Financial Data and Key Metrics Changes - Preliminary consolidated operating revenue for 2025 is expected to be $3.7 billion, a 7% decrease compared to the prior year [32] - Preliminary operating cash flow for 2025 is approximately $194 million [11][37] - Debt at December 31, 2025, totaled approximately $229 million, resulting in net debt of approximately $116 million, a decrease of about $50 million compared to December 31, 2024 [38] Business Line Data and Key Metrics Changes - ITS segment operating revenue for 2025 is expected to be around $2.2 billion, reflecting a low single-digit year-over-year decrease [33] - Logistics segment operating revenue for 2025 is projected to be approximately $1.6 billion, with a high single-digit year-over-year decrease [34] - Brokerage volumes declined 10% year-over-year in the fourth quarter, with revenue per load down 4% [21] Market Data and Key Metrics Changes - Intermodal volume growth was 1% year-over-year in the fourth quarter, with refrigerated volumes increasing by 150% and Mexico volumes up 33% [13] - Market conditions have remained tighter due to weather, with opportunities for spot market support [22] - Demand and inventory levels remain balanced, with consumer resilience noted [25] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and cash flow profile while investing in equipment, technology, and acquisitions [10] - Capital allocation includes a disciplined approach to capital deployment, returning capital to shareholders through dividends and share repurchases, and evaluating M&A opportunities [28][42] - The company aims to support growth with customers and improve network balance to reduce backhaul costs [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the last year was a continuation of a challenging market cycle, but the company performed well by controlling costs and delivering record service levels [10] - There are positive trends in the marketplace as reflected in improving ISM New Orders and spot market activity [45] - The company believes it is well-positioned for growth in 2026 and beyond, despite some uncertainty in the near term [29][26] Other Important Information - An accounting error was identified that resulted in an understatement of purchased transportation costs and accounts payable, with a total reduction of $77 million recorded during the first nine months of 2025 [31] - The company plans to restate quarterly financial information for Q1, Q2, and Q3 2025 in its 2025 Form 10-K [32] Q&A Session Summary Question: What is the outlook for the intermodal segment in 2026? - Management expressed optimism regarding the 2026 bid cycle, driven by strong service performance and customer engagement [15][16] Question: How is the company addressing the challenges in the dedicated segment? - The company is focusing on operational discipline and service improvements to offset revenue declines from lost sites [18] Question: What are the expectations for capital expenditures in 2026? - Capital expenditures are projected to be between $35 million and $45 million, focusing on technology projects and opportunistic replacements for tractors [41]

Core Insights - CSX's fourth quarter profits were negatively impacted by ongoing freight challenges, with no expected turnaround in the near future [1] - The company reported flat operating income of $1.11 billion and a 1% decline in revenue to $3.5 billion, while expenses also decreased by 1% to $2.39 billion [2] - Earnings per share increased by 3% to 39 cents, but adjusted for one-time items, operating income and earnings per share declined by 9% and 7% respectively [3] Financial Performance - The operating ratio improved by 0.3 points year-over-year to 68.4% [2] - Overall volume increased by 1% in the fourth quarter, with intermodal traffic up 5%, coal up 1%, and merchandise down 2% [3] - Domestic coal volume rose by 6% due to higher shipments to power plants, while export coal volume fell by 3% due to a derailment affecting a key route [4] Strategic Focus - CSX executives do not anticipate significant economic improvement in the current year and will concentrate on growth initiatives, including nearly 600 industrial development projects [5] - The company aims to control costs through over 100 diverse savings initiatives, including reductions in non-labor spending and improved asset utilization [6] - Recent actions included the elimination of 166 management positions and the furlough of nearly 200 train conductors as part of cost control measures [6]

