Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $342 million and adjusted diluted EPS of $1.07, both exceeding expectations, with adjusted EBITDA growing by 3% year over year [4][14] - Total company revenue increased by 3% year over year to $2.1 billion, with the less-than-truckload (LTL) segment revenue also up to $1.3 billion [13][14] - Adjusted EBITDA in the LTL segment reached a record $308 million, up 9% year over year, and adjusted operating income increased by 10% to $217 million [14][20] Business Line Data and Key Metrics Changes - In the North American LTL business, adjusted operating income grew by 10% year over year to $217 million, with an adjusted operating ratio improvement of 150 basis points to 82.7% [4][14] - LTL yield excluding fuel grew by 5.9% year over year and 3.1% sequentially, with revenue per shipment excluding fuel increasing for the 11th consecutive quarter [8][19] - The company reduced purchased transportation expenses by 48% year over year, reflecting a strategic insourcing initiative [13][14] Market Data and Key Metrics Changes - Shipments per day in the LTL segment decreased by 3.5% year over year, while weight per shipment declined by 2.7%, resulting in a 6.1% decrease in tonnage per day [18] - The company expects tonnage to be down in the 3% range for October, consistent with typical seasonality [30][81] - The European transportation segment saw a 7% year-over-year revenue increase, indicating growth despite a challenging macro backdrop [21] Company Strategy and Development Direction - The company focuses on high-growth freight markets and leverages a strong LTL network, utilizing 30% excess door capacity to optimize freight flows [6][20] - Investments in AI-driven technology are enhancing operational efficiency and service quality, contributing to above-market yield growth and margin expansion [9][11] - The company aims to continue improving its service quality and expand its local account base, which now represents 25% of total shipments, up from 20% [18][65] Management's Comments on Operating Environment and Future Outlook - Management noted that while the freight market remains soft, there is optimism for a recovery in 2026, with customers increasingly expecting an acceleration in demand [90][91] - The company anticipates continued margin improvement and above-market yield growth, even without a macro recovery [39][66] - Management emphasized the importance of maintaining service quality and operational excellence to navigate the current market challenges [20][84] Other Important Information - The company ended the quarter with $335 million in cash and a net leverage ratio of 2.4 times trailing 12 months adjusted EBITDA [16] - The company expects to moderate capital expenditures while increasing free cash flow conversion, positioning itself for greater flexibility in returning capital to shareholders [17][69] Q&A Session Summary Question: Can you discuss the October tonnage and expectations for Q4 margins? - Management indicated that October tonnage is expected to be down 3%, consistent with seasonality, and they anticipate outperforming typical seasonal margin improvements in Q4 [30][32] Question: What are the expectations for pricing in Q4 and beyond? - Management expects yield excluding fuel to grow in a similar range to Q3, with continued strength in pricing driven by premium services and local accounts [76][78] Question: How does the company view the competitive environment and customer sentiment? - Management noted that while demand remains soft, there is a neutral outlook from customers, with some optimism for 2026 as economic conditions improve [90][91]