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CEO Preston Feight responded to the margin question by saying the intuition that Q4 could be the bottom is 'not far off.' On the strategic balance for next year, he stated that PACCAR will be 'pursuing both' market share growth and strong financial performance for its shareholders.

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CEO & Director R. Preston Feight confirmed the Q2 tariff impact was 'significantly less' than the Q3 estimate due to timing, with the Q4 picture depending heavily on tariff clarification. He noted the North American order book is roughly 50% full for Q3, with Europe mostly full. He reiterated that vocational and LTL markets remain good and that clarity on regulations will build confidence across customer segments.

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CEO & Director R. Preston Feight confirmed the Q2 tariff impact was 'significantly less' than the Q3 estimate due to timing, with the Q4 outlook dependent on policy clarification. He noted the North American order book is roughly 50% full for Q3, while Europe's is mostly full. He reiterated that vocational and LTL markets remain good and that broader order confidence will come with policy clarity.

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CEO Preston Feight reiterated that U.S. and European markets are expected to be relatively flat, with most of the sequential change in deliveries coming from Mexico. He stated that PACCAR expects to see some price increases in Q2, but costs could be higher depending on tariff structures, framing the margin pressure as primarily a timing issue.

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CEO Preston Feight and President and CFO Harrie Schippers explained that the parts market cadence will likely mirror the broader truck market, which they see as a 'tale of two halves' with growth strengthening through the year. Feight confirmed the current backlog position is 'fairly normal' for this point in the cycle and that while discussions are happening, no significant pre-buy order intake has occurred yet.

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President, CEO & Director Shawn Stewart stated he could not provide a timeline for the strategic review. CFO Jamie Pierson noted that volume trends entering Q3 were not meaningfully different from the end of Q2. Mr. Stewart explained his preference for customer-specific Strategic Rate Increases (SRIs) over broad GRIs. Regarding cash flow, Mr. Pierson highlighted the company's consistent unlevered operating cash flow generation but declined to provide specific guidance for the second half, citing the impact of semi-annual interest payments.

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CEO Shawn Stewart described Q2 trends as following historical patterns but declined to give specific guidance, emphasizing a long-term focus. He confirmed the $5 billion revenue goal is organic, driven by cross-selling and sales effectiveness. Stewart explained that the impact from a drop in de minimis e-commerce shipments is minimal, as Forward's network primarily handles denser cargo, and that supply chains have already adapted to tariff risks.

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CFO Jamie Pierson attributed the Q4 EBITDA outlook to normal seasonality. He explained the depreciation figure was volatile due to acquisition accounting, providing a normalized estimate of around $37 million. Pierson noted the strong cash flow resulted from active working capital management, a practice that will continue, though Q3's large benefit is unlikely to repeat. He declined to provide intra-quarter tonnage trends, citing company policy.

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CEO Drew Wilkerson explained the slight LTL gross profit moderation was due to new business with a shorter length of haul, which remains accretive. He attributed the auto volume decline to RXO's position as the largest manager of ground expedite, making it highly sensitive to production disruptions, not market share loss. He stated it was too early to comment on 2026 contract pricing.

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An executive projected that Managed Transportation revenue would begin to grow in the latter half of the year as newly won business is fully onboarded. CEO Drew Wilkerson reiterated that the UPS business represented about 10% of Coyote's margin at the time of acquisition and attributed the recent revenue decline in Managed Transportation to lower automotive expedite volumes, not broader customer shifts.

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CFO Jamie Harris did not provide a specific pro forma number but pointed to the reported results. CSO Jared Weisfeld stated that while Q1 is seasonally the weakest quarter, the decline should be less than the historical 30-35% due to a muted Q4 peak and the ramp-up of synergy benefits. Both Weisfeld and CEO Drew Wilkerson emphasized that normalized earnings power is materially higher, citing the $40M+ in cost synergies, purchase transportation savings potential, and the fact that gross profit per load is over 30% below its 5-year average.

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CEO Barry Biffle stated that while the model works better with growth, the current issue is a domestic oversupply, which he expects to correct. He explained that Q3 guidance is weighed down by a weak July that was booked during a sales slump in June. On M&A, he suggested that consolidation is a mechanism that can facilitate necessary industry capacity reductions.

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CEO Barry Biffle explained that reported load factors are impacted by high no-show rates and that reshaping capacity away from low-demand days like Tuesday and Wednesday should improve load factors. President James Dempsey noted that the decrease in ancillary revenue per passenger was driven by a significant reduction in average stage length, which is a deliberate network strategy focused on bottom-line profitability rather than a single unit metric.

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President Jimmy Dempsey clarified that first-half 2025 capacity growth will be slower as the network laps the off-peak flying reductions made in the second half of 2024, with ASM growth accelerating in the back half of the year. Regarding Q4 costs, CFO Mark Mitchell and CEO Barry Biffle both emphasized the need to analyze CASM on a stage-adjusted basis. Mitchell noted the stage-adjusted figure is closer to $0.07 and that the full-year stage-adjusted CASM-ex is still projected to be down 1% year-over-year.

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SVP & CCO Drew Wells explained that with 42% of Q3 ASMs concentrated in July, the benefit of a late-quarter demand uptick is muted. For Q4, he noted that a significant year-over-year increase in industry capacity into key leisure markets like Orlando warrants a more cautious outlook. SVP & CFO Robert Neal reiterated the full-year CASM-ex guide of down mid-single digits.

