Latest news with #CoyoteLogistics
Yahoo
07-05-2025
- Business
- Yahoo
RXO finds positives in quarter marked by soft market and profit loss
(For a review of some of the data in RXO's earnings, please go here.) With another quarter of operating and net losses in the book, RXO management on its first-quarter earnings call pursued several paths to accentuate the positive. There was really only one question on the call about when the giant 3PL might return to profitability, even though it would not take a major turnaround in markets for black ink to replace red ink. But if the analysts didn't seem overly concerned about the performance of RXO, Wall Street was. Even on a day when equities overall rose, RXO stock at 12:30 p.m. was down 5.31%, to $13.03 (NYSE: RXO). The 52-week low of $12.19 was recorded April 21. RXO shares are down either side of 35% for both the year and the past three months. The positives that RXO management highlighted on the call started with the pace of implementing and digesting the acquisition of Coyote Logistics from UPS, a deal that closed in September. But various key performance indicators also came in for positive mentions. CEO Drew Wilkerson, addressing the financial performance of the company, noted that earnings before interest, taxes, depreciation and amortization of $22 million was in line with what RXO management had projected earlier. RXO also recorded an operating loss of $30 million, compared to an operating loss of $12 million in 2024's first quarter. The net loss of $31 million translated to diluted earning per share of negative 18 cents. It was negative 13 cents a year ago. Chief Strategy Officer Jared Weisfeld, in prepared remarks on the call, said RXO's brokerage volume was down 1% year over year, which he said was better than the company's expectations. Big gains in LTL And all of it, he said, came from its LTL business, which saw volume up 26% year over year – 'the result of successfully onboarding new customers.' RXO's LTL business was 25% of its volume in the first quarter, which was up 500 basis points compared to the first quarter of 2024. With those kinds of gains in the LTL business in a market growing nowhere near the size of the gains at RXO, an analyst asked Wilkerson how it's managing to grab market share. It isn't price, he said: 'If you're looking for price as a lever, that's not how we do business. We want to price in line with the overall market.' Wilkerson then laid out the broad view: 'The biggest thing that we're seeing right now is that a lot of times LTL can be a pain point for customers. It's a small piece of their revenue spend, and it's a small piece of their overall volume. But when you talk about tracking, when you talk about claims that come in, you talk about lost shipments, you talk about working with multiple different carriers for something that's a small piece of their business. They're familiar with us from the service that we've provided from the truckload side. So we're winning with large enterprise customers that are coming to us and giving us the opportunity to service LTL in addition to truckload. We're just getting started in LTL.'
Yahoo
07-05-2025
- Business
- Yahoo
First look: RXO recorded operating and net losses in the first quarter
RXO touted the integration of Coyote Logistics in its first quarter earnings release, with higher synergies now predicted and integration moving forward. But the finances at the 3PL were not good. RXO posted an operating loss of $30 million, compared to a $12 million operating loss in the corresponding quarter a year ago and $24 million operating loss in the fourth quarter of 2024. Revenue comparisons year-on-year are not on an equal basis due to the Coyote acquisition, which closed in September. Revenue at RXO was $1.43 billion compared to $913 billion a year ago. But sequentially, when Coyote in the fourth quarter was part of RXO, revenue was down from $1.67 billion. EBITDA increased from a year ago–again, no Coyote in the first quarter of 2024–but was down from the fourth quarter. EBITDA in the first quarter was $22 million, and was $42 million in the final quarter of 2024. Net income was an 18 cents per share loss for the quarter, deteriorating from minus 13 cents a year ago and minus 12 cents sequentially. In the prepared statement announcing the company's financial performance, CEO Drew Wilkerson said the company had reached a milestone in the Coyote integration: technology is all on one system. The estimate on cash savings from the synergies generated by the Coyote acquisition is now up to $70 million. In the fourth quarter earnings report, the savings were forecast as $50 million. The company's conference call is at 8 a.m. Eastern Wednesday. The post First look: RXO recorded operating and net losses in the first quarter appeared first on FreightWaves.
