Breaking Down AMERCO (UHAL) Financial Health: Key Insights for Investors

You're looking at AMERCO (UHAL) and seeing a classic capital-intensive dilemma: the top-line demand is there, but the profit engine is sputtering because of fleet costs, and honestly, that's the story for fiscal year 2025. While the core Moving and Storage business remains a beast, pushing its EBITDA up to $1,619.7 million, the net earnings available to shareholders plummeted to $367.1 million. Here's the quick math: the expense of replacing the truck fleet-the reduced gains on equipment sales plus increased depreciation-wiped out nearly $260 million from earnings compared to the previous year. Still, the high-margin self-storage segment is a defintely bright spot, with revenues jumping 8.0%, an increase of $66.8 million, which helps offset the capital drag, but the near-term action for investors is monitoring how the company manages its $7.23 billion in total debt while navigating this costly fleet replacement cycle.

Revenue Analysis

You need to know where AMERCO (UHAL) is actually making its money, and for fiscal year 2025 (FYE March 31, 2025), the story is one of steady growth in core services but a shift in internal revenue mix. The company's consolidated revenue hit $5.83 billion for the year, an increase of 3.61% over fiscal 2024's $5.63 billion. That's a solid, if unspectacular, move-it shows resilience, but it's defintely not the double-digit surge we've seen in past years.

The primary revenue stream remains the Moving and Storage segment, which is the company's bread and butter. This segment, which includes the U-Haul brand, is a powerhouse, but its individual components are growing at different speeds. Here is the breakdown for the fiscal year 2025, which clearly shows the composition of that $5.83 billion total:

Here's the quick math on the core segments: self-moving equipment rental is still the biggest driver by far, bringing in over $3.7 billion.

Growth Drivers and Near-Term Shifts

The year-over-year growth shows a clear trend: self-storage is the star. Self-storage revenues jumped by $66.8 million, an 8.0% increase over fiscal 2024, fueled by adding approximately 6.5 million net rentable square feet during the year. Self-moving equipment rental revenues, while representing the largest dollar amount, only increased by $100.8 million, a more modest 2.8% growth. This is a classic story of a mature core business providing stability while a strategic growth area, self-storage, provides the higher-percentage lift. Plus, the U-Box portable storage and moving product is also seeing strong traction, driving a significant portion of the 8.5% increase in other Moving and Storage revenue.

• Self-storage revenue growth: 8.0%.
• Self-moving equipment rental growth: 2.8%.
• U-Box and other M&S revenue growth: 8.5%.

What this revenue estimate hides is a critical shift in profitability. You've seen the revenue go up, but net earnings available to shareholders actually dropped significantly to $367.1 million in fiscal 2025 from $628.7 million in fiscal 2024. The main culprit? The high cost of replacing the rental fleet. The company had reduced gains on the sale of retired rental equipment and increased fleet depreciation expense, which collectively decreased earnings by nearly $260 million compared to the prior year. This isn't a demand problem; it's an asset management and cost-of-capital problem that will persist as long as truck replacement costs stay high. For a deeper dive into who is betting on this model, you should be Exploring AMERCO (UHAL) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking at AMERCO (UHAL) because their dual-engine model-self-moving equipment rental and self-storage-should offer stability, but the 2025 fiscal year data shows a clear profit compression. The direct takeaway is that while the core business remains fundamentally sound with a strong gross margin, rising operational costs, specifically fleet depreciation, are crushing the bottom line. This isn't a revenue problem; it's a cost-of-doing-business problem.

For the fiscal year ended March 31, 2025, AMERCO reported net earnings available to shareholders of $367.1 million, a sharp drop from the prior year. This decline is the single most important number to understand right now. Here's the quick math on their recent profitability ratios (Trailing Twelve Months, or TTM, figures are a good proxy for the full-year picture):

• Gross Margin: Around 37% of revenue.
• Operating Margin: Approximately 9.8% of revenue.
• Net Margin: A thin 3.9% of revenue.

That 37% Gross Margin is solid, reflecting the pricing power and low direct costs in the self-storage segment, plus healthy rental revenue. But the chasm between gross and net profit is where the risk lies. The company's full-year FY2025 Operating Margin compressed to 12.3%, down a significant 509 basis points from the prior year.

Operational Efficiency and Cost Management

The trend in profitability over time shows a clear headwind from fleet management. Management explicitly stated that reduced gains on the sale of rental equipment and increased fleet depreciation expense decreased earnings by nearly $260 million for the year compared to fiscal 2024. This is what we call an operational efficiency issue, but it's really a capital expenditure (CapEx) hangover. They bought trucks at high prices and are now taking the hit through lower resale values and higher depreciation, which cuts directly into operating and net income.