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CCO Drew Wells and CEO Greg Anderson clarified that while they previously expected Q2 TRASM to perform better than Q1, it is now expected to be worse, with the swing in expectation representing a 5-6 point delta. On costs, CFO Robert Neal reiterated that Q1 saw the strongest year-over-year cost decline, but he still expects unit costs (CASM-ex) to be down in Q2 and Q3, with Q4 being more challenging due to a large gain on sale in the prior-year period.

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CCO Drew Wells attributed the Q1 RASM decline to the Easter timing shift and less productive growth patterns compared to the concentrated holiday growth in December. CEO Gregory Anderson and CFO Robert Neal confirmed that for the full year, unit cost (CASM) is expected to decrease more than unit revenue (RASM). Neal added that only minor asset gains are assumed in the 2025 forecast.

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Chief Commercial Officer Drew Wells attributed the large RASM impact to significant uncertainty around the pace of demand recovery in heavily affected markets like Asheville. For 2025, Wells projected low-double-digit ASM growth in early 2025, while CFO Robert Neal noted that with existing infrastructure, growth could exceed 15%, which would be a tailwind for CASM-ex. Management stressed the focus is on driving earnings, not just unit metrics.

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CEO Jude Bricker stated the margin impact would likely ameliorate through Q4 and Q1 2026. He explained the Q2 2027 target is simple algebra based on a 10% growth rate reaching a 70-aircraft fleet. He expects a linear improvement but noted new initiatives could accelerate it. He also highlighted that competitive capacity across their network is flat to down through April.

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CEO Jude Bricker clarified that while January was strong, a softer February and an in-line March result in a roughly flat outlook for the quarter. On the Amazon/UPS news, President and CFO David Davis stated there is no short-term opportunity as Sun Country is focused on integrating its committed 20-aircraft fleet. Regarding capital allocation, Davis noted that debt paydown is a priority and that share buybacks are always under consideration.

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President and CFO David Davis indicated the quarter-over-quarter increase in cargo revenue per block hour is more representative of the new rates, with two more upcoming increases in 2025 that should be roughly equivalent in total. CEO Jude Bricker added that the rate structure creates some noise in the metric. Bricker also explained that while booking trends are positive, it will take time for this to fully reflect in flown TRASM. For 2025 CASM, Davis projected a mid-single-digit increase due to the business mix shift, pending finalization of the plan.

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Phillip Yeager, President & CEO, stated that over 30% of Hub Group's business is transcontinental and the merger represents a significant opportunity to improve transit times and convert over-the-road freight. Regarding the current market, Mr. Yeager and CFO Kevin Beth acknowledged a potential pull-forward due to tariffs and seasonal sales, but noted customer forecasts vary. They confirmed that current peak surcharges are larger on a dollar basis and started earlier than in the previous year, though a significant amount has not been built into guidance.

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Executive Phillip Yeager detailed that January volume was up 18%, February up 1%, March up 7%, and April up 6%, with no slowdown yet observed in May. He noted that about 25% of West Coast volume is port-related, with 30% of that from China. Regarding bid season, Yeager described it as competitive but rational, with pricing expected to be flattish for the year and 50 new logos added. CFO Kevin Beth added context on the bid season cadence, noting a pull-forward into Q1.

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CFO Kevin Beth clarified that while Q1 Intermodal volume would be comparable to Q4, tailwinds would be offset by the loss of peak season surcharges, seasonal Final Mile decreases, and higher compensation and tax expenses, leading to a slight EPS step-down. Executive Phillip Yeager added that earnings are expected to ramp from Q1 to Q3, with a slight decline in Q4. Regarding pricing, Yeager noted that customers are pulling bids forward, a positive sign, and the company anticipates low single-digit price increases in Intermodal for the year. He also stated that rail purchase transportation (PT) costs are expected to be down low single digits.

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CEO David Grzebinski described Kirby's pricing strategy as a "slow and steady" partnership approach with customers, noting rates are up 50% since 2022. He reiterated his belief that inland margins can still reach the high 20s. Regarding capital allocation, he stated a preference for inland M&A but confirmed that absent a deal, free cash flow would likely be directed to share repurchases.

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CEO David W. Grzebinski explained the modest contract rate increase was due to a small sample size of renewals in Q1. On tariffs, he assessed the net impact as a 'modest positive,' with higher steel costs increasing the value of existing assets, offset by some uncertainty. He clarified that the administration's shipbuilding focus is on international vessels, not the Jones Act, which could indirectly benefit Kirby by increasing shipyard maintenance options. President and COO Christian O'Neil added that federal investment in mariner training is a positive.

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COO Christian O'Neil and CEO David W. Grzebinski responded. O'Neil attributed the ton-mile decline to specific trade lane shifts, such as reduced crude from the Utica and a temporary lull in fertilizer, rather than a broad demand problem. He also noted that new barge construction is constrained by limited shipyard capacity and rising costs, with a new barge quoted at $4.5 million. Grzebinski concluded that he would be disappointed if coastal margins did not cross 20% during this cycle, a significant increase from the prior peak of around 15-16%.

