Financial Data and Key Metrics Changes - Reported revenue for Q3 2025 was $934 million, a decrease of 5% year-over-year but an increase of 3% sequentially [12] - Adjusted operating income decreased by 4% year-over-year, with an adjusted operating income margin of 4.4%, up 10 basis points from the prior year [15] - Adjusted EPS for Q3 was $0.49, down from $0.52 in Q3 2024 [15][16] Business Line Data and Key Metrics Changes - ITS revenue was $561 million, slightly up from $560 million in the prior year, with a 2% growth in revenue per load [12] - Logistics segment revenue declined 13% year-over-year to $402 million, impacted by lower volume and revenue per load in brokerage [12][19] - Intermodal volumes showed a decline of 1% in Transcon, 2% in Local West, and 12% in Local East, while Mexico grew nearly 300% and refrigerated business grew 55% [7] Market Data and Key Metrics Changes - Strong West Coast shipping demand persisted into October, with expectations for continued strength into November [4] - The logistics segment faced a 13% revenue decline year-over-year, but operating margins improved by 10 basis points due to cost containment initiatives [8][19] - The brokerage segment experienced a 13% decline in volumes, with revenue per load down 5% [10] Company Strategy and Development Direction - The company is focused on strategic priorities, including acquisitions to enhance intermodal and Final Mile segments, and is optimistic about the potential merger between primary rail partners [5][6] - Investments in technology and automation are aimed at improving productivity and service offerings [82] - The company is managing for long-term growth and higher returns on capital while maintaining a disciplined approach to capital deployment [20] Management's Comments on Operating Environment and Future Outlook - Management noted a delayed peak season due to inventory impacts, with expectations for a more normalized seasonality in 2026 [3][35] - The company anticipates a challenging fourth quarter but remains focused on execution and achieving targeted cost savings [19][20] - Management expressed confidence in the potential for growth driven by new business onboardings and improved service offerings [19][24] Other Important Information - The company returned $36 million to shareholders through dividends and stock repurchases during the quarter [16] - The acquisition of Martin Transport's intermodal division and Smith Transport LLC was completed, adding scale to the intermodal and Final Mile segments [6][16] - The company expects full-year EPS in the range of $1.80 to $1.90 and revenue of $3.6 billion to $3.7 billion for 2025 [17] Q&A Session Summary Question: Insights on customer feedback regarding rail merger and share shifts - Management indicated that customer feedback is positive regarding the merger, with expectations of increased engagement and service opportunities as they approach the bid season [23][24] Question: Volume trends throughout Q3 and expectations for Q4 - Management reported a later peak than anticipated, with September up 6% and October month-to-date up 3%, expecting continued demand through November [25][26] Question: Use of cash and capital allocation strategy - Management emphasized a balanced approach to capital allocation, focusing on core business investments, acquisitions, and shareholder returns [27][28] Question: Impact of Martin acquisition on Q4 earnings - Management expects the Martin acquisition to be slightly accretive in Q4, with some startup costs impacting margins [40][41] Question: Competitive dynamics and market conditions - Management acknowledged increased competition but sees it as an opportunity to capture market share, particularly with the upcoming bid season [39] Question: Final Mile business ramp-up and housing market impact - Management noted that the housing market's recovery would significantly benefit the Final Mile segment, with new business onboarding progressing well [75][76] Question: Intermodal pricing perspective for 2026 - Management indicated that while the environment remains competitive, there is potential for improved pricing as customers seek to build resiliency into their supply chains [78]

