U-Haul Holding Co. Annual Report: A Performance Review

I’ve put together this guide to help you understand how U-Haul performed this past year. My goal is to break down complex filings into simple terms so you can decide if this company fits your investment goals.

1. What does this company do?

Most people know U-Haul for renting trucks and trailers. However, they operate a massive "moving and storage ecosystem." They manage over 2,400 retail stores and partner with 23,000 independent dealers.

Beyond rentals, they are a major player in self-storage, managing nearly 1.14 million units across 99 million square feet. They also own two insurance companies: Repwest, which covers business risks, and Oxford Life, which sells annuities and health products to seniors. They aim to be your one-stop shop for the entire moving process.

2. The "Scorecard" (Fiscal Year 2026)

• Stock Performance: It has been a tough year for shareholders. If you invested $100 in U-Haul (UHAL) on March 31, 2021, that investment would be worth just $78.33 by March 31, 2026. For comparison, the broader Dow Jones US Total Market index grew to $140.51 over that same period.
• Revenue Growth: Total revenue grew to $6.04 billion this year, up from $5.83 billion last year.
• Segment Performance:
  • Moving & Storage: Revenue hit $5.69 billion, up from $5.49 billion. However, operating profit dropped to $350 million, down from $646 million. This decline reflects higher costs for fleet maintenance, staff, and interest payments.
  • Self-Storage: This was a bright spot. Revenue climbed to $972 million, up from $898 million. This growth came from a 5% increase in rent per square foot and adding 5.3 million new square feet of space.
• Debt Load: The company carries $8.13 billion in total debt. This consists mostly of long-term notes and real estate loans. A large portion of their cash flow goes toward paying off this debt, leaving less money for dividends or buying back shares.
• Tax Impact: A new law passed in July 2025 allows U-Haul to immediately deduct the full cost of new equipment. This boosts immediate cash flow but creates "deferred tax liabilities." These are future tax bills that will eventually reduce cash flow once these deductions run out.

3. Major wins and challenges

• The "Moat": Their massive network is their biggest advantage. By integrating self-storage and "U-Box" portable storage, they keep customers in their ecosystem long after the truck is returned.
• Tech Upgrades: They are pushing "U-Haul Truck Share 24/7." This lets customers rent equipment via a mobile app without visiting a counter. It reduces staffing needs and increases convenience.
• The Orange Brand: U-Haul is in a legal battle with Public Storage over their signature "orange" branding. Losing this could force expensive rebranding and weaken their market presence.

4. Financial health & Risks

U-Haul’s business is seasonal, with revenue peaking in the summer. Key risks include:

• Profitability Squeeze: While revenue is up, operating profit in their core business fell by nearly half. Costs for fleet maintenance, labor, and fuel are rising faster than they can raise rental prices.
• Debt Pressure: With $8.13 billion in debt, the company is sensitive to interest rate changes. Refinancing debt at current rates could significantly increase interest expenses and shrink profit margins.
• Insurance Ratings: Their life insurance business relies on a strong "A" rating from A.M. Best. A "negative" outlook suggests that a downgrade could make it more expensive to run their insurance operations.
• Cybersecurity: The company views a cyberattack as inevitable. They are investing in a "Cybersecurity Council" to prevent data theft, which could otherwise lead to major legal and reputation costs.

5. Future outlook

The company is doubling down on its "Moving and Storage" segment. They are expanding their retail footprint and refining their U-Box program. They are also focusing on labor efficiency by using part-time workers to handle peak hours, helping them manage costs without over-hiring.

Note: While revenue is growing, the sharp decline in operating profit is a red flag. Investors should watch this closely in the next quarterly update.