Grupo Traxión, S.A.B. de C.V. (GRPOF) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Greetings. Welcome to Group O Traction 1Q26 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to Abby Litschein, Executive President. Thank you. You may begin. Thank you and welcome everyone. I will start with a high-level overview before handing it over to the team for further detail. We continue to experience disruptions in our cargo division, primarily driven by macroeconomic and geopolitical uncertainty. The current tariff environment has resulted in irregular demand patterns, reduced client activity, and pressure on volumes. This in turn has intensified pricing dynamics across the transportation industry. Looking ahead, We anticipate 2026 will remain a challenging year. We expect continued volatility in demand and operations, ongoing pressure on pricing, and temporary increases in fuel costs. As you know, our contracts include fuel pass-through mechanisms, which serve as a natural hedge against oil price volatility. We will begin executing these clauses shortly. However, there is typically a lag before their full effect is reflected. Most important, we view the current fuel price movements as temporary and less severe than those experienced four years ago. In this context, we are taking a disciplined and proactive approach. We are implementing a series of measures designed to mitigate downside risks and protect our financial performance. These actions include a reduction of approximately 500 million Mexican pesos in capex, a comprehensive reorganization of our cargo divi...