{
  "id": 16118313,
  "title": "Ryder fleet facing possible growth need as EPA ‘27 nears",
  "url": "https://urgent.news/2026/10/22/ryder-fleet-facing-possible-growth-need-as-epa-27-nears",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-22T21:47:50.000Z",
  "source": {
    "name": "FreightWaves",
    "slug": "freightwaves",
    "url": "https://www.freightwaves.com/news/ryder-fleet-facing-possible-growth-need-as-epa-27-nears"
  },
  "original_language": "en",
  "account": "The Environmental Protection Agency's (EPA) '27 engine rules are set to take effect soon, imposing stricter regulations on nitrogen oxide (NOx) emissions in heavy-duty vehicles. This development has significant implications for Ryder Systems (NYSE: R), as the company reported solid third-quarter earnings that boosted its stock by 10.49% to $265.53, with a gain of 25.22%. Ryder's strong performance led analysts to discuss the company's growth prospects on its earnings call, resulting in a conversation about its strategy for scaling up with new vehicles.\n\nRyder's new truck purchases are interconnected with its leasing business, ChoiceLease, which offers longer-term vehicle leasing options. During the earnings call, an analyst inquired about customer hesitation in placing orders for '27 vehicles, given the upcoming EPA regulations. Ryder CEO John Diez stated that the company has not observed any pre-buy surge activity due to the rule change. However, Ryder's Fleet Management Solutions president, Tom Havens, noted that the price increases are anticipated, but there has been no significant pre-buy activity thus far.\n\nOne major challenge for customers is the uncertainty surrounding the final rule. The EPA has initiated an amendment process that includes noncompliance penalties and changes to deratement rules that could result in lower utilization if diesel exhaust fluid levels are depleted. Fleet numbers are currently below historical norms, particularly for tractors. Analyst Jeffrey Kauffman from Citizens JMP Securities highlighted that Ryder's fleet size has been lower than usual, and adding new tractors will be challenging over the next six to nine months due to the EPA mandate.\n\nRyder CEO Diez expressed confidence in Ryder's ability to grow its fleet, stating that the company has already taken action to increase equipment, which is reflected in its capital expenditure budget. However, Diez cautioned that fleet utilization has not yet reached the pre-COVID levels but is expected to improve as more vehicles are added to meet demand. The company's rental fleet utilization was 77% in the quarter, up from 70% a year ago, and 73% over the nine months. In the second quarter of 2022, during the COVID recovery peak, the utilization figure was 81.6%.\n\nUsed vehicle sales are a crucial driver of Ryder's earnings, with Ryder's inventory currently at 7,300 units, representing the lower end of its target range of 7,000 units. The company expects to sell more used vehicles through retail channels, which are generally more profitable, as retail sales accounted for 61% of all used vehicle sales in the quarter. Ryder's retail footprint is anticipated to increase to over 70% by 2027, providing a hedge against market forces.\n\nThe CEO also discussed the company's outlook for full-year 2027 earnings gains from used vehicle sales, projecting a range of $50 million to $60 million, up from the previously forecasted $40 million gain. The company's dedicated transportation solutions (DTS) segment, which focuses on drivers, is experiencing a mid to single-digit wage increase in certain regions. Ryder's DTS has been able to pass on wage increases directly to customers through annual cost-of-living adjustments, but the company remains vigilant in discussions with customers to ensure wage adjustments align with overall market conditions.",
  "summary": "With the EPA ‘27 engine rules impacting nitrogen oxide (NoX) emissions in heavy duty vehicles getting closer every day, the new rules will have a major impact on anybody who buys new vehicles…like Ryder. Ryder’s (NYSE: R) third quarter earnings released early Thursday were solid enough that it propelled the stock up 10.49% to $265.53, […] The post Ryder fleet facing possible growth need as EPA…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}