Tom Wadewitz

Management clarified it participated strongly in spot (transactional up YoY and sequentially) but emphasized winning contractual bids for long-term share.

CEO addressed Montgomery as a safety case, not immunity. Expects Supreme Court win based on Seventh Circuit and Southern District victories. Has playbook for either outcome. NAST president said bid season results strong and repricing process managed collaboratively with customers.

CFO noted ocean rate normalization will continue into Q1 as part of path to $6 EPS. On 2027 margins, declined to give guidance but said 40% NAST mid-cycle target still on track. Beyond that, will make quality earnings growth decision on margin expansion vs reinvesting into market share.

NAST president cited growth across targeted verticals (retail, energy, automotive, healthcare), drop trailer, cross-border, and SMB. Not one driver but combination of people, AI pricing, and better understanding of which freight to win. Growth across both enterprise and SMB.

CFO said confident in 40% NAST mid-cycle target and won't cap there. NAST president said no limit on gross margin improvement as pricing and costing models continue advancing.

Headcount decline partly from EST divestiture. Management said they are being smarter, not more aggressive. Robinson Managed Solutions (combining TMC and RMS with NAST) receiving strong customer response.

CFO confirmed their view on ocean rate normalization is unchanged from Investor Day, targeting second half 2023 rate levels.

Management declined to predict timing but expressed confidence in tools and talent to maximize impact of market inflection. Said response depends on type of swing.

Mark attributed international weakness primarily to demand factors including inventory depletion and tariff uncertainty rather than share shift. Domestic intermodal benefits from fuel cost advantages.

Mark acknowledged enhanced competition from new alliances following merger announcement but emphasized strong competitive position and product quality.

CEO declined specific volume/revenue guidance but noted approximately 1% revenue headwind from enhanced competition. Cost envelope can accommodate several points of growth with strong incrementals. CMO expects continued merchandise momentum offset by sluggish intermodal and weak coal pricing.

CEO noted over half of J.B. Hunt business originates/terminates in the East and is retainable. Highlighted decades of hundreds of millions invested in premier and Crescent corridors plus unrivaled terminal footprint. CMO emphasized route structure and terminal proximity to consumers as structural advantages.

CMO deflected with a quip about hoping it makes CSX more competitive with trucks rather than rail, effectively declining to assess the competitive impact.

CMO confirmed merchandise share gains from multiple sources including alternative modes and competitors. On tariffs, both tailwinds and headwinds plausible with bigger risk from broader economic slowdown than tariffs specifically.

CMO acknowledged prior service failures lost chemical customers and confirmed targeted wallet share recovery efforts plus new agility enabling spot market wins like in ag.

CMO directly confirmed line of sight to specific wallet share recovery opportunities in chemicals.

Maryclare declined to quantify merchandise pricing gains, saying the team watches markets closely and prices to the value of service, and that fundamentals in several markets have shifted this year.

Maryclare confirmed discretionary pricing solid, noted only ~50% of book touchable per year creating lag, international intermodal less correlated to truck.

Steve confirmed price yield improvement in 2026 over 2025 and noted Mary Claire has implemented new pricing structures. Said it would take about a year to touch and stress-test every contract.

Kevin cited strong minerals/aggregates momentum, forest product recovery potential with economic improvement, chemical uncertainty from tariffs, metals team success with EFs and scrap. Noted the longest trucking down cycle anyone has seen and potential capacity tightening ahead.

Joe declined to engage on merger-related questions, pivoting to general comments about opportunities to improve customer service across the rail ecosystem.

Mike took full ownership, citing six compounding weather events plus two infrastructure closures. Outlined recovery actions: reducing cars online, adding locomotives, transferring crews, adjusting capital programs.

Sean acknowledged no margin improvement in H1 but said H2 margin growth is quite possible with stable environment and low-to-mid single-digit volume growth.

Russ confirmed YoY margin improvement and laid out stranded-cost runoff: $250M already conveyed, $100M out in CY26, fully mitigated by exit of CY27.

Carere noted at peak about 20% of air cargo capacity came out of the market, now leveled to about 10%. Demand surcharges are in place. Fuel index adjusted weekly to protect profitability. No material impact expected in Q4. Team executing well on capacity and pricing adjustments.

Subramaniam confirmed incentive comp headwind is a FY26 catch-up and will not persist into FY27. Expressed strong confidence in underlying transformation momentum across network, organizational, and digital initiatives.

Carere clarified: Q1 $150M was mostly lost revenue from China-U.S. de minimis impact. Full $1B breakdown: ~$600M revenue loss continuing quarterly, $100M from global de minimis change (Aug), $300M direct trade expenses.

Subramaniam provided concrete metrics: 100 stations closed, 290 integrated, targeting roughly 30% surface facility reduction. Dietrich confirmed on track for $2B Network 2.0 and OneFedEx savings target.

Carere attributed growth to Ground Economy's competitive transit, picture proof of delivery, and weekend coverage. Every Ground Economy dollar brings $4 in total domestic revenue. Subramaniam said comprehensive CEO search for FedEx Freight is underway.

Brie confirmed Freight will play more offense with new sales hires, technology to fill capacity, and targeting the 3PL market, while running comfortably at 100-105% utilization.

Confirmed competitor capacity strain and said some of that freight moved over temporarily, while Old Dominion has no equipment, driver or real estate constraint.

Said the shift has been happening since earlier in the year and tied it to Old Dominion's standing excess service center, trailer and driver capacity.

Adam strongly asserted service gap is as wide or wider than ever, noted winning more bids, and expressed confidence that no specific carrier initiative is having material impact on ODFL.

Adam confirmed customer conversations slightly more positive but not to the degree of the ISM move. Volumes still down YoY. Flywheel effect of business model needs time to restart. History shows ODFL outperforms in early recovery but it won't turn around overnight from one data point.

Excess capacity above 35% vs 20-25% target. No service centers opened in 2025. Several completed facilities in ready reserve. Lower CapEx expected for both real estate and fleet in 2026.

Q3 yield ex-fuel expected 4-4.5%, consistent sequential increase. Industry pricing discipline holding. Competitors having pickup capacity issues creates ODFL opportunity when demand inflects.

Marty dismissed Amazon LTL threat as mainly for their own suppliers. Retail is 25-30% of business. Won Mastio quality award 15 straight years. Near-shoring creates further LTL opportunity.

Vena and Hamann quantified the affected group: 2-to-1 is 3 or 4 customers and 3-to-2 is low 30s, out of thousands.

Jim emphasized both volume and revenue growth goals alongside disciplined pricing for service value. Jennifer noted truck pricing remains more expensive than rail, supporting continued growth positioning.

Jim emphasized aggressive volume growth in 2026 regardless of merger status, citing successful competition against CPKC in Mexico as a model. He expects Kenny to grow the business and Kenny to price properly, stating the merger doesn't change standalone execution.

Jim laid out the full strategic foundation for the merger: service near 100%, debt reduced to 2.6x, industry-leading safety. Kenny confirmed 400+ customer support letters and 1,200+ stakeholders. Jim targeted filing by end of November or early December.

Jim declined to share shipper feedback on the NS discussions, drawing an analogy to home-buying negotiations and privacy.

Jim declined to give specific revenue or volume thresholds, citing extreme near-term uncertainty, but noted carloads are strong across most categories so far in April.

Kenny pointed to DAC and FTR data suggesting improvement but declined to forecast timing or extent, while Jennifer noted international intermodal mix as a key RPU driver.