RXO (NYSE:RXO) Conference December 02, 2025 03:30 PM ET Company ParticipantsJared Weisfeld - Chief Strategy OfficerConference Call ParticipantsNone - AnalystJared WeisfeldThanks for having us at your conference. Really appreciate it. So when we reported a few weeks ago, when we talked about still being in a prolonged soft rate market, and you look at some of the indicators that we were referring to, the month of October, if you look at Cass Freight Shipments, Cass Freight Shipments were down 7% year over ye ...

Core Insights - Landstar System reported soft demand for dry van freight but noted strength in flatbed volumes, indicating potential market shifts [1] - The company anticipates the removal of approximately 200,000 owner operators could significantly impact operations, depending on state-level enforcement of new regulations [2] - Landstar's earnings per share (EPS) was reported at $0.56, with adjusted EPS at $1.22, slightly below consensus and down 19 cents year-over-year [3] Financial Performance - Consolidated revenue for Landstar was $1.2 billion, down less than 1% year-over-year, aligning with analyst expectations [4] - Dry van revenue decreased by 3% year-over-year, while flatbed revenue increased by 4%, driven by higher volumes [4] - Heavy haul business saw a 17% year-over-year revenue increase, contributing positively to flatbed results [4] Market Trends - October's performance is tracking below normal seasonality, with loads per workday down 4.5% from September, compared to a historical decline of just 2% [5] - A significant drop in government-related shipments (over 30% in October) is noted, with expectations for recovery once the government reopens [5] - Overall, the company predicts a muted peak season, potentially softer than the previous year [5] Load and Rate Dynamics - Revenue per load is flat in October, contrasting with the typical 1% increase from Q3 to Q4 [6] - The Outbound Tender Reject Index indicates higher current tender rejections compared to prior years, but does not signal a recovery [6] - The National Truckload Index shows spot rates ahead of last year's levels due to new constraints on the driver pool [7] Capacity and Operations - The number of trucks provided by business capacity owners (BCOs) increased by seven units sequentially to 8,618 in Q3, marking the first increase since Q1 2022 [8]