Group 1: Fund Performance - The Aristotle Small Cap Equity Fund delivered a return of 3.16% in Q3 2025, underperforming the Russell 2000 Index, which had a total return of 12.39% [1] - The Russell 2000 Index reached its first all-time high since November 2021, driven by a favorable macroeconomic backdrop [1] Group 2: Company Highlight - Knight-Swift Transportation Holdings Inc. - Knight-Swift Transportation Holdings Inc. (NYSE:KNX) is a freight transportation services provider with a one-month return of 19.09% and a 52-week gain of 1.25% [2] - As of December 18, 2025, Knight-Swift's stock closed at $52.60 per share, with a market capitalization of $8.539 billion [2] - The company is expected to benefit from increased freight transportation demand and a subdued supply of transportation providers, leading to potential revenue and earnings growth [3] Group 3: Hedge Fund Interest - Knight-Swift Transportation Holdings Inc. was held by 44 hedge fund portfolios at the end of Q3 2025, an increase from 43 in the previous quarter [4] - Despite its potential, some analysts believe that certain AI stocks may offer greater upside potential and carry less downside risk compared to Knight-Swift [4]

Core Insights - Spot rates in the transportation industry are notoriously difficult to predict due to numerous influencing factors such as carrier exits, weather, fuel prices, demand shifts, and regulations [2][4] - The industry has experienced a pattern of missed predictions, leading to a general skepticism about forecasting spot rates [1][2] - Despite the challenges in forecasting, it is still valuable for small carriers to analyze market signals to avoid being caught off guard by sudden changes [3][4] Market Analysis - The update focuses on understanding the signals that precede changes in spot rates rather than pinpointing the exact moment rates will rise [4][5] - The analysis will utilize three key charts to illustrate why spot rates appear stagnant and the significance of small fluctuations in the market [4][6] - The information provided is strictly related to the spot market, excluding contract rates and broker perspectives, to give small carriers a clearer view of the market dynamics [5]

Core Insights - The core issue identified in the consumer survey on online freight service platforms includes four main categories: lack of transparency in pricing mechanisms, discrepancies between platform information and actual services, inconsistent service quality, and inefficient dispute resolution mechanisms [1] Pricing Transparency - Consumers prioritize "reasonable transportation pricing" when selecting freight platforms, with 80% indicating it as the most important factor [1] - 30% of respondents find the freight calculation method very clear, while 54.3% consider it relatively clear; 15.7% feel it is unclear, indicating a need for repeated confirmations and the presence of hidden fees [1][2] - Pricing issues are a frequent pain point for both shippers and drivers, as highlighted by consumer rights protection data [1] Additional Costs and Commission Disputes - The lack of clarity regarding additional costs such as handling fees, waiting fees, and highway fees leads to disputes, particularly when drivers impose additional charges mid-journey [2] - The current operational model of online freight platforms often involves a "membership + commission" structure, leading to frequent disputes over commission and fee rules [2] - For instance, Huolala employs a tiered membership system with varying commission rates, while Kuaigou has announced reforms to eliminate dual charging models [2][3] Recommendations for Improvement - The survey indicates that 62.9% of respondents believe the most critical improvement needed is fee transparency, followed by 44.3% advocating for enhanced dispute resolution mechanisms [4] - Recommendations include platforms clearly presenting pricing logic, including base and additional fees, and providing detailed estimates to enhance consumer understanding [4] - Strengthening regulatory oversight is essential to protect the legal rights of consumers and drivers, ensuring clear responsibilities regarding pricing transparency and commission rates [5]

Core Points - XPO, Inc. announced that Brad Jacobs will step down as Executive Chairman effective December 31, 2025, transitioning to a Special Advisor role until June 30, 2026, while Mario Harik will become Chairman of the Board and continue as CEO [1] - Harik's appointment as Chairman emphasizes the company's commitment to strategic continuity and long-term value creation for stakeholders [1] - Jacobs praised Harik's exceptional performance in various roles and expressed confidence in the company's future under his leadership [2] Company Overview - XPO, Inc. is a leader in asset-based less-than-truckload (LTL) freight transportation in North America, moving 17 billion pounds of freight annually [3] - The company serves 55,000 customers through 605 locations and employs 38,000 people across North America and Europe [3] - XPO is headquartered in Greenwich, Connecticut, USA [3]

