PresentationBrandon OglenskiBarclays Bank PLC, Research Division Good morning, everyone. I'm Brandon Oglenski, airline and transport analyst. Again, welcome to Barclays' 43rd Annual Industrial Select Conference. Very excited here on the freight track to have J.B. Hunt up next. I appreciate you guys coming down to warm Miami. But as we're going to do throughout all these fireside chats, I know this is only the second one, but if it's your first, there's a little keypad thing in front of you there. We're goi ...

Summary of J.B. Hunt Transport Services FY Conference Call Company Overview - **Company**: J.B. Hunt Transport Services (NasdaqGS: JBHT) - **Event**: FY Conference Call on February 17, 2026 Key Points Industry Insights - **Market Demand**: The company observed a healthy demand environment in Q4 2025, with customer forecasts being more accurate than in previous years, leading to a solid performance [2][3] - **Impact of Weather**: A significant winter storm affected operations, making it difficult to assess demand trends accurately in early Q1 2026. However, initial signs indicated better-than-expected demand strength [3][4] - **Regulatory Environment**: The regulatory landscape, including ELD compliance and cabotage laws, is impacting market dynamics and contributing to capacity exits [10] Financial Performance - **Margins**: Margins are improving, with a noted squeeze in brokerage margins due to tighter capacity in Q4 2025 [6][8] - **Cost Management**: The company is focused on eliminating $100 million in structural costs and is undergoing a business transformation to drive efficiency through technology and AI [11][12] Business Segments - **Dedicated Contract Services**: The dedicated segment faced challenges with net tractor growth, aiming for 800-1,000 tractors per year. Retention rates improved from a low of 89% to 94% by the end of 2025 [25][38] - **Intermodal Services**: The intermodal segment is experiencing growth despite low truck rates and fuel prices, with a two-year volume growth of +6% to +11% [16][17] Strategic Initiatives - **AI and Technology**: The company is investing in AI to enhance operational efficiency and automate processes, which is expected to improve decision-making and asset utilization [11][13] - **Customer Relationships**: J.B. Hunt emphasizes building long-term relationships with customers, focusing on private fleet conversions and maintaining high service levels [34][42] Market Dynamics - **M&A Activity**: The potential merger between UP and Norfolk Southern is not expected to significantly impact J.B. Hunt's operations, as the company has established relationships with multiple rail providers [14][15] - **Bid Season**: Early indications suggest that customers are hesitant to accept higher rates, attributing market conditions to weather disruptions rather than structural changes [22] Future Outlook - **Growth Projections**: The company is optimistic about returning to net tractor growth and expects moderate income growth in 2026, with a focus on onboarding new business [27][28] - **Capital Deployment**: J.B. Hunt has been active in share repurchases, retiring 6.5% of its stock, and is focused on disciplined capital deployment to support growth [69][70] Additional Considerations - **Customer Retention**: The company has faced customer defections primarily due to rate competition and market conditions, but believes in the potential for recovery as market conditions improve [56][47] - **Operational Excellence**: J.B. Hunt aims to maintain operational excellence and disciplined growth as top priorities, leveraging technology to enhance safety and efficiency [12][13] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting J.B. Hunt's performance, market conditions, and future outlook.

完善激励与约束并重的政策组合拳，激发企业内生动力，引导其从"成本视角"转向"效益视角"看待绿色 转型。当前政策多强调强制性达标要求，容易让企业视清洁运输为单纯的成本负担和合规要求。未来应 在严格坚守排放标准与绩效评级（如A级、B级企业门槛）这一"约束底线"的同时，强化"激励高线"。 例如，对清洁运输比例持续领先或采用零排放车辆进行中长途运输的企业，给予更大幅度的税收减免、 环境税优惠、绿色信贷额度及利率支持。同时，推动将供应链的清洁化水平纳入龙头企业供应商评价体 系，并鼓励金融机构开发与碳减排量挂钩的金融产品，让企业的绿色投入能够转化为市场竞争力和融资 便利。通过经济杠杆和市场机制，使清洁运输成为企业提升竞争力、塑造品牌形象的内在驱动。 整治清洁运输"最后一公里换车头"的乱象，绝非一蹴而就的简单任务。它要求我们必须正视政策执行中 的复杂性，强化系统性思维。要在监管上实现从"末端核查"到"全程穿透"的升级，在保障上完成从"压 力传导"到"服务支撑"的转变，在激励上推动从"被动合规"到"主动求效"的跃迁，在责任上构建从"单一 主体"到"多元共治"的格局。唯有如此，才能真正杜绝形式主义，畅通绿色运输政策落实渠道，让 ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the impact of tariffs on global supply chains, particularly freight flows from China to the USA, and the associated trends in shipping and transportation industries [2][4][11]. Core Observations - **Freight Trends**: Laden vessels from China to the USA decreased by 4% week-over-week (WoW) and were down 20% year-over-year (YoY) [3][11]. - **Port Activity**: Expected TEUs (Twenty-foot Equivalent Units) into the Port of Los Angeles are projected to decrease by 13% sequentially, but are expected to increase by 31% in the following week, likely due to preparations for the Lunar New Year [3][39]. - **Intermodal Volumes**: Rail intermodal volumes along the West Coast were down 6% YoY, indicating a potential decline in import trends [3][45]. - **Ocean Container Rates**: Rates for ocean containers were down 51% YoY, reflecting significant pressure on shipping costs [3][36]. Future Projections - **Volume Growth**: The ability to achieve profit and earnings growth in 2026 will depend on volume growth, particularly in higher-margin business-to-business and manufacturing flows [5][7]. - **Transport Stocks**: The report suggests that transport stocks may face volatility in the second half of 2025, but there is optimism for a recovery cycle in 2026 [8][9]. - **Fed Rate Cuts**: Anticipated Fed rate cuts in 2026 could benefit transport shares, with predictions of two additional cuts following three in 2025 [9][10]. Tariff and Trade Dynamics - **Tariff Uncertainty**: Ongoing tariff-related uncertainties have led to indecision among shippers regarding inventory levels, contributing to underperformance in transport sectors [6][9]. - **Manufacturing Investments**: Increased investments in US manufacturing by major corporations (e.g., Apple, Nvidia) are expected to enhance domestic freight flows [9][10]. Additional Insights - **Logistics Patterns**: Changes in logistics and supply chain sourcing strategies may create new opportunities for global trade, particularly as companies adopt a "China Plus 1 or 2" strategy [9][10]. - **Congestion Levels**: The Supply Chain Congestion Tracker indicates that congestion levels are returning to pre-COVID baselines, suggesting improved fluidity in supply chains [52]. Conclusion - The report highlights a complex interplay of declining freight volumes, tariff impacts, and potential recovery signals in the transport sector, with a focus on the importance of volume growth and strategic shifts in manufacturing and logistics.

