Strong Performance and Strategic Focus on Heavy Haul Segment
Generated approximately $138 million in heavy haul revenue in Q2 2025, a 9% increase year-over-year.
Heavy haul volume increased by 4%, and revenue per load increased by 5%.
Heavy haul's share of load revenue increased from 33% in Q2 2024 to 35% in Q2 2025.
Management emphasized the segment's domestic focus and resilience, with no tariff-related headwinds expected in the near term.
Jim Applegate highlighted the broad-based demand across industries like machinery, electrical equipment, and data centers, supporting continued growth.
Adjusted operating income improved by 17.2% or $15.2 million year-over-year.
Consolidated adjusted operating ratio was 93.8%, 80 basis points better than prior year.
Consolidated second quarter revenue excluding fuel surcharge increased by 1.9% year-over-year.
GAAP earnings per diluted share were $0.21, a 61.5% year-over-year increase; adjusted EPS was $0.35, a 45.8% increase.
Intermodal segment revenue declined 13.8% year-over-year with a 230 basis point degradation in operating ratio.
Logistics segment revenue declined 2.6% year-over-year but adjusted operating income grew 13.3%.
LTL adjusted operating income declined 36.8% year-over-year due to costs from expansion and integration.
LTL segment revenue excluding fuel surcharge grew 28.4% year-over-year; shipments per day increased 21.7%.
Other segments revenue increased 9% and operating income increased 73.6% year-over-year, driven by warehousing and leasing growth.
Truckload segment improved adjusted operating ratio by 260 basis points and grew adjusted operating income 87.5% year-over-year despite a 2.8% decline in loaded miles.
Strategic Acquisition of Progressive Roofing as a Growth Platform in Commercial Roofing Market
Completed acquisition in July 2025, establishing a new platform in the $75 billion commercial roofing services market.
Aligns with core strengths, expands installation services, and increases exposure to non-cyclical, non-discretionary revenue.
Progressive's pipeline includes larger deals, with some deals in the pipeline of significant size.
Management expects the acquisition to be accretive to margins and sees opportunities for cross-selling and project synergies, especially in data centers and industrial projects.
Initial integration efforts include sharing best practices and developing an M&A pipeline for further growth.
AI-Driven Marketplace Margin Expansion and Technological Advancements
Marketplace gross margin reached a record 35.4% in Q2, up 190 basis points year-over-year, driven by AI-powered pricing and selection algorithms.
Overall company gross margin hit a record 40.1%, reflecting continuous improvements in AI technology and data utilization.
The company has increased its AI deployment, including new features like automated extraction from technical drawings and natural language search on Thomasnet.
These technological enhancements are central to driving operating leverage and expanding gross margins, with ongoing product rollouts planned for the second half of 2025.
Dafinchi