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CEO Mario Harik stated that XPO expects the Q3 OR to be flat sequentially with Q2, outperforming normal seasonality and showing strong year-over-year improvement. He affirmed that the full-year outlook for 100 basis points of OR improvement remains achievable in a mid-single-digit tonnage decline scenario. Harik described the grocery consolidation service as a $1 billion market where XPO is underrepresented, noting it's an attractive, high-margin business that is expected to ramp up in the second half of the year.

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Executive Mario Harik stated that local revenue is now in the low-to-mid 20% range, up from a 20% baseline, and the margin spread has remained consistent. Chief Strategy Officer Ali Faghri noted that April's tonnage was in line with normal seasonality and that applying historical trends would imply full Q2 tonnage would be down in a similar year-over-year range as April.

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CEO Mario Harik stated that local revenue is now in the low-to-mid 20% range, with a goal of 30%, and that its margin premium has been consistent. Chief Strategy Officer Ali Faghri noted that April's 5.7% tonnage decline was in line with normal seasonality from March and that applying historical trends would imply a similar year-over-year decline for the full second quarter.

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Executive Mario Harik affirmed a constructive pricing environment, while CFO Kyle Wismans noted that contract renewals were up high-single-digits for the fifth straight quarter. CSO Ali-Ahmad Faghri projected that the full-year 2024 OR improvement would be at or above the high end of the 150-250 basis point range, with Q4 OR expected to outperform typical seasonality.

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Michael Castagnetto, President of NAST, stated Q3 is historically flat with Q2 and that he sees no 'hard floor' on productivity due to AI advancements. CFO Damon Lee added that productivity is an 'evergreen approach' and noted significant Q3 uncertainty for Global Forwarding due to pending trade negotiations and tariffs.

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CEO Dave Bozeman attributed the current dynamic to more intelligent and specific pricing processes. He conceded that the company will still feel a squeeze during an inflection but asserted that the goal is to navigate it "better and faster" than in the past by leveraging superior data and having more strategic conversations with customers.

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CEO Keith Creel stated that quantifying the opportunity from concessions is hypothetical until the specifics are known, but noted CPKC will have to compete. EVP & CMO John Brooks added that a potential competitive threat to its Canadian port traffic is minimal, representing less than 1% of revenue. On the financial outlook, EVP & CFO Nadeem Velani guided for sequential OR improvement in Q3, with Q4 typically being the strongest, and reiterated confidence in achieving a sub-60% OR for the full year.

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EVP & CMO John Brooks explained that CPKC is uniquely positioned and has not seen a significant import pull-ahead, citing strong partner volumes with Gemini and a focus on Canadian-destined freight. Brooks noted that less than 1% of their business is China-to-U.S. freight via Canada and highlighted continued growth at the Lazaro Cardenas port, while acknowledging some tariff-related choppiness in the automotive and steel sectors.

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President and CEO Keith Creel stated that while a low-50s operating ratio is 'within the realm of possibility' long-term, the more immediate and 'real' goal is the path to a mid-50s OR. He and another executive emphasized that significant untapped productivity remains, highlighting recent double-digit improvements in network speed (up 22%) and GTMs per horsepower (up 24%) on the legacy KCS network, which will continue to drive efficiency and margin expansion.

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EVP and CFO Nadeem Velani affirmed that the multi-year outlook provided at the last Analyst Day remains unchanged. He stated that while 2024 did not benefit from a buyback, the company expects to start seeing that benefit in 2025 after reinstating the program. Velani indicated that with strong momentum from synergy wins and a robust crop, CPKC expects to hit its stride in 2025 and achieve the previously guided growth algorithm.

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EVP & CFO Adam Satterfield affirmed their strategy is unchanged, emphasizing they will not chase unprofitable freight. He explained that the pressure on margins is from fixed overhead costs (now 22% of revenue vs. 17% in 2022) due to their strategy of investing through the cycle. This creates significant operating leverage that will be realized when volumes return.

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EVP & CFO Adam Satterfield affirmed the strategy is unchanged, emphasizing the refusal to chase unprofitable freight. He pointed to the high overhead costs (22% of revenue vs. 17% in 2022) as the primary drag on margins, which also represents significant operating leverage potential once revenue growth resumes. He highlighted the ~60% incremental margin on Q2's sequential revenue growth as proof of the model's power.

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CFO Adam Satterfield clarified the guidance for a 100 basis point sequential OR improvement assumes daily revenue remains flat with April levels, resulting in total Q2 revenue around $1.4 billion. He reiterated that ODFL continues to secure price increases based on its cost-plus model and consistent customer relationships, which he believes positions them well for when the market recovers.

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CFO Adam Satterfield clarified the 100 bps OR improvement guidance assumes daily revenue remains flat with April levels, resulting in about $1.4B in quarterly revenue. He reiterated that ODFL continues to secure price increases based on its consistent, cost-plus model and strong value proposition.

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CFO Adam Satterfield provided a Q1 revenue outlook between $1.34 billion and $1.38 billion, contingent on seasonal performance. He explained that the strong 4.5% ex-fuel yield increase in January was partly due to a favorable mix from a drop in weight per shipment, but affirmed that the company's underlying pricing discipline remains consistent.

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CFO Adam Satterfield confirmed the negative yield is largely fuel-related, with fuel prices down about 20% year-over-year in October. He stated that the overall pricing environment has been stable and rational, which has not negatively impacted ODFL's ability to secure increases or its flattish market share.

