Financial Data and Key Metrics Changes - The company generated over $10 per share of free cash flow in 2025, totaling $832 million for the year, with a 25% increase in fourth quarter free cash flow compared to the previous year [4][6] - Total revenue before fuel surcharge was $1.7 billion, down from $1.8 billion a year earlier, with operating income of $127 million, reflecting a margin of 7.6% [5][6] - Net cash from operating activities improved to $282 million, an 8% increase over the prior year quarter [6] Business Segment Data and Key Metrics Changes - LTL (Less Than Truckload) revenue was $661 million, down 10% year-over-year, with operating income of $62 million and an adjusted operating ratio (OR) of 89.9 [6][7] - Truckload revenue was $674 million, down from $693 million the prior year, with operating income of $48 million and an OR of 93.2% [8] - Logistics revenue was $358 million, down from $410 million, with operating income of $31 million and a margin of 8.7% [9] Market Data and Key Metrics Changes - The company noted modest signs of stabilization in overall freight dynamics, with a focus on preparing for a potential industry rebound [4] - The U.S. LTL market remains soft, with expectations of continued challenges in 2026 [16][18] Company Strategy and Development Direction - The company emphasizes strong free cash flow generation and strategic capital allocation, including opportunistic share repurchases and dividend increases [5][10] - There is a focus on improving operational efficiency and service quality, particularly in the U.S. LTL segment, with plans to enhance management tools and sales stability [20][21] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging environment in 2026, particularly for LTL, while expressing cautious optimism for improvements in truckload and logistics segments [16][17] - The company is preparing for potential upturns in the truckload sector, driven by regulatory changes and market dynamics [14][18] Other Important Information - The company announced a change in its board of directors, with André Bérard retiring and Diane Giard appointed as the new lead director [11] - The company is exploring smaller acquisition opportunities while remaining cautious about larger deals until market conditions stabilize [74][75] Q&A Session Summary Question: Guidance for fiscal year and scenarios for 2026 - Management provided guidance of $0.50-$0.60 for Q1 2026, indicating a cautious outlook due to ongoing freight recession [14] Question: Segment margin drivers behind EPS guidance - Management expects around 250 basis points of sequential margin deterioration in U.S. LTL, with unique challenges in Q1 due to weather impacts [32] Question: Pricing improvements in contracted rates - Spot rates are increasing, but long-term contract rates are slower to adjust, with expectations for future improvements as supply and demand dynamics shift [42][44] Question: Specialty truckload business outlook - Management highlighted early signs of improvement in specialty truckload, particularly in energy and industrial sectors, with a focus on high-value freight [56][58] Question: Impact of non-domiciled CDL on capacity - The company noted that the impact of non-domiciled CDL is more pronounced in the van segment than in specialty truckload, with expectations for gradual improvements in revenue per mile [90] Question: Logistics segment performance and margin expansion - Management confirmed that logistics margins expanded sequentially from Q3 to Q4, with ongoing efforts to improve service metrics [63][64]