U-Haul Holding Company

Citizens initiated coverage of the Transportation, Logistics and Services group with twenty-two names, naming FedEx among its top large-cap picks alongside FTAI Aviation, Union Pacific and C.H. Robinson, according to a note from analyst Jeff Kauffman. The firm assigned a mix of Market Outperform and Market Perform ratings with no Market Underperform ratings, citing a projected acceleration of the group's earnings recovery and momentum through late 2027. For mid- and small-cap names, Citizens favors GXO, U-Haul parent UHAL, Knight-Swift, Wabash National and Covenant Logistics, along with a story-specific Market Outperform rating on FTAI Infrastructure. Stocks in the coverage group have generated 33.8% average returns year-to-date in 2026, compared with 20.0% for the Russell 2000 and 10.7% for the S&P 500. Kauffman described the early phase of an economic recovery as one of the best windows of the cycle to own these names, with Citizens forecasting 2.3% real GDP growth in 2026, slowing to 2.1% in 2027, implying low-single-digit growth for rail freight and low-to-mid-single-digit growth for trucking. The firm pointed to six positive PMI readings this year following 38 months of negative readings, calling the current freight cycle one of the longest freight market declines, with the industry now emerging into a new upcycle supported by tight truck capacity and low inventories requiring restocking.

U-Haul Holding's board has approved a US$350 million share repurchase program, supported by strong cash reserves and lower capital spending after major fleet and storage investments. The buyback, alongside the company's regular quarterly cash dividend, signals management's confidence in the stock's undervaluation and its commitment to shareholder returns. The program could modestly support earnings per share and help offset selling pressure following U-Haul's removal from several Russell indexes, though it does not fundamentally change core operational risks such as tight interest coverage and recent sharp declines in net income.

U-Haul Holding Company reported a 77.4% drop in net income for fiscal 2026 to $83.1 million, or $0.44 per diluted share, as a 34.3% increase in depreciation expense weighed on results. Total revenues rose 3.6% to approximately $6.038 billion, driven by gains in self-moving equipment rental, self-storage, and U-Box services, but total costs and expenses climbed 9.6% to $5.605 billion, pushing the operating margin down 512 basis points to 7.2%. Depreciation expense increased 34.3%, or $328.8 million, on a gross basis, largely due to higher depreciation on the cargo van fleet and box trucks, while losses on disposal of retired equipment swung to $117.6 million from a $15.0 million gain a year earlier. The company expects depreciation to decline sequentially in fiscal 2027 as it does not plan to grow the truck fleet, and it separately announced a $350 million share repurchase plan, which helped fuel a more than 20% rally in the stock price.

U-Haul is providing 30 days of free self-storage and U-Box container use at 84 centers across Louisiana, Mississippi, Alabama, and Florida to residents affected by severe flooding from Tropical Storm Arthur. The offer applies to new self-storage and U-Box rentals at participating locations, with the U-Box offer for on-site storage at company facilities and delivery available for a modest fee. The 84 centers are operated by six U-Haul companies in the region, including 16 stores in Southern Louisiana, 16 in South Central Louisiana, 2 in Mississippi, 17 in South Alabama and Florida, 16 in Central Alabama, and 17 in Northern Alabama. U-Haul is an official American Red Cross Disaster Responder and also offers a 1-Year Price Lock for customers needing storage beyond the free period.