Yahoo
17-03-2025
- Business
- Yahoo
Supply & Demand Chain Executive Names Three RXO Leaders as Recipients of 2025 Pros to Know Award
CHARLOTTE, N.C., March 17, 2025--(BUSINESS WIRE)--RXO (NYSE: RXO) a leading provider of asset-light transportation solutions, announced today that Fernando Rabel, Jack Gerstner and Kait Parker were named 2025 Pros to Know by Supply & Demand Chain Executive. This award recognizes top supply chain professionals who serve as an example for other leaders looking to leverage supply chain for competitive advantage. This is the third consecutive year RXO leaders have been announced as winners, with recipients awarded every year since the company's inception in November 2022. "I am thrilled that Fernando, Jack and Kait are being recognized for their expertise and unwavering dedication to RXO and our customers and carriers," said Drew Wilkerson, chief executive officer of RXO. "We're so grateful to have them on our team. Customers and employees alike rely on them for exceptional service and leadership." Fernando serves as vice president of account management for RXO's last mile business, where he is responsible for driving growth with new and existing customers. He was recognized in the Leaders in Excellence category. In the past year, Fernando's leadership helped RXO win significant new business and grow revenue. Fernando also spearheaded the launch of a new pay-for-performance model for carriers that prioritizes customer service and business efficiency. Fernando's more than 30 years of last mile industry experience, his commitment to building trust and integrating new technology, and the collaborative relationships he has developed are invaluable to helping RXO provide exceptional solutions and service to its customers. Jack is the senior vice president of coverage and operations at RXO and was recognized in the Top Procurement Pros category. In his role, Jack leads the coverage organization within RXO's brokerage business, including all carrier sales and operations activities across RXO's vast network in North America. Jack led his team to achieve a 15% year-over-year increase in coverage efficiency while reducing turnover of high performing employees in 2024. Under Jack's leadership, the team has also significantly reduced cargo security incidents – a pressing industry challenge. Kait, vice president of operations at RXO, oversees the middle market and enterprise operations teams for RXO's brokerage business and was recognized in the Rising Stars category. With a passion for problem-solving, Kait works closely with customers to understand their key challenges and develop tailored solutions for them, all while ensuring RXO maintains operational excellence. Kait is playing an instrumental role in RXO's integration of Coyote Logistics and helped build the integration strategy for the middle market and enterprise operations team, ensuring an efficient and seamless transition. "Many of today's supply chain pros are more than just leaders within their space; they're true pioneers of change. This year's list of winners really pushed the boundaries in all facets; creating, implementing, transforming, innovating, reinventing, and collaborating. They executed on all fronts, over-delivering and over-performing. They are true professionals to know in the supply chain space," says Marina Mayer, editor-in-chief of Food Logistics and Supply & Demand Chain Executive and co-founder of the Women in Supply Chain Forum. To view the full list of 2024 Pros to Know winners, click here. For more information on RXO, visit About RXORXO (NYSE: RXO) is a leading provider of asset-light transportation solutions. RXO offers tech-enabled truck brokerage services together with complementary solutions including managed transportation and last mile delivery. The company combines massive capacity and cutting-edge technology to move freight efficiently through supply chains across North America. The company is headquartered in Charlotte, N.C. Visit for more information and connect with RXO on LinkedIn, Facebook, Instagram, X and YouTube. View source version on Contacts Media Contact Nina Investor Contact Kevin Sterling Sign in to access your portfolio
Yahoo
26-02-2025
- Business
- Yahoo
Q1 forecast: Truckload rates likely to rise but not skyrocket
On Monday, RXO recently released its Q1 2025 Truckload Market Forecast, with its Curve Index showing a continuation of rate inflation first observed in Q4 2024. The Curve, formerly the Coyote Curve, is a proprietary index measuring year-over-year changes in truckload linehaul spot rates (excluding fuel). It has climbed steadily higher for seven consecutive quarters. After purchasing Coyote Logistics in September 2024, RXO acquired the data and combined it into a larger dataset. 'The Curve has been a leading index for years — now, as a combined organization, it's going to become even more robust,' said Jared Weisfeld, chief strategy officer at RXO. 