The self-storage segment, which is a major part of the business, continues to show strength, with revenues increasing 8.0% in fiscal 2025. This segment's high-margin nature is what keeps the overall Gross Margin elevated. To be fair, not everything is shrinking; the Moving and Storage earnings before interest, taxes, depreciation and amortization (EBITDA) actually increased $51.7 million for the full year 2025 to $1,619.7 million.

Profitability Ratios vs. Industry Benchmarks

When you compare AMERCO's profitability to its core industries, the picture is mixed and highlights the drag from the truck rental side:

Honestly, the self-storage industry is known for its elite margins, with general profit margins often ranging from 30% to 40%. AMERCO's TTM Net Margin of 3.9% is clearly being weighed down by the capital-intensive, lower-margin truck rental business, especially with the current depreciation and resale pressures. The self-storage segment is a huge competitive advantage for AMERCO, a fact you can explore further by checking their Mission Statement, Vision, & Core Values of AMERCO (UHAL).

The key action for you is to watch the fleet depreciation and resale gains in the next few quarters. If the truck market improves, as management suggests, that $260 million headwind will ease, and the Net Margin will defintely expand significantly.

Debt vs. Equity Structure

You're looking at AMERCO (UHAL)'s balance sheet to understand how they fund their massive asset base, and the quick takeaway is this: the company operates with a balanced, but significant, level of financial leverage (the use of borrowed money to finance assets). As of the end of fiscal year 2025 (March 31, 2025), AMERCO's total debt and total equity were nearly equal.

The company's reported total equity stood at approximately $7.77 billion, while its total debt was around $7.74 billion. This results in a Debt-to-Equity (D/E) ratio of approximately 1.0. This is a defintely manageable ratio, especially when compared to the capital-intensive nature of their core business; for instance, the broader Auto & Truck Dealerships industry benchmark sits higher, closer to 1.61 as of November 2025. AMERCO is a rental and real estate company, so a D/E of 1.0 shows a conservative approach relative to many of its peers who rely more heavily on debt to acquire assets like trucks and real estate.

Here's the quick math on their near-term obligations:

• Total Debt (approx.): $7.74 billion
• Near-Term Principal Obligation (FY2026): $649.579 million
• Total Equity: $7.77 billion

The short-term debt component-the principal payments due in fiscal year 2026-is a manageable $649.579 million, which is the current portion of their secured notes, loans, and finance leases. This is a crucial number because it shows the immediate principal repayment pressure. The company's liquidity position, with an available borrowing capacity of $475.0 million under existing credit facilities as of March 31, 2025, provides a solid buffer against these obligations.

AMERCO's financing strategy is not about massive, single debt issuances; it's a systematic, asset-backed process. Their focus is on three key areas to fund the fleet and real estate growth:

• Asset-Backed Financing: Using the rental fleet and real estate as collateral.
• Private Placements: Direct loans from institutional investors.
• Rental Equipment Leases: Financing the truck and trailer fleet.

This approach helps them to 'ladder maturities and fix interest rates,' which is a smart way to manage interest rate risk and avoid a single, large refinancing event that could be exposed to poor market conditions. The balance between debt and equity is intentional, leveraging their hard assets (trucks and self-storage properties) to drive growth without overextending the equity base, which is what you want to see in a long-term, capital-intensive business. For a deeper dive into the company's performance, check out the full post: Breaking Down AMERCO (UHAL) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You want to know if AMERCO (UHAL) can cover its near-term obligations, and the short answer is a resounding yes. Their liquidity position for the fiscal year ending March 31, 2025, is defintely robust, driven by a massive cushion of cash and short-term investments. This isn't a company scrambling for cash; it's one strategically deploying capital.

The core of this strength lies in their liquidity ratios (Current Ratio and Quick Ratio), which measure the ability to pay off current liabilities (debts due within one year) with current assets. Here's the quick math:

• The Current Ratio sits at approximately 5.33 ($5.15 billion in Current Assets / $966.3 million in Current Liabilities). A ratio of 2.0 is generally considered healthy, so 5.33 is exceptional.
• The conservative Quick Ratio (or Acid-Test Ratio), which excludes inventory, is around 4.22. This means they could cover all current liabilities over four times using just cash and highly liquid short-term investments.

For the fiscal year, AMERCO (UHAL) reported total Current Assets of $5,148,635,000 against total Current Liabilities of $966,262,000. This results in a massive $4,182,373,000 in positive working capital (current assets minus current liabilities). This trend shows a deliberate strategy to hold significant liquid assets, which is a huge strength in an uncertain economic environment. You rarely see this kind of liquidity in a capital-intensive business; it's a major plus.

