Saia (SAIA) Q2 2025 Earnings Call July 25, 2025 10:00 AM ET Company ParticipantsMatthew Batteh - EVP & CFOFrederick Holzgrefe - President & CEOKen Hoexter - Managing DirectorJonathan Chappell - Senior MDRavi Shanker - Managing DirectorStephanie Moore - SVP - Equity ResearchTyler Brown - AVPDaniel Imbro - Managing DirectorJ. Bruce Chan - DirectorJason Seidl - Managing DirectorConference Call ParticipantsRicha Harnain - Director - Lead Surface Transportation & Airfreight Equity AnalystJordan Alliger - VP & Eq ...

Financial Data and Key Metrics Changes - The second quarter revenue decreased by 0.7% year over year to $817.1 million, with operating ratio at 87.8% compared to 83.3% in the same quarter last year [4][13] - Revenue per shipment excluding fuel surcharge increased by 2.7% to $298.71, while including fuel surcharge, it increased by 1.8% to $351.36 [13] - Total operating expenses increased by 4.7% year over year, with salaries, wages, and benefits rising by 5% due to inflationary pressures [14][15] Business Line Data and Key Metrics Changes - Tonnage increased by 1.1% year over year, driven by a 4% increase in average weight per shipment, but overall shipments were down 2.8% [14][5] - Newer terminals (opened less than three years) saw a 4% sequential improvement in shipments per workday compared to the first quarter [6] - Legacy facilities experienced a 2% sequential increase in shipments compared to the first quarter, but down 3.5% year over year [6] Market Data and Key Metrics Changes - Overall shipments for workdays were down 2.8% year over year, reflecting cautious customer behavior amid economic uncertainty [5][6] - The Los Angeles region showed muted trends, contributing to shorter length of haul and lower weight per shipment compared to the first quarter [9] Company Strategy and Development Direction - The company focuses on optimizing variable costs and improving network efficiency while maintaining a customer-centric approach [4][10] - There is an emphasis on expanding the national footprint and enhancing service levels to compete effectively in the industry [11][21] - The company plans to invest approximately $600 million to $650 million in capital expenditures this year to support long-term growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the company despite current economic challenges, highlighting the importance of customer service and operational efficiency [20][21] - The company is adapting to the changing economic landscape while maintaining discipline around cost structures [11][21] - Management noted that the operating performance remains strong, with expectations for continued improvement as the market conditions evolve [19][20] Other Important Information - The cargo claims ratio for the quarter was 0.5, indicating effective management of customer service and operational execution [10] - The company reduced headcount by about 4.2% from March to June to align with volume trends [11] Q&A Session Summary Question: Volume expectations for Q3 and pricing outlook - Management indicated that volume comparisons will become tougher due to new terminal openings last year, but they expect to maintain pricing discipline [25][27] Question: Labor reductions and wage increases - Wage increases typically occur in the second half of the year, and headcount adjustments are made to align with volume changes [33][35] Question: Industry capacity and pricing implications - Management believes that LTL capacity is likely to remain constrained, which could support pricing in a recovery [41][44] Question: Volume trends in July and customer insights - July tonnage is trending flat, with no significant changes in customer behavior compared to June [50][51] Question: Contract renewals and competitive pricing - The 5.1% renewal rate reflects the competitive nature of the market, but management remains focused on maintaining fair compensation for services [55][57] Question: Network optimization actions - Management highlighted improvements in routing and density as key actions taken to optimize the national network [76][78] Question: Long-term operational goals - Management expressed a commitment to achieving a sub-80% operating ratio through continued focus on customer service and operational efficiency [119]

Key Takeaways T is expanding its fiber reach with new deals and aims to hit 60M locations in the U.S. by 2030. Comcast is enhancing Xfinity Internet with speed boosts, unlimited data, and a simplified pricing model. T faces high debt pressure, while Comcast contends with broadband losses and rising market competition.AT&T Inc. (T) and Comcast Corporation (CMCSA) are major players in the telecommunications industry. Operating as one the largest wireless service provider in North America, AT&T offers a vast ...

