Managed logistics provider BlueGrace Logistics announced it has acquired 3PL peer STB Freight Group for an undisclosed sum. Michigan-based STB manages freight transportation for the retail, food, automotive, aerospace and manufacturing sectors throughout North America, with a focus on the Midwest. It offers dry van, refrigerated, flatbed and expedited service through a network of over 10,000 carriers. “By joining forces, STB customers gain access to our full Managed Logistics platform, providing propriet ...

The word that came up repeatedly from RXO management during the 3PL’s earnings call with analysts was “squeeze.” RXO is facing a squeeze created by contractual rates the brokerage locked in at lower numbers and a suddenly rising level of rates needed to provide capacity into those obligations. And while the call with analysts may have been about RXO (NYSE: RXO), it is reasonable to assume it’s the same predicament that much of the 3PL sector finds itself in at present. The earnings call came soon after R ...

Core Insights - Radiant Logistics reported adjusted earnings per share of 11 cents for its fiscal fourth quarter, which was 3 cents lower year-over-year but 3 cents above consensus estimates [1] - The company experienced consolidated revenue of $221 million, reflecting a 7% year-over-year increase, although it fell short of analysts' expectations by $3 million [2] - The CEO indicated that the company anticipates near-term volatility due to ongoing U.S. trade and tariff negotiations [2] Financial Performance - Adjusted EBITDA for the quarter was $7.9 million, representing a 13% decline year-over-year, while full-year adjusted EBITDA for fiscal 2025 was $38.8 million, an increase of $7.6 million year-over-year [3] - The company executed six acquisitions during the year, including three agent stations, contributing $6 million to the year-over-year EBITDA increase [3] Strategic Moves - Radiant Logistics acquired an 80% stake in Mexico City-based Weport, a transportation and logistics provider, for an undisclosed amount [4] - The company ended the quarter with $23 million in cash and a $20 million outstanding balance on a $200 million credit facility, positioning itself to fund future acquisitions and share repurchases [5] Market Outlook - The CEO expressed optimism about a potential surge in global trade once tariff disputes are resolved, emphasizing the company's strategy to remain agile in response to tariff announcements [5] - Shares of Radiant Logistics (NYSE: RLGT) declined by 2.6% in after-hours trading following the earnings report [6]

Core Viewpoint - Odyssey Logistics has experienced a downgrade in its debt rating by Moody's Ratings, following a similar downgrade by S&P Global, indicating a bleak outlook for the freight market and the company's financial health [1][4]. Group 1: Rating Changes - Odyssey's Corporate Family Rating was downgraded from B2 to B3 by Moody's, with its probability of default rating also reduced to B3-PD from B2-PD [3][6]. - The senior secured first lien bank credit rating was cut to B3 from B2, placing it deep into the non-investment grade category, which is six notches below the investment grade cutoff [4][6]. - S&P Global had previously downgraded Odyssey's rating to B- in June, which is equivalent to Moody's B3 rating [4]. Group 2: Historical Context - The previous B2 rating had been affirmed by Moody's in March 2024 and July 2023, and it was raised to that level in August 2022 [7]. - Moody's had maintained a stable outlook on Odyssey's rating for three years before the recent downgrade, which is not typical as downgrades usually follow a negative outlook [5][6]. Group 3: Financial Metrics - Moody's anticipates that Odyssey's financial leverage will remain above a 7X debt/EBITDA level through the end of the year, indicating elevated debt ratios that are critical for assessing the company's financial position [8].

Group 1 - DSV A/S, the largest 3PL provider globally after acquiring Schenker, saw its stock price increase by over 18%, significantly outperforming the S&P 500's 7.1% gain, aligning with a Strong Buy rating [1] - The Aerospace Forum aims to identify investment opportunities within the aerospace, defense, and airline sectors, leveraging data analytics for informed investment analysis [1] - The analysis provided by the Aerospace Forum is rooted in a background in aerospace engineering, focusing on the industry's growth prospects and the implications of developments on investment strategies [1]