Henry

Henry asked for an update on labor turnover numbers and driver academies, including the percentage of new driver hires expected to pass through them in the coming year, and the incremental benefit on labor turnover. Henry also inquired about the core pricing cadence over the course of the year, the expected sequential step down, and the visibility on full-year pricing guidance.

Answer

Ron Mittelstaedt (President and CEO) reported that driver academies, initially aiming for 35% of driver needs, achieved that in 2025 and are forecasting over 60% for 2026. He noted that retention rates for academy-trained drivers are almost double those not from academies, contributing significantly to improved turnover and expected better safety performance. Mary Anne Whitney (CFO) confirmed that pricing is expected to step down sequentially, starting above the 5%-5.5% average (e.g., 6%) and dropping. She stated that by Q1 reporting, they will have visibility on 65%-70% of price increases, including competitive and CPI-linked markets.

Henry with Truist Financial Corporation asked for an update on driver academies, including the percentage of new driver hires expected to pass through them in the coming year and the incremental benefit on labor turnover. Henry also inquired about the core pricing cadence over 2026 and the visibility on full-year pricing guidance.

Answer

Ron Mittelstaedt (President and CEO) reported that driver academies are exceeding expectations, with 60%+ of 2026 driver needs expected to be met internally (up from 35% in 2025). Retention rates for academy graduates are almost double, significantly contributing to improved turnover and expected better safety performance. Mary Anne Whitney (CFO) confirmed typical sequential step-down in pricing (starting north of 6% and dropping) and typical visibility for full-year pricing, with 65-70% known by Q1 reporting.