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CEO Drew Wilkerson stated that a favorable spot market is not needed for RXO to improve its own procurement costs relative to the market, as evidenced by recent gains. However, he conceded that for a broader, industry-wide inflection in profitability, a more active spot market with higher tender rejections is necessary. He noted that for large enterprise customers, routing guide compliance remains high, limiting spot opportunities.

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CSO Jared Weisfeld stated the Q2 outlook calls for a low single-digit year-over-year volume decline, with strong LTL growth mostly offsetting a high single-digit decline in truckload. He explained that LTL generally carries a higher gross margin percentage but a significantly lower gross profit per load compared to truckload, which is why strong LTL growth didn't fully offset the weaker TL results in Q1.

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CEO Drew Wilkerson stated that RXO is pleased with Coyote's performance relative to the soft market, emphasizing the long-term strategic value of increased scale and cross-selling opportunities. CFO Jamie Harris detailed that the restructuring charges primarily consist of costs related to eliminating redundant technology systems, real estate consolidation, and terminating vendor contracts.

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CEO Mario Harik expressed excitement for the next up-cycle, stating that XPO expects to achieve incremental margins comfortably above 40%, referencing a prior quarter where they reached 70%. He cited several drivers for this, including above-market yield growth, momentum with local customers, expansion of premium services, lower exposure to purchased transportation costs, and significant productivity gains from technology and AI, all supported by ample network capacity.

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Executive Mario Harik explained that pricing power is a direct result of XPO's improved service quality. He stated that customers understand the need for investment to maintain high service levels in an inflationary environment and are willing to pay a premium for reliable, on-time, and damage-free delivery for their critical freight within XPO's fast, nationwide network.

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CEO Mario Harik explained that customers are willing to pay for XPO's substantially improved service quality. He noted that in a capacity-constrained industry, customers understand the need for continued investment. He also highlighted that XPO's pricing remains competitive with best-in-class peers and that the company is successfully winning more service-sensitive freight, including from local customers who value reliability.

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CFO Kyle Wismans explained that customers accept higher prices because the company's improved service lowers their total supply chain costs. He also noted that yield growth comes from multiple levers, not just rate hikes. He projected that if normal seasonality holds, Q4 tonnage would likely be down in the mid-single-digit range year-over-year.

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EVP & CFO Adam Satterfield confirmed that comps are easing, with July's revenue-per-day decline of 5.1% already an improvement over Q2's 6.1% decline. He noted that July's sequential tonnage performance was slightly better than the 10-year average, providing 'cautious optimism,' but stopped short of calling for a return to normal seasonality for the full quarter.

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EVP & CFO Adam Satterfield confirmed the year-over-year comparisons are easing, with July's revenue decline of 5.1% already better than Q2's 6.1% drop. He noted July's sequential tonnage trend was slightly better than the historical average, providing 'cautious optimism' for the remainder of the quarter, though he stopped short of calling for a full return to normal seasonality.

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CFO Adam Satterfield explained that typical Q1 to Q2 margin improvement of 300-350 basis points is unlikely due to softer revenue expectations. He projected a more modest 100 basis point improvement if daily revenue remains flat with April levels, noting that revenue performance is the largest variable impacting margins.

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CFO Adam Satterfield explained that the typical 300-350 basis point sequential margin improvement is unlikely due to softer revenue growth. He projected a more modest 100 basis point improvement if daily revenue remains flat with April's levels, noting that revenue performance is the largest variable impacting margins.

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CFO Adam Satterfield projected the Q1 operating ratio to be flat to up 50 basis points sequentially, which is more favorable than the typical 100 to 150 basis point increase. He attributed this improved outlook to an expected normalization of insurance costs as a percentage of revenue, which would offset other seasonal pressures.

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CFO Adam Satterfield highlighted better performance from retail and, notably, third-party logistics (3PL) customers, while industrial remains weak. He suggested that if normal seasonality were to hold, full-quarter tonnage per day could be down 6.5% to 7.0% year-over-year, cautioning that the company has been underperforming seasonality.

