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CEO Jon Vander Ark explained that the Rise platform drives margin opportunity through enhanced customer connectivity, which improves retention, and through AI-powered route optimization, which creates significant cost efficiencies. Regarding the Polymer Centers, he noted that the Las Vegas facility had a learning curve but is now making great progress, with those learnings being applied to the new Indianapolis center. He expressed high confidence in the projects' returns due to strong demand for recycled PET.

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CEO Jon Vander Ark explained the Rise platform drives opportunity through enhanced digital customer communication, which improves retention, and through using AI to optimize routing, which improves efficiency. Regarding Polymer Centers, he noted the Las Vegas facility had a slower start but is now making great progress, with learnings applied to the Indianapolis center, which is 'hitting its marks.' He reiterated confidence in the returns profile due to strong demand for recycled PET.

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CEO Jon Vander Ark reported that the Polymer Centers are meeting expectations for volume and demand, with operational learnings from the Las Vegas facility accelerating the ramp-up in Indianapolis. He and CFO Brian DelGhiaccio emphasized that RNG projects are financially viable without federal incentives like the IRA, as state-level regulations are the primary driver. Vander Ark added that they plan to increase third-party volume as the centers reach full capacity over a 12-month period.

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CFO Jamie Pierson directed her to a competitive analysis on page 28 of the presentation, highlighting the significant margin improvement opportunity in the Expedited Freight segment, suggesting it could reach market-level margins of 18-20% over the next couple of years. President, CEO & Director Shawn Stewart added that the focus is on fine-tuning the organization for leanness and operational quality. Mr. Pierson also emphasized that achieving operating leverage by growing revenue without increasing SG&A is the key to closing the gap.

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CEO Shawn Stewart noted that the full impact of pricing actions, finalized in February, was only partially felt in Q1. CFO Jamie Pierson added that year-over-year comps should be favorable. Both executives stated that the path to higher margins, comparable to peers and historical levels, now depends on leveraging the network's excess capacity by adding appropriately priced volume. Stewart concluded, 'We just got to grow.'

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President and CEO Dale Asplund explained that reducing employee turnover by 40% has yielded $10-12 million in annual savings on hiring and onboarding, which has been reinvested into frontline employees through benefits like PTO and guaranteed hours. EVP & CFO Brett Urban added that while nominal wage increases are at the low end of the typical 3-5% range, the overall investment in employees has improved retention and is a key part of their strategy.

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CSO Jared Weisfeld stated the Q3 outlook assumes a continued soft freight market with persistent automotive headwinds. He noted that improvements in purchased transportation are helping the company outperform typical seasonality. For Q4, he expects sequential EBITDA growth, supported by ongoing business improvements, but cautioned that the magnitude depends on peak season consumer demand.

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CEO Malcolm Wilson attributed the growth to improved volumes across all regions, with North America showing particular strength due to a favorable customer mix in aerospace and technology. He noted that inventory levels have normalized and that Q3 trends remain consistent. Wilson expressed strong confidence in the holiday season based on early customer commitments but emphasized that the company is maintaining a conservative full-year outlook to be prudent.

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President & CEO Jennifer Scanlon described the data center trend as a confluence of electrification, sustainability, and digitalization, highlighting the massive projected growth in energy consumption. She confirmed the company is evaluating both incremental lab capacity investments for new standards and potential M&A or partnerships to deepen relationships with key stakeholders in the data center ecosystem.

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Chairman & CEO John Casella responded that their M&A strategy remains unchanged, focusing on tuck-ins and new platforms on the East Coast, though he noted tax benefits are positive. President Edmond Coletta detailed that the McKean landfill is building a new transfer facility, expected to be complete in Q1 2026, which will allow it to accept more waste types and drive volume growth. EVP & CFO Bradford Helgeson confirmed this new investment is factored into the updated cash flow guidance.

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CEO John Casella stated their M&A strategy remains unchanged, focusing on tuck-ins and new platforms on the Eastern Seaboard, though he noted tax law changes are very positive for M&A. President Edmond Coletta detailed that the McKean landfill is getting a new transfer building, expected to be complete in Q1 2026, which will expand its capabilities and allow it to be a positive volume contributor through 2026.

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Chief Financial Officer Elizabeth Boland stated there are no structural reasons preventing a return to 9-10% margins. She explained that over half the centers are already at or above pre-COVID profitability. The main drag is the 10% of centers in the sub-40% occupancy cohort, and progress depends on improving or rationalizing this group. She expects the majority of the portfolio to be back to pre-COVID levels in the next year or two, excluding that bottom cohort.

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Founder, Chairman, President & CEO Patrick Dovigi stated the M&A focus remains on densifying existing markets and that GFL is on track to meet its capital deployment targets, setting up strong rollover growth for 2026. Executive VP & CFO Luke Pelosi attributed strong volume to strategic market selection in high-growth areas like the U.S. Southeast and benefits from EPR-related investments in Canada.

