RXO, Inc. (RXO) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

of risks and uncertainties and other factors that could cause actual results to differ materially from those in the forward-looking statements. A discussion of factors that could cause actual results to differ materially is contained in the company's FEC filings as well as in its earnings release. You should refer to a copy of the company's earnings release in the investor relations section on the company's website for