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Chief Financial Officer Matt Beasley responded that the sequential shipment growth from Q1 to Q2 already outpaced historical trends. He indicated that due to the success of ongoing commercial initiatives, there is potential for shipment per day performance in Q3 to again outperform historical seasonality.

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Executive Eduardo F. Conrado described customer reactions to tariffs as a 'mixed bag,' with some in a 'wait-and-see' mode while others are actively adjusting supply chains. Chairman and CEO Judy McReynolds added that ArcBest partners closely with customers to navigate such disruptions, offering a wide range of solutions to support them.

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Chief Strategy Officer Christopher Adkins stated that keeping yields positive is the goal. He emphasized that revenue per hundredweight is only a proxy for price and that the company manages for profitable outcomes, not a specific yield metric. He noted that factors like weight per shipment and length of haul also influence the final result, and the focus remains on ensuring new business is profitable.

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CFO Matt Beasley explained that the expected improvement is primarily due to easing year-over-year comparisons for both volume and pricing as the quarter progresses. He noted that October 2023's results were unusually strong due to a competitor's cyberattack, and these difficult comps in October will lessen in November and December.

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CEO Carol Tomé conceded that this scenario is 'absolutely possible' but emphasized that the company has not yet received definitive peak season plans from its major customers. She shared an anecdote of a customer CEO who is 'planning to win,' but stressed that UPS will have a clearer picture at the end of Q3. She assured that due to increased network agility, UPS is prepared for any outcome.

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CEO Carol Tomé reiterated the market outlook from the start of the year: low single-digit growth in the U.S. and mid-single-digit growth internationally. She highlighted strong performance in healthcare, with average daily net revenue up nearly 5%. Tomé emphasized that UPS's global network allows it to adapt to shifting trade lanes, referencing a similar experience in 2018 when the international business still grew despite tariffs.

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CEO Carol Tomé reiterated expectations for low-single-digit U.S. market growth and mid-single-digit international growth. She highlighted healthcare as a resilient growth area, with revenue up nearly 5% in Q1. Tomé expressed confidence in UPS's ability to adapt to shifting supply chains due to its global presence, referencing the successful navigation of the 2018 tariffs as a historical precedent.

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CEO Carol Tomé clarified that the decision was driven by service concerns due to USPS changing its operating model, which would have increased costs and deteriorated service. She stated the financial impact is not material and the transition is going 'swimmingly well.' EVP and President, U.S. Nando Cesarone added that technology now allows for better shipment matching over multiple days, smoothing dispatch and keeping mileage in check. CFO Brian Dykes highlighted that the network's agility, proven by insourcing 1.5 million stops in weeks, will also aid the larger reconfiguration.

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CEO Carol Tomé acknowledged a Q3 mismatch between operational setup costs and the volume ramp, which primarily occurred in September. With the volume now fully onboarded, she expects a much different, more positive Q4. Executive Nando Cesarone confirmed the transition has been smooth, citing positive feedback from the Postmaster General and that resources applied are in line with the original model.

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Alain Bedard, President, CEO & Chairman, noted that the sales team is now effectively targeting SMB accounts. CFO David Saperstein highlighted the implementation of Prism billing software and process changes, which reduced DSO from 43 to 35 days. He also mentioned that the company has regained two-thirds of its previously lost SMB revenue mix, contributing to better revenue quality.

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Executive Alain Bedard detailed ongoing technology initiatives, including the implementation of Optum for linehaul and future P&D planning, as well as a new pricing software rolling out in 2025. He stated the company's pricing strategy is now focused on profitable growth by winning back small and medium-sized accounts, which have grown to represent 2% more of the volume mix compared to three months prior.

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Executive Alain Bedard identified the primary issue as a negative mix shift, losing high-margin small and medium-sized business (SMB) customers to lower-margin 3PL and corporate accounts. To combat this, Bedard said TFI must be more aggressive in SMB sales, improve network density organically, and continue cost-cutting measures, including implementing new P&D software. He projected a full-year 2025 operating ratio (OR) between 93% and 95% for the segment, despite a very difficult Q1.

