XPO CEO Mario Harik on earnings and the AI impact for the trucker

Financial Performance - XPO's strategy is working, improving margin in the freight markets, growing earnings, and growing revenue [2] - Operating ratio improved by 150 basis points, from 842% a year ago to 827% this quarter [7] Business Strategy & Growth - XPO is delivering best-in-class service, leading to increased freight from existing customers [3][4] - The company is growing with small to medium-sized customers, adding over 7500 new customers year-to-date in that segment [3][5] - AI is being used to optimize efficiency, such as reducing empty miles in the linehaul network by 12% [8] Market Conditions & Outlook - The industrial economy is currently in a soft freight market, with the ISM manufacturing index still in contraction territory (below 50) [5][6] - There is optimism for 2026 due to normalizing tariffs, decreasing Fed fund rates, and tax incentives, although the macro environment is hard to predict [6][18][19][21][22] - Tariffs are considered good medium to long-term for the less than truckload industry, as they could lead to more domestic manufacturing and freight movement [16][17] AI & Automation - AI is primarily used for efficiency and optimization, not for replacing employees [8][10][11] - Physical AI or robotics replacing drivers and dock workers is not expected in the near future [13][14] Consumer Demand - Consumer demand is holding steady and outperforming the industrial sector in the third quarter [24][25]