The company's primary revenue focus remains on increasing density (shipment and tonnage growth) within the existing infrastructure and obtaining appropriate yield (revenue per hundredweight) on shipments. This strategy aims to maximize asset utilization and labor productivity.

The company estimates capital expenditures of approximately $575 million for 2025, allocated to service center facilities, tractors, trailers, and technology. This indicates a continued commitment to growth and infrastructure development.

LTL tons per day decreased 7.1%, due primarily to a 5.4% decrease in LTL shipments per day and a 1.7% decrease in LTL weight per shipment. LTL revenue per hundredweight increased 3.1% as compared to the same month last year. LTL revenue per hundredweight, excluding fuel surcharges, increased 4.5% as compared to the same month last year.

Despite a decrease in LTL tons, the company maintained a commitment to superior customer service, achieving 99% on-time service and a cargo claims ratio of 0.1%.

Productive labor costs, including wages for drivers, platform employees, and fleet technicians, increased to 24.1% of revenue in 2024 from 23.6% in 2023, indicating potential inefficiencies or increased labor rates.

P&D shipments and stops per hour both improved in 2024 as compared to 2023, which helped offset the reduction in our linehaul laden load factor.

Inflation continues to impact operating costs, including wages, benefits, real estate, equipment, fuel, parts, and insurance. The company's ability to offset these increases with customer rates is crucial to maintaining profitability.

The company depends heavily on diesel fuel, and fluctuations in price and availability could adversely affect operating results. The company does not hedge against fuel price increases.

The company's information technology systems are subject to cyber and other risks, which could have a material adverse effect on our business, results of operations and financial position.

The transportation and logistics industry is intensely competitive and highly fragmented. The company competes with regional, inter-regional and national LTL carriers, truckload carriers, small package carriers, airfreight carriers, and railroads.

The company's business will suffer if they are unable to adequately address potential downward pricing pressures and other factors that may adversely affect our operations and profitability.

Many customers reduce the number of carriers they use by selecting 'core carriers' as approved transportation service providers and we may not be selected.

Operating supplies and expenses decreased $83.0 million, or 11.6%, in 2024, primarily due to decreases in diesel fuel costs and lower maintenance and repair costs. This reflects improved fleet age and potentially better fuel efficiency.

The company operates 47 fleet maintenance centers at strategic service center locations to perform routine and preventive maintenance and repairs on equipment, contributing to operational efficiency.

The company utilizes load-planning software to optimize efficiencies in linehaul operations, which helps management monitor freight movements, transit times, and load factors.

The company regularly upgrades technological capabilities, including cloud-based technology, to improve customer service, increase workforce productivity, and provide key metrics for process enhancement.

Data systems are integrated at every level within the organization, which the company believes is critical to its success.

The company recognizes that its business could suffer if it does not adapt to new technologies implemented by competitors in the LTL and transportation industry.

The Board of Directors has approved a stock repurchase program authorizing the company to repurchase up to an aggregate of $3.0 billion of outstanding common stock. At December 31, 2024, $2.26 billion remained authorized under the 2023 Repurchase Program.

The Board of Directors declared a cash dividend of $0.26 per share for each quarter of 2024, and intends to pay a quarterly cash dividend for the foreseeable future, subject to Board approval and legal limitations.

The company estimates capital expenditures of approximately $575 million for 2025, allocated to service center facilities, tractors, trailers, and technology. These investments are intended to support long-term growth and strategic initiatives.

The engines in our newer tractors are subject to emissions-control regulations that could substantially increase operating expenses and future regulations concerning emissions or fuel-efficiency may have a material adverse impact on our business.

There is also a focus from regulators and our customers on sustainability matters. This focus may result in additional legislation or customer requirements, such as limits on vehicle weight and size or energy source.

Expectations relating to evolving ESG considerations and related reporting obligations expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business.

The company's operations are subject to seasonal trends common in the industry, with revenue and operating margins typically lower in the first and fourth quarters due to reduced shipments during the winter months.

Adverse macroeconomic conditions, both in the U.S. and internationally, such as high inflation, continued high interest rates and slower economic growth has, and may continue to, negatively affect our customers' business levels, the amount of transportation services they need, their ability to pay for our services and overall freight levels, any of which might impair our asset utilization.

Any further changes in U.S. or international trade policy could trigger additional retaliatory actions by affected countries, resulting in “trade wars” and increased costs for goods transported globally, which may reduce customer demand for these products.