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President, CEO & Director Shawn Stewart confirmed new business wins across truckload, international airfreight, and ground services. CFO Jamie Pierson added that the combined platform has enabled wins that were not possible on a standalone basis. Regarding add-backs, Mr. Pierson clarified that the vast majority of 'other' adjustments, such as non-cash stock compensation and facility closing costs, are non-cash or restructuring-related and are managed at the corporate level for better visibility.

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CFO Jamie Pierson stated the company is not yet providing a detailed air/ocean profit breakdown but confirmed air revenue is slightly larger than ocean. CEO Shawn Stewart cautioned that traditional seasonality is 'out the window' but described a typical pattern of a soft Q1 followed by a ramp-up in Q3 and Q4. He emphasized that consumer confidence is the key indicator they are currently watching.

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CFO Jamie Pierson indicated that achieving positive free cash flow is highly feasible once one-time transaction costs are past, noting the business was cash flow positive in the second half of 2024. He confirmed that for both the forwarding and asset-light LTL segments, EBITDA is a strong proxy for unlevered free cash flow. Both Pierson and CEO Shawn Stewart added that Omni's profits are driven by a diverse portfolio including air/ocean forwarding, warehousing, and VAS, with plans for more detailed segment reporting in the future.

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CFO Jamie Pierson confirmed a $32 million consolidated EBITDA cushion as of Q3 and expressed confidence in managing compliance as covenants tighten, supported by a new rolling forecast process. He explained that Omni's diverse mix of services makes KPIs difficult but announced plans to change the reporting structure to a product-focused view (ground, air, ocean) starting in Q1 2025 to provide greater clarity.

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Phillip Yeager, President & CEO, identified the new Final Mile business as the largest driver, with onboarding expected in late Q3 and Q4. He specified the Martin acquisition is anticipated to be accretive by $0.01-$0.02 in Q4 2025 and achieve mid-single-digit accretion in 2026. CFO Kevin Beth added that the Final Mile wins are expected to be accretive to the overall logistics segment margins, highlighting the success of integrating previous acquisitions.

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Executive Phillip Yeager explained that guidance scenarios are based on a variety of potential outcomes, from a quick rebound (high-end) to a prolonged slowdown impacting consumers (low-end). He noted customer reactions are mixed, but inventories are not yet overstocked. CFO Kevin Beth added that the guidance incorporates public data and that non-Intermodal businesses offer some resilience. Yeager projected that visibility for holiday shipping should emerge in the late June to early July timeframe.

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CFO Kevin Beth reaffirmed the company's expectation to achieve the 100-basis point improvement in Logistics margin, noting the cost savings would more than offset the restructuring costs. Executive Phillip Yeager added that the annual benefit is estimated at $18 million for a $13 million investment, and he expects strong sequential margin improvement from Q4 to Q1 in Logistics. On M&A, Yeager stated that the company has the right service offerings but will continue to look for opportunities to build scale, with a focus on non-asset logistics segments and a very good pipeline for an active M&A year.

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CEO E. Jean Savage stated that Q2 represented the bottom of the cycle, with deliveries and margins expected to improve sequentially through year-end. She expressed confidence that operational efficiencies will enable a quicker margin recovery as volumes return toward the 40,000 industry delivery level targeted at Investor Day. CFO Eric Marchetto explained the tax credit purchase was for the 2024 tax year, noting that new legislation will significantly reduce future cash tax burdens and that broader clarity on taxes and trade should help customers underwrite new investments.

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CEO Jean Savage explained that the FLRD's fluctuation is due to the mix of car types renewing over the next 12 months, whereas the 29.5% renewal rate reflects the specific mix from the just-completed quarter. CFO Eric Marchetto confirmed Q2 is expected to be a low point, driven by lower Rail Group deliveries and back-end weighted gains on car sales, while leasing revenue should steadily improve. Marchetto also noted the new $1.1 billion term loan was an attractive opportunity to refinance and upsize existing bank debt, though the ABS market remains a viable future option.

