The Bull Case For U-Haul Holding (UHAL) Could Change Following Rising Revenue But Weakening Profitability

• U-Haul Holding Company recently reported its second quarter and six-month earnings for 2025, showing higher revenue of US$1.72 billion for the quarter and US$3.35 billion for the six months but a significant decline in net income compared to the prior year.
• Alongside these results, U-Haul closed its long-operating Little Rock repair shop while opening a new, larger facility in North Little Rock, signaling a shift in regional operations and workforce allocation.
• With net income declining despite revenue growth, we'll assess how these results and operational changes could influence U-Haul's investment narrative.

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U-Haul Holding Investment Narrative Recap

To be a shareholder in U-Haul Holding, you need to believe the company can balance rising revenue with improved profitability, even as ongoing competitive and cost pressures bear down on margins. The recent news of higher revenue but sharply lower net income in the second quarter does not appear to alter the most important short-term catalyst, the company's ability to address fleet and cost management, while highlighting that escalating operational expenses remain the biggest immediate risk. For now, the impact of these developments on the broader investment thesis is not material but highlights the need for careful cost discipline.

One recent announcement that stands out is the opening of U-Haul's new 30,000-square-foot repair shop in North Little Rock, which replaces the long-running Little Rock facility. This move underscores how U-Haul is shifting resources to support fleet operations, which ties directly into the company's efforts to resolve fleet imbalances, a key catalyst for future performance.

By contrast, investors should be aware that sustained increases in personnel and operating costs could still...

Read the full narrative on U-Haul Holding (it's free!)

U-Haul Holding's narrative projects $6.3 billion in revenue and $709.9 million in earnings by 2028. This requires 2.8% yearly revenue growth and a $342.8 million earnings increase from $367.1 million today.

Uncover how U-Haul Holding's forecasts yield a $89.84 fair value, a 74% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community fair value estimates for U-Haul range from US$4.72 to US$89.84 across 2 analyses. With persistently higher operating costs weighing on recent results, your outlook may vary widely from others in the market.

Explore 2 other fair value estimates on U-Haul Holding - why the stock might be worth less than half the current price!

Build Your Own U-Haul Holding Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your U-Haul Holding research is our analysis highlighting 3 important warning signs that could impact your investment decision.
• Our free U-Haul Holding research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate U-Haul Holding's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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