Company Overview - Ryder has undergone a significant transformation in recent years, moving away from its traditional image [1] - The company was founded in 1933 in Miami and has grown from one man and one truck to a publicly traded entity [4] - Ryder went public in 1955 and is among the top 5% of the longest-tenured publicly traded companies on the NYSE [4] - The company currently generates just under $13 billion in revenue [4]

Summary of Ryder's Conference Call Company Overview - **Company**: Ryder System, Inc. - **Industry**: Transportation and Logistics - **Founded**: 1933, went public in 1955 - **Revenue**: Approximately $13 billion - **Stock Symbol**: R - **Segments**: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), Supply Chain Solutions (SCS) [1][2][3] Core Business Segments 1. **Fleet Management Solutions (FMS)** - Represents about 43% of total revenue - Offers truck leasing and maintenance services - Operates a fleet of nearly 240,000 vehicles - Revenue growth is dependent on the freight market [3][5][26] 2. **Dedicated Transportation Solutions (DTS)** - Accounts for 19% of revenue - Provides trucks and drivers for customers - Growth is influenced by the driver market and outsourcing trends [5][61] 3. **Supply Chain Solutions (SCS)** - Focuses on warehousing and logistics - Operates over 300 warehouses with over 100 million square feet of space - Long-term growth target is low double digits [6][40][54] Transformation and Strategy - **Balanced Growth Strategy**: Initiated in 2019 to de-risk the business model, improve returns, and accelerate growth in asset-light businesses [7][10] - **Revenue Mix Shift**: In 2018, asset-intensive business was 56% of revenue; by 2023, it decreased to 38% [11] - **Earnings Improvement**: Targeting low twenties return on equity (ROE) over the cycle, with a peak ROE of 17% expected in 2025 [12] - **Cost Savings**: Achieved over $100 million in savings from maintenance optimization initiatives [10][13] Financial Outlook - **2026 EPS Guidance**: Midpoint reflects an 8% year-over-year growth, with a range of 4%-12% [71] - **Potential Earnings Lift**: Identified $250 million in earnings lift as the freight market recovers [13][72] - **Free Cash Flow**: Expected to be $700-$800 million, with plans for organic growth, acquisitions, dividends, and share buybacks [83][85] Market Dynamics - **Freight Market**: Current softness in the freight market is impacting lease sales and rental fleet performance [27][69] - **Driver Market**: A tightening driver market is expected to drive growth in dedicated services as companies outsource more [61][66] - **Customer Sentiment**: Large companies are moving forward with projects, while small to mid-sized companies are more hesitant due to market conditions [70] Innovation and Technology - **AI Integration**: Ryder is leveraging AI in customer-facing systems and operational efficiencies [88][89] - **Automation**: Increased use of automation in warehouses and maintenance operations to enhance productivity [100][102] Management Transition - **Leadership Change**: Robert Sanchez will transition to Executive Chair, with John Diez taking over as CEO [15][78] - **Management Team**: Strong leadership team in place, with a focus on innovation and operational excellence [17][80] Conclusion - Ryder is positioned for future growth with a focus on innovation, operational efficiency, and a strong management team. The company anticipates that the best years are ahead as market conditions improve and demand for logistics services increases [105]

Core Insights - The U.S. manufacturing industry added 5,000 jobs in January, marking a significant improvement from a loss of 20,000 jobs in the same period last year [1][4] - The transportation equipment sector contributed the most to job gains, adding approximately 4,800 jobs [3][4] - Manufacturing unemployment decreased to about 541,000 in January, reflecting a nearly 11% year-over-year decline [5] Job Gains and Losses - The transportation equipment sector was the largest contributor to job growth, while the apparel and chemical sectors experienced the most significant job losses, each losing around 1,800 jobs [4][5] - The petroleum and coal sector also faced job losses, with approximately 1,400 positions cut [5] Employment Data Revisions - The Bureau of Labor Statistics (BLS) revises employment data based on additional reports and conducts an annual benchmarking process [2] - Revised data indicated that the manufacturing industry lost an estimated 103,000 jobs between January 1, 2025, and January 1, 2026 [6]

