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Chief Technology Officer Tom Muniz clarified that the 15% figure is about the same and that progress occurs in chunks, not as a smooth curve. He stated the hold-up is not a flight test issue but an administrative one, as they await the FAA's finalization of certain industry-wide policy papers. Once these are formally closed, Archer can submit its compliance reports, which will then increase the percentage.

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Executive Thomas Muniz clarified that the unlocked testing involves repeating flight envelope expansion tests, including failure scenarios, but now with a pilot on board as part of the formal TIA process. To track progress, Muniz highlighted that the FAA has accepted ~15% of final certification documents and that work with the UAE's GCAA is largely overlapping. CEO Adam Goldstein noted a specific progress metric for the GCAA was not available at this time.

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COO Thomas Muniz noted that conformity is being phased in across test aircraft and is pending FAA finalization of an industry-wide topic on emergency landings. CEO Adam Goldstein justified the defense project's timing by explaining that engineers are rolling off the maturing Midnight program and can be redeployed. He also highlighted a 'flywheel' effect where defense tech can later be certified for civil use. CFO Priya Gupta stated that the Q1 adjusted EBITDA guidance incorporates these efforts and that the company is leveraging existing resources for the defense program.

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Chief Operating Officer Thomas Muniz clarified that the SFAR's base 20-minute energy reserve requirement allows Archer to fly nearly all intended commercial missions. He noted the FAA also provided 'better than expected' flexibility with alternate compliance paths for longer missions. Muniz stated that executive Billy Nolen, who had mentioned airspace integration, was not available for the Q&A portion of the call.

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CFO Jamie Harris detailed that recent Last Mile growth was in a lower-margin model (mid-teens) operating from customer facilities, compared to the higher-margin hub model (30-40%). He explained that tech spend is governed by an investment committee evaluating ROIC and strategic value, citing the 30-50 basis point procurement improvement as a direct, measurable result of tech investment.

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CEO Drew Wilkerson stated that customer reactions to tariffs are mixed, with some pulling inventory ahead and others pausing. He noted that while it could impact truckload demand, the company's playbook is to focus on purchase transportation to improve profitability. He also mentioned that the biggest volume headwind is automotive, and its recovery would be a significant tailwind, more so than just easier comps.

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CFO Jamie Harris stated that achieving the $40 million in synergies would require a cash spend of approximately $25 million, with about half occurring in Q4 and the remainder next year. CEO Drew Wilkerson addressed the spot market, emphasizing that RXO's strong customer relationships, proven by its ability to win project freight in October, position it well to capitalize on a market turn, whenever it may occur.

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CFO Kevin Beth and CEO Phillip Yeager explained that while intermodal revenue seasonality was muted, they were pleased with the ITS segment's year-over-year margin improvement, driven by network efficiencies and favorable rail contracts that offset weakness in Dedicated. Mr. Beth anticipates sequential OI margin improvement in Logistics from cost savings and new Final Mile business. Mr. Yeager stated that intermodal revenue per load was down 9%, driven primarily by lower fuel and a mix shift to shorter hauls, with core pricing relatively flat.

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CFO Kevin Beth explained the CapEx guide was lowered to $40-$50 million, reflecting less fleet investment and new efficiencies in using equipment in Mexico. Executive Phillip Yeager clarified that Dedicated retention remains strong at around 90%, with losses being small sites converting to one-way truckload. He added that new wins are primarily in the retail and consumer sectors with high-performing companies in lanes where Hub Group has density.

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Executive Phillip Yeager affirmed that the strategy in an upcycle is to have the volume, which provides the ability to raise rates as an incumbent with good service. He stated the focus is on protecting network efficiency and seeking yield expansion in productive and head-haul lanes. CFO Kevin Beth confirmed that improving network balance is a constant focus, as it creates efficiency in repositioning costs and driver productivity, especially in balancing the western part of the network to support demand surges from Southern California.

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CEO Frank Lonegro and VP Matt Miller credited the stable BCO count to strategic initiatives in recruiting and onboarding, which resulted in the best gross additions in seven quarters. On heavy haul, VP Jim Applegate stated the business is primarily domestic and not significantly exposed to tariffs, though they are monitoring potential legislative impacts on wind energy.

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Chairman & CEO Robert Sanchez detailed that the high end of the guidance range assumes historical rental trends and a modest Q4 increase in used vehicle pricing, while the low end assumes flat rental and declining prices. He noted that the current CapEx decline is tied to lower lease and rental activity and should reverse in 2026 as the business cycle improves.

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Janet Drysdale stated her key focus is to build more "agility" into the commercial organization to adapt to evolving market dynamics. Her priorities include intensifying execution on the spot market, driving CN-specific growth initiatives, and adapting to new supply chain patterns, including potential shifts to offshore markets.

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Executive Chairman Paul Sciarra explained that the company maintains three go-to-market paths (direct sales, partnerships, and direct-to-consumer) to retain flexibility and adapt to market conditions. He added that non-DoD direct sales are being explored globally with a focus on credible, well-structured partnerships.

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Founder and CEO JoeBen Bevirt attributed the refined timeline for Dubai operations to strong momentum with regulators, but noted work remains and that they'll have better fidelity once the aircraft is testing in-market. On conformity, JoeBen Bevirt and Executive Chairman Paul Sciarra explained that progress is accelerating across all system levels. Paul Sciarra provided a key clarification: for Joby, 'conforming' means the FAA has approved the design, manufacturing processes, and test plans, directly linking this progress to their certification advancements.

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Didier Papadopoulos, President of Aircraft OEM, responded enthusiastically, stating the reserve requirements came out 'exactly where we wanted' and were planned for, posing no operational limitations. He explained that 'flexible pathways' refers to the SFAR allowing for tailored operational rules based on the specific mission profiles and designs of different eVTOL aircraft, which he views as a positive development.

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Darren Field, President of Intermodal, responded that the primary strategic focus for improving margins is growth. He stated that while they will focus on asset utilization and core pricing, there is no single new project or model that will unlock margins; rather, it's about growing the business together.

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