Oct 30, 2026 earnings call — Shift to multiyear dedicated Expedited contracts
Consolidated freight revenue rose 17.2% to $315.1 million, driven by brokerage assets acquired in Q4 2025 and truckload fleet shifts.
Revenue $0.4B (est $0.3B) · EPS $0.50 (est $0.43)
Key quotes
"Probably 60% today, and we'll get the fourth quarter up to 75%, then you'll start seeing that smooth out from the extra cost there."
"Managed Freight grew freight revenue 68.4% compared to the prior year, primarily as a result of the brokerage assets acquired in the fourth quarter of 2025, but also as a result of the team's effort to improve balance and efficiency in overflow asset-based freight."
"I think that FMCSA is absolutely committed to bringing that down to zero."
Analyst Q&A 5
Expedited contracts and downside protections
Q (Bascome Majors · Stephens): Analyst asked how Expedited growth contracts are structured, how long they last, how they protect against empty miles or fuel risk, and whether agreements include economic upside.
A: Management said Expedited has shifted toward long-term, multiyear contracts with minimums and lower utilization because customers pay for security. They said many contracts are two years and longer, with a lot of 4-year deals, and minimums apply as long as the truck is available. They also said utilization is lower now because of dwell time and security, but some contracts include upside when customers increase miles.
"They all got minimums. As long as our truck is available, we're going to be able to get minimums." — David Parker (CEO)
Dedicated contracts and managed freight trends
Q (Elliot Alper · TD Cowen): Analyst asked if Dedicated contracts signed earlier are being honored or renegotiated given rising costs, whether the rev-per-tractor drop was just the poultry headwind and will rebound, and what is driving Managed Freight growth and insurance risk.
A: Management said many Dedicated deals have annual escalators but costs have risen more than those escalators, so they are working customer by customer to get higher rates. They said Managed Freight improved sequentially after a weak Q2, helped by a tuck-in acquisition and overflow asset-based freight, and brokerage margins were strong in Q3 but may not stay that high. They also warned insurance risk has increased post-Montgomery and they are monitoring renewals and past-period claims developments.
"And so I would say we are working customer by customer through that." — M. Bunn (PRESIDENT)
Percent of Expedited trucks on contracts and drivers
Q (Jeffrey Kauffman · Citizens Bank): Analyst asked to confirm whether 60% to 75% referred to the share of Expedited trucks on long-term contracts, how many trucks moved or were displaced by the strategy, and what the administration is doing about ELD cheating.
A: Management confirmed yes, that percent refers to Expedited trucks under dedicated arrangements and said they expect to move from about 60% today to around 75% by year-end. They said Dedicated teams have grown (Dedicated teams up 250) and OTR teams have shrunk (OTR teams down 300), with overall team count likely flattish as they reallocate capacity. On ELDs and regulation, they said FMCSA remains active, expects third-party certification of ELDs, believes ELD cheating is widespread, and expects some capacity (about 3% to 4%) to be removed as enforcement continues.
"I was speaking with the FMCSA yesterday, and they are still -- it hasn't changed. Their attitude has not changed in the 12 months that they've been attacking these issues." — David Parker (CEO)
Longer-term strategy and capital plans
Q (Daniel Moore · Baird): Analyst asked how the company is thinking about strategy for the next 1–2 years as Expedited gains traction, and what moves they expect on capital allocation and debt.
A: Management said the plan is more of the same since 2021: focus on safety and execution, grow Dedicated, specialized, Managed Freight, Warehousing and TEL, and be selective on M&A or share repurchases when returns justify it. On capital structure, they said current leverage around 2x should improve, they expect to use improved operational cash flow to reduce debt, keep maintenance CapEx in place, and remain comfortable between 1x and 2x leverage.
"I expect to see the benefits of improved operational cash flow come through in the first quarter." — James Grant
Regulatory enforcement and 2027 rate outlook
Q (Cole Couzens · Wolfe): Analyst asked for an update on DC regulatory action (ELD, CDL, schools) and whether the administration is less focused because of inflation; and asked early expectations for 2027 contract rate increases.
A: Management said FMCSA remains very committed, continues testing and shutting down schools, and is likely to move to third-party certification of ELDs; they estimate about 30% of trucks today have ELDs that are cheating and expect enforcement to continue. On rates, management said costs remain elevated and they expect to keep pushing customers for higher rates into 2027, with an expectation of continued double-digit increases.
"I was telling somebody else just a little while ago, one of the analysts that I believe about 30% of the drivers running with ELDs, 30% of the trucks running up and down the road today, their ELDs are cheating." — David Parker (CEO)