Bascome Majors

Santana said FRA approval is expected but gave no timing or revenue framing.

Santana called fleet renewal a growth opportunity not in guidance, but again gave no coverage figure for Class I customers.

Santana said both, citing wins, backlog quality, technology-driven fleet modernization and an M&A pipeline.

Santana cited record coverage and international pipeline but gave no Class I-specific visibility, prompting a follow-up.

Rafael confirmed the first North America EVO Advantage order landed in Q2, consistent with expectations; broad conversion still ahead.

Rafael confirmed total global comment, with stronger variation between new and mods occurring in North America. Backlog supports both 12-month and longer lead-time growth.

John detailed tariff cash-first-then-P&L cadence with two to four quarter inventory flow-through. Four-pronged mitigation: USMCA exemptions, supply chain moves, customer cost-sharing, enterprise cost discipline.

Rafael noted greater interest in new locomotives vs prior quarters. Aging fleet drives demand regardless; confident pipeline will convert to backlog growth with visibility into 2026+.

Rafael declined customer specifics but emphasized strong partnerships with both highlighted railroads. Past mergers have been positive for Wabtec and expects same outcome.

Rafael described largely localized NA operations with USMCA balance. International supply chains mix local fabrication with concentrated critical components like engines and controls. Minimal retaliatory tariffs seen outside China.

Management declined to break out unit vs price but confirmed combined high-single-digit growth. Active discussions on NA contracts for both new units and mods.

Rafael confirmed EVO modernization in testing, expanding units, targeting full commercialization by end of 2025 with up to 7% fuel efficiency gain.

Simpson cited 7 million to 11 million convertible highway shipments; Field said a discount to highway below 15% would slow conversion and JBHT will not chase non-sticky volume.

Darren declined to quantify the multi-year mix but emphasized record volumes of pricing/bid opportunities coming in the door.

Nick Hobbs said spot loads going up as they pursue opportunities. Spencer emphasized say-do culture of honoring customer commitments creates share gain opportunities when routing guides fail. Nick added mini-bids are active and provide different pricing opportunities to capture current market conditions.

Brad Delco identified group medical, insurance renewals, and wages as key inflationary pressures. Said industry needs mid-single-digit rate increases to reach reinvestable levels. Internal cost target exceeds $100M but conservative say-do culture guided the public commitment.

John Kulow said no structural change; buybacks are opportunistic driven by valuation metrics. Free cash flow is strong with pre-funded CapEx needs; senior notes due early next year being planned for.

Spencer noted customer compliance has been strong and improving across all services. Customers have not altered demand forecasts despite tariff uncertainty.

Brad Hicks detailed three loss categories: customer demand reductions, bankruptcies, and competitive rebids. All three have decelerated through 2024, supporting net positive fleet growth in 2025.

Framed the raise as strategic real estate and equipment purchases plus pull-forward from 2027, not a capacity need; network still has north of 35% excess capacity.

Adam argued competitors operating at 90%+ OR will need to raise prices, closing the price gap. Lower CapEx ahead will reduce overhead pressure. Confident in long-term market share opportunities.

Q4 seasonality: rev per day down 0.3%, OR up 200-250bp. Long-term incremental margin of 35%. Early-cycle recovery could deliver 35-40% incrementals given current cost structure.

Industrial is 55-60% of business, outperformed retail in Q1. 3PL business also performing better. UPS hundredweight not a needle mover. Modal substitution between LTL and truckload is bigger factor.

Marty emphasized OD family culture, good pay, and quarterly incentives. Not concerned about talent retention risk.

Adam noted retail outperformed industrial historically but industrial improving. 3PL business performing better recently with higher weight per shipment.

Damon confirmed both segments are now above mid-cycle margin targets, giving NAST optionality to pursue volume when freight conditions justify aggressive pricing.

CFO said once 40% NAST and 30% GF thresholds achieved, nothing left to prove on quality of earnings. Beyond that, will supercharge outgrowth, thinks they can beat 1000bps CAS outperformance by investing margin into profitable growth. CEO reinforced disciplined and measured approach.

CEO emphasized three pillars: people, technology, operating model. CFO described multiple moats: strategy of outgrowth AND margin expansion, operating model driving tech needs, 450 in-house engineers with domain expertise, startup mentality with investment-grade balance sheet. CTO added proprietary data set and owned technology driving scalability.

Arun said 30%+ productivity delivered over two years; won't sustain double-digit pace but expect evergreen improvement. Runway extends through 2026 Investor Day targets and beyond.

CFO confirmed no pivot from December Investor Day position; feel good about targets and delivery path, with range provided to account for market uncertainty.

Steve, 10 months in, said there is opportunity to improve everything, especially operations and pricing where the team is building price-management capability, and flagged AI-enabled pricing analytics.

Steve outlined the new incentive framework: operating margins, operating income dollars, and safety for annual metrics. Long-term metrics focused on return on capital and total shareholder return versus S&P 500 industrials.

Steve outlined his compensation philosophy: profitability and margins for annual incentives, safety and customer service as explicit metrics, and return on capital as the key long-term measure drawing on his Linde experience.

Joe cited 40% rail margins in 2023 (best in industry) and 39% in 2024 (second best). Said 2026-2027 is the growth story but near-term must demonstrate network recovery to build investor confidence.

Joe highlighted waivers for inspection technology already advancing, supportive STB Chair Patrick Fuchs and FRA leadership David Fink who understands railroad operations. Multi-year tailwind expected.

Carere dismissed UPS-USPS relationship as a competitive threat since FedEx growth is in high-value B2B, home delivery, and ground commercial, services that couldn't be served by the postal service.

Subramaniam outlined three data value layers: operations (Network 2.0, deep learning), differentiation (Surround platform, 40% of healthcare wins), and new revenue models (FDX commerce platform, HS classification GenAI). More details at February Investor Day.

Dietrich initially deferred but returned with $437M for FedEx Freight CapEx in FY25. Did not provide the FY26 trend within the $4.5B total.

Carere confirmed VP is in place with hiring underway, focused on LTL expertise and small/medium customer coverage. Hiring will continue through next fiscal year with emphasis on revenue quality.