Core Insights - Westinghouse Air Brake Technologies (WAB) reported a revenue of $2.97 billion for the quarter ended December 2025, reflecting a year-over-year increase of 14.8% and surpassing the Zacks Consensus Estimate of $2.86 billion by 3.79% [1] - The company's earnings per share (EPS) for the quarter was $2.10, an increase from $1.68 in the same quarter last year, also exceeding the consensus EPS estimate of $2.07 by 1.45% [1] Financial Performance - WAB's backlog totaled $27.41 billion, exceeding the average estimate of $24 billion from two analysts [4] - The backlog for the Transit Group was reported at $4.91 billion, above the $4.6 billion average estimate [4] - The backlog for the Freight Group reached $22.49 billion, surpassing the average estimate of $19.4 billion [4] Segment Performance - Sales to external customers in the Freight Segment amounted to $2.12 billion, exceeding the average estimate of $2 billion and representing an 18.3% year-over-year increase [4] - Sales in the Transit Segment were reported at $842 million, slightly below the estimated $853.65 million, but still showing a 6.7% increase compared to the previous year [4] - The Freight Group's Services segment generated $667 million, closely matching the average estimate of $666.9 million [4] Operational Metrics - Income from operations in the Freight Segment was $318 million, below the average estimate of $399.94 million [4] - Adjusted income from operations in the Transit Segment was $118 million, compared to the average estimate of $133.13 million [4] - Adjusted income from operations in the Freight Segment was $470 million, exceeding the average estimate of $445.3 million [4] Stock Performance - WAB's shares have returned +8.3% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Westport Fuel Systems has successfully received a milestone payment of $6.5 million as part of its divestiture of the Light-Duty segment, which enhances its cash position and supports ongoing operations and strategic initiatives [1][2]. Group 1: Financial Impact - The company received $6.5 million (Euro 5.5 million) as part of the sale of its Light-Duty segment, which was triggered by achieving a defined post-closing milestone [1]. - This interim payment is expected to strengthen Westport's cash position, allowing for support of ongoing operations and strategic initiatives [2]. Group 2: Strategic Focus - Westport remains disciplined in executing the remaining elements of the divestiture process while also focusing on operational efficiency improvements [2]. - The company is committed to connecting synergistic technologies to promote cleaner energy solutions, emphasizing its role as a leading supplier of alternative fuel systems [3][4]. Group 3: Technological Commitment - Westport's technologies support a variety of clean fuels, including natural gas, renewable natural gas, and hydrogen, enabling OEMs and commercial transportation industries to meet performance demands and regulatory requirements [4]. - The company aims to help partners achieve sustainability goals without compromising performance or cost-efficiency [4].

Group 1 - The liquidity contract entrusted by Alstom to Rothschild Martin Maurel shows the number of transactions processed from July 1, 2025, to December 31, 2025, with 18,132 buy transactions and 23,824 sell transactions, involving a total of 5,521,744 securities [1] - The total amount of buy transactions reached €120,335,974.01, while the total amount of sell transactions was €120,329,409.53 [1] - The report is in accordance with AMF decision n°2021-01, which renews the introduction of liquidity contracts on equity securities as an accepted market practice [1] Group 2 - Alstom generated sales of €18.5 billion for the fiscal year ending on March 31, 2025, and is committed to developing sustainable transportation solutions [4] - The company operates in 63 countries and employs over 86,000 people from 184 nationalities, focusing on innovative mobility solutions [4]

