Financial Data and Key Metrics Changes - Revenue, excluding fuel surcharge, increased by 2.4% year over year, while operating income declined by $31.1 million or 38.2% year over year due to $58 million of unusual items [16][18] - Adjusted EPS was $0.32 for 2025 compared to $0.34 for 2024, reflecting a 5.9% year over year decrease primarily due to a $10 negative impact from loss contingency and claims accrual [17][18] - The consolidated adjusted operating ratio was 93.8%, flat year over year and sequentially [17] Business Line Data and Key Metrics Changes - Truckload segment revenue declined by 2.1% year over year, driven by a 2.3% decrease in loaded miles, while adjusted operating income declined by $7.3 million or 15% year over year [21][24] - LTL business grew revenue, excluding fuel surcharge, by 21.5% year over year, with shipments per day up 14.2% [25][26] - Logistics segment revenue declined by 2.2% year over year, driven by a 6.2% decline in load count, but adjusted operating income grew by 1.9% year over year [29] Market Data and Key Metrics Changes - The LTL segment held steady at 20% of consolidated revenue, its highest share since entering this segment in 2021 [19] - Intermodal segment revenue declined by 8.4% year over year on an 11.5% decrease in load count, but adjusted operating ratio improved by 160 basis points year over year [31] Company Strategy and Development Direction - The company is adopting the AAA Cooper brand across its entire LTL business to enhance cohesion and operational efficiency [12] - The strategy includes leveraging technology to foster connectivity and increase market share by addressing network imbalances [19] - The company anticipates ongoing attrition in capacity due to regulatory enforcement and market dynamics, which could create favorable conditions for its truckload business in 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management noted that freight markets are experiencing uncertainty, with shippers hesitant to take risks, but proactive discussions around peak season projects have increased [6][7] - The company is taking a cautious approach to expectations for the fourth quarter due to uncertainties in volume build [7] - Management expressed confidence in the potential for margin growth due to improvements in cost structure and operational efficiencies [11][12] Other Important Information - The company reported significant unusual items impacting GAAP results, including trade name impairments and higher insurance costs [14][15] - The effective tax rate on GAAP results was 47%, significantly higher year over year, while the effective tax rate on non-GAAP results was 29.6% [17] Q&A Session Summary Question: Clarification on adjusted EPS and fourth quarter demand - Management confirmed that the adjusted EPS of $0.32 reflects historical reporting practices and clarified that while there are peak projects underway, overall demand growth has not met typical seasonal expectations [88][90] Question: Insights on regulatory impacts on capacity - Management indicated that regulatory enforcement is beginning to affect capacity availability, with some states revoking non-domiciled CDLs, which could lead to tighter market conditions [43][46] Question: Discussion on LTL margins and future synergies - Management acknowledged softness in LTL demand but expressed optimism about upcoming bid opportunities and the potential for synergies between truckload and LTL operations [55][58]