Financial Data and Key Metrics Changes - Revenue, excluding fuel surcharge, increased by 2.4% year over year, while operating income declined by $31.1 million or 38.2% year over year due to $58 million of unusual items [16][18] - Adjusted EPS was $0.32 for 2025 compared to $0.34 for 2024, reflecting a 5.9% year over year decrease primarily due to a $10 negative impact from loss contingency and claims accrual [17][18] - The consolidated adjusted operating ratio was 93.8%, flat year over year and sequentially [17] Business Line Data and Key Metrics Changes - Truckload segment revenue declined by 2.1% year over year, driven by a 2.3% decrease in loaded miles, while adjusted operating income declined by $7.3 million or 15% year over year [21][24] - LTL business grew revenue, excluding fuel surcharge, by 21.5% year over year, with shipments per day up 14.2% [25][26] - Logistics segment revenue declined by 2.2% year over year, driven by a 6.2% decline in load count, but adjusted operating income grew by 1.9% year over year [29] Market Data and Key Metrics Changes - The LTL segment held steady at 20% of consolidated revenue, its highest share since entering this segment in 2021 [19] - Intermodal segment revenue declined by 8.4% year over year on an 11.5% decrease in load count, but adjusted operating ratio improved by 160 basis points year over year [31] Company Strategy and Development Direction - The company is adopting the AAA Cooper brand across its entire LTL business to enhance cohesion and operational efficiency [12] - The strategy includes leveraging technology to foster connectivity and increase market share by addressing network imbalances [19] - The company anticipates ongoing attrition in capacity due to regulatory enforcement and market dynamics, which could create favorable conditions for its truckload business in 2026 [11] Management's Comments on Operating Environment and Future Outlook - Management noted that freight markets are experiencing uncertainty, with shippers hesitant to take risks, but proactive discussions around peak season projects have increased [6][7] - The company is taking a cautious approach to expectations for the fourth quarter due to uncertainties in volume build [7] - Management expressed confidence in the potential for margin growth due to improvements in cost structure and operational efficiencies [11][12] Other Important Information - The company reported significant unusual items impacting GAAP results, including trade name impairments and higher insurance costs [14][15] - The effective tax rate on GAAP results was 47%, significantly higher year over year, while the effective tax rate on non-GAAP results was 29.6% [17] Q&A Session Summary Question: Clarification on adjusted EPS and fourth quarter demand - Management confirmed that the adjusted EPS of $0.32 reflects historical reporting practices and clarified that while there are peak projects underway, overall demand growth has not met typical seasonal expectations [88][90] Question: Insights on regulatory impacts on capacity - Management indicated that regulatory enforcement is beginning to affect capacity availability, with some states revoking non-domiciled CDLs, which could lead to tighter market conditions [43][46] Question: Discussion on LTL margins and future synergies - Management acknowledged softness in LTL demand but expressed optimism about upcoming bid opportunities and the potential for synergies between truckload and LTL operations [55][58]

Core Insights - CSX Corporation is a leading transportation company in the U.S. focused on rail-based freight transportation, operating an extensive rail network and competing with major rail companies like Union Pacific and Norfolk Southern [1] Financial Performance - CSX's Q3 2025 earnings report showed revenue of $3.59 billion, slightly missing year-over-year expectations but exceeding consensus estimates [3] - The adjusted earnings per share (EPS) for CSX was $0.44, surpassing estimates despite a $164 million goodwill impairment related to Quality Carriers; without this impairment, the adjusted EPS would have been approximately $0.51 [3] Market Position and Stock Performance - Cowen & Co. maintained a "Buy" rating for CSX, with the stock priced at approximately $36.84, and TD Cowen raised the price target from $38 to $39; the current stock price is $36.93, reflecting a 2.61% increase [2] - CSX's market capitalization is approximately $68.85 billion, with a trading volume of 4.41 million shares [4] Operational Efficiency - CSX has improved operational efficiency, with car miles per day increasing to 136.6 and enhanced fuel efficiency; the company has also expanded its intermodal services in the Northeast [4]

JP Morgan US All Stars Conference Joe Hinrichs President & Chief Executive Officer Sean Pelkey Executive Vice President & Chief Financial Officer 9.17.2025 Forward Looking Disclosure This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditur ...

