🔹 Revenue: $3.15B (Est. $3.15B) 🟡; DOWN -5% YoY
🔹 Adjusted EPS: $1.53 (Est. $1.63) 🔴; UP +4% YoY
🔹 Net Income: $155.5M; UP +1% YoY
🔹 Operating Income: $207.0M; UP +2% YoY
🔹 Operating Margin: 6.6% (Prev. 6.2%) 🟢
Segment Performance:
Intermodal:
🔹 Revenue: $1.60B (Est. $1.57B) 🟢; DOWN -2% YoY
🔹 Volume: UP +5% YoY; Sequential improvement of +2%
🔹 Revenue per Load (ex. fuel surcharge): DOWN -3% YoY
🔹 Operating Income: $117.0M; DOWN -10% YoY
Dedicated Contract Services:
🔹 Revenue: $838.5M (Est. $849.6M) 🔴; DOWN -5% YoY
🔹 Operating Income: $90.3M; UP +5% YoY
🔹 Average Trucks: DOWN -4% YoY
Integrated Capacity Solutions:
🔹 Revenue: $308M; DOWN -15% YoY
Final Mile Services:
🔹 Revenue: $228M; DOWN -6% YoY
Truckload:
🔹 Revenue: $182M; DOWN -7% YoY
Key Metrics:
🔹 Intermodal Volume Growth: +5% YoY; Strong eastbound demand from Southern California
🔹 Customer Retention Rate (Dedicated): ~90%
🔹 Net Interest Expense: $15.1M (Prev. $16.3M)
🔹 Effective Tax Rate: 19.0% (Prev. 17.9%)
Shareholder Returns:
🔹 Shares Repurchased: 489,000 shares for $86M
🔹 Remaining Share Repurchase Authorization: $882M
Capital & Financials:
🔹 Total Debt: $1.48B (Prev. $1.58B)
🔹 Net Capital Expenditures (FY2024): $674M
Business Commentary:
🔸 Strong intermodal demand during peak season despite revenue per load pressure from freight mix and customer rates.
🔸 Elevated costs for network imbalances and driver onboarding impacted margins.
🔸 Focused on cost management, network utilization, and addressing yield pressures.
FY2025 Outlook:
🔸 Tax Rate: Expected between 24-25%
🔸 Continued focus on network balancing, demand monitoring, and cost optimization.