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CFO Matt Beasley stated the July sequential tonnage trend was 'generally in line with historical performance.' Regarding the GRI, Chief Commercial Officer Eddie Sorg noted it's part of their normal cycle and that its impact would be moderated by the fact that a smaller portion of business is subject to it compared to prior years. The company's Q3 OR guidance already accounts for these factors.

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Chairman and CEO Judy McReynolds emphasized a disciplined pricing approach and a strong sales pipeline. Executive Eduardo F. Conrado added that dynamic pricing's contribution is stable and that the mix shift is driven by capturing more 'Core LTL business,' which is profitable despite having different freight characteristics.

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President Seth Runser noted that Q1 is historically a softer quarter, with sequential revenue typically down about 4%. However, he believes the company has the potential to outperform that historical trend, barring significant weather events. CFO Matt Beasley added that for 2025, they expect a pickup in the industrial economy and continued progress from customer-facing initiatives to drive growth in shipment counts, with the macro helping tonnage and pricing remaining strong, setting up well for the year.

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CFO Matt Beasley cited minor freight profile shifts for the yield trend. President Seth Runser expressed confidence in improving margins regardless of the cycle through growth and efficiency initiatives. CEO Judy McReynolds stated she does not see the Yellow pension situation having a significant negative impact on ArcBest, citing the stability provided by the American Rescue Plan.

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Chairman & CEO Derek Leathers clarified that while they expect incremental gains, the large Q2 margin improvement was partly due to a very weak Q1 and is not indicative of a normal sequential run rate. Regarding the rail merger, Leathers views it positively, as UP and NS are Werner's primary intermodal partners. He sees minimal threat to the truckload business, given its focus on insulated Dedicated fleets and hard-to-convert One Way freight.

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CFO Chris Wikoff quantified West Coast import exposure at about 10% of One-Way volume and outlined potential paths to Q2 profitability through cost savings and growth in Dedicated and Logistics. CEO Derek Leathers acknowledged the Q1 loss was an outlier that necessitates more aggressive action, referencing an increased cost-cutting target. He noted that while M&A assets have been impacted by the freight recession, he remains confident in their long-term value.

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CEO Derek Leathers cited state-level tort reform and technology investments as key initiatives to manage insurance costs. CFO Chris Wikoff clarified the Q4 insurance expense was an outlier due to a $19M prior-period development and suggested a $33M-$35M quarterly run rate is a better proxy. Excluding the one-time impact, TTS adjusted OI margin would have been over 7%. For Q1, Leathers suggested Q1 2024 EPS is a 'good zip code' to consider.

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Chairman & CEO Derek Leathers projected continued moderate margin improvement into Q4, noting Q3 was impacted by abnormal health costs. He clarified that the Dedicated fleet may see temporary declines from strategic exits, while the One-Way fleet may grow temporarily for peak season. Regarding the Clearinghouse deadline, he stated that while it could tighten capacity, there is a lack of confidence in its implementation and enforcement.

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CEO Frank Lonegro and CFO Jim Todd confirmed the cost reclassification had a zero net P&L impact. VP Matt Miller stated the reduction in brokerage carriers was a deliberate action to combat fraud, not a sign of widespread bankruptcies. Lonegro attributed the July rate weakness to tough comparisons and demand uncertainty rather than a definitive end to the recovery.

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CEO Frank Lonegro believes the BCO decline is purely cyclical, driven by the freight recession's length, and expects a strong rebound in an upcycle. Executive James Todd reported that May truckloads were tracking slightly ahead of the prior year, and while Q1 ocean/air revenue was up YoY, ocean revenue per shipment has declined sequentially from Q4 2024. Lonegro added that the impact from blank sailings has likely not yet been felt.

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CEO Frank Lonegro stated that he believes the market is at a 'bottom-ish point' in the cycle with improving sentiment, though more capacity still needs to exit. Executive Matt Dannegger added that agents are 'cautiously optimistic' but van rates remain a challenge. Executive Robert Brasher noted that the 10% BCO count decline aligns with the revenue drop and that the rate of decline is moderating. He expressed confidence that the model's flexibility will allow the BCO fleet to grow quickly when rates improve, as seen in past cycles.

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CEO Frank Lonegro clarified that Landstar's freight is higher-quality and doesn't always track the bottom of the spot market, noting significant intra-month volatility. Management explained that hurricane relief is now more spread out among carriers and the main benefit comes from later rebuilding efforts. Regarding the BCO count, Executive Vice President Joseph Beacom stated that while retention has improved, new BCO additions are challenged by the high cost of truck ownership in the current rate environment. He affirmed the current compensation model works well and expects BCOs to return when the market turns.

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CFO David Saperstein explained the Q3 guidance reflects normal historical seasonality, citing a similar EPS drop from Q2 to Q3 last year. Alain Bedard, President, CEO & Chairman, added that for the U.S. LTL segment, the team is targeting a 94% to 95% operating ratio for the second half of the year, consistent with Q2 performance, given the soft volume environment.

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Executive David Saperstein stated the Q2 guidance embeds a 91-92% OR for the specialized truckload segment. Executive Alain Bedard added that improvement will come from self-help measures at Daseke, including better administrative and safety focus, and reducing excess assets acquired. He also noted there would be no impact from UPS's GFP expansion, as TFI is now focused on growing its own underperforming but superior product.