Core Insights - United Parcel Service (UPS) and J.B. Hunt Transport Services (JBHT) have both announced dividend increases this year, demonstrating a commitment to shareholder returns despite economic uncertainties [1][3][10] - JBHT has shown better price performance compared to UPS, driven by intermodal growth and sustainability initiatives [8][10][19] Dividend Analysis - UPS raised its quarterly cash dividend to $1.64 per share ($6.56 annualized) from $1.63 ($6.52 annualized) [3] - J.B. Hunt increased its quarterly cash dividend by 2.3% to 44 cents per share ($1.76 annualized) from 43 cents ($1.72 annualized) [3] - Concerns about the sustainability of UPS's dividends arise due to its high payout ratio and declining free cash flow [4][6] Financial Performance - UPS's free cash flow has decreased from a peak of $9 billion in 2022, with only $742 million generated in the first half of 2025 against $2.7 billion paid in dividends [5][6] - JBHT's lower dividend payout ratio indicates a stronger ability to maintain dividend payments over the long term [6][18] Market Comparison - JBHT's intermodal volume grew by 6% in the second quarter of 2025, supported by strong performance in its eastern network [12] - UPS's revenue weakness is attributed to geopolitical uncertainty and high inflation, leading to a decline in package shipping volumes [11] Earnings Estimates - Zacks Consensus Estimate for JBHT indicates a 0.3% decrease in 2025 sales, but a 5.8% increase in 2026 [13] - For UPS, the 2025 sales estimate suggests a 3.9% decrease, with a 15.4% decrease in EPS for the same year [16] Valuation Metrics - JBHT is trading at a forward sales multiple of 1.09X, while UPS has a multiple of 0.81X, indicating that JBHT is perceived as more expensive [18] - JBHT has a Value Score of B, whereas UPS has a Value Score of A [18] Conclusion - JBHT's better price performance, environmental initiatives, and strong intermodal volumes position it as a more favorable investment compared to UPS, which currently has a Zacks Rank of 4 (Sell) versus JBHT's 3 (Hold) [19]

Core Insights - Knight-Swift Transportation Holdings Inc. (KNX) reported second-quarter 2025 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate by a penny and improving 45.8% year over year, within the guided range of 30-38 cents [1][10] - Total revenues reached $1.86 billion, slightly missing the Zacks Consensus Estimate by 0.4% but improving 0.8% year over year; revenues excluding truckload and LTL fuel surcharge grew 1.9% year over year to $1.67 billion [1] Financial Performance - Total operating expenses decreased 0.3% year over year to $1.78 billion [2] - Truckload segment revenues totaled $1.07 billion, down 2.7% year over year due to a 2.8% decrease in loaded miles; adjusted segmental operating income grew 87.5% year over year to $58.40 million, with an adjusted operating ratio falling 260 basis points to 94.6% [3] - The Less-Than-Truckload (LTL) segment generated revenues of $337.72 million, up 28.4% year over year, driven by a 21.7% increase in shipments per day; adjusted segmental operating income decreased 36.8% year over year to $23.35 million, with an adjusted operating ratio rising 720 basis points to 93.1% [4][5] - Logistics segment revenues amounted to $128.29 million, down 2.6% year over year, with an adjusted operating income increase of 13.3% year over year to $6.71 million [5] - Intermodal revenues totaled $84.06 million, down 13.8% year over year, with a segment operating ratio increasing 230 basis points to 104.1% [6] - Revenues from All Other Segments increased 9% year over year to $74.44 million, attributed to warehousing and leasing businesses [7] Liquidity and Guidance - Knight-Swift ended the second quarter with cash and cash equivalents of $216.32 million, up from $209.48 million in the prior quarter; long-term debt decreased to $1.39 billion from $1.41 billion [8] - For Q3 2025, KNX expects adjusted earnings per share in the range of 36-42 cents, with truckload segment revenues expected to increase in the low single-digit percent sequentially and LTL segment revenues projected to grow between 20% and 25% year over year [11][12]

