Joe Hoffman's questions to RXO Inc (RXO) leadership • Q3 2024
Question
Joe Hoffman, on for Stephanie Moore at Jefferies, asked about expectations for the upcoming peak season and whether the UPS business acts as a margin headwind in Q4. He also inquired about feedback from retail and industrial customers.
Answer
CEO Drew Wilkerson confirmed that while overall customer mix impacts Q4 gross margin, the UPS partnership is profitable and presents growth opportunities. CSO Jared Weisfeld reported that retail customer inventory levels are healthy, creating potential for restocking, while the industrial sector remains weak, consistent with declining ISM data, which has impacted RXO's industrial volumes.