Financial Data and Key Metrics Changes - Companywide revenue for Q1 2025 was $2 billion, down 3% year over year but up 2% sequentially from Q4 2024 [16] - Adjusted EBITDA was $278 million, down 3% year over year [20] - Adjusted diluted EPS was $0.73, exceeding expectations [4] - Net income grew by 3% to $69 million, representing diluted EPS of $0.58 [21] - Cash flow from operating activities was $142 million, with net CapEx of $191 million [21] Business Line Data and Key Metrics Changes - LTL segment revenue was down 4% year over year and up 1% sequentially, with adjusted EBITDA of $250 million, down 2% [16][20] - Yield excluding fuel grew by 6.9% year over year, reflecting strong commercial strategy [9] - Purchase transportation costs decreased by 53% year over year, equating to a reduction of $41 million in the quarter [17][20] - Adjusted operating ratio improved by 30 basis points to 85.9% [27] Market Data and Key Metrics Changes - Total shipments per day in the LTL segment were down 5.8% year over year, with tonnage per day down 7.5% [24] - In Europe, revenue increased by 2% year over year on a constant currency basis, with adjusted EBITDA growing by 19% sequentially [28] Company Strategy and Development Direction - The company is focused on maintaining high service quality and expanding its local channel, aiming for local accounts to represent 30% of total revenue [75] - Investments in proprietary AI technology are being made to enhance profitability through line haul optimization and labor planning [12][13] - The company is committed to cost efficiency and margin expansion, with a focus on insourcing line haul to improve operational flexibility [11][20] Management's Comments on Operating Environment and Future Outlook - Management expects to deliver 150 basis points of margin improvement for the full year, despite a negative tonnage outlook [35][46] - The company is optimistic about future demand recovery, citing a lack of meaningful capacity additions in the industry [55] - Management noted that the pricing environment remains constructive, with strong yield growth expected to continue [60] Other Important Information - The company ended the quarter with $212 million in cash and $811 million in total liquidity [22] - A share repurchase authorization of up to $750 million was announced, with plans to begin opportunistic repurchases [23][88] Q&A Session Summary Question: Update on full year guidance and second quarter expectations - Management expects to deliver 150 basis points of margin improvement despite a negative tonnage outlook, with strong yield performance and effective cost management [35][36][40] Question: Volume dynamics and potential share loss - Industry volumes have declined by approximately 15% to 16% since the peak in 2021, driven by softer demand, particularly in the industrial sector [48][49] Question: Pricing environment and competitive threats - The pricing environment remains constructive, with mid to high single-digit increases in contractual renewals [91] - Management does not see significant threats from competitors like UPS and Amazon, as their business models differ significantly from LTL [93][96]