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Ken Hoexster

Managing Director and Senior Equity Research Analyst at Bank of America

Ken Hoexster is a Managing Director and Senior Equity Research Analyst at Bank of America, specializing in airfreight, surface transportation, and shipping sectors. He covers over 30 publicly traded transportation and energy companies such as ArcBest, Scorpio Tankers, XPO, and CSX, publishing more than 1,000 ratings with a historical success rate ranging from 47% to just over 50% and average returns of 1.3% to 4%. Hoexster began his equity research career in the late 1990s, previously working at Goldman Sachs and Lehman Brothers, and has led Bank of America’s coverage since 2002, earning 19 Institutional Investor All-Star Analyst awards across three sectors. He holds a B.S. in Finance and Marketing from Lehigh University and maintains relevant securities licenses, making him one of the most recognized analysts in the transportation research field.

Ken Hoexster's questions to UNITED PARCEL SERVICE (UPS) leadership

Question · Q3 2025

Ken Hoexster inquired about the drivers behind the anticipated 300 basis point sequential improvement in domestic margins for Q4, the potential for accelerating cost-cutting benefits into 2026, and UPS's initial thoughts on the upcoming Supreme Court hearings regarding tariffs and a potential reversal of the de minimis exemption.

Answer

Brian Dykes, CFO, attributed the sequential margin improvement to an expected peak volume surge, strong holiday demand surcharges, and enhanced network efficiency from 42 new automation projects and reconfiguration, reducing reliance on variable capacity. Carol Tomé, CEO, stated that UPS would closely monitor the Supreme Court hearings on tariffs but could not speculate on the outcome.

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