Core Insights - Ashland Inc. is implementing a $60 million plan to optimize its manufacturing network, which includes closing its Parlin, NJ facility and relocating hydroxyethyl cellulose (HEC) production to Hopewell, VA [1][7] - The company aims to enhance operational efficiency, reduce production costs, and achieve HEC optimization targets on schedule through this transition [2][3] - Ashland has completed its portfolio optimization and a $30 million restructuring plan, which will accelerate cost savings and improve profitability [3][5] Manufacturing Network Changes - The closure of the Chatham, NJ site will also occur, with microbial protection production being transferred to Freetown, MA, consolidating smaller operations into larger, more efficient sites [2][7] - Investments have been made in the Hopewell facility to expand both capacity and capabilities, reinforcing Ashland's core technologies [4][5] Financial Performance and Market Position - The newly streamlined HEC production network is positioned to meet global demand, with operations in the United States, Europe, and China [5] - Ashland's shares have decreased by 41.4% over the past year, contrasting with a 3.7% rise in the industry [6]

Core Insights - Ashland Inc. is implementing a $60 million manufacturing network optimization plan to enhance operational consistency and profitability, which includes closing its Parlin, New Jersey facility and transferring hydroxyethyl cellulose (HEC) production to Hopewell, Virginia [1][2] - The company is also consolidating its microbial protection production from Chatham, New Jersey to Freetown, Massachusetts, aiming to improve cost efficiency across its manufacturing sites [1][2] - The optimization plan is expected to strengthen core technologies, including vinyl pyrrolidone and derivatives (VP&D) and HEC, with the Hopewell facility receiving increased investments to expand capacity [2][3] Manufacturing Strategy - The completion of the HEC plans is a vital component of Ashland's overall savings initiative, with the newly consolidated HEC network capable of supporting demand in the United States, Europe, and China [2] - Ashland is focused on identifying and accelerating productivity within its plant network to drive savings beyond the $60 million target [2][3] - The company emphasizes a strategic approach to innovation and organic growth, allowing for cost-effective repurposing of assets while maintaining operational efficiency [5] Investment and Growth - Significant investments have been made in various regions, including Ireland, the United States, Brazil, and China, to enhance capabilities in injectables, tablet coatings, and microbial protection [3] - Ashland is also in the process of building a tablet coating plant in India, further expanding its global footprint [3] - The company showcased new patented technologies during a recent Innovation Day, aimed at unlocking new markets with differentiated performance [4]

Core Insights - Kroger reported a 3.2% growth in identical sales excluding fuel and an adjusted EPS of $1.49, up 4% for Q1 FY2025, while raising guidance for identical sales to 2.25%-3.25% for the fiscal year [1][9] Store Network Optimization - The company plans to close approximately 60 underperforming stores over the next 18 months, following a pause on annual real estate reviews during the failed merger with Albertsons [2] - This strategy aligns with the completion of 30 major store projects and anticipates an acceleration in new store openings targeting high-growth areas starting in FY2026 [2][3] E-Commerce Performance - E-commerce sales increased by 15% year over year, but the segment remains unprofitable despite improvements in operational efficiency [4][5] - The company acknowledges the need for further optimization or strategic partnerships to achieve sustainable profitability in e-commerce [5] Gross Margin and Pricing Strategy - FIFO gross margin rate, excluding fuel, increased by 79 basis points, aided by lower shrink and supply chain costs, despite challenges from lower-margin pharmacy sales [6] - The company implemented price reductions on over 2,000 items, which contributed to better sales and gross margin, demonstrating operational leverage [7] Future Outlook - Full-year guidance for identical sales excluding fuel has been raised to 2.25%-3.25%, with the second quarter expected to be at the midpoint of this range [9] - The completion of a $5 billion accelerated share repurchase program is targeted for Q3 FY2025, with plans to resume open market buybacks under a remaining $2.5 billion authorization [9]

