U-Haul Holding Company

Good morning, ladies and gentlemen, and welcome to U-Haul Holding Company third quarter fiscal 2026 investor conference call. At this time, all lines are in a listen.

and general growth of our business may constitute forward-looking statements within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. Forward-looking statements are inherently subject to risk and uncertainties, some of which cannot be predicted or quantified. Certain factors could cause actual results to differ materially from those projected. For discussion of the risks and uncertainties that may affect the company's business, and future operating results, please refer to the company's public SEC filings and form 10-Q for the quarter ended December 31, 2025, which is on file with the U.S. Securities and Exchange Commission. I'll now turn the call over to Joe Schoen, Chairman of U-Haul Holding Company.

Good morning, everybody. As you read in the press release, we continue to have earnings pulled down due to excessive acquisition costs of vans and pickups in model years 23 and 24. This has hit earnings hard, and you can see it in increased depreciation and in originally declining gains on sale and now losses on sale of vans and pickups exiting the fleet. To a much lesser extent, the enormous post-COVID price increases on internal combustion engine vehicles is dogging our box trucks with elevated depreciation. We had been accumulating internal combustion engine fleet due to predicted declines in availability of ICE powered units going ahead. Now we are too heavy in fleet and the rental market is not responding with significant Transaction increases. We are working a plan to open more U-Haul dealership locations, which will put some of this excess fleet to work while earning a return. We will likely still be overfleeted, so we will need to increase sales of older, higher mileage trucks over the next 12 months. As best as I can tell, we are holding our own and then some in the self-storage industry. For nearly 24 months, we have been adding units faster than we are renting them up. This results in a surplus of unrented units. We're launching some initiatives intended to improve our rate of units rented over the prior year. The proof will be in the pudding. We'll see how that develops going into summer. We now have a significant UBOX presence at over 700 locations in North America. By that, I mean a significant warehouse and depot operation. This increases our capacity and the absolute number. Well, to the extent that UBOX is self-storage, UBOX is both moving and storage, but one's component is storage. To the extent UBOX is self-storage, this increases our capacity and absolute number of self-storage customers. We have over 200,000 UBOX containers in service and over 100,000 of them in the hands of customers. We have slowed our rate of adding UBOX warehouses as we have a workable present in most markets. However, in D.C., L.A., Boston, New York City, and the Bay Area, we are still underserved. In Canada, we are still light on UBOX capacity in Vancouver Island and Edmonton. We have projects in planning or in construction in all of these markets, and I plan to carry through on these capital expenditures. We continue to heavily invest in digital tools to meet what customers expect from the industry leader. Most of this investment is expensed in the current period. With that, I'll turn it back to Jason.