U-Haul Net Earnings Collapse to $83.1M on $1.29B Depreciation Costs
UHAL•U-Haul’s net earnings plunged to $83.1 million in fiscal 2026 from $367.1 million a year earlier despite revenue rising to $6.04 billion from $5.83 billion. A $186.6 million increase in fleet depreciation and $117.6 million in disposal losses drove total depreciation to $1.29 billion.
1. Fiscal 2026 Earnings Collapse
U-Haul’s net earnings fell to $83.1 million for the twelve months ended March 31, 2026, down from $367.1 million in the prior fiscal year, even as consolidated revenue rose to $6.04 billion from $5.83 billion thanks to a $86.4 million increase in equipment rental and $74.5 million gain in self-storage revenues. Operating income in the Moving and Storage segment declined by $295.5 million year-over-year.
2. Depreciation and Disposal Losses Surge
Fleet depreciation expense jumped by $186.6 million, and losses on the disposal of retired equipment totaled $117.6 million versus a $15 million gain a year earlier, pushing net depreciation expense to $1.29 billion from $958.2 million. Liability costs also climbed by $76.4 million, and quarterly interest expense rose to $96.6 million from $80.4 million.
3. Self-Storage Occupancy Challenges
Same-store occupancy in the self-storage portfolio dropped 5.4 percentage points to 86.1% in the quarter ended March 31, with costs mounting on newly built but not yet rented facilities. Management expects reduced rental fleet capital expenditure next year to help moderate depreciation expense.
4. Balance Sheet Strength and Shareholder Returns
Total borrowings increased to $8.12 billion from $7.23 billion, lifting the net debt-to-trailing-12-month adjusted EBITDA ratio to 4.3 times while adjusted EBITDA grew to $1.65 billion from $1.62 billion. Directors approved a $350 million share buyback and paid a $0.05 per share dividend on non-voting common stock in March 2026.