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Executive Alain Bedard projected 2025 EPS would be difficult, likely in the $5.75-$6.00 range, with TForce Freight not expected to perform better than a 97% OR in a tough Q1. He suggested the length of haul figure might be a reporting error. On strategy, he noted that while the timing for a large LTL M&A deal is good, it requires being bold and getting board support given current leverage. A potential spin-off is still planned but requires TFI to achieve greater scale first, as investors feel the current market cap is too small to split.

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CEO Alain Bedard acknowledged feeling pricing pressure in the LTL segment, partly due to competition from the soft truckload market. On M&A, he indicated TFI could consider a deal in the $4-5 billion range without issuing equity. Regarding a business split, Bedard explained that TFI's market cap is currently too small, and such a move would be more logical after another major acquisition, pushing the potential timeline to late 2026 or 2027.

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COO Andrew Watterson explained the higher Q4 capacity growth is largely a comp issue due to an abnormally low base in the prior year and reflects a strategic shift to modulate capacity for peak vs. off-peak periods. President & CEO Bob Jordan emphasized that full-year capacity growth remains at 1%, with trips down, creating a constructive backdrop. Watterson also noted that while ASMs are up due to Redeyes and longer haul, the actual number of seats to sell is a more modest lift.

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CFO Tammy Romo clarified that the 3% operating margin guidance excludes the fleet monetization strategy, while the 5% guidance includes it. She explained that higher labor costs are driven by new contracts with annual inflationary pressures and work rule changes, which the company is now lapping.

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CFO Shane Tackett suggested that recent Q3 performance was impacted by industry dynamics rather than a structural shift and that future Q3s should be stronger. He reiterated high confidence in the $10 EPS target, stating it doesn't require significant macro help and is supported by a billion dollars in profit initiatives, all tracking on or ahead of plan, plus accretive share buybacks.

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Executive Andrew Harrison confirmed the first-class cabin is performing strongly, while premium class is slightly softer but benefits from full planes. Executive Shane Tackett addressed the scenario by stating the synergy ramp is firm and early initiatives are performing slightly better than planned, which could provide upside. He reiterated that even with the headwind, they expect to be a top-three industry margin producer.

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CCO Andrew Harrison stated that both Alaska and Hawaiian assets are performing well on a unit revenue basis, benefiting from network synergies and connectivity. CFO Shane Tackett addressed costs, confirming that Q2 would be the hardest cost comparison due to low growth, with improvement expected in the second half as synergies and A321 utilization ramp up. He reiterated the expectation for RASM to outperform CASM throughout the year.

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CFO Shane Tackett attributed about one-third of the Q3 cost increase to labor, mainly the new flight attendant contract, with the rest from timing shifts in airport costs and maintenance. He asserted this high single-digit cost growth is not a new normal. CCO Andrew Harrison clarified that Q4 capacity growth is expected to be lower than Q3's, with full-year growth under 2.5%. Tackett added that 2025 will see fewer aircraft deliveries and more retirements, indicating judicious capacity management.

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Chairman & CEO Robert Sanchez explained the Q2 loss was due to a deliberate, one-time increase in wholesaling of aged inventory, a level of activity not planned for Q3. He added that historically, bonus depreciation stimulates overall business spending, creating more opportunities for Ryder's leasing and service offerings rather than being a direct risk.

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President of SCS and DTS Steve Sensing and CEO Robert Sanchez explained that the auto and CPG verticals are largely insulated from tariffs due to their focus on U.S. manufacturing and consumption. EVP and CFO Cristy Gallo-Aquino stated that used vehicle prices would need to fall another 5% to hit the bottom of their residual estimates. Robert Sanchez added that Ryder's exposure to new vehicle tariffs is minimal as its purchases are USMCA compliant.

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CEO Robert Sanchez responded that while it's early for 2025 guidance, he expects continued earnings growth from contractual businesses driven by key initiatives. The performance of transactional businesses will hinge on the timing and strength of a freight cycle recovery. Regarding residual values, Sanchez clarified that tractor prices would need to fall another 15% to eliminate gains, and the company still expects to realize gains through the middle of 2025.

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CEO David Parker confirmed seeing "green shoots" with stabilizing rates and new bid activity, though he remains cautious. He noted that while the LTL business is soft, the air freight side is seeing a pickup from AI-related demand. CFO Tripp Grant added that recent legislation helps cash flow but doesn't alter their disciplined CapEx strategy, which remains focused on growth opportunities in the dedicated segment.

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President Paul Bunn clarified that while Q1 may face headwinds, the full-year 2025 earnings are expected to grow over 2024 due to improving fundamentals. CEO David Parker supported his optimism by citing concrete evidence, such as winning a high volume of bids at better rates, which hadn't occurred in two years. Executive James Grant confirmed that disciplined acquisitions remain a part of their capital allocation 'playbook,' alongside dividends and share repurchases.

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Executive M. Bunn detailed that demand softened in September and October, particularly in the LTL-related portion of the Expedited segment, which constitutes 55-60% of that business. CEO David Parker added that while the freight market remains at a bottom, he is optimistic about securing rate increases of 2-3% in early 2025, with potential for more later in the year.

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CFO Jennifer Hamann stated the team is confident in driving continuous OR improvement and expects the business mix to turn more positive in the second half as international intermodal's share decreases. EVP of Marketing & Sales Kenny Rocker attributed coal strength to favorable natural gas prices and strong service execution, noting the company is being opportunistic while monitoring long-term impacts from data centers.