'As the third-largest freight brokerage in North America, we have an immense set of data spanning industries, geographies and business sizes.' The forecast highlighted how rising spot rates and capacity exiting the market are driving the upswing, though the authors caution that the extreme conditions experienced in the last inflationary market in 2020 and 2021 are not anticipated. While shippers may not feel dramatic changes yet, RXO warns that conditions are shifting in ways that could lead to tightening later this year. The Q4 2024 Curve Index showed spot rates up 11.6% year over year, a jump from the 5.8% increase seen in Q3. This rise was driven by continued carrier exits, impacts from hurricanes Helene and Milton, and typical holiday shipping seasonality. Contract rates, while still showing a slight year-over-year decline of 1.5% in Q4, moderated from the 3.4% y/y drop seen in Q3. This aligns with typical market behavior, as contract rates tend to lag spot rates by two to three quarters. 'Over the holidays, we saw market rate and coverage KPIs reach levels we haven't hit since Christmas 2022. While we have seen some of those gains moderate through the first quarter to date, the baseline has reset higher,' said Corey Klujsza, vice president of pricing and procurement at RXO. 'Though the rest of 2025 may not look like the peak in the COVID-era truckload market, we're seeing continued signs that we're past the bottom of the cycle.' The broader U.S. economy remains relatively healthy, with low unemployment and several key indicators moving higher. However, uncertainties loom, particularly around inflation, interest rates and trade policies. Core inflation, excluding volatile food and energy costs, increased by 3.3% year over year in the latest update, exceeding both market expectations and the Federal Reserve's 2% target rate. This persistent inflation, coupled with potential impacts from recent changes in U.S. trade policy, has driven consumer confidence to a seven-month low. On a positive note, the industrial sector is showing signs of improvement. The Manufacturing Purchasing Managers' Index entered expansionary territory for the first time since October 2022, with the New Orders component improving for five consecutive months. Several trends are converging to shape the current truckload market landscape: Spot and contract rate convergence: After more than two years of discounted spot rates compared to contract rates, the market is shifting. Holiday shipping season saw spot rates hold a premium over contract rates, creating tension in routing guides as carriers sought more lucrative opportunities. The forecast adds, 'Those rates and routing guides set in the softer market of 2024 may not survive a tighter market later in 2025, when the spot market will (likely) become more lucrative than the contract market.' Private fleet impact: Excess capacity in private fleets, built up during the volatility of 2020 and 2021, continues to absorb freight that would typically hit the for-hire spot market. 'This added a lot of resilience in the form of guaranteed capacity and predictable rates, but with the overall downturn in freight volumes, there has been a lot of slack in the line,' notes the report. This has prolonged the down cycle but may change as shipping volumes increase or the for-hire market further contracts. Declining truck purchases: U.S. Class 8 tractor sales were down 12% year over year in Q4 2024, reflecting financial strain on carriers and hesitancy to expand fleets amid market uncertainty. Carrier attrition: Employment data from the Bureau of Labor Statistics shows consistent year-over-year declines in truck transportation employment throughout 2024. The Federal Motor Carrier Safety Administration reported a net decrease of over 3,000 operating authorities in Q4 alone, continuing a trend that has seen more than 50,000 authorities exit the market since 2022. Looking ahead from Q1 2025, the Curve is expected to continue its inflationary trajectory. While the market may feel relatively stable to shippers in the short term, underlying dynamics suggest more significant changes ahead. 'Though we are in an inflationary rate environment, we don't anticipate the sort of extreme conditions we experienced in the last inflationary market in 2020 and 2021,' the RXO report states. 'Based on recent history and current market dynamics, it's quite possible we'll see a lower potential market peak; for guidance, a look back to 2014 would likely be a better comparison.' The report advises shippers to be cautious about aggressive rate cutting in the current environment. Short-term gains achieved now could lead to higher spot market costs later in the year as capacity tightens. Additionally, maintaining relationships with core freight providers, even at reduced volumes, may prove crucial when market conditions shift more dramatically. 'We are in an inflationary spot market as carrier attrition continues and spot rates overtake contract rates. This dynamic will create pressure for shippers in the coming months,' the forecast concludes. 'Q1 will not likely feel like a dramatically different operating environment, which is typical given seasonality, but we are in a changing marketplace that is setting us up for a more meaningful flip later in the year.' The post Q1 forecast: Truckload rates likely to rise but not skyrocket appeared first on FreightWaves.
