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CEO Drew Wilkerson and CFO Jamie Harris clarified that growing LTL is not an "either/or" choice against truckload; rather, LTL wins are a direct result of strong truckload relationships and offer margin stability. Regarding the buyback, Harris stated that while it's a key pillar of capital allocation, the company is mindful of its 2.1x leverage ratio, which is at the high end of its target range, making balance sheet health a priority.

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CFO Baris Oran explained the lower CapEx was not due to slowing growth but rather a flexible approach where some customers opt to fund the capital themselves; he reiterated the full-year target of 2.5%-3% of revenue. CEO Malcolm Wilson praised incoming CEO Patrick Keller as a 'seasoned leader' and expressed confidence in his ability to lead GXO's next chapter, stating he would need time to formulate his own strategy.

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CEO Mark Rourke clarified that they are outlining the 'case for tightening' based on factors like regulatory enforcement, not predicting an exact inflection point, and characterized their outlook as 'prudently' optimistic. On the rail merger, he firmly reiterated that Schneider has not taken a position, is still in a learning mode, and will ultimately support outcomes that are pro-competition and pro-customer, as 'details matter.'

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CFO Darrell Campbell clarified that the Q4 insurance expense spike was due to a $7 million reserve adjustment for a few prior-year claims and is not a normal run rate. CEO Mark Rourke stated the dedicated fleet exited 2024 at roughly 8,500 units and is expected to grow through new business wins, with a focus on also improving revenue per truck by deploying underutilized assets.

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CEO Mario Harik opined that the FedEx Freight separation would be a positive for the industry, as it would likely reinforce a focus on price discipline and margin expansion, which are key for a standalone LTL carrier. He stated that FedEx is a great competitor today and will remain so tomorrow, not anticipating a significant change in competitive dynamics.

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CEO Keith Creel confirmed he has had 'encouraging and positive' conversations with other railroad CEOs but declined to share specifics. EVP & CMO John Brooks added that customer calls have been active, with shippers trying to understand the likelihood and risks of the deal. He noted that the risk of poor operational performance during a complex integration is a major concern for customers, who will want to see a detailed plan from the applicants.

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EVP & CFO Adam Satterfield explained that the wage increase is a primary driver of the typical 200-250 basis point sequential OR deterioration in Q4. He reiterated that any outperformance is revenue-dependent and the focus remains on cost control. He stressed that the company continues to invest for the long term, citing nearly $2 billion in CapEx during the downturn, which creates short-term headwinds but positions ODFL for future leverage.

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EVP & CFO Adam Satterfield confirmed the wage increase is a primary driver of the typical Q4 operating ratio deterioration. He said overall performance remains revenue-dependent but emphasized their long-term strategy of investing through the cycle. He noted they have spent nearly $2 billion on CapEx during the downturn, which creates short-term cost headwinds but positions them for significant leverage when the economy recovers.

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Alain Bedard, President, CEO & Chairman, affirmed the sustainability of cash flow, stating TFI is a 'cash cow' and could approach $1 billion in free cash flow in a normal environment. CFO David Saperstein detailed LTL service initiatives, including improving billing accuracy with new software, reducing cargo claims with better handling, cutting missed pickups through cultural and system changes, and enhancing on-time delivery.

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CFO Jennifer Hamann explained that the approach is to partner deeply with customers to design the specific service products they need, rather than offering a one-size-fits-all solution. She highlighted speed of decision-making and execution as key differentiators. EVP Kenny Rocker added that ensuring high car supply and order fulfillment is another critical factor in winning incremental business from customers.

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CEO Adam Miller responded that increased market transparency, driven by third-party data available to all parties, simply makes cycles move faster in both directions. He noted that brokers are a function of small-carrier capacity. As customers experience service failures from over-reliance on the spot market, they often return to asset-based carriers like Knight-Swift via mini-bids, frequently at higher rates. Miller asserted that long-term margin targets are achievable as they are ultimately driven by supply and demand, not just transparency.

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EVP & COO Mike Cory explained that while weather improved, the recovery was driven by a deliberate four-part plan: managing cars online, selectively adding locomotives, protecting the bulk network, and creating mainline capacity. He affirmed this focused approach is the new operational standard and expects metrics to improve further upon completion of the Howard Street and Blue Ridge projects.

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CFO Ghislain Houle explained that while a large portion of CapEx is for maintenance, growth capital is directed at high-return projects, primarily in Western Canada, that exceed internal IRR thresholds. CEO Tracy Robinson added that growth investments are often supported by commercial contracts that protect returns, and that the company is focused on improving capital efficiency.

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