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- **Q3 Results**: Revenue +4% to $268.9M, but adjusted operating income -22.5% to $15M due to Truckload cost pressures.
- **Regulatory Impact**: 100,000+ driver exits expected over 2-3 years from non-domiciled CDL crackdowns.
- **Rate Momentum**: 2.5%-4% rate increases secured in Q3; 2026 bids showing 17% volume growth.
- **Q4 Challenges**: DoD business down 50%, used truck market paralysis, but 2026+ recovery optimism.
- **Valuation Play**: Shares at 9x earnings; buyback program active with $268M net debt (2.1x leverage).

**【CFO Opening Remarks】**
- Q3 2025 revenue increased 4% to $268.9 million, driven by growth in Managed Freight and Warehouse segments.
- Adjusted operating income shrank 22.5% to $15 million due to higher costs in Truckload segments.
- Net indebtedness rose to $268.3 million, with an adjusted leverage ratio of 2.1x.
- Return on average invested capital (ROAIC) was 6.9%, down from 8.1% YoY.
- Expedited segment operating ratio (OR) was 93.6%, up 160bps YoY; Dedicated OR was 94.7%, under long-term targets.
- TEL minority investment contributed $3.6 million, down from $4 million YoY due to higher bad debt.

**【CEO Strategic Outlook】**
- Regulatory changes (non-domiciled CDLs, ELD cheating) expected to accelerate driver exits, reducing supply by 100,000+ over 2-3 years.
- Brokerage margins under pressure but asset-based carriers poised to benefit from rate increases (2.5%-4% recently achieved).
- Used truck prices set to rise as buyers wait for clarity on tariffs and OEM pricing.
- Q4 2025 outlook: "unseasonably soft" with DoD business down 50%, but optimistic on 2026+ recovery driven by Fed easing and trade policy.

**【Q&A Highlights】**
- **Capacity Constraints**: 400+ weekly MC number cancellations, 17% volume decline vs. 2% rejection increase indicate tightening market.
- **Government Shutdown Impact**: DoD freight down 50%, half may be permanently lost; partial recovery possible post-shutdown but limited by holiday season closures.
- **Pricing Trends**: Bids up 17% YoY, 2.5%-4% rate increases secured in Q3; 2026 bid season expected to see low-single-digit hikes.
- **Share Buybacks**: Shares undervalued at 9x earnings; repurchase program active but cautious on timing.
- **Used Truck Market**: No purchases planned for Q4; 2026 pricing uncertainty could drive up used truck prices.


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