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CEO Vincenzo Vena prioritized growing revenue over solely optimizing for margin percentage. CFO Jennifer Hamann confirmed that business mix and fuel had a significant negative impact on the operating ratio. She expects mix to moderate and potentially turn positive later in the year, with fuel headwinds also likely to ease.

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CEO Vincenzo Vena confirmed the company's commitment to delivering high single-digit to low double-digit EPS growth annually, barring major external factors. CFO Jennifer Hamann added that pricing became accretive to the operating ratio in Q4 2024 and is expected to remain so throughout 2025.

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CFO Jennifer Hamann explained the 8% increase was driven roughly half by the July 1 wage increase and half by higher incentive compensation and guarantee payments related to work-rest agreements. Regarding guidance, she reiterated that 'results' is an all-encompassing word and that key metrics like EPS, operating ratio, and operating income in Q4 are expected to look very similar to Q3.

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CEO Adam Miller clarified that the company is not providing Q4 guidance due to market uncertainty. He explained that the 'All Other' segment will likely follow its historical pattern of a sequential earnings slowdown in Q4. Regarding capital expenditures, Miller stated that the recent reduction in the CapEx forecast is due to tightening in facilities and IT, not equipment, and that their consistent tractor replacement strategy remains unchanged by bonus depreciation rules.

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Executive Adam Miller clarified that the top end of the guidance range assumes only limited seasonality in June, not a normal seasonal strength, reflecting a conservative stance. Regarding power-only, he stated that it is viewed as a complementary service that supports the core truckload business, helps with drop-and-hook freight, and provides network flexibility, and is not something they would look to shrink as it adds value for customers and improves asset returns.

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Executive Adam Miller explained the Q3-to-Q4 margin improvement resulted from better yields and cost progress, which offset holiday-related productivity drops. Regarding strategy, he clarified that for Truckload, pricing is the primary profitability lever. Conversely, for Intermodal, growing volume and market share is the bigger lever needed to utilize latent capacity and improve margins.

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Executive Adam Miller explained that Swift, as the largest brand, is the first point of contact for customers with significant, immediate capacity needs, with overflow then directed to other company brands. He affirmed the 2025 objective is for rate improvements to flow directly to margins by maintaining or improving cost per mile through operational efficiencies.

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EVP & CFO Sean Pelkey acknowledged the cost improvement in May and June but advised against modeling significant further run-rate gains into Q3. EVP & CCO Kevin Boone confirmed positive trends for domestic utility coal, citing rising utilization and plant life extensions, which help offset pressures in the export market.

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EVP and CFO Sean Pelkey explained that while specific guidance was not provided, the company would deliver 'pretty solid' operating income growth without the outlined $350 million in discrete headwinds. Factoring in these headwinds and other challenges like coal mine issues, he indicated that adjusted operating income growth would be toward the lower end of the company's Investor Day guidance.

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COO Michael Cory stated the primary focus is on employee retention and hiring for attrition, with current headcount levels deemed sufficient in most areas. CFO Sean Pelkey projected a modest sequential headcount increase from Q3 to Q4 to prepare for next year's vacation peak and also anticipated a slight rise in compensation per employee due to capital program timing and storm-related overtime.

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Interim CCO Janet Drysdale noted that direct comparisons are difficult due to different business mixes and comps, highlighting transient weakness in CN's petroleum and chemicals segment. CEO Tracy Robinson stated that while hitting 200 basis points of margin improvement is now more challenging, it is "not completely off the table," depending on volume, mix, and continued cost discipline.

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CEO Tracy Robinson confirmed it's a combination of both easier year-over-year volume comps and expected growth from CN-specific initiatives. CCO Remi Lalonde added that tariffs are creating a near-term air pocket. CFO Ghislain Houle clarified the FX assumption, noting that if the Canadian dollar stays at its current level ($0.72), it would be a tailwind of about $0.05 to full-year EPS compared to the prior year.

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President and CEO Tracy Robinson explained the guidance range accounts for variability in volumes, fuel, and FX. She detailed the volume growth assumption: over 50% from CN-specific initiatives, about one-third from recovering 2024's lost volumes, and a very modest lift from the economy, identifying overall volume as the key variable.

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President and CEO Tracy Robinson confirmed sequential margin improvement for Q4, with the final result dependent on international volume recovery. Regarding pricing, she stated it has been strong and that for 2025, CN expects to achieve 'pricing ahead of railroad deflation,' supported by high service levels.

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EVP & CCO Andrew Nocella clarified that the demand improvement was broad-based, with Newark's recovery being stronger than the six-point average and the rest of the network slightly below it. CEO Scott Kirby added that the JetBlue partnership is crucial for establishing a competitive presence at JFK, which is important for United's brand as the 'premier flag carrier,' and provides a built-in frequent flyer base on both sides of the Hudson.

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CEO Scott Kirby attributed the durable backdrop to 'just math,' citing structurally high airport costs that make it unprofitable for LCCs to compete in major hubs. EVP and CFO Mike Leskinen confirmed the full-year guidance expects RASM to exceed CASM, driving margin expansion, and detailed the cost pressures from inflation, efficiency initiatives, and product investments.

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EVP & CFO Mike Leskinen stated they 'absolutely expect that inflection in the calendar year 2025,' with Q3 2024 being the peak for CASM-ex. EVP & CCO Andrew Nocella did not provide specific Q4 guidance but highlighted strong forward indicators, noting that domestic yields for January 2025 bookings were already up 3% year-over-year.