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CEO Jean Savage stated that both deliveries and orders are expected to be stronger in the second half of 2025, pending clarity on tariffs. She confirmed that contracts contain escalation clauses to pass through tariff costs, though the company is actively working to mitigate these impacts. Savage also noted that leases for cars on Trinity's balance sheet have similar escalation capabilities to account for cost changes.

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CEO Jean Savage clarified that the full-year margin guidance would be at the high end of the 6-8% range, driven by improved labor and operational efficiencies. She attributed the recent order slowdown to customer caution ahead of the election and a return to normal lead times, but noted strong underlying demand fundamentals and a robust Q4 order pipeline. CFO Eric Marchetto added that a high 78% lease renewal rate signals customer confidence. Marchetto also confirmed the secondary market remains robust, leading to higher gains and lower net fleet investment. Savage concluded that with 48% of the lease fleet repriced, the balanced market continues to support strong, double-digit FLRD and sequential lease rate growth.

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CEO Mario Harik explained that the core philosophy is shareholder value creation. With meaningful free cash flow expected, the company will both pay down debt and buy back shares, with the ratio depending on the stock's valuation. He called this an underappreciated lever for future value creation. CFO Kyle Wismans added that the lower restructuring costs relate to completed cost-takeout initiatives that will contribute to future earnings growth and OR outperformance.

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EVP & CFO Adam Satterfield stated that Q4 typically sees a 0.3% sequential revenue-per-day decrease and a 200-250 basis point increase in the operating ratio. For a recovery, he believes a long-term incremental margin of 35% is still a reasonable expectation, which would support a return to a sub-70% operating ratio over time.

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EVP & CFO Adam Satterfield outlined typical Q4 seasonality as a 0.3% sequential revenue-per-day decrease and a 200-250 basis point operating ratio increase. For a recovery, he stated that while the recent sequential incremental margin was high, a long-term average of 35% is a reasonable expectation, which would support a return to a sub-70% operating ratio over time.

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CFO Adam Satterfield downplayed the impact of UPS's focus on 'tweener' freight, noting it's a small part of the market and not a focus for ODFL. He mentioned that both industrial and 3PL business performed slightly better than the company average in Q1 and that he expects freight consolidated into truckload to eventually return to the LTL network.

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CFO Adam Satterfield stated that lower-weight freight is not a focus for ODFL, whose average shipment is 1,500-1,600 lbs, and he doesn't see UPS's move as a major industry disruption. He noted that industrial business (55-60% of total) and 3PL business both performed well in the quarter.

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CFO Adam Satterfield noted that business from 3PLs is performing well and expects the industrial segment to strengthen. President & CEO Marty Freeman addressed talent retention, expressing confidence in the 'OD family culture,' competitive compensation, and extremely low employee turnover (less than 1%), stating he is not concerned about losing salespeople.

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CFO Adam Satterfield outlined typical seasonality for the operating ratio: a deterioration of about 100 basis points from Q4 to Q1, followed by a significant improvement of 400 to 450 basis points from Q1 to Q2. He noted this improvement is driven by revenue acceleration and operating leverage on fixed costs.

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President & CEO Bob Lyons explained that the due diligence process was largely complete before the transaction was announced in May, and no surprises have emerged since. He stated that all initial assumptions about the deal are holding firm. However, he noted that GATX will not provide specific details on financial accretion or synergies until the transaction closes, which is anticipated in Q1 2026 or sooner.

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President and CEO Robert Lyons stated that GATX typically reassesses guidance mid-year and the first quarter performed as expected, so reiterating was standard procedure. Paul Titterton, EVP and President of Rail North America, affirmed that the supply-led market thesis remains intact, with high new-car costs supporting the value of the existing fleet. Lyons identified European rail as the segment with the most current uncertainty and noted that sequential lease rate changes showed no significant delineation between tank and freight cars.

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Paul Titterton, EVP and President of Rail North America, described lease rates as strong and relatively flat sequentially. President and CEO Robert Lyons added that the LPI is expected in the mid- to high 20% range for 2025. EVP and CFO Thomas Ellman clarified that about half the fleet has been repriced to date. Lyons affirmed the strong partnership with Rolls-Royce, stating the bulk of engine leasing investment will continue through the JV.