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President of FMS Tom Havens attributed the used truck market recovery to low inventory in certain classes, like sleepers, signaling a move toward equilibrium. President of SCS and DTS Steven Sensing explained that strong SCS margins are a result of disciplined execution, including startup effectiveness, continuous improvement, and pricing discipline on new contracts.

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Chairman and CEO Robert Sanchez explained that the used vehicle market is performing as expected, with sequential price declines driven by aged inventory sales; excluding this, tractor pricing was up. He noted that lower new truck production should benefit the used market. Tom Havens, President of Fleet Management Solutions, added that they target a 150 basis point spread versus WACC on lease deals and that the current inventory mix, with fewer tractors, is more manageable. Robert Sanchez also highlighted that ongoing maintenance cost initiatives will continue to support returns.

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CEO Robert Sanchez attributed the cautious outlook to freight market softness and economic uncertainty causing customers to pause on long-term contracts. Steve Sensing, President of Supply Chain and Dedicated Solutions, noted that while sales pipelines are up, decision-making is slow, with a 6-9 month lead time for revenue to materialize after the market picks up. Sensing specified that the pipeline shows strength in industrial, tech, health, and retail verticals.

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CEO Robert Sanchez and Tom Havens, President of Fleet Management Solutions, responded. Sanchez confirmed the company is on track to realize the full $125 million benefit from its lease repricing initiative by 2025. Havens added that while it has been a slow sales year, some customers are downsizing fleets upon renewal, but Ryder's value proposition versus ownership remains strong. Regarding the rental market, Sanchez noted that while they are seeing signs of it bottoming with a seasonal Q3 pickup, a broader market recovery is not yet evident, though a 2025 upturn is a reasonable expectation.

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CEO Jim Vena declined to answer the question directly, stating that the company has provided all the information it intends to at this time within its official announcement and would not comment further on the process of its discussions.

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CFO Jennifer Hamann responded that the outcome depends on the magnitude of shifts across all business lines, making it too early to predict the net effect. However, EVP of Marketing and Sales Kenny Rocker added that the company is bullish on the domestic intermodal market for 2025, and Jennifer Hamann noted that recent franchise wins have yet to be fully realized.

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EVP of Operations Eric Gehringer detailed significant productivity gains, including record workforce productivity and locomotive dwell times. He highlighted ongoing opportunities in improving recrew rates, yard efficiency through technology, and optimizing fuel consumption. He emphasized that these initiatives are continuous and have driven approximately $1.4 billion in productivity since 2019.

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CEO Adam Miller attributed the improvement to two main factors: the disposal of underutilized and unseated tractors, and genuine productivity gains on the remaining seated fleet. He confirmed this is another sign that the market is slowly improving and that the worst is behind them. Miller emphasized that improving utilization is a key focus for the company as it drives significant operating leverage.

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Spencer Frazier, EVP of Sales and Marketing, responded that the peak season outlook is dynamic, as customers are adjusting to trade policies differently. He noted the size and duration of peak will vary, which prompted the company to implement its peak season surcharge program earlier this year. He affirmed that J.B. Hunt is prepared with capacity to serve demand whenever it materializes.

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Spencer Frazier, EVP of Sales and Marketing, noted that while customers are making fluid changes, a consistent theme is the search for efficiency, with highway-to-intermodal conversion a top priority. Darren Field, President of Intermodal, added that the company is not receiving widespread customer feedback about a significant pull-forward, though some occurred from Mexico, and they remain cautious.

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Executive Brad Delco declined to provide segment-specific guidance. He reiterated that Intermodal pricing for the first half of 2025 was largely set during the previous bid season and that Q1 is historically a challenging quarter for trucking assets, reinforcing the expectation of normal seasonality.

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Nicholas Hobbs, COO and President of Contract Services, stated that they are not seeing unusual competition as their focus is on private fleet replacement, not commoditized freight. He expressed confidence in the sales pipeline and their ability to hit targets, citing the large addressable market.

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President & CEO Raj Subramaniam confirmed trade patterns are shifting, with growth in Southeast Asia and other regions. He emphasized that FedEx's global network scale allows it to adapt quickly. EVP & CCO Brie Carere added that supply chain regionalization is an ongoing trend and their global sales teams are aligned to track and capture shifting customer demand.