Looking at the cash flow statement for the 2025 fiscal year, you see the classic profile of a growth-focused, capital-intensive business that is funding its expansion through a mix of operations and new debt. It's a three-part story:

The net cash used in investing activities of ($2,890,921,000) is the key number here. It reflects significant capital expenditures (CapEx) on new rental fleet and real estate development. Specifically, fleet-related spending increased by $243.8 million and real estate investment increased by $248.5 million compared to fiscal 2024. This aggressive investment is why the company's net cash flow was negative, but it's a strategic choice, not a sign of distress. They are using cash to grow their asset base, which you can read more about here: Exploring AMERCO (UHAL) Investor Profile: Who's Buying and Why?

The financing cash flow of $895,112,000 shows they raised money, mainly through an increase in borrowings of $669.0 million, to help fund this CapEx. The risk isn't immediate liquidity, but rather the long-term debt load, which stood at approximately $7.23 billion as of March 31, 2025. Still, their high operating cash flow and massive liquid reserves provide a strong buffer against market volatility and a clear path to service that debt.

Valuation Analysis

You're asking the right question: Is AMERCO (UHAL) overvalued or undervalued right now? The quick answer is that traditional valuation metrics suggest the stock is expensive compared to its history, but analyst consensus points to a significant upside, indicating a belief in a strong earnings rebound.

As of November 2025, AMERCO's valuation is stretched, largely due to a dip in trailing earnings. The Price-to-Earnings (P/E) ratio currently stands at approximately 52.46. Here's the quick math: that P/E is nearly 168% higher than the company's five-year average of 19.56, which tells you investors are paying a premium for every dollar of current earnings. This is defintely a high multiple for a company in the Industrials sector, which has an average P/E of around 25.85.

• Price-to-Earnings (P/E): 52.46 (High, suggesting high growth expectations or depressed earnings).
• Price-to-Book (P/B): 1.26 (Reasonable, suggesting the stock price is close to the value of its physical assets).
• EV/EBITDA: 10.61 (In line with or slightly above the sector average, which is a more stable metric for asset-heavy businesses).

The Price-to-Book (P/B) ratio, which compares the stock price to the company's book value per share of $39.62, is a more palatable 1.26. This lower P/B is common for asset-heavy businesses like U-Haul, whose value is tied up in its fleet and real estate. Plus, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio-which gives you a clearer picture of the value of the operating business by stripping out debt and non-cash expenses-is a more moderate 10.61. That's a better metric to use here because AMERCO carries significant debt for its fleet purchases.

Stock Performance and Analyst View

The stock price trend over the last 12 months maps directly to the P/E story. The share price has fallen sharply, dropping by nearly 29% over the last year, hitting a 52-week low of $48.48 in November 2025, down from a high of $75.19. The price on November 20, 2025, was $49.21. This downward pressure is a clear signal of market concern over rising depreciation costs and losses on the sale of retired equipment, which have been hitting net income.

Still, the analyst community is surprisingly optimistic. The consensus rating on AMERCO is a Moderate Buy, with an average target price of $80.00. This target implies a potential upside of over 62% from the current price. What this estimate hides is the expectation that the company will successfully navigate the fleet replacement cycle and that earnings per share (EPS) will normalize, which would dramatically lower that high P/E ratio.

Dividend Policy and Actionable Insight

AMERCO is not a stock you buy for income. The company maintains a minimal dividend, with an annual dividend of $0.20 per share, translating to a low dividend yield of about 0.44%. The payout ratio-the percentage of earnings paid out as dividends-is a modest 16.85%. This low payout is a good thing, honestly, because it means the company is reinvesting most of its cash flow back into the business, primarily to fund its capital-intensive fleet and storage expansion.

To summarize the valuation, AMERCO is a classic value trap or a deep value play, depending on your conviction in the earnings recovery. The market is pricing in the current earnings weakness, but analysts see a clear path to a much higher share price once those earnings normalize.

Your next step should be to dig into the Breaking Down AMERCO (UHAL) Financial Health: Key Insights for Investors to understand the drivers behind the earnings decline-specifically the fleet depreciation and disposal losses-before making a move. Finance: model a scenario where EPS recovers to 2024 levels by Q2 2026 to stress-test the $80.00 target.

Risk Factors

You're looking at AMERCO (UHAL)'s core business, Moving and Storage, and seeing strong revenue growth, but the real story-and the near-term risk-is in the cost of keeping that massive rental fleet running. The biggest immediate headwind isn't a drop in demand; it's the high cost of equipment and the accounting fallout.