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EVP and CFO Tom Ellman attributed the guidance increase primarily to stronger-than-expected remarketing gains in Rail North America, noting other segments were performing in line with initial expectations. President and CEO Bob Lyons addressed the secondary market, stating it remains robust with strong demand from a diverse buyer base, supported by GATX's high-quality assets and leases. Lyons also confirmed that about half of the North American fleet has been repriced at higher post-2022 rates and provided a generally positive outlook for 2025, citing a favorable lease pricing environment.

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CFO David Saperstein projected full-year free cash flow to be in the $700 million range. For Q4 seasonality, he advised looking at the Q3-to-Q4 2024 trend for the Truckload segment. He noted that the significant LTL margin compression seen in Q4 2024 was an aberration due to losing SMB business and would not be repeated, though some seasonal pullback is normal.

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Executive Alain Bedard reiterated that the long-term plan remains intact but the timeline has been delayed. He stated that any large M&A is unlikely until 2026, and a spin-off of the Truckload division is now more likely a 2027 event. Before any major strategic moves, he emphasized the need to first improve the Truckload OR to best-in-class levels and, most critically, to successfully turn around the U.S. LTL business to achieve a sub-90 OR.

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EVP of Operations Eric Gehringer explained that the company's strategy involves a mix of modernization programs, overhauls, and daily shop investments to ensure fleet reliability and efficiency. He stated that while the distribution of spending across these three buckets may change based on fleet condition and traffic mix, all three remain critical components for delivering a consistent service product.

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CEO Vincenzo Vena expressed optimism for a continued strong and transparent relationship with the STB, highlighting a shared goal of providing good service. EVPs Kenny Rocker and Eric Gehringer added they are encouraged by the potential for quicker decisions and faster movement on service-related matters, which benefits both the railroad and its customers.

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CEO Rafael Santana expressed confidence, stating that Wabtec has strong partnerships with the railroads involved and that past mergers have been positive for all parties. Regarding contracts, he highlighted that Wabtec has its strongest-ever pipeline, with significant interest in new locomotives, and he is confident this will convert into backlog growth and provide visibility into 2026 and beyond.

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CEO Rafael Santana described Wabtec's North American footprint as 'largely localized' and 'quite balanced' under USMCA. For international markets, he explained it's a balancing act between sourcing competitive local content (like fabrication) and leveraging global scale for critical imported components (like controls and engines). He emphasized that the approach is well-balanced to manage these dynamics.

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CEO Rafael Santana confirmed active discussions with North American customers for both new units and mods but declined to break down the growth components. He announced that the Evolution fleet modernization is currently in testing and is expected to be fully commercialized by the end of next year, with a more significant impact in 2027, offering up to 7% in fuel savings.

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CEO Rafael Santana responded that the North American market remains mixed and customer-specific. He emphasized that demand continues for both new and modernized locomotives, driven by customer investments in cost reduction, reliability, and efficiency to improve operating ratios, rather than solely for carload growth.

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CEO Tracy Robinson declined to speculate on hypothetical mergers, stating that the company's focus is on executing its own strategic plan. She firmly reiterated that in any industry scenario, CN would "very rigorously defend our competitive access and our growth prospects."

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CEO Tracy Robinson confirmed that CN is seeing some of this activity, though she noted it was part of ongoing work predating the most recent tariff news. She gave a specific example of growing business in recreational vehicles that were once transported by truck, which aligns with the strategy for their Falcon interline service.

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EVP & CFO John Kuhlow confirmed there has been no change to the company's capital allocation strategy. He explained that with growth capacity pre-funded and strong free cash flow, the company is opportunistically repurchasing shares while prioritizing its dividend and maintaining a target leverage of 1x EBITDA. Buybacks are a primary use for excess cash flow.

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CFO John Kuhlow responded that bid compliance was strong during the quarter as customers returned to normal seasonal trends, which improved their forecasting. He stated that, as of now, these customers have not changed their demand forecasts with J.B. Hunt.