波黑媒体biznisinfo1月26日报道。当日中午起，来自波黑、塞尔维亚、黑山及北马其顿的货运司机在克 罗地亚、匈牙利、保加利亚和罗马尼亚边境展开协调抗议，封锁对欧盟方向的货运通道，警示申根区严 格的驾驶员停留规定正严重威胁地区出口及供应链稳定。 抗议活动仅封锁货运交通，客运车辆、公交车以及运输药品、活畜、人道主义物资或危险品的卡车仍可 正常通行。 此次行动的直接导火索是申根区"90/180天"规则的实施。该规则将非欧盟国家的职业司机视同普通游客 对待，而新启用的出入境系统(EES)能精准记录停留时长，导致许多司机因担忧处罚而无法继续进入欧 盟作业。 运输业代表警告称，若问题得不到解决，区域出口将遭受严重冲击。他们要求欧盟将跨境货运司机重新 归类为"跨境工作者"而非游客身份，以保障区域物流畅通。(驻波黑使馆经商处) ...

Core Insights - J.B. Hunt Transport Services reported solid demand and is actively gaining market share, aligning with customers who are also increasing their share in their respective industries [1] - The truckload market has tightened since the week before Thanksgiving, continuing into the new year, although management is cautious about providing firm guidance due to past market fluctuations [2] Financial Performance - For the fourth quarter, J.B. Hunt reported earnings per share of $1.90, which is 24 cents higher year-over-year and 9 cents above consensus estimates. The adjusted EPS excludes $16 million in nonrecurring intangible asset impairments [3] - Consolidated revenue for the quarter was $3.1 billion, a 2% decrease year-over-year, slightly below the consensus estimate of $3.12 billion. However, operating income increased by 11% on an adjusted basis due to cost reductions and improved productivity [3] Cost Management - The company has achieved its target of $100 million in annual cost reductions and continues to identify further opportunities for expense cuts [4] - The operating ratio improved to 91.2%, which is 140 basis points better year-over-year and 60 basis points better than the previous quarter. Cost per load decreased by 3%, while revenue per load fell by 1.5% [7] Intermodal Performance - Intermodal revenue declined by 3% year-over-year to $1.55 billion, with load counts and revenue per load both down approximately 1.5%. Transcontinental loads decreased by 6%, while shipments in the Eastern network increased by 5% [5] - Total intermodal carloads on U.S. Class I railroads were down nearly 5% year-over-year, indicating a challenging volume comparison [5] Future Outlook - To achieve long-term margin targets of 10% to 12%, the company aims to capture one point of margin from lower costs, better volumes, and higher yields, and is already on track regarding cost management [8] - J.B. Hunt is actively engaging with rail partners, particularly in light of Norfolk Southern's planned merger with Union Pacific, to explore future opportunities and enhance service partnerships [9]