The core financial risk for AMERCO in the 2025 fiscal year was the fleet replacement cycle. The high prices paid for new trucks over the last two and a half years finally hit the income statement hard. This operational reality translated to a nearly $260 million reduction in earnings for the full fiscal year compared to fiscal 2024, driven by two factors: reduced gains on the sale of retired rental equipment and significantly increased fleet depreciation expense. That's a huge number.

Here's the quick math on the impact, using Q3 Fiscal 2025 (ending December 31, 2024) as a concrete example:

• Reduced gains from equipment disposal: $32.7 million decrease.
• Increased fleet depreciation expense: $34.2 million increase.

This dynamic caused net earnings available to shareholders to drop to $367.1 million for the full fiscal year 2025, down from $628.7 million the year before. The company's operating margin in Q3 2025 was 12.7%, a sharp fall from 18.4% in the prior-year quarter. Still, management is defintely taking action, increasing depreciation to recognize the expense now and noting that the truck acquisition and sale markets are showing improvement. That's the mitigation strategy: bite the bullet on depreciation now and wait for the supply chain to normalize.

Beyond the fleet, you need to keep an eye on external and financial risks. AMERCO's total debt stood at approximately $7.23 billion as of March 31, 2025, with a net debt to EBITDA ratio of 3.9. While 93.9% of that debt is fixed-rate, any significant increase in interest rates could still pressure the remaining variable debt or the cost of refinancing. Also, macroeconomic volatility, especially concerns around tariffs and trade policies, continues to be a factor that can impact their stock price and overall market conditions. You can read more about their core philosophy here: Mission Statement, Vision, & Core Values of AMERCO (UHAL).

What this estimate hides is the competitive landscape. While AMERCO dominates the self-moving market, the self-storage business is highly fragmented and competitive. The company must continue its expansion-which added 39,197 average occupied rooms in FY2025-to maintain its edge against local and national rivals.

Growth Opportunities

You need to know where AMERCO (UHAL) is building its future, especially after a fiscal 2025 where net earnings available to shareholders dropped to $367.1 million from $628.7 million the prior year. The core growth story is a classic two-part strategy: double down on real estate and digitize the customer journey. It's about asset scale and operational efficiency.

The biggest near-term opportunity is the Self-Storage segment. You saw this segment's revenue jump by a solid 8.0% in fiscal 2025, adding $66.8 million to the top line. This is a deliberate expansion, adding new locations and increasing total rentable square footage. Think of it as a defensive moat: real estate holdings provide a stable, appreciating asset base that balances the volatility of the moving business.

Here's the quick math on their expansion:

• Self-Storage Revenue Growth (FY2025): 8.0% ($66.8 million increase).
• Moving and Storage EBITDA (FY2025): Increased by $51.7 million to $1,619.7 million.
• U-Box Revenue Driver (FY2025): Contributed to an 8.5% rise in other Moving and Storage revenue.

The U-Box portable storage program is a defintely a strategic initiative, driving an 8.5% increase in other Moving and Storage revenue for fiscal 2025. They are actively expanding the program's reach with more warehouse space and containers. This product innovation directly challenges containerized moving services like PODS and helps diversify revenue beyond the core truck rental business. It's a smart way to capture customers who need flexibility but don't want to drive a truck.

For the rental fleet, the focus is on modernization and optimization, which is a necessary but costly investment. High fleet replacement prices reduced earnings by nearly $260 million in fiscal 2025 compared to the prior year, so they need to see a return on that capital expenditure (CapEx) soon. Still, the Self-moving equipment rental revenues did increase by $100.8 million, a 2.8% rise, showing demand is still there.

Analyst estimates for the upcoming fiscal year 2026 (ending March 2026) project an annual GAAP Earnings Per Share (EPS) of around $1.85, but you need to watch the quarterly results closely. For example, the FQ3 2026 (December 2025) GAAP EPS estimate is actually a loss of -$0.24 on an estimated revenue of $1.44 billion, which shows the business remains highly seasonal and sensitive to economic headwinds.

AMERCO's competitive advantage is its unmatched network density and vertical integration-owning the trucks, the real estate, and the brand. No competitor can match the sheer number of locations or the ability to cross-sell moving, storage, and insurance services. They are also investing in technology, like advanced online booking and mobile apps, to streamline the rental process, which is crucial for retaining the modern customer. You should check out Exploring AMERCO (UHAL) Investor Profile: Who's Buying and Why? for a deeper dive into who is betting on this strategy.

To summarize the core growth drivers:

Your action item is to track the self-storage occupancy rates and U-Box transaction volumes in the next two quarterly reports. If same-store occupancy, which was at 91.9% in Q4 FY2025, starts to fall significantly, it will signal a slowdown in their most reliable growth engine.