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CEO Patrick Dovigi stated that achieving an investment-grade rating is up to the agencies (Moody's and S&P), who typically like to see performance roll through for a 12-month period, but he expects significant upgrades in the interim. Executive Luke Pelosi noted that collection pricing is still strong at 6%+, and post-collection pricing has a new floor in the mid-single digits. He added that intentional volume shedding is largely complete, and the guide includes a 50-basis-point margin drag from conservative special waste assumptions, which could be an area of upside.

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EVP & CFO David Jackola detailed that margin performance was driven by strong, accretive pricing in service and good fixed-cost leverage, partially offset by some margin erosion from rising material costs. He confirmed good progress on the systems investments, emphasizing that the project team is executing well and incorporating feedback from field leaders.

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CEO Keith Creel highlighted a critical distinction: the rules governing CPKC's merger required only 'protecting' competition, whereas the new 2001 rules applicable to any future merger mandate that the applicants must 'enhance' competition. He stressed this is a materially different and higher standard. Any remedy for affected customers must meet this 'enhance' test, not merely preserve the status quo, a fact he said the STB will want to get right given the potential for triggering industry-wide consolidation.

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EVP & CFO Adam Satterfield stated that he does not expect any material impact on the LTL industry from such a deal. He views it as an event on the 'other end of the supply chain' that is unlikely to have a direct, correlated effect on Old Dominion's business levels.

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EVP & CFO Adam Satterfield stated that he does not expect any material impact on the LTL industry from potential railroad mergers. He views it as an issue for 'the other end of the supply chain' and noted that historically, changes in the rail industry have not shown a correlation to Old Dominion's business levels.

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CFO Adam Satterfield confirmed that M&A is not a priority, as the company is focused on its successful organic growth strategy. He affirmed that ODFL's extensive 261-center network is ideally positioned to capture both inbound and outbound freight opportunities arising from any increase in manufacturing in the U.S., Canada, or Mexico.

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Matt Godfrey, President of ABF Freight, detailed how the company manages labor and outside resources to optimize service, leading to improved cost per shipment despite volume growth. CFO Matt Beasley added that while costs rose to serve new business, execution was efficient. He also highlighted a year-over-year increase of approximately $3 million in workers' compensation costs that impacted the quarter's results.

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Chairman and CEO Judy McReynolds highlighted cost certainty from the union labor contract. President Seth Runser added that the company views weak markets as a growth opportunity and is leveraging a multi-year efficiency plan, technology like AI, and strategic investments to control costs and scale effectively, pointing to a 24% productivity gain in Asset-Light operations.

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President Seth Runser stated that ArcBest's long-term focus on service, efficiency gains, and recent organizational changes will allow them to execute faster and capture growth. He noted that customers will seek capacity and reliable partners as the market turns. Regarding the pipeline, he explained the 55% growth is a lead indicator of future potential, showing that customers are actively seeking partners to navigate market disruptions, and reflects strong execution by the sales team.

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CEO Brian Choi outlined a three-part framework for measuring success: driving top-line growth, maintaining discipline on free cash flow generation, and enhancing the customer experience. For Avis First, he noted it was too early to share conversion data but emphasized the service is priced to be margin-accretive from day one. The goal is to make the upgrade accessible (e.g., $10/day) while providing a significant RPD lift, with the main constraint being the ability to scale the premium experience without compromising quality.

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CEO Joseph Ferraro stated that while the environment remains highly competitive, he has not observed any significant changes in industry dynamics. He emphasized that focusing on internal execution is paramount. To offset higher vehicle costs, Ferraro highlighted improving vehicle utilization through technology to create more rentable days, which lessens the dependency on new car purchases, and using advanced modeling to optimize the total cost of ownership across various manufacturers.

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EVP & CFO Devina Rankin explained that the typical H1 to H2 margin step-up will be slightly muted in C&D due to strong Q2 landfill volumes but will be aided by a lessening margin drag from the healthcare business and benefits from lower recycling commodity prices. President & COO John Morris confirmed a strong M&A pipeline with over $500 million expected for the year, including one sizable deal anticipated to close in H2.

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EVP & CFO Devina Rankin quantified the impact of automation as a roughly 10 percentage point lift in the margin of the recycling business. SVP & Chief Sustainability Officer Tara Hemmer stated the Q4 guidance assumes a blended commodity basket price of $85 per ton.

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EVP of Operations Eric Gehringer stated the game plan remains focused on executing against challenging goals and finding new efficiencies in areas like terminal dwell and locomotive productivity. EVP of Marketing & Sales Kenny Rocker highlighted expected strength in coal and new business wins. CFO Jennifer Hamann noted the one-time labor expense from Q2 will not repeat, but reminded that volume cadence will be unusual with expected sequential declines due to tough international intermodal comps.