Company Overview - CSX Corporation (NASDAQ:CSX) is a leading transportation company that provides rail service, intermodal options, and rail-to-truck transload solutions for customers across a wide range of markets [4] Financial Performance - CSX's third-quarter earnings showed mixed trends, with volumes reaching 1.61 million units, up 1% from the same quarter of 2024 and 2% higher than the previous quarter [2] - Revenue for the period was $3.59 billion, down 1% year-over-year, impacted by lower export coal prices and softer merchandise volume, although stronger pricing in merchandise and growth in intermodal shipments helped cushion the decline [2] Operational Metrics - CSX reported its fastest train velocity since early 2021, with dwell time at its lowest level since mid-2023, and the average daily cars online fell to its lowest point since 2020 [3] - The completion of the Howard Street Tunnel and Blue Ridge subdivision projects ahead of schedule is expected to boost capacity and resilience moving forward [3] Industry Outlook - Morgan Stanley raised its price target on CSX to $30 from $27 while maintaining an Equal Weight rating, reflecting a positive outlook for the freight transportation industry, upgraded to Attractive from In Line for the coming year [2] - The analyst noted that risk and reward levels in the freight transportation sector look better than they have since 2020, despite some ongoing uncertainties [2]

Core Viewpoint - Heartland Express, Inc. plans to integrate and rebrand the U.S. operations of Contract Freighters, Inc. (CFI) effective December 31, 2025, aiming to enhance consolidated operating and financial performance [1][2]. Group 1: Integration and Rebranding - The integration of CFI into Heartland Express is seen as a logical step following improvements in CFI's operating performance during 2025, supported by a transportation management system conversion and a unified driver electronic logging device [2]. - CFI's Mexican operations will remain unaffected by this integration [2]. - The integration aims to align CFI drivers' pay packages with those of Heartland Express, offering increased compensation and benefits [2]. Group 2: Operational Impact - Current CFI offices in Joplin, Missouri, West Memphis, Arkansas, and Laredo, Texas, will be maintained, and all current CFI employees will have the opportunity to continue their employment with Heartland Express [2]. - Drivers will have the option to choose from various pay packages and can operate within other subsidiaries, Millis Transfer, LLC, or Smith Transport, LLC [2]. - The integration is expected to increase fleet capacity, enhancing service delivery to customers [2]. Group 3: Financial Considerations - The company is assessing the potential impact of the integration and rebranding on the value of goodwill and other intangible assets associated with CFI [3].

Core Insights - Soapstone Management sold its entire stake in Saia, amounting to 23,750 shares valued at $6.51 million, during the third quarter of 2025, resulting in a complete exit from the stock [2][3] - The sale reduced Soapstone's exposure to Saia by 4.4% of its reportable assets, and as of September 30, 2025, Saia no longer contributed to the fund's assets under management (AUM) [3] Company Overview - Saia, Inc. is a prominent North American provider of less-than-truckload (LTL) freight transportation, operating a large fleet and extensive terminal network [5][8] - As of December 5, 2025, Saia's stock price was $330.91, with a market capitalization of $8.81 billion, revenue of $3.23 billion, and net income of $283.62 million for the trailing twelve months (TTM) [4] Market Performance - Saia shares experienced a one-year decline of 36%, underperforming the S&P 500 by 49 percentage points [3] - Despite recent challenges, Saia has been acquiring terminals from former competitor Yellow, positioning itself for potential recovery as market conditions improve [11] Investment Perspective - The LTL industry is currently in a cyclical trough, and while Soapstone's exit may reflect a search for better short-term opportunities, Saia is viewed as a long-term buy-and-hold investment, still 45% below its all-time high [10][12]

