The U.S. Senate passed the 'One Big Beautiful Bill Act' (OBBBA) on July 1, 2025, which permanently reinstates 100% tax bonus depreciation. This legislative action is expected to have a significant positive impact on companies with substantial capital expenditures, including Ryder System, Inc.
For Ryder, the permanent reinstatement of 100% tax bonus depreciation is projected to reduce its U.S. federal cash tax liability by approximately $200 million in 2025. This measure is also expected to defer federal tax payments for several years, substantially bolstering the company's cash flow.
The passage of this bill provides greater clarity and financial flexibility for Ryder, allowing it to further invest in profitable growth and strategic initiatives. This regulatory change is a key factor in the company's increased free cash flow forecast for 2025, which was later raised to $900 million to $1 billion.
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