PresentationWayne WilliamsFounder, CEO, President & Chairman Welcome, everybody. I'm glad everybody was able to join. Hopefully, everybody is having a bless day. I'm going to run through the slide deck fairly quick because I really want to focus on questions. It's great to be here again today presenting Callan JMB and everything that we're doing. Some of you have obviously seen the slide deck from previous presentations. There are some minor changes, but we'll -- I'll definitely highlight those pieces. So ...

Company Overview - Ryder System, Inc. is one of the world's largest providers of integrated logistics and transportation solutions, serving a diverse range of customers from small businesses to large international enterprises across various industries, including automotive, electronics, transportation, grocery, lumber and wood products, food service, and home furnishing [11]. Investment Ratings - Ryder has a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating a strong investment potential [12]. - The company is particularly appealing to growth investors, with a Growth Style Score of B, forecasting a year-over-year earnings growth of 15.6% for the current fiscal year [12]. Earnings Estimates - An analyst has revised Ryder's earnings estimate higher in the last 60 days for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.08 to $14.94 per share [12]. - Ryder has an average earnings surprise of +1.9%, suggesting a positive trend in earnings performance [12]. Investment Recommendation - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, Ryder is recommended to be on investors' short lists for potential investment opportunities [13].

Board Changes - ArcBest has appointed Ann Bordelon and Bobby George as independent directors on its Board, both of whom will serve on the Audit Committee [1] - Fredrik Eliasson and Kathy McElligott will retire from the board effective February 28, 2026, along with Craig Philip on January 28, 2026, resulting in a board of ten directors, eight of whom will be independent [2] New Board Members - Ann Bordelon brings over 36 years of finance experience, currently serving as Executive Vice Chancellor – Finance & Administration at the University of Arkansas, and has held significant roles at Walmart and NOWDiagnostics, enhancing the board's financial expertise [3] - Bobby George has over 25 years of experience in tech strategy and digital innovation, currently serving as Senior Vice President & Chief Digital Officer at Carrier, and has held leadership positions at General Electric and St. Jude Medical, contributing valuable IT expertise to the board [4] Strategic Focus - The addition of Bordelon and George is aimed at sharpening the board's strategic oversight as ArcBest continues to execute its growth plans, emphasizing excellence in governance and ongoing board refreshment [5] - ArcBest is committed to best-in-class corporate governance and is focused on advancing its strategic pillars, which include accelerating profitable growth, increasing efficiency, and driving innovation [6] Company Overview - ArcBest is a multibillion-dollar integrated logistics company founded in 1923, employing 14,000 people across 250 campuses and service centers, and is recognized for its technology and expertise in connecting shippers with logistics solutions [7] - The company is developing innovative technologies, such as Vaux, which was recognized as one of TIME's Best Inventions of 2023, to help customers navigate supply chain challenges [8]

Core Insights - Ace investor Mukul Mahavir Agrawal reshuffled his Rs 6,500-crore equity portfolio during the December quarter, reflecting a mix of fresh bets and tactical adjustments following sharp stock-specific corrections and a selloff in smallcap stocks in 2025 [18] Company Summaries - **Hindustan Construction**: Agrawal acquired a 1.68% stake, amounting to 4.40 crore shares, after the stock experienced a correction of over 30% in the past year [1] - **Alcargo Logistics**: Agrawal purchased a 2.9% stake in the company, which has seen a decline of about 80% over the last year. Alcargo specializes in integrated logistics services [2] - **Sudeep Pharma**: A 1.3% stake was acquired by Agrawal, with the stock down nearly 30% in the last year. Sudeep is a manufacturer of mineral-based pharmaceutical excipients and specialty ingredients [3] - **Vasa Denticity**: Agrawal increased his stake by 0.4%, bringing his total holding to 2.4%. The company is a leading B2B e-commerce platform for dental products [4] - **Vikran Engineering**: Agrawal increased his stake by 0.2%. The stock is down 10% from its issue price of Rs 97 since its market debut in September last year [7] - **N R Agrawal**: A marginal stake increase of 0.1% was made, with the stock down nearly 20% from its 52-week high of Rs 514 [8] - **Monolithisch**: Agrawal reduced his stake by 0.2% to 2.76%, with the stock down 20.5% from its 52-week high of Rs 607 [9] - **Pearl Global**: The investor offloaded 0.2% in the company, which has fallen nearly 15% in January alone [10] - **InfoBeans Technologies**: Agrawal reduced his stake by 0.2% to 3.9%, with the stock up 97% in the last year [11] - **Autoriders**: A stake reduction of 0.7% occurred, with the stock rising over 1,100% in the last year [12] - **Zota Healthcare**: Agrawal reduced his stake by 0.8%, with the stock up nearly 40% in the last year [13] - **ASM Technologies**: A stake reduction of 0.4% was noted, with the stock having doubled in the last year, rising about 115% [14] - **Stanley Lifestyles**: Agrawal appears to have exited the stock, which is down nearly 50% in the last year [15]