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President & CEO M. Keith Waddell asserted that Robert Half is better positioned than ever to take share. He cited the company's AI-powered matching technology and its bench of full-time engagement professionals as key differentiators that smaller, regional competitors cannot match, allowing them to provide higher quality candidates and jobs.

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CEO M. Waddell cited three key drivers for future margin expansion: the retention of top-performing recruiters, productivity gains from technology investments, and the strong, market-share-gaining performance of Protiviti. He stated that the biggest upside for gross margin is a continued favorable mix shift toward higher-skilled, higher-margin placements, rather than any anticipated pressure.

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President & CEO Joseph Hinrichs explained the reorganization was a proactive measure initiated months ago in response to revenue pressures. The goal was to drive approximately 5% efficiency by reprioritizing resources, particularly in engineering and technology, as part of a broader, disciplined approach to cost management.

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CEO Tracy Robinson explained that the cadence of margin improvement is difficult to predict as it will depend on the timing and mix of returning volumes. She emphasized the team's focus on being nimble, adjusting resources quickly to both downside and upside scenarios, which will ultimately determine the margin progression through the second half.

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Chief Commercial Officer Remi Lalonde reported that the service is performing well operationally. However, he noted that the northbound market from Mexico is highly competitive against established trucking lanes. He expects continued incremental growth but acknowledged it is a tough market to penetrate.

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President & CEO Todd Schneider reported no significant weakness across the company's broad customer base, though he noted goods-producing customers face more pressure than service-providers. On M&A, he confirmed Cintas remains acquisitive within all three of its route-based businesses and sees no need to look externally, given the significant growth opportunities that remain in its current markets.

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President & CEO Todd Schneider reported no real weakness across the company's broad customer base, though he noted goods-producing customers face more pressure than those in the services sector. Regarding M&A, he stated that Cintas is acquisitive in all three of its route-based businesses and sees no need to expand into new areas, given the significant untapped market opportunity that already exists.

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EVP & CFO Jack McGinnis stated that permanent placement activity was relatively stable, representing 15.3% of gross profit, in line with expectations after a reset in Q1. He noted that the U.S. saw flattish perm revenue, which is a sign of stabilization. The company anticipates this stability at current lower levels will continue into the third quarter.

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CEO Scott Staples attributed larger deal sizes to increased 'package density' as clients focus on risk and compliance, noting that significant cross-sell opportunities into the Sterling base are just beginning. CFO Steven Marks stated that while they are pleased with actioning $37 million in run-rate synergies, they need to rebuild the synergy pipeline before considering an increase to the $60-$70 million target, though enhancing profitability remains a key focus.

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Interim CEO Phillip Holloman explained that the sales strategy is effective, citing Q2 results where 44% of over 7,500 new accounts were non-programmers (first-time outsourcers) and 56% were taken from competitors. He emphasized that they win by providing the best possible service and sometimes on price. Holloman also confirmed that Head of Sales Pete Rego and COO Bill Seward remain with the company.

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CFO Rick Dillon confirmed that excess cash will continue to be used for deleveraging, noting a $233 million operating cash benefit from the AR securitization and an additional $35 million from a recent asset sale. CEO Kim Scott declined to provide a specific retention target for 2025 but expects continued improvement, highlighting the October rate of 93.7% as a strong start.

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CFO Ken Krause explained that Rollins uses a multifaceted customer acquisition strategy and that while costs may vary by channel, customer retention is consistently healthy across all of them. CEO Jerry Gahlhoff described the 2024 hiring environment as favorable, allowing the company to be well-staffed. Krause added that improving retention among new employees (with tenure under six months) remains a key focus and opportunity.

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EVP and CFO Kenneth Krause confirmed that the company continues to make good progress, noting that the administrative cost component continues to improve as a percentage of sales. He expressed satisfaction with the returns generated from the restructuring efforts initiated over a year ago.

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Michael Zechmeister, President of NAST, responded that the playbook is to "control what we can control" by executing the operating model, maintaining pricing discipline, and leveraging their people and technology to outperform the market. CEO Dave Bozeman added that the company's strong balance sheet allows for continued investment through a prolonged downcycle, ensuring they are positioned for strength when the market eventually rebounds.

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CEO Frank Lonegro reiterated that core business investment in technology and equipment remains a priority. He explained that the Q3 buyback pace was slower because there were fewer opportunistic moments to repurchase shares at favorable prices due to lower stock volatility. On M&A, Lonegro stated that while the uniqueness of Landstar's model creates a narrow set of suitable targets, the company has begun internal discussions and would be open to an acquisition if a seamless fit emerged.

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