Core Viewpoint - Analysts project that CSX will report quarterly earnings of $0.41 per share, reflecting a 2.4% decline year over year, with revenues expected to be $3.54 billion, indicating no change from the same quarter last year [1]. Earnings Projections - The consensus EPS estimate has been revised downward by 3.9% over the past 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts forecast 'Revenue- Coal' to reach $481.51 million, a decrease of 3.5% year over year [5]. - 'Revenue- Intermodal' is expected to be $554.16 million, reflecting a year-over-year increase of 5.4% [5]. - 'Revenue- Merchandise- Fertilizers' is projected at $137.18 million, indicating a 9.7% increase year over year [5]. - 'Revenue- Merchandise- Chemicals' is estimated to be $698.20 million, showing a decline of 1.4% from the prior year [6]. Operating Metrics - The estimated 'Operating Margin' is projected to be 67.2%, significantly higher than the year-ago figure of 31.3% [6]. - 'Revenue per unit - Intermodal' is expected to be $707.85, slightly up from $705.00 in the same quarter last year [6]. Volume Estimates - 'Volume - Merchandise - Automotive' is expected to be 92.58 thousand, down from 96.00 thousand year over year [7]. - 'Volume - Merchandise - Minerals' is projected at 87.05 thousand, compared to 88.00 thousand last year [7]. - 'Volume - Coal' is estimated at 180.65 thousand, slightly up from 179.00 thousand in the previous year [7]. - 'Volume - Merchandise - Fertilizers' is expected to reach 47.64 thousand, an increase from 44.00 thousand year over year [8]. - 'Volume - Merchandise - Metals and Equipment' is projected at 63.03 thousand, consistent with last year's figure of 63.00 thousand [8]. - 'Volume - Merchandise - Agricultural and Food Products' is estimated at 115.31 thousand, down from 116.00 thousand year over year [9]. Stock Performance - CSX shares have returned -0.9% over the past month, contrasting with the Zacks S&P 500 composite's +2% change, and the company holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance [9].

Summary of J.B. Hunt Transport Services Conference Call Company Overview - **Company**: J.B. Hunt Transport Services (NasdaqGS: JBHT) - **Date**: December 02, 2025 - **Speakers**: Shelley Simpson (CEO), Brad Delco (CFO), Darren Field (President of Intermodal) Key Industry Insights - **Freight Market Trends**: The freight market remains challenging with a generally soft backdrop despite some pockets of tightness, particularly in the brokerage space [7][8][10] - **Customer Forecasting**: Customers have improved their forecasting capabilities post-COVID, leading to more accurate demand predictions [6][10] - **Peak Season Performance**: The peak season has materialized as expected, though it is not the strongest seen historically [6][10][18] Business Segment Performance - **Intermodal**: Strong growth in the Eastern Network with mid-single to double-digit volume growth, attributed to operational excellence and customer service [26][27] - **Dedicated Services**: Healthy pipeline of opportunities with a goal of selling 1,000 to 1,200 trucks of new business annually [22] - **Final Mile Services**: Facing challenges due to weak housing activity, which impacts demand for big and bulky products [23][86] - **Overall Business Units**: All business units, except for big and bulky final mile services, are experiencing a lift from peak season [18] Financial Performance and Cost Management - **Cost Reduction Initiative**: A $100 million cost reduction program is in place, with over 20% of the target achieved in Q3 [41][66] - **Structural Cost Savings**: Identified $100 million in structural costs that can be permanently removed from the business, independent of volume [46][47] - **Operational Excellence**: Focus on lowering cost to serve and improving efficiency through technology and process redesign [46][48] Outlook for 2026 - **Market Conditions**: While cautious about the overall market outlook for 2026, there is optimism regarding operational performance and potential for growth if demand improves [86][88] - **Customer Sentiment**: Customers are more settled regarding tariffs, which could positively impact demand [85][86] - **Regulatory Environment**: Potential regulatory changes could impact up to 400,000 drivers, but the timeline and enforcement remain uncertain [91][92] Additional Considerations - **Shareholder Returns**: J.B. Hunt has been returning value to shareholders through stock buybacks and maintaining a growing dividend for 21 consecutive years [75] - **Long-term Positioning**: The company is positioned for long-term success with a focus on operational excellence and cost management [101] This summary encapsulates the key points discussed during the conference call, highlighting the current state of the freight market, performance across business segments, financial strategies, and outlook for the future.

Financial Performance - Q3 2025 total revenues reached $4.2 billion, a 1% increase compared to Q3 2024 [16, 38] - Diluted EPS grew by 6% to $1.83 in Q3 2025 [15, 16, 52] - The operating ratio improved by 170 bps to 61.4% in Q3 2025 [16, 52] - The company executed $1 billion in share repurchases [54] Operational Efficiency - RTMs (Revenue Ton Miles) increased by 1% in Q3 2025 [15, 16, 38, 54] - Carloads increased by 5% in Q3 2025 [38, 54] - Train length increased by 3% in Q3 2025 compared to Q3 2024 [25] - GTMS/T&E (Train and Engine) employee decreased by 20% in Q3 2025 compared to Q3 2024 [27] Outlook and Strategy - The company reaffirms its full-year EPS guidance, expecting mid-to-high single-digit adjusted diluted EPS growth compared to 2024 [61] - The outlook for 2025 capital expenditures is $3.35 billion, and the 2026 outlook is $2.8 billion, a $550 million reduction [61]

