Research Reports

Prepared Highlights

Segment Revenue/Growth: Consolidated freight revenue increased 15.9% year-over-year to $281.9M, driven primarily by assets from Star Logistics Solutions acquired in Q4 2025 (CFO).
Segment Margins: Adjusted operating income shrank 11.5% to $9.6M; Expedited segment adjusted operating ratio of 99.1% (well below expectations), Dedicated improved to 95.5% (vs 98.1% prior year), Managed Freight grew both revenue and OI, Warehouse freight revenue grew 14.6% but OI declined slightly (CEO).
Capital Structure: Net indebtedness decreased ~$51M to $245.3M as of March 31, yielding an adjusted leverage ratio of ~1.8x and debt-to-capital ratio of 37.6% (CFO).
Equipment: Average tractor age increased to 26 months (vs 20 months a year ago); significant sale of used equipment in Q1, very little new equipment purchased (CFO).
Returns: Adjusted return on average invested capital was 5% for trailing four quarters vs 7.6% prior-year period (CFO).
Segment Targets: Goal to achieve double-digit adjusted operating margin across the freight cycle for Expedited; restore double-digit margin for Dedicated; high single-digit target for Warehouse (CEO).
Minority Investment: TEL contributed pretax net income of $3.7M vs $3.8M prior-year period (CEO).
Pipeline & Pricing: New business pipeline for committed truckload capacity strengthened; secured rate and lane improvements with existing customers; mature pipeline of new customers at pricing levels not seen since 2022 (CEO).
Market Outlook: Believe 2026 will be a transition year with sequential incremental financial improvement each quarter; Q1 included 2 of the worst and one of the best months in last 3 years; trajectory positive into April (CEO).
Capacity & Costs: Industry-wide driver/truck capacity declining; driving rate discussions; driver pay increases likely in mid-to-high single digits if market heats up; used equipment market strengthening or bottoming (CEO, COO).

Prepared Metrics

Metric	Value	Speaker/Context
Consolidated Freight Revenue	$281.9M (+15.9% YoY)	CFO (prepared)
Adjusted Operating Income	$9.6M (-11.5% YoY)	CFO (prepared)
Net Indebtedness (Mar 31)	$245.3M (-$51M vs Dec 31)	CFO (prepared)
Adjusted Leverage Ratio	~1.8x	CFO (prepared)
Debt-to-Capital Ratio	37.6%	CFO (prepared)
Average Tractor Age (Mar 31)	26 months (vs 20 months prior year)	CFO (prepared)
Adjusted ROIC (trailing 4Q)	5% (vs 7.6% prior-year period)	CFO (prepared)
Expedited Adjusted OR	99.1%	CEO (prepared)
Dedicated Adjusted OR	95.5%	CEO (prepared)
TEL Pretax Net Income	$3.7M (vs $3.8M prior year)	CEO (prepared)

Mgmt Quotes

"I am more excited right now than I have been in 48 months." (CEO)
"For the first time in multiple years, we have line of sight to capturing operational leverage from these environmental tailwinds." (CEO)
"We believe 2026 will be known as a transition year in the freight market with sequential incremental financial improvement to occur each quarter." (CEO)
"If capacity continues to tighten, whatever we got to get, we're going to get more than that in increased rates." (CEO)
"April is better than March, and I expect May is going to be better than April." (CEO)