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President & CEO Raj Subramaniam confirmed trade patterns are shifting, with growth from Southeast Asia, India, and Latin America. He emphasized that FedEx's global scale allows it to adapt quickly. EVP & CCO Brie Carere added that the commercial team is actively tracking customers diversifying out of China to markets like Mexico and Vietnam.

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President and CEO Rajesh Subramaniam expressed tremendous confidence in the LTL business, noting it is well-positioned to rebound when B2B business recovers. He stated that given its link to industrial production, the segment has faced pressure but the company is highly confident in expanding margins in the future.

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President and CEO Raj Subramaniam reported that FedEx continues to make significant progress, having optimized 200 stations to date, including 130 in Canada. He stated the Canadian integration will be largely complete in early 2025. Subramaniam highlighted that the company is seeing a 10% P&D cost reduction in fully rolled-out areas and plans to have approximately 250 stations integrated by the end of fiscal 2025.

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EVP and CFO John Dietrich declined to provide specific quarterly guidance but attributed the Q2 outlook to headwinds from the U.S. Postal Service contract termination and the timing shift of Cyber Week into Q3. He stated that confidence in the second-half recovery is supported by the expected sequential ramp-up in DRIVE program savings and tangible revenue-quality initiatives.

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CEO Frank Lonegro and Executive James Todd explained that the quarter was unique, with a significant $11.4 million unfavorable adjustment to prior year claims, primarily from cargo theft and accident severity. Lonegro noted that while the historical 4.9% of BCO revenue is likely too low in the current environment, Q1's 9.3% is abnormally high. Executive Matthew Miller added that the company is investing in a dedicated fraud department and new technologies to combat increasingly sophisticated cargo theft.

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CEO Frank Lonegro stated the company remains bullish on its unsided/platform business, where it has a competitive advantage. CFO James Todd noted that sequentially from Q2 to Q3, unsided pricing outperformed van pricing, but van loadings held up better than platform loadings. Lonegro attributed the manufacturing slowdown to broad uncertainty around politics, trade, and Fed policy, suggesting businesses are delaying capital deployment until there is more clarity.

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EVP and CCO Kevin Boone responded that it is too early to see an acceleration in customer decision-making, as policy rules are still being finalized. He suggested any near-term upside would more likely come from existing projects ramping up faster to meet demand, particularly in the metals sector.

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EVP and CFO Sean Pelkey identified two key drivers. First, driving even more efficiency and cost savings, particularly in purchased services, building on the success of holding those costs flat in 2024. Second, stronger-than-expected volume, driven by a turn in the trucking cycle, a faster ramp-up of industrial development projects, and a high hit rate on new customer wins.

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CCO Kevin Boone characterized the domestic intermodal market as having bottomed out, expressing optimism for a more normalized peak season as trucking supply rebalances. However, he clarified that while conditions are stabilizing, it does not yet represent a significant inflection point that would materially move yields.

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CEO Mark Rourke reiterated that the company does not provide quarterly guidance but noted that while some Q4 project work won't repeat, other improvement opportunities exist. CFO Darrell Campbell added that the Q4 operating ratio was negatively impacted by the one-time claims reserve refinement, which is not expected to recur in Q1.

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CEO Mark George responded that the industrial development pipeline is robust, with new locations and expansions coming online. He stated the new carloads will materialize throughout the year as facilities reach full production, providing a business tailwind for 2025 and for many years to come.

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CEO Mark George explained that decongesting the network by removing over 500 locomotives and 8,000 cars has been critical to improving resiliency and enabling rapid recovery from disruptions. He refuted the notion that resiliency requires retaining costs, emphasizing that it was achieved alongside cost reductions. An executive added that the focus is on network health and asset efficiency.

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John Orr, COO, characterized the effort as daily hard work to run an efficient railroad, comprising a series of both small and large wins from a deep pipeline of opportunities. Alan Shaw, CEO, framed the success as a function of leadership, a solid plan, and disciplined execution.

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