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Bradley Hicks, President of Dedicated Contract Services, explained that while agreements vary, losses stem from customer fleet reductions, bankruptcies, and competitive bids. He noted that the pace of these losses slowed during 2024, which, combined with a strong sales pipeline, gives them optimism about returning to net fleet growth later in the year.

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CEO Shelley Simpson stated that she does not see the company's profile changing significantly. She expects the two largest segments, Intermodal and Dedicated, to remain the primary growth drivers due to their large addressable markets, with margin profiles returning to historical target ranges once the current freight cycle normalizes.

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Justin Roberts, VP of Financial Operations, provided a Q4 forecast for interest expense and noted the unpredictability of FX, while giving directional guidance for unconsolidated affiliates and non-controlling interests. CEO Lorie Tekorius and EVP Brian Comstock explained that production rates have already been adjusted throughout the year. They emphasized that the 19,000-unit backlog provides strong visibility and that they are seeing increased inquiry levels and pent-up demand, giving them confidence in future production.

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Executive Justin Roberts indicated that production volume is expected to remain steady through the fiscal year, with a mix shift towards more commoditized cars in the second half. He noted the recent pickup in the order pipeline provides confidence in filling open production slots. Roberts attributed the expected margin tapering primarily to this product mix shift and a degree of caution. CFO Michael Donfris explained the constructive cash flow outlook is driven by strong margins, manufacturing efficiencies, disciplined capital deployment, and a global focus on working capital management.

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Brian Comstock, EVP and President of the Americas, explained that confidence in the delivery guidance stems from a product mix shift in the latter half of the year and a strong secured backlog. Justin Roberts (executive) added that the first 6-7 months of the fiscal year have very solid production visibility. CEO and President Lorie Leeson confirmed that the EPS estimate was 'spot on' and expects continued improvement in fiscal 2025. Regarding leasing, Brian Comstock noted that the lack of speculative orders from lessors has benefited builders and has been a trend for 4-5 years, while Lorie Leeson added that the market is showing more disciplined behavior, which is positive for the industry.

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EVP & CFO John Dietrich provided the specific figure, stating that capital expenditures for the FedEx Freight segment in fiscal 2025 were $437 million. The response did not detail the expected trend for fiscal 2026.

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EVP & CFO John Dietrich provided the specific figure, stating that capital expenditure for the FedEx Freight segment was $437 million in fiscal 2025.

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EVP and Chief Customer Officer Brie Carere explained the focus of the new sales team is on profitable growth and gaining deep LTL expertise. She noted the team will also help grow share in the small and medium customer segment. The hiring process is underway and will continue through the next fiscal year.

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Executive James Todd clarified that the company is currently accruing about $12 million for 2025 compensation, down from a normalized expectation of $21 million. He indicated that a return to normal levels in a hypothetical 2026 recovery would therefore create a $9 million headwind as costs normalize.

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CFO Baris Oran clarified that the matter does not impact the 2025 adjusted EPS or tax rate. The company has an accrual of $66 million against an initial challenged amount of $91 million and expects to reach a settlement consistent with the accrued amount in 2025. The cash has already been reflected in leverage levels since Q3 2024.

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CEO Malcolm Wilson stated that it was not the right time to revisit long-term targets, citing the ongoing CEO transition and uncertainty around the Wincanton integration timing. He explained that the prolonged CMA regulatory review has created prudence in the timing of realizing the expected $55 million in synergies, pushing more of the benefit into 2026. He indicated an update would come once there is more clarity on these factors.

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CFO Baris Oran confirmed that the trend of sequential organic growth improvement is expected to continue into 2025, leading to an acceleration of growth compared to 2024. He stated that Q4 of last year was the clear bottom. While not providing specific 2025 guidance, Oran emphasized that the direction is "clearly up" and that further commentary would be provided on the Q4 earnings call.

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Arun Rajan, Chief Strategy and Innovation Officer, stated that while recent >30% productivity gains aren't sustainable at that level, improvements will be "evergreen" with a long runway to meet 2026 targets. CEO David Bozeman emphasized that continuous improvement is now embedded in the company culture and is expected to persist through all market cycles, not just as a one-time project.