Financial Performance - Total revenue increased by 2.7% from $1.877 billion in Q3 2024 to $1.927 billion in Q3 2025[5] - Revenue excluding fuel surcharge (xFSC) increased by 2.4% from $1.681 billion in Q3 2024 to $1.721 billion in Q3 2025[5] - Operating income decreased by 38.2% from $81 million in Q3 2024 to $50 million in Q3 2025[5] - Adjusted operating income increased by 4.2% from $102 million in Q3 2024 to $106 million in Q3 2025[5] - Adjusted EPS decreased by 5.9% from $0.34 in Q3 2024 to $0.32 in Q3 2025[5] Segment Performance - Truckload revenue xFSC decreased by 2.1% from $1.1075 billion in Q3 2024 to $1.0844 billion in Q3 2025[10] - Less-Than-Truckload (LTL) revenue xFSC increased by 21.5% from $280.2 million in Q3 2024 to $340.5 million in Q3 2025[12] - Logistics revenue decreased by 2.2% from $143.6 million in Q3 2024 to $140.4 million in Q3 2025[15] - Intermodal revenue decreased by 8.4% from $102.7 million in Q3 2024 to $94.1 million in Q3 2025[17] Guidance - Expect Adjusted EPS to be in the range of $0.34 - $0.40 in Q4 2025[21]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **transportation industry**, specifically the impact of **US tariffs** on freight flows from **China to the USA** [1][2][5]. Core Observations - **Laden vessels** from China to the USA decreased by **8% sequentially** and **21% year-over-year (YoY)**, indicating a significant decline in shipping activity [1][5]. - The **Port of Los Angeles** is expected to see a **13% increase** in sequential imports, but a potential **12% decrease** is anticipated in the following weeks, reflecting volatility in shipping patterns [5][36]. - **Rail intermodal volumes** on the West Coast increased by **2% YoY**, suggesting a recovery in logistics as inventory levels normalize [5]. - **Container rates** have dropped by **8% sequentially** and are under pressure, down **70% YoY**, indicating a challenging pricing environment for shipping companies [5][32]. Tariff Impact and Future Projections - The uncertainty surrounding tariffs may lead shippers to delay orders, potentially resulting in a lackluster peak season for freight volumes and revenues [6]. - If consumer demand remains resilient, a **re-stock event** could occur in **2026**, benefiting freight flows and margins after a prolonged period of destocking [6]. - Goldman Sachs economists have reduced the recession forecast to **30%** and increased the GDP outlook for Q4 to **1.3%**, suggesting a more favorable economic environment for transportation [8]. Stock Recommendations - **Truckers** have been upgraded due to a reduced likelihood of recession and resilient consumer demand [8]. - **Freight forwarders** like **EXPD** and **CHRW** are expected to benefit from volatility and potential surges in demand due to tariff-related delays [8]. - **Parcel services** (UPS and FedEx) are also positioned to gain from increased demand for air freight during peak seasons [8]. - **Intermodal services** on the West Coast (UNP and JBHT) may benefit from increased imports, although challenges could arise in the second half of 2025 if demand does not recover [8]. Additional Insights - The **Logistics Managers Index** indicates that upstream inventories are expanding, while downstream retail inventories are contracting, reflecting differing dynamics in supply chain management [73]. - The **Supply Chain Congestion Tracker** shows a slight increase in congestion, indicating that fluidity levels are returning to pre-COVID baselines [52]. - **Air cargo rates** from Shanghai to LA increased by **18% month-over-month** in July, highlighting ongoing volatility in shipping costs [60]. Conclusion - The transportation industry is currently facing significant challenges due to tariff impacts and fluctuating demand. However, there are potential opportunities for recovery and growth in the coming years, particularly if consumer spending remains strong and inventory levels stabilize.

