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    Christyne McGarvey • Morgan Stanley

    Christyne McGarvey's questions to TFI International Inc (TFII) leadership

    Christyne McGarvey's questions to TFI International Inc (TFII) leadership • Q1 2025

    Question

    Christyne McGarvey inquired about the factors driving the Q2 earnings guidance, the potential full-year outlook amidst macro uncertainty, and the sources of operating pressure within the U.S. LTL segment.

    Answer

    Executive Alain Bedard explained that the Q2 EPS guidance of $1.25 to $1.40 is based on April trends, but full-year visibility is limited due to tariff uncertainty impacting the specialized truckload business. He noted that U.S. LTL performance was disappointing in Q1 but is improving following leadership changes and a strategic shift to refocus on higher-margin small and medium-sized accounts. Executive David Saperstein added that the Q1 LTL operating ratio decline was consistent with typical seasonality.

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    Christyne McGarvey's questions to Ryder System Inc (R) leadership

    Christyne McGarvey's questions to Ryder System Inc (R) leadership • Q1 2025

    Question

    Christyne McGarvey of Morgan Stanley asked about Ryder's earnings profile and resilience in a potential consumer recession, questioning the specific macroeconomic assumptions embedded in the low end of the company's updated guidance.

    Answer

    Chairman and CEO Robert Sanchez stated that the updated outlook reflects a more muted economic environment. He clarified that the low end of the guidance range assumes further deterioration in the transactional businesses, namely rental and used vehicle sales, during the second half of the year. He emphasized that even at the low end, Ryder anticipates year-over-year earnings growth, driven by the stability of its contractual portfolio and approximately $70 million in benefits from strategic initiatives.

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    Christyne McGarvey's questions to Ryder System Inc (R) leadership • Q4 2024

    Question

    In a follow-up question, Christyne McGarvey asked about the potential financial impact on Ryder if there were a policy change related to bonus depreciation.

    Answer

    Cristy Gallo-Aquino, EVP and CFO, responded that a favorable change involving bonus depreciation and interest deductibility could present an opportunity to lower Ryder's cash taxes by approximately $200 million. She noted the final impact would depend on the legislation's specifics and timing.

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    Christyne McGarvey's questions to Ryder System Inc (R) leadership • Q3 2024

    Question

    Christyne McGarvey from Morgan Stanley asked for details on the rental seasonality Ryder has observed so far in the fourth quarter and how that might affect the company's ability to reach the higher end of its Q4 guidance range.

    Answer

    Tom Havens, President of Fleet Management Solutions, addressed the question. He explained that the uptick in demand seen in Q3 was seasonal but on the lower end of historical patterns. For Q4, he stated that Ryder has not seen any signs of a market recovery beyond the normal seasonal demand increase typically associated with the Thanksgiving and Christmas holidays, which is what the company is currently expecting.

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    Christyne McGarvey's questions to GXO Logistics Inc (GXO) leadership

    Christyne McGarvey's questions to GXO Logistics Inc (GXO) leadership • Q4 2024

    Question

    Christyne McGarvey of Morgan Stanley asked about the shape of the sequential improvement expected throughout 2025 and inquired about the CEO succession process following Malcolm Wilson's announced retirement.

    Answer

    CFO Baris Oran confirmed that beyond normal seasonality, GXO expects sequential improvement each quarter in 2025, with Q1 being the most impacted by start-up costs and customer realignments. CEO Malcolm Wilson shared that the Board is conducting a thorough search for his successor, expecting to identify a candidate in the coming months, and he is committed to ensuring a seamless transition.

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    Christyne McGarvey's questions to Hub Group Inc (HUBG) leadership

    Christyne McGarvey's questions to Hub Group Inc (HUBG) leadership • Q4 2024

    Question

    Christyne McGarvey of Morgan Stanley requested details on the mid-single-digit brokerage volume growth guidance, asking about visibility from the bid season and the expected mix between LTL and truckload. She also inquired about potential operating leverage in the Dedicated segment during a market upcycle and the ease of adding capacity to existing contracts.

    Answer

    Executive Phillip Yeager explained that brokerage volume growth is supported by continued strength in LTL and new wins with strategic customers. He noted the guidance is conservative and has strong upside if the spot market tightens. Regarding Dedicated, Yeager stated that contracts are long-term and based on factors like driver wages. In an upcycle, the company is well-positioned to add capacity to support customers, which would drive revenue growth and potentially bring new market opportunities.

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    Christyne McGarvey's questions to Union Pacific Corp (UNP) leadership

    Christyne McGarvey's questions to Union Pacific Corp (UNP) leadership • Q4 2024

    Question

    Christyne McGarvey of Morgan Stanley asked about the factors underpinning management's confidence in its 2025 service product and how the network is positioned to handle a potential aggressive snapback in volumes without disruption.

    Answer

    CEO Vincenzo Vena explained that the railroad is intentionally operated with a buffer of resources, including locomotives, railcars, and 20-25% excess track capacity. This strategy ensures the network can handle volume surges, like the recent international intermodal growth, and recover quickly from disruptions. He stated that a 10% volume increase would be a welcome challenge the company is prepared for.

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