Financial Performance & Targets - ArcBest Consolidated revenue reached $1 billion, a 1% increase compared to Q3 2024 [125] - Asset-Based revenue was $726 million [129] - Asset-Light revenue reached $356 million [145] - The company targets Non-GAAP Diluted EPS of $12-$15 and annual operating cash flow of $400M-$500M by 2028 [40, 41] - The company is targeting an Asset-Based Non-GAAP Operating Ratio between 87%-90% by 2028 [37] Growth & Efficiency Strategies - Over 70% of customers using Asset-Light services also utilize Asset-Based services [29] - Revenue & Profit per account is over 3X higher on cross-sold accounts [31] - Retention rates are 5 percentage points higher on cross-sold accounts than on single-solution accounts [33] - Managed Solutions pipeline is growing, reaching $1 billion as of 3Q 2025 [61] - The company has achieved a 140 basis points YoY Net Margin Expansion in Expedite services as of 3Q'25 [75]

Core Insights - ArcBest held its 2025 investor day to discuss strategic direction, financial performance, and future vision [1] - The event highlighted the company's long-term business outlook and roadmap for growth and value creation [1] Strategic Pillars - ArcBest's leadership outlined strategic pillars aimed at driving long-term value [1]

Company Overview - ArcBest is a leading integrated logistics company with an addressable market of approximately $400 billion[16] - The company has extensive United States coverage with 99% reach[16] - ArcBest has a diversified customer base, with the top 10 customers accounting for only 13% of 2024 consolidated revenues[20] Financial Performance & Targets - ArcBest's revenues increased from $2.8 billion in 2019 to $4.2 billion in 2024, a 49% increase[100] - Operating income grew from $112 million in 2019 to $203 million in 2024, an 81% increase[100] - Earnings per share increased from $2.96 in 2019 to $6.28 in 2024, a 112% increase[100] - The company targets an Asset-Based Non-GAAP Operating Ratio of 87%-90% by 2028[249] - ArcBest aims for Asset-Light Non-GAAP Operating Income between $40 million and $70 million by 2028[249] - The company projects Non-GAAP Diluted EPS between $12 and $15 and annual operating cash flow between $400 million and $500 million[250, 251] Strategic Growth & Innovation - Customers using both Asset-Light and Asset-Based services represent over 70% of the customer base[56] - Revenue and profit per account are over 3 times higher on cross-sold accounts[58]

Core Insights - DHL is hiring hundreds of customs experts to assist businesses in navigating the complexities of current trade turbulence, anticipating a muted peak shipping season this fall [1] Group 1: Trade Environment - The U.S. tariff policies have created volatility in freight markets, leading to shippers accelerating overseas orders to avoid tariffs, then reducing imports due to high inventories, and seeking suppliers outside China where tariffs average 58% [2] - The cancellation of the de minimis rule on May 2 has significantly reduced airfreight for e-commerce shipments [2] Group 2: Company Response - DHL executives are working overtime to help customers manage the rising costs and complexities associated with the changing tariff landscape [3] - The company has added over 680 customs, finance, and customer service specialists this year to assist small businesses with new compliance requirements [5] - A strong customs broker operation is emphasized as a competitive advantage in the current volatile trade environment [6] Group 3: Operational Adjustments - DHL Express has seen a 30% year-over-year drop in volumes from China and Hong Kong to the U.S., partially offset by growth from countries like Vietnam, India, Malaysia, and Mexico [6] - Due to the decline in inbound volume, DHL Express has reduced daily ground delivery routes and will hire fewer seasonal workers for the holiday rush, expecting only a 20% to 25% sequential lift in business during peak season, compared to the usual 40% to 50% [7]

Core Viewpoint - ArcBest has increased its share repurchase authorization to a total of $125 million, reflecting the board's confidence in the company's strategy and long-term outlook [1]. Group 1 - The board of directors approved the increase in share repurchase authorization [1]. - Judy R. McReynolds, Chairman and CEO, emphasized the company's commitment to a balanced and disciplined capital allocation approach [1].

Company Performance & Strategy - Judy McReynolds is retiring as CEO, retaining her position as Chairman of the Board, and Seth Runser will assume the role of CEO and President, effective January 1, 2026 [15] - The company is focused on a three-point strategy: increasing efficiency, driving innovation, and accelerating growth [11, 12] - ArcBest's integrated solutions expand market opportunity by seamlessly connecting modes, enabling growth with 5x larger deals [33] - Cross-sold accounts have over 3x higher revenue and profit compared to single-solution accounts [35, 36] - Over 70% of customers using asset-light services also utilize asset-based services, with 5% higher retention rates on cross-sold accounts [38, 39] Q2 2025 Financial Results - ArcBest's consolidated revenue for Q2 2025 was $1 billion [82] - Non-GAAP earnings per diluted share were $136, a decrease of 31% [83] - Non-GAAP operating income was $45 million [83] - Asset-Based revenue was $713 million, with a 30% decrease in operating income [86] - Asset-Light revenue decreased by 13% [101]