Financial Data and Key Metrics Changes - The company reported enterprise revenues excluding fuel surcharge of $1.3 billion, a 10% increase year over year [22] - Adjusted income from operations was $57 million, reflecting a 9% year-over-year increase [22] - Adjusted diluted earnings per share for the second quarter was 21 cents [23] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, was $622 million, up 15% year over year, driven by acquisitions and higher revenue per truck per week [24] - Intermodal revenues, excluding fuel surcharge, were $265 million, a 5% increase year over year, attributed to volume growth [25] - Logistics revenue, excluding fuel surcharge, totaled $340 million, up 7% from the previous year, driven by the Cowen acquisition [26] Market Data and Key Metrics Changes - The company experienced a 30% year-over-year volume growth in Mexico, which was a key driver for second quarter growth [18] - The dedicated segment now represents about 70% of the truckload fleet, indicating a strategic shift towards dedicated capacity [13] Company Strategy and Development Direction - The company is focused on restoring margins and maximizing through-cycle returns while leaning into areas of differentiation for growth [7][15] - The long-term strategy includes shifting towards dedicated and variable cost capacity to improve earnings resilience [15] - Recent acquisitions, including Cowen Systems, are expected to contribute positively to income from operations [20] Management's Comments on Operating Environment and Future Outlook - The management anticipates economic uncertainty to persist, but expects the freight environment to continue moving towards recovery [21] - There is a belief that strong execution on structural improvements will drive earnings higher in 2025 [22] - The company is monitoring trade policy and broader economic uncertainty as part of its guidance considerations [29] Other Important Information - The company is targeting over $40 million in cost reductions, with synergies from Cowen Systems expected to fully materialize by 2026 [12] - The net debt leverage improved to 0.6 times at the end of the quarter, down from 0.8 times [29] Q&A Session Summary Question: Long-term truckload target of 12% to 16% - Management indicated that the dedicated business is performing resiliently, while the network business requires price recovery to reach long-term targets [38][40] Question: Peak season development and guidance - Management noted a wide range of behaviors among customers regarding peak season, with intermodal peak surcharges already in place [44][45] Question: Competitive environment in segments - Management acknowledged that mid-sized competitors are exiting the market, which could lead to a meaningful amount of capacity leaving the truckload space [66][70] Question: Impact of gain on sale in truckload - The company expects a modest impact from gains on the sale of equipment, with improvements anticipated in the second half of the year [95][96] Question: Intermodal growth and rail consolidation - Management emphasized the importance of strategic partnerships and differentiation in intermodal services, particularly in light of potential rail consolidation [100][102]

Financial Data and Key Metrics Changes - Enterprise revenues excluding fuel surcharge were $1.3 billion, up 10% year over year [21] - Adjusted income from operations was $57 million, a 9% increase year over year [21] - Adjusted diluted earnings per share for the second quarter was 21 cents [22] - Truckload revenue excluding fuel surcharge was $622 million, up 15% year over year [23] - Intermodal revenues excluding fuel surcharge were $265 million, up 5% year over year [24] - Logistics revenue excluding fuel surcharge totaled $340 million, up 7% from the same period a year ago [25] - Free cash flow increased approximately $10 million compared to the same period in 2024 [26] Business Line Data and Key Metrics Changes - Truckload operating income reached $40 million, a 31% increase year over year [23] - Intermodal operating income was $16 million, a 10% increase compared to the same period last year [24] - Logistics income from operations was $8 million, down 29% from last year's high watermark [25] - Truckload earnings improved nearly 60% sequentially and over 30% year over year [13] Market Data and Key Metrics Changes - Mexico was a key driver of second quarter volume growth, which rose 30% year over year [17] - Year-to-date win rates on the most accretive lanes in Mexico are trending at nearly double last year's levels [18] Company Strategy and Development Direction - The company is focused on restoring margins while maximizing through-cycle returns [5] - Emphasis on organic growth combined with accretive mergers and acquisitions [6] - The long-term strategy includes shifting the business toward dedicated and variable cost capacity to improve earnings resilience [14] - The company is leveraging its multimodal portfolio to capture available volume even in a tepid environment [14] Management's Comments on Operating Environment and Future Outlook - The economic uncertainty is expected to persist into the second half of the year, with trade policy continuing to evolve [19] - The company anticipates a gradual recovery in the freight environment, with capacity exiting the market at a slow but steady pace [20] - Management believes strong execution on structural improvements will drive earnings higher in 2025 [21] Other Important Information - The company is targeting structural cost savings of over $40 million, with full run rate benefits anticipated in 2026 [11] - The company has $526 million in total debt and lease obligations and $161 million of cash and cash equivalents as of June 30, 2025 [28] Q&A Session Summary Question: Long-term truckload target of 12% to 16% - Management indicated that the dedicated business is performing resiliently and achieving the low end of long-term guidance, while the network business requires price recovery to reach targets [35][36] Question: Peak season development and guidance - Management noted a wide range of behaviors among customers regarding peak season, with intermodal peak surcharges already in place [40][41] Question: Competitive environment in segments - Management observed mid-sized competitors exiting the market and noted that the dedicated segment is facing different competitive dynamics [61][65] Question: Impact of gain on sale in truckload - Management mentioned a modest impact on results from the sale of equipment, with expectations for improvement in the second half of the year [89][91]