Core Insights - Schneider National reported $1.42 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 7.9% and an EPS of $0.21, unchanged from the previous year [1] - The revenue figure was a slight miss of -0.24% compared to the Zacks Consensus Estimate, while the EPS met expectations [1] Financial Performance Metrics - The operating ratio for the consolidated segment was reported at 96.1%, slightly higher than the estimated 95.9% [4] - The intermodal operating ratio was 93.9%, better than the average estimate of 94.4% [4] - The truckload operating ratio was 93.6%, compared to the estimated 94.8% [4] - The logistics operating ratio was 97.7%, exceeding the estimated 97.2% [4] Revenue Breakdown - Fuel surcharge revenue was $138.5 million, below the estimated $141.51 million, reflecting a -6.9% year-over-year change [4] - Inter-segment eliminations revenue was reported at -$41.7 million, worse than the estimated -$33.34 million, but a +4.5% change year-over-year [4] - Logistics revenue reached $339.6 million, surpassing the estimated $327.16 million, with a +6.5% year-over-year increase [4] - Other revenues were $96.8 million, slightly below the estimated $98.43 million, showing a +1.3% year-over-year change [4] - Revenues excluding fuel surcharge totaled $1.28 billion, matching estimates and reflecting a +9.8% year-over-year increase [4] - Intermodal revenue was $265.1 million, exceeding the estimated $256.21 million, with a +4.7% year-over-year change [4] - Truckload revenue was $622.2 million, below the estimated $633.84 million, but showing a +15.2% year-over-year increase [4] - Network revenues excluding fuel surcharge were $181.9 million, below the estimated $193.67 million, reflecting a -6.1% year-over-year change [4] Stock Performance - Schneider National's shares have returned -4.6% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Southwest Airlines Co. reported disappointing second-quarter 2025 results, with both earnings and revenues falling short of the Zacks Consensus Estimate [1] Financial Performance - Quarterly earnings were 43 cents per share, missing the Zacks Consensus Estimate of 51 cents and declining 25.9% year over year [2][9] - Revenues totaled $7.24 billion, missing the Zacks Consensus Estimate of $7.29 billion and declining 1.5% year over year [2][9] - Passenger revenues, which accounted for 91.5% of total revenues, decreased 1.3% year over year to $6.62 billion [2] Operating Statistics - Airline traffic, measured in revenue passenger miles, fell 3.5% year over year to 36.88 billion [3] - Capacity, or available seat miles (ASMs), grew 1.6% year over year to 46.99 billion [3] - Load factor decreased by 4.1 percentage points to 78.5% [3][9] - Passenger revenue per available seat mile (PRASM) fell 2.8% year over year to 14.10 cents [3] - Revenue per available seat mile (RASM) decreased 3.1% year over year to 15.41 cents [4] Operating Expenses & Income - Operating income for the quarter was $225 million, down from $398 million in the same quarter last year [5][9] - Adjusted operating income was $245 million compared to $405 million in the prior year [5] - Total adjusted operating expenses increased 6.4% year over year [5] Fuel Costs - Fuel cost per gallon fell 15.9% year over year to $2.32 [6] Liquidity - Cash and cash equivalents at the end of the second quarter were $3.47 billion, down from $8.13 billion at the end of the previous quarter [7] - Long-term debt remained flat at $4.08 billion [7] Cash Flow and Shareholder Returns - The company generated $401 million in cash from operating activities during the quarter [8] - Capital expenditures were $635 million, primarily for aircraft-related spending [8] - Southwest returned $1.6 billion to shareholders, including $103 million in dividends and $1.5 billion in share repurchases [8][10] Outlook - For third-quarter 2025, unit revenues are expected to range from down 2% to up 2% on flat capacity year over year [11] - Economic fuel costs per gallon are anticipated to be between $2.40 and $2.50 [12] - The company expects to achieve a $370 million cost reduction target this year [13] - Third-quarter CASM, excluding fuel and special items, is projected to increase by 3.5-5.5% year over year [13] - Capital spending for 2025 is expected to be in the range of $2.5 billion to $3.0 billion [14] - The company reaffirms its EBIT contribution targets of $1.8 billion for 2025 and $4.3 billion for 2026 [15]

Financial Data and Key Metrics Changes - Revenue, excluding fuel surcharge, increased by 1.9% year over year, while adjusted operating income improved by 17.2% or $15.2 million year over year [10] - GAAP earnings per diluted share for Q2 2025 were $0.21, a 61.5% year over year increase, and adjusted EPS was $0.35, a 45.8% year over year increase [10] - Consolidated adjusted operating ratio was 93.8%, which was 80 basis points better than the prior year [10] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, decreased by 2.7% year over year, with loaded miles declining 2.8% [12] - The LTL segment grew revenue, excluding fuel surcharge, by 28.4% year over year, driven by a 21.7% increase in shipments per day [18] - The Logistics segment experienced a revenue decline of 