Question · Q3 2025
Scott H. Group (Wolfe Research) inquired about the significant sequential drop in the 'all other' segment's Q4 guidance, the expected impact and timeline of new regulatory enforcement on trucking capacity, and the factors indicating a reversal in private fleet growth.
Answer
CEO Adam Miller confirmed the Q4 'all other' segment guidance reflects normal seasonal patterns, particularly in warehousing. He detailed the potential impact of regulatory enforcement on non-domiciled CDLs and English language proficiency, noting early signs of tightness in certain markets and a potential meaningful shift in supply-demand dynamics by 2026. Miller also explained that anecdotal customer dialogue suggests private fleets are shrinking due to optimization challenges and higher replacement costs, a point CFO Andrew Hess reinforced by highlighting the changing economics of private versus for-hire fleets.