Financial Data and Key Metrics Changes - For Q4 2025, revenue decreased by 2% year-over-year, while operating income improved by 19%, and diluted earnings per share increased by 24% compared to the prior year period [11] - For the fiscal year 2025, revenue declined by 1%, while operating income increased by 4% [12] - The company executed over $25 million in tracked savings in Q4, achieving a run rate of over $100 million in annualized cost savings [15] Business Line Data and Key Metrics Changes - Intermodal volumes in Q4 were down 2% year-over-year, with transcontinental volumes down 6% and eastern loads up 5% [33] - The final mile business experienced soft market demand across furniture, exercise equipment, and appliances, with expectations of a $90 million revenue headwind in 2026 due to the loss of legacy appliance-related business [21][22] - The dedicated business maintained flat operating income compared to 2024 results despite a lower fleet count, with strong new truck sales in Q4 [26] Market Data and Key Metrics Changes - The truckload market became noticeably tighter beginning the week before Thanksgiving, driven by higher levels of regulatory enforcement [22] - Customers are consolidating logistics providers, leading to the highest customer retention since 2017 [18] - Demand in Q4 aligned with expectations, with a solid peak season supported by early imported freight needing to move inland [17] Company Strategy and Development Direction - The company is focused on disciplined growth through operational excellence, leveraging investments in people, technology, and capacity to create sustainable competitive advantages [9] - The strategy for 2026 includes continuing to repair margins and maintaining operational excellence while managing costs [10] - The company is committed to engaging in discussions regarding Class 1 rail consolidation and converting highway truckload shipments to intermodal [32] Management's Comments on Operating Environment and Future Outlook - The freight market is described as fragile, with limited elasticity in supply, indicating that small increases in demand could create significant market changes [41] - Management remains cautious about the market outlook, emphasizing the need to monitor customer feedback and demand trends in early 2026 [56] - The company is optimistic about its operational momentum and capacity to deploy capital to meet customer needs [16] Other Important Information - The company spent $575 million in capital reinvesting in its business in 2025 and repurchased $923 million worth of shares, the largest annual amount in its history [12] - The balance sheet remains healthy, with leverage just under the target of one times trailing 12-month EBITDA [13] Q&A Session Summary Question: Can you elaborate on the freight market's fragility? - Management indicated that the supply side has not changed significantly since Thanksgiving, and small demand upticks could create larger market ripples due to limited elasticity [40][41] Question: What is the opportunity for cost savings in 2026? - Management expressed confidence in exceeding the $100 million cost savings target, citing successful execution of various cost initiatives [50] Question: How does the recent tighter capacity freight market impact expectations for dedicated sales? - Management noted that while it is too early to see significant changes, there is optimism due to strong new customer acquisitions and a robust sales pipeline [73]

Core Insights - FedEx Corporation (FDX) reported strong second-quarter fiscal 2026 results, with earnings and revenues exceeding expectations, showcasing a year-over-year earnings increase of 19% and revenue growth of 6.8% [2][3][9] Financial Performance - Quarterly earnings per share (EPS) reached $4.82, surpassing the Zacks Consensus Estimate of $4.07, with share repurchases contributing an additional 5 cents per share [2][9] - Revenues totaled $23.4 billion, exceeding the Zacks Consensus Estimate of $22.8 billion [3][9] - Operating income increased by 31.4% to $1.38 billion, with operating margin rising to 5.9% from 4.8% year-over-year [5][9] Guidance and Outlook - FedEx raised its full-year fiscal 2026 guidance, now expecting revenue growth of 5-6% (previously 4-6%) and EPS between $14.80 and $16.00, up from $14.20-$16.00 [4] - The anticipated spin-off of FedEx Freight is expected to be completed on June 1, 2026, as a separate publicly traded company [6][9] Segment Performance - FedEx Express segment revenues grew 8% year-over-year to $20.4 billion, driven by higher package yields and cost savings [7] - FedEx Freight revenues declined by 2% to $2.14 billion, impacted by lower shipments and higher wage rates, alongside one-time spin-off-related costs of $152 million [8] Capital and Liquidity - FedEx ended the quarter with cash and cash equivalents of $6.57 billion, an increase from $6.16 billion in the previous quarter [11] - The company completed $276 million in share repurchases during the quarter, with $1.3 billion remaining available for future repurchases [11] Cost Management and Investments - FedEx anticipates permanent cost reductions of $1 billion from transformation-related savings and plans to invest $4.5 billion in capital expenditures focused on network optimization and efficiency improvements [13]

Core Viewpoint - A group of transport stocks has experienced significant gains, outperforming the S&P 500 index this week [1] Group Performance - Five freight stocks: Saia (SAIA), Old Dominion Freight Line (ODFL), J.B. Hunt Transport Services (JBHT), Forward Air (FWRD), and Knight-Swift Transportation (KNX) have seen an average increase of about 7% since the start of the week [1] - This performance is notably higher than the S&P 500's approximate 1% gain during the same period [1]

Core Insights - J.B. Hunt is recognized as a significant player in the transportation sector, providing valuable insights across various markets [1]. Freight Market Trends - The freight market is currently experiencing a generally soft backdrop, with mixed updates on LTL (Less Than Truckload) tonnage, indicating no strong signs of improvement for November [2]. - Other companies, such as Werner, have expressed a more constructive outlook for the peak season, noting better-than-expected performance while also reducing fleet count to manage capacity in the one-way business [2].