International growth offset softer U.S. service revenue
Quarterly service revenue increased 2.1% to $1.056B: international service revenue rose 17.9% to $160.6M, while U.S. service revenue declined 0.4% to $895.5M. Management attributed the U.S. decline primarily to lower volume, partly offset by higher revenue per car; excluding $8.7M of favorable currency effects, international growth reflected higher volume and revenue per car.
Nine-month U.S. comparison was affected by prior-year hurricanes
For the nine months ended April 30, 2026, total service revenue declined 0.4% to $3.000B. Management said the $56.3M U.S. decline was primarily related to one-time revenue associated with Hurricanes Helene and Milton recognized in fiscal 2025, partly offset by higher revenue per car; international service revenue increased $43.8M, or 11.4%.
Quarterly operating margin improved despite higher facility and G&A costs
Operating income represented 38% of total service revenue and vehicle sales in the three months ended April 30, 2026, versus 37% a year earlier. Facility operations expense rose 3.0% to $504.2M, driven by higher U.S. subhaul, labor, and insurance expenses and higher international cost to process a car, while G&A rose 7.5% to $108.3M.