Core Insights - The manufacturing industry experienced 329,000 job separations in October, marking a 0.6% increase from September's 327,000 separations [1] - Job openings rose by 6.5% month-over-month to 410,000, but decreased by about 10% year-over-year from 455,000 [2] - Manufacturing unemployment increased by 18.7% year-over-year to 571,000 individuals, with job losses of 6,000 in September [3] Sector-Specific Trends - The beverage, tobacco, and leather manufacturing sectors gained approximately 3,300 jobs, while nonmetallic mineral products and machinery added 1,500 and 1,300 jobs, respectively [4] - The plastics and rubber products sector faced significant job cuts, losing around 3,500 jobs [4] - The semiconductor and electronic components sector lost about 2,500 workers, and transportation equipment cut 2,400 employees, with half of those from the motor vehicle segment [5] Future Outlook - Job cuts in the transportation equipment sector are anticipated to continue into 2026 due to declining electric vehicle sales, rising costs, and tariffs on materials like aluminum and steel [6] - General Motors is expected to lay off thousands of workers and pause production at its Ultium Cells battery sites starting in January [6] - Tariffs are reportedly discouraging manufacturers from relocating production back to the U.S., particularly in the transportation equipment sector [7]

Economic Conditions - The ISM manufacturing index has dropped to 48.2%, indicating contraction in business conditions as it is below the 50% threshold [3] - The labor market is showing signs of softening, with the employment gauge falling to 44%, the lowest since August [3] Labor Market Impact - Companies are expressing concerns that tariffs on U.S. imports will increase operating costs, potentially leading to job cuts [2] - Executives from various industries, including petroleum and coal, anticipate significant changes in cash flow and employee headcount as they prepare for 2026 [4] - A large retailer reported a 20% year-over-year increase in average costs due to tariffs, complicating their cost distribution strategies [9] Tariff Effects - The OECD report indicates that while tariffs have not yet significantly impacted the global economy, their full effects may still be forthcoming [7] - The report highlights a sharp decrease in the value of U.S. imported goods subject to tariffs, suggesting that demand is being affected [8] - Tariffs and the uncertainty surrounding them are noted as ongoing challenges for manufacturers [9] Supply Chain Concerns - Respondents from various sectors, including electrical equipment and transportation, have indicated that current conditions are more challenging than during the COVID-19 pandemic, particularly regarding supply chain uncertainty [5][4]

Core Viewpoint - Elon Musk attempted to persuade President Trump against implementing tariffs, arguing they distort markets and could lead to a recession, which has implications for U.S. manufacturers facing industry challenges linked to these levies [1][2][3][4]. Group 1: Impact of Tariffs on Manufacturing - U.S. manufacturing has contracted for nine consecutive months as reported by the Institute for Supply Management (ISM), with declines in new orders, supplier deliveries, and employment attributed to tariffs [5]. - Manufacturers are experiencing labor cuts and are shifting towards overseas production due to the tariff environment, contrary to the intended goal of reshoring American jobs [4][6]. - The U.S. Bureau of Labor Statistics reported a loss of 6,000 manufacturing jobs in October, contributing to a total of 59,000 manufacturing jobs lost since the initiation of tariffs in April [6]. Group 2: Manufacturer Sentiment - Some manufacturers have indicated that the tariff environment has led to permanent changes in their operations, including staff reductions and increased offshore manufacturing [6]. - The sentiment among manufacturers is that tariffs have exacerbated business slowdowns and labor tightening, leading to a reevaluation of operational strategies [5][6].

Core Viewpoint - U.S. manufacturing has contracted for the ninth consecutive month in November, driven by declining orders and rising input prices due to ongoing import tariffs [1][2]. Manufacturing Sector Performance - The Institute for Supply Management (ISM) reported that the manufacturing PMI fell to 48.2 in November from 48.7 in October, indicating contraction in the sector, which constitutes 10.1% of the economy [4]. - Some manufacturers linked layoffs to the tariff environment, indicating a shift towards more permanent changes, including staff reductions and offshore manufacturing [2]. Impact of Tariffs - The imposition of 25% tariffs on over $460 billion worth of imports, particularly in the transportation equipment industry, has negatively impacted manufacturing, although some tariff relief has been provided [2][5]. - The Federal Reserve's Beige Book noted that while some districts reported slight increases in manufacturing activity, tariffs and uncertainty continue to pose challenges [5]. Industry-Specific Insights - Only four industries, including computer and electronic products and machinery, reported growth, while sectors such as wood products, transportation equipment, and textile mills experienced contraction [5]. - Chemical product manufacturers indicated that tariffs and economic uncertainty are dampening demand for construction-related products like adhesives and sealants [6].