Industry Overview - The U.S. telecommunication industry in 2025 is characterized by high competition and rapid evolution driven by 5G adoption, demand for high-speed broadband, and AI-driven network optimization [2] Verizon Communications, Inc. (VZ) - Verizon is expanding its fiber-optic networks to support 4G LTE and 5G standards, which is contributing to solid customer additions through flexible pricing plans [3] - The company has introduced a three-year price lock guarantee for its myPlan and myHome network plans, aimed at attracting new customers and retaining existing ones [3] - Verizon is facing stiff competition from AT&T and T-Mobile, which is impacting its margins, and it has incurred high capital expenditures for its 5G Ultra-Wideband network and fiber asset deployment [4] - The introduction of network slicing in Verizon Frontline across 50 major markets enhances reliability for first responders, indicating a focus on new revenue opportunities [5] Comcast Corporation (CMCSA) - Comcast Xfinity offers widely accessible broadband services through a Hybrid Fiber-Coaxial (HFC) network, enabling gigabit-plus speeds for residential and business customers [6] - The rollout of DOCSIS 4.0 technology allows Comcast to deliver multi-gigabit symmetrical broadband speeds, enhancing its existing infrastructure [7] - Comcast has introduced a Five-Year Price Guarantee for Xfinity Internet Customers, addressing customer pain points related to pricing and transparency [9] - The company has a diverse revenue stream beyond connectivity, including its Studio business and Peacock streaming service, which saw a 20.6% year-over-year increase in paid subscribers to 41 million [10] - Despite macroeconomic challenges, Comcast's diversified business model provides stability, although it faces increased competition in the fiber broadband space [11] Financial Performance - The Zacks Consensus Estimate for Verizon's 2025 sales and EPS implies year-over-year growth of 1.7% and 2.18%, respectively, with a downward trend in EPS estimates over the past 60 days [12] - Comcast's 2025 sales are projected to decline by 1.35%, while EPS is expected to grow by 0.46%, with a recent upward trend in EPS estimates [12] - Over the past year, Verizon's stock has gained 4.2%, while Comcast's has declined by 6.3% [14] - From a valuation perspective, Comcast appears more attractive with a price/earnings ratio of 7.64 compared to Verizon's 8.77 [15] Investment Outlook - Both Verizon and Comcast are focusing on expanding their fiber broadband infrastructure and customer base, but face increasing competition [16] - Comcast's diverse revenue streams, including streaming and theme parks, offer greater resiliency, making it a potentially better investment option at present [19]

Keller Jordan，OpenAI 深度学习团队主要成员之一，用一篇博客就撬开了 OpenAI 的大门。 这篇名为《 Muon: An optimizer for hidden layers in neural networks 》的博客发布于 2024 年 12 月，而 Keller Jordan 入职 OpenAI 的时间恰好也在此时。 机器之心报道 机器之心编辑部 「许多博士（包括过去的我）都陷入了这样一个误区：认为只有在顶级会议上发表论文才是终极目标。」AI 云服务商 Hyperbolic CEO Yuchen Jin 如是说。 但现在，发表论文并不与学术影响力直接画等号了。 在这篇博客中，Keller Jordan 提出并构建了一种用于神经网络隐藏层的优化器 Muon，其能够在保证神经网络（包括 Transformer 和 CNN）的准确度的前提上大幅 提升其训练速度。 为何只发了博客，而不是发表一篇正式的 arXiv 论文，Keller Jordan 这样解释：能否发表一篇关于新优化器的论文，且包含大量看起来不错的结果，和这个优化器 是否真的有效之间没有任何联系。「我只相信速通。」 一直以来 ...

Core Viewpoint - The company reported solid sales growth in Q1 2025, driven primarily by strong performance in France and the EMEA region, while facing challenges in Asia due to network optimization efforts in China [2][6][13]. Sales Performance - Total sales for Q1 2025 reached €297 million, reflecting a 2.6% organic growth compared to €287 million in Q1 2024 [6]. - Sales by region: - France: €102.1 million, up 4.0% organically [4]. - EMEA (excluding France): €98.0 million, up 9.2% organically [7]. - America: €43.9 million, up 2.0% organically [9]. - APAC: €52.7 million, down 9.5% organically [11]. - Sales by brand: - Sandro: €147.5 million, up 4.2% organically [6]. - Maje: €110.7 million, up 0.8% organically [6]. - Other brands: €38.4 million, up 2.3% organically [6]. Market Dynamics - The company is gaining market share in France and EMEA, with a positive trend in the U.S. market despite a challenging environment [2][6]. - The strict full-price strategy is being emphasized, particularly at Maje, leading to a decrease in the average discount rate by three points compared to Q1 2024 [6][9]. - The action plan in Asia is starting to show results, with stabilization in sales performance in Chinese stores [11]. Network Optimization - The company recorded nine net store closures in Q1 2025, primarily at Claudie Pierlot, as part of its network optimization strategy [5][10]. - The total number of points of sale (POS) decreased to 1,640, with significant closures in Canada and APAC [19]. Future Outlook - The company approaches the upcoming months with cautious confidence, focusing on cost control, operational agility, and sustainability to maintain profitable growth [2][13].