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CFO Damon Lee stated that there has been no pivot or change from the targets and strategy laid out at the December Investor Day. He reiterated that the company feels good about the path to achieving its 2026 goals and noted that the provided financial range was designed to account for market uncertainty. The focus remains on controlling internal execution and maintaining discipline.

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CEO Derek Leathers stated that market uncertainty is causing customers to prioritize execution certainty, leading to constructive conversations and a shift from spot to contract freight. CFO Chris Wikoff added that bid season retention has been strong, with contractual rates increasing in the low-to-mid-single-digit percent range. Leathers also noted that awarded bid volumes are tracking closer to actual freight volumes this year, with underlying demand from discount retailers remaining resilient.

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Executive Adam Miller stated that while some bids were implemented in Q1, the majority will hit in Q2, with some large customers in early Q3. He clarified that the decision to suspend Q3 guidance is driven more by uncertainty around volume, not pricing. The concern is that even with bid awards, customers might not tender the expected number of loads due to supply chain disruptions, which creates a significant challenge in forecasting network balance and volume for Q3.

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Brad Stewart, an executive, stated that they expect meaningful improvement in earnings and free cash flow for the year. He clarified that the 2025 focus is on driving efficiency in the existing LTL network, not aggressive expansion. This strategy should generate healthy free cash flow, with the primary use being deleveraging, followed by opportunistic share buybacks.

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Executive Adam Miller advised that historical seasonality is difficult to apply because the company's composition has changed significantly with the LTL expansion and U.S. Xpress acquisition. Executive Brad Stewart added that the subdued truckload market has dampened typical seasonality, which would likely return with greater amplitude in a stronger market.

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CEO Joseph Hinrichs defended the strategy's prior success, pointing to industry-leading rail margins in previous years. He affirmed that the 3-year financial thesis from the November Investor Day is still intact and that 2026-2027 is the right timeframe for judgment. However, he emphasized the immediate priority is to restore network performance and confidence.

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CEO Joe Hinrichs expressed optimism about a more supportive regulatory environment. He highlighted the importance of getting more technology into the inspection side of the industry and working with union partners. He feels the current leadership at the STB and FRA understands the benefits of growing rail volume and is focused on data-driven progress, which should help advance safety and technology initiatives.

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CEO Carol Tomé acknowledged the accelerating rate of change, citing generative AI as a potential driver of productivity. She noted that UPS is focused on creating customer 'stickiness' through differentiated, complex logistics. She gave examples of proactively filling competitive gaps, such as launching an economy product in Europe and expanding weekend services, both of which are seeing double-digit growth. President, International, Europe, Indian Subcontinent, Middle East & Africa Kathleen Gutmann confirmed the success of these initiatives.

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Executive Matthew Guffey stated that UPS is working quickly to find a mutually agreeable solution with the USPS. CEO Carol Tomé confirmed there are both challenges and opportunities in the negotiation and that an update would be provided on the fourth-quarter earnings call, with no financial impact expected in Q4.

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EVP and Group President Jim Filter attributed the resilience to structuring multiyear dedicated solutions that are difficult to replace with network freight and focusing on specialized verticals. CEO Mark Rourke added that recent acquisitions have diversified their dedicated portfolio into new verticals like automotive and specialty retail, enhancing its stability.

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CEO Mark Rourke suggested the market is at or near a bottom after a 'long slog' of slow supply erosion, which is helping in rate discussions as customers also sense a turn. CFO Darrell Campbell noted their visibility is limited to their brokerage's smaller carrier community. EVP Jim Filter added that customers are increasingly conducting strategic reviews of their carriers' financial health, looking for stability from partners like Schneider.

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CEO Mark George described the board as 'remarkably unified,' with new and existing members having 'congealed in a beautiful way.' He stated their primary objective is to support the management team and its strategy, which they believe is yielding results. He characterized the dynamic as supportive and coaching-oriented, with management feeling fully supported.

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