Overview
- Revenue came in at $790 million, up $1 million year over year and $14 million above consensus.
- EPS was $1.77, down 38% year over year and $0.14 below estimates; excluding a $4.7 million insurance charge tied to prior accidents, EPS would have been $1.91.
- The operating ratio was 91.9%, deteriorating 480 bps year over year and 430 bps sequentially, missing guidance for a smaller sequential decline with about 60 bps of drag from the insurance item.
- Operationally, revenue per day was flat as tonnage fell 1.5% and yield rose 1.6% (0.5% ex-fuel), while cost per shipment growth outpaced revenue per shipment by 560 bps with higher wages and depreciation.
- Net capex is guided to $350 million to $400 million in 2026 after heavy investment in recent years, as the company continues ramping roughly 40 added service centers and shares traded about 4.2% lower pre-market.