2.6% year over year, driven by an 11.7% decrease in load count [23] - Intermodal segment revenue declined 13.8% year over year, impacted by a 12.4% decrease in load count [25] Market Data and Key Metrics Changes - There was a general softness in freight demand for most of the quarter, especially on the West Coast, although a mild lift in freight opportunities was noted near the end of the quarter [5][6] - The fluid policy environment has made forecasting more challenging, but discussions with customers regarding potential projects during peak season are ongoing [8] Company Strategy and Development Direction - The company is focused on maintaining competitive advantages through industry-leading scale and flexibility in its over-the-road model while driving costs out of its businesses [7] - Ongoing expansion of the LTL network and customer base is a priority, with a commitment to maintaining strong service levels [7] - The company is implementing multiple initiatives to normalize operational fundamentals and regain efficiencies in cost performance [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being well-positioned to capitalize on future opportunities despite current market challenges [9] - The company anticipates that as freight flows normalize, realized revenue per mile will recover [12] - Management noted that while the market remains soft, there are signs of potential strength in the latter part of the quarter [38] Other Important Information - The effective tax rate was 29.2% on GAAP results and 28% on non-GAAP results, both lower year over year but higher than previously projected [11] - The company is projecting adjusted EPS for Q3 2025 to be in the range of $0.36 to $0.42, assuming stable conditions and some seasonality [28] Q&A Session Summary Question: General market equilibrium and inventory concerns - Management noted that capacity is slowly exiting the market, and demand appears stable, with some discussions about potential peak projects [34][39] Question: Truckload earnings growth outlook - Management expects mid-cycle margins in the truckload segment to operate in the mid-80s, with opportunities for margin improvement as the market stabilizes [44][46] Question: LTL segment growth and cost management - Management highlighted the importance of optimizing costs and leveraging technology to improve margins in the LTL segment while continuing to grow the customer base [56][60] Question: Fourth quarter earnings expectations - Management refrained from providing specific guidance for Q4 due to uncertainty but indicated that adjustments in revenue recognition could lead to more consistent revenue generation [67] Question: Impact of brokers on market pricing - Management acknowledged increased market transparency due to brokers and third-party data, which can lead to faster cycles in pricing adjustments [96][100]

Core Insights - J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, missing the Zacks Consensus Estimate of $1.34 and reflecting a 0.8% year-over-year decline [1] - Total operating revenues reached $2.93 billion, slightly below the Zacks Consensus Estimate of $2.94 billion, remaining flat year over year [2] Financial Performance - Operating income decreased by 4% year over year to $197.3 million, attributed to rising casualty and group medical claims expenses, higher professional driver wages, and increased equipment-related costs [3] - Total operating revenues, excluding fuel surcharge revenue, increased by 1% year over year [2] Segment Performance - Intermodal division generated revenues of $1.44 billion, a 2% year-over-year increase, driven by a 6% increase in volume, although gross revenue per load decreased by 3% [4][5] - Dedicated Contract Services segment revenues remained flat at $847 million year over year, with a 3% decline in average trucks offset by a 3% increase in productivity [7] - Integrated Capacity Solutions revenues fell by 4% year over year to $260 million, with segment volume decreasing by 9% [9] - Truckload revenues grew by 5% year over year to $177 million, with an 8% increase in revenues excluding fuel surcharge [11] - Final Mile Services revenues declined by 10% year over year to $211 million, with operating income falling by 60% due to lower revenues and increased expenses [14] Liquidity and Share Buybacks - At the end of Q2 2025, JBHT had cash and cash equivalents of $50.9 million, up from $43 million in the previous quarter, while long-term debt increased to $1.01 billion from $880.2 million [15] - The company repurchased nearly 2.4 million shares for $319 million during the quarter, with approximately $335 million remaining under its share repurchase authorization [15]