U-Haul Holding Company: U-Box Expansion in Major Metros—The Hidden Growth Engine?

U-Haul Holding Company reported a marked deterioration in quarterly profitability, reflecting elevated fleet-related costs, insurance reserve adjustments, and continued expansion spending. The company recorded a third quarter net loss of $37 million compared to earnings of $67 million in the prior-year period. Adjusted EBITDA in the moving and storage segment declined 11 percent, broadly mirroring the decrease in operating cash flow. The primary earnings headwind was depreciation and disposal losses on rental equipment, particularly cargo vans purchased during model years 2023 and 2024 at significantly elevated prices. As resale values failed to keep pace with acquisition costs, the company recorded a $26 million loss on disposals versus a gain a year ago, and increased depreciation rates to reflect revised residual assumptions. Fleet depreciation and disposal dynamics contributed approximately $75 million in incremental costs year over year. Revenue trends were more modest.