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Darren Field, President of Intermodal, affirmed that margin improvement is being pursued through operational efficiencies and cost control, not just price. Brad Delco, SVP of Finance, confirmed the statement was intentional, indicating that cost initiatives combined with a small pricing tailwind could stabilize margins from current levels and support modest improvement going forward.

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Darren Field, President of Intermodal, stated that reducing capacity would not alter their long-term pricing strategy and that they are exploring other uses for excess assets. He estimated that 20-30% of Intermodal volume originates on the West Coast but declined to provide a specific figure for China-originated freight.

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Darren Field, President of Intermodal, stated it was too early for definitive results but expressed confidence that their strong service performance has earned them the right to have constructive pricing conversations. He noted that as truck rates climb, they expect to repair margins, and price improvements will be a necessary component of that recovery.

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Bradley Hicks, President of Highway Services, attributed the margin strength to company-specific initiatives around freight quality and technology. CEO Shelley Simpson cautioned that a 17%+ margin is not the new norm. CFO John Kuhlow indicated they are in a good position with insurance accruals and do not anticipate a significant charge like in prior years.

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EVP & CFO John Dietrich stated that the company is not breaking out the $1 billion in savings but is committed to achieving the total. He noted that full-year earnings growth depends on the demand environment, linking the Q1 EPS range to revenue scenarios. President & CEO Raj Subramaniam added that past cost reductions provide significant operating leverage for when the industrial economy recovers.

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EVP & CFO John Dietrich stated that FedEx is not breaking out the $1 billion in savings but is committed to achieving the total. Regarding earnings growth, he said it depends on the demand environment and tied the Q1 EPS range to different revenue scenarios. President & CEO Raj Subramaniam highlighted the company's significant operating leverage from past cost cuts.

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EVP and CFO John Dietrich declined to give FY'26 outlook but noted the annualization of DRIVE benefits, ongoing transformation initiatives, and expected inflationary pressures. He confirmed the LTL separation is on track. He clarified that 'playing offense' refers to bolstering sales expertise to focus on quality revenue, not diminishing it.

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EVP and CFO John Dietrich reiterated that the USPS headwind in Q3 will be larger than the Cyber Week benefit. Regarding the spin-off, he stated that an 18-month timeline is reasonable for a transaction of this magnitude. He also confirmed that cost reductions related to the USPS contract expiration are on track, with a 60% reduction in U.S. domestic daytime flight hours already implemented.

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CFO John Dietrich reiterated that the Freight assessment is on track for completion by calendar year-end. President and CEO Raj Subramaniam addressed Europe, calling it a 'top priority' with a 'long runway of profit improvement.' He expressed confidence in achieving the $600 million DRIVE savings target for Europe by applying learnings from the profitable U.S. surface network.

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EVP & Group President Jim Filter explained the pricing deviation is because network truckload rates dropped faster than Intermodal rates during the downturn, and now they are coming back into alignment, making Intermodal more attractive. CFO Darrell Campbell stated the CapEx cut reflects moderated volume expectations and aligns capital with strategic growth areas like Dedicated and Intermodal tractors, while also factoring in higher equipment costs and improved proceeds from used equipment sales. CEO Mark Rourke added that trailing equipment is largely in a replacement cycle.

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EVP and Group President Jim Filter stated that intermodal pricing historically trails truckload, and he expects truckload to see larger rate increases this year. CEO Mark Rourke added that most 2024 renewals were completed by Q3, so there was very little activity in Q4 to report.

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President Martin St. George noted that Q2 is a 'troughy' quarter overall, and the guidance reflects the choppy month-to-month performance. Financial Officer Ursula Hurley addressed cash flow, stating that while they did not reaffirm the full-year guide, their #1 priority is to reduce cash burn. She expressed confidence that if the macro backdrop holds, year-end liquidity will remain healthy and above their 20% target, but declined to provide a specific cash burn range.

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CFO Ursula Hurley explained that the peak for aircraft on the ground (AOG) is expected within the next 1-2 years (i.e., between now and 2027), but the situation remains fluid. CEO Joanna Geraghty stated that while conversations with other carriers are ongoing, there is nothing to announce regarding a new partnership, and any potential impact is not meaningfully factored into the JetForward plan.

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CFO Ursula Hurley clarified that the 'mid-to-high teens' AOG forecast for 2025 is an average for the year, not an ending figure. President Marty St. George added that ASMs would still be negative in Q1 2025. Ursula Hurley then confirmed that the mid-single-digit CASM ex-fuel outlook for 2025 is an 'all-in' number that includes all labor assumptions, with the JetForward cost pillar designed to offset these inflationary pressures.

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CFO Brian Dykes reported that approximately $500 million of the savings was realized in Q1. He attributed the expected Q2 margin deceleration to two factors: 1) anticipated volume pressure from SMBs affected by tariff uncertainty, and 2) 'chaos costs' associated with the significant operational change of closing 7% of U.S. buildings during the quarter. CEO Carol Tomé added that many SMBs are heavily exposed to China, creating significant uncertainty.

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CFO Brian Dykes stated that approximately $500 million of the savings occurred in Q1. He attributed the Q2 margin deceleration to the anticipated impact of tariffs on SMB volume and mix, as well as temporary 'chaos costs' from closing 73 facilities during the quarter. CEO Carol Tomé elaborated on the significant uncertainty facing SMBs due to potential China tariffs.

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CEO Carol Tomé declined to specify the exact margin but reiterated the business is 'extraordinarily dilutive.' She stated the remaining business is unlikely to disappear due to the value of services like returns via the UPS Store network. CFO Brian Dykes asserted that pricing discipline will be maintained, as the network is being reconfigured to the new volume level, eliminating the need to 'chase volume' to fill empty capacity. He confirmed the strong revenue per piece growth seen in Q4 will extend into 2025.

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An executive, likely CFO Brian Dykes, clarified that the USPS contract has no incremental impact on the Q4 U.S. domestic margin, as start-up costs were contained within the Supply Chain Solutions segment. CEO Carol Tomé deferred the question on the timing of significant margin expansion, stating that a full outlook for 2025 would be provided after the fourth quarter is complete.

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Vice Chair Steve Johnson estimated a "mid- to high single-digit weakness" in the domestic main cabin segment. CEO Robert Isom explained that the benefits of corporate share recovery are being masked by significant macroeconomic uncertainty that intensified in March and April.

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CFO Devon May detailed that Q1 unit costs would be high due to lower capacity, increased regional flying, and new labor deals, but would improve sequentially through the year. He noted that margin improvement would be steady, without any single quarter showing outsized gains. CEO Robert Isom added that he sees continued domestic strength and robust transatlantic demand for the summer, driven by a strong dollar and premium traffic.

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CEO Robert Isom explained the Q4 outlook reflects strong demand in October and December but includes expected softness around the election and Halloween. For 2025, CFO Devon May noted that while CASM guidance isn't available, the primary headwind will be labor costs from new contracts, a pressure the whole industry faces. Robert Isom reiterated the goal to recapture the vast majority of a $1.5 billion annual revenue opportunity from corporate and agency channels during 2025.

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CCO Ed Elkins confirmed the merchandise yield strength was a function of both favorable mix from share gains in chemicals and strong same-store pricing. CEO Mark George addressed the cost question, stating the company is not fully volume-variable and learned a harsh lesson in 2020 by cutting too deeply. While not committing to a specific action for a 5% decline, he emphasized the company has a long productivity runway and is managing headcount via attrition.

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Chief Commercial Officer Ed Elkins confirmed the yield growth was from both favorable mix and strong core pricing. President and CEO Mark George stated that while the company has a large productivity runway, it would avoid 'draconian' cuts in a downturn, recalling lessons from 2020, and is focused on long-term efficiency and scenario planning.

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CMO Ed Elkins stated that the 3% revenue growth would be driven by volume growth and a solid price plan, which together would overcome headwinds from fuel and coal. CFO Jason Zampi and another executive confirmed there is continued runway for labor productivity across all operating ranks, building on the significant overtime reductions achieved in Q4.

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COO John Orr asserted that they are 'just getting started' on labor productivity. He credited the gains to a disciplined operational approach, designing out inefficiencies, and strong collaboration with labor unions. He emphasized that the potential for further gains is significant as the new leadership and culture take hold.

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Ed Elkins, Chief Marketing Officer, attributed the adverse mix to strong volume growth in lower-rated commodities like aggregates and vehicles, a trend he expects to continue. Mark George, Chief Financial Officer, detailed cost pressures, noting productivity tailwinds will be offset by a $25 million wage increase and fuel price changes, creating a combined ~140 basis point sequential OR headwind.

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President Glen Hauenstein argued that competitors will be capital-constrained, making it difficult to replicate Delta's long-term investments in reliability, clubs, and loyalty, thus widening Delta's lead. Both Hauenstein and CEO Ed Bastian attributed international strength to strong cash sales, the wealth of the traveling baby boomer cohort, and a broader consumer preference for experiences over goods.

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President Glen Hauenstein stated that October and December trends are 'significantly better than November' but did not provide specific figures. CFO Dan Janki outlined that next year's CASM will be shaped by continued investments in workforce and brand, offset by efficiency gains, maintenance improvements, and technology benefits.

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CEO Christopher Urmson stated that only a 'small amount of work' remains for the launch, with the ARM at 99% and API performance near targets. CFO David Maday and Urmson projected 2026 as a 'step function' year for scaling metrics, with an objective to demonstrate positive gross profit. Maday noted customer-owned trucks would be available by 2027 with Continental hardware, but could potentially happen sooner on a customer-specific basis.

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CFO John Olin noted it was early for 2025 specifics but that the significant production shifting of 2024 is not expected to repeat. CEO Rafael Santana stated the KTZ order would deliver over 2025-2026 and the parts deal is longer-term. He also viewed recent EPA classifications for hydrogen as a validation of Wabtec's fuel-agnostic engine strategy.

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CEO Ed Ryan stated that the company will not slow its M&A pace, citing a significant corporate development function and a favorable market with many reasonably priced opportunities. Regarding market dynamics, Ryan explained that rising ocean rates don't directly impact Descartes' transaction-based fees but are a positive indicator for the health of ocean, air, and eventually domestic trucking. On the U.S. Postal Service, he noted that Descartes has broad opportunities across the e-commerce delivery ecosystem, including with USPS, Amazon, UPS, and FedEx, and expects to benefit as their businesses grow.

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