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    Andrew Baxter Cox • Stifel, Nicolaus & Company, Incorporated

    Andrew Baxter Cox's questions to Universal Logistics Holdings Inc (ULH) leadership

    Andrew Baxter Cox's questions to Universal Logistics Holdings Inc (ULH) leadership • Q2 2025

    Question

    Andrew Cox of Stifel Financial Corp. asked about the Q2 impact from tariffs, the potential for restocking, and how seasonality might trend for the remainder of the year. He also inquired about the progress and timeline for profitability initiatives in the Intermodal segment, the outlook for the auto OEM and Class 8 markets, and what levers Universal can pull if the top line remains challenged. Finally, he asked what is needed for the Trucking segment to return to growth and about the short and long-term impacts of new incentives on the wind energy business.

    Answer

    CEO Tim Phillips explained that tariffs primarily impacted the Intermodal division via discount retailers with Chinese sourcing, but he anticipates a normal cyclical uplift in Q3. He stated the goal for Intermodal is to return to profitability in Q3 or Q4 through enhanced sales efforts and operational centralization. Regarding the auto sector, Mr. Phillips remains optimistic for the second half of the year. CFO Jude Beres noted significant year-over-year volume declines in the Class 8 space, citing headwinds from tariffs and muted pre-buy activity due to rolled-back NOx standards. Mr. Beres also detailed that the Trucking segment's performance reflects a shrinking legacy agent business and a growing wind franchise, which is expected to improve in the second half. Mr. Phillips added that new wind energy incentives should provide a steady feed of projects over a five-year period, with activity picking up in 2027-2029.

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    Andrew Baxter Cox's questions to Universal Logistics Holdings Inc (ULH) leadership • Q3 2024

    Question

    Andrew Baxter Cox of Stifel inquired about the margin profile and synergy opportunities of the new Parsec acquisition, the financial and operational details of the company-managed brokerage closure, and whether the 2025 margin guidance is primarily driven by this strategic trade-off. He also asked about any hurricane-related impacts on the business and how the portfolio's strategic positioning might change following these moves.

    Answer

    Executive Tim Phillips explained that the Parsec acquisition offers significant synergies through new customer access and cross-selling with Universal's intermodal drayage services, noting a strong cultural fit. Executive Jude Beres added that Parsec's double-digit EBITDA margin profile aligns with their profitable Contract Logistics segment. Beres confirmed the brokerage closure is complete, detailing the unit's historical losses and the one-time shutdown costs, and affirmed that the positive 2025 margin outlook is a direct result of replacing this underperforming unit with two accretive acquisitions. Phillips noted minimal hurricane impact, and Beres concluded that the company is satisfied with its current portfolio, with the primary focus now on improving the intermodal business.

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    Andrew Baxter Cox's questions to Forward Air Corp (FWRD) leadership

    Andrew Baxter Cox's questions to Forward Air Corp (FWRD) leadership • Q1 2025

    Question

    Andrew Baxter Cox of Stifel asked about the Expedited segment's exposure to international markets, particularly China, and inquired about a potential Q1 volume pull-forward. He also questioned the competitive landscape for premium LTL services and the status of purchase transportation.

    Answer

    CEO Shawn Stewart clarified that international exposure is estimated to be below 10% and that a significant Q1 pull-forward was not observed. He asserted that while competitors exist, they lack Forward Air's comprehensive network, allowing the company to maintain pricing discipline. Stewart also described the company's purchase transportation management as 'best-in-class' and not a concern for 2025.

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    Andrew Baxter Cox's questions to Forward Air Corp (FWRD) leadership • Q4 2024

    Question

    Andrew Baxter Cox of Stifel inquired about Forward Air's preparations for potential tariff and trade disruptions and the company's perspective on competitors establishing new airport-to-airport networks.

    Answer

    CEO Shawn Stewart explained that the company does not anticipate a major impact from tariffs due to its diversified Asian presence outside of China and its limited exposure to the specific commodities mentioned for North American trade. Regarding competition, Stewart stated that Forward Air's strategy is to differentiate itself through superior service, technology, and visibility tools, rather than engaging in price wars, viewing competition as a catalyst for staying sharp.

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