In-Town market, revenue rose about 2% while transactions increased by roughly 0.5%, according to Berg.
Shoen said the company remains focused on increasing transactions and expanding access to its services, even when greater convenience may result in shorter trips and lower ticket values. He said U-Haul was “not alarmed” by current revenue-per-transaction trends.
Storage revenue grows, while occupancy remains lower
Storage revenue increased $16 million, or about 7%, during the quarter. Average revenue per occupied foot across U-Haul’s total portfolio, including same-store and lease-up properties, rose more than 6%.
New customer rental rates increased about 2.5% year over year, while rates for customers leaving were just under 2% below move-in rates. Same-store occupancy, however, declined 456 basis points to 88.3%.
Berg attributed nearly all of the occupancy decline to U-Haul’s tougher approach toward delinquent storage accounts, which began in the second quarter of the prior year. Management expects reported occupancy comparisons to begin improving by September, while noting that the underlying work to remove delinquent accounts occurred a year earlier.
Shoen said the pace of adding storage customers is improving but remains below the company’s goals. He also criticized pricing practices among many self-storage real estate investment trusts, arguing that such practices have hurt the industry’s reputation and increased regulatory scrutiny.
U-Haul added 18 storage locations during the quarter, representing 1.1 million net rentable square feet. The company had approximately 5.7 million square feet under development across 106 projects, plus another 6.3 million square feet of potential future development on owned properties. Both figures were below year-earlier levels, and Berg said management expects spending on self-storage growth to continue declining.
Freight costs pressure margins and U-Box results
Moving and storage operating expenses rose $55 million from the prior-year quarter, while the segment’s EBITDA margin fell by just over 1.5 percentage points. Personnel, fleet maintenance and self-insurance liability costs increased by more than $20 million.
Freight and shipping costs were a major additional pressure, increasing by nearly $22.5 million as carriers raised prices. U-Box container shipments accounted for the largest portion of that increase, with the rest tied to shipping retail products and repair parts.
Berg said freight costs are likely to remain a headwind for the balance of the fiscal year, potentially peaking in July before easing in the second half. U-Haul is pursuing shipping efficiencies and considering additional U-Box customer pricing adjustments, although management said it expects to absorb some of the increased cost as well.
U-Box revenue growth was modest, though management said the number of containers in storage and the number shipped both increased. Shoen said late shipments had increased because some carriers accepted jobs but did not appear for pickup, requiring expedited shipping that can cost substantially more. He said operational changes made about four weeks earlier had reduced late shipments.
Fleet investment, equipment sales and share repurchases
Capital expenditures for new rental equipment totaled $602 million, up $17 million year over year. Proceeds from sales of retired rental equipment declined $14 million to $145 million, although losses on equipment disposals improved by $24 million, producing a $1.9 million gain for the quarter.
Berg said cargo-van resale values began the fiscal year relatively strong but have since receded. If that trend continues, U-Haul may retain units purchased during the fiscal year longer rather than sell into a weaker market. Management continues to project that net fleet investment will decline by more than $500 million over the final three quarters of the year.
As of June 30, cash and availability at the moving and storage segment totaled $1.349 billion. Under its $350 million share repurchase authorization, U-Haul repurchased 248,368 voting shares for $15.6 million and 584,278 non-voting shares for $32.4 million through June. Including purchases made after quarter-end, the company had just under $242 million remaining under the authorization, according to Berg.
About U-Haul (NYSE:UHAL.B)
U-Haul International, Inc (NYSE: UHAL.B) is a leading provider of do-it-yourself moving equipment and storage solutions in North America. As a subsidiary of AMERCO, U-Haul offers a comprehensive array of rental products, including cargo vans, pickup trucks, trailers and towing equipment, along with portable moving containers and self-storage units. The company’s services extend to packing and shipping supplies, hitch installation, and moving assistance programs tailored to both household and small-business customers.
Founded in 1945 by Leonard Shoen in Ridgefield, Washington, U-Haul grew from a single two-truck operation into an expansive network of over 21,000 locations across the United States and Canada.