Core Insights - J.B. Hunt Transport Services did not provide a formal outlook for 2026 but expressed optimism for improvement in conditions in the coming year [1] - The company acknowledged soft overall freight demand but identified some positive trends across its service offerings [2] Freight Demand and Market Conditions - Management noted "pockets of tightness" in the brokerage business, although overall capacity remains plentiful and the operating environment is challenging [3] - The truckload business is experiencing increased mini-bid opportunities due to service performance issues with other carriers, leading to double-digit percentage growth in load counts over the past two quarters [4] Dedicated and Final-Mile Services - J.B. Hunt's dedicated pipeline is healthy, with new customer inquiries increasing, although deal finalization is taking longer [5] - The company estimates the dedicated truck service market to be $90 billion and aims for annual net truck additions of 800 to 1,000 [5] - Parts of the final-mile offering are performing well, but there is continued softness in demand for big-and-bulky delivery [6] Intermodal Landscape - The company addressed the changing intermodal landscape following the merger announcement between Union Pacific and Norfolk Southern [8] - J.B. Hunt prefers to have two different Eastern rail providers for operational flexibility and noted a recent share shift from Norfolk Southern to CSX due to new service agreements [9]

Summary of J.B. Hunt Transport Services Conference Call Company Overview - **Company**: J.B. Hunt Transport Services (NasdaqGS: JBHT) - **Date**: December 02, 2025 - **Speakers**: Shelley Simpson (CEO), Brad Delco (CFO), Darren Field (President of Intermodal) Key Industry Insights - **Freight Market Trends**: The freight market remains challenging with a generally soft backdrop despite some pockets of tightness, particularly in the brokerage space [7][8][10] - **Customer Forecasting**: Customers have improved their forecasting capabilities post-COVID, leading to more accurate demand predictions [6][10] - **Peak Season Performance**: The peak season has materialized as expected, though it is not the strongest seen historically [6][10][18] Business Segment Performance - **Intermodal**: Strong growth in the Eastern Network with mid-single to double-digit volume growth, attributed to operational excellence and customer service [26][27] - **Dedicated Services**: Healthy pipeline of opportunities with a goal of selling 1,000 to 1,200 trucks of new business annually [22] - **Final Mile Services**: Facing challenges due to weak housing activity, which impacts demand for big and bulky products [23][86] - **Overall Business Units**: All business units, except for big and bulky final mile services, are experiencing a lift from peak season [18] Financial Performance and Cost Management - **Cost Reduction Initiative**: A $100 million cost reduction program is in place, with over 20% of the target achieved in Q3 [41][66] - **Structural Cost Savings**: Identified $100 million in structural costs that can be permanently removed from the business, independent of volume [46][47] - **Operational Excellence**: Focus on lowering cost to serve and improving efficiency through technology and process redesign [46][48] Outlook for 2026 - **Market Conditions**: While cautious about the overall market outlook for 2026, there is optimism regarding operational performance and potential for growth if demand improves [86][88] - **Customer Sentiment**: Customers are more settled regarding tariffs, which could positively impact demand [85][86] - **Regulatory Environment**: Potential regulatory changes could impact up to 400,000 drivers, but the timeline and enforcement remain uncertain [91][92] Additional Considerations - **Shareholder Returns**: J.B. Hunt has been returning value to shareholders through stock buybacks and maintaining a growing dividend for 21 consecutive years [75] - **Long-term Positioning**: The company is positioned for long-term success with a focus on operational excellence and cost management [101] This summary encapsulates the key points discussed during the conference call, highlighting the current state of the freight market, performance across business segments, financial strategies, and outlook for the future.

Core Insights - XPO reported a 5.4% decrease in LTL tonnage per day for November 2025 compared to November 2024, driven by a 2.2% decline in shipments per day and a 3.2% reduction in weight per shipment [1] Company Overview - XPO, Inc. is a leader in asset-based less-than-truckload (LTL) freight transportation in North America, moving 17 billion pounds of freight annually [2] - The company serves 55,000 customers through 605 locations and employs 38,000 people across North America and Europe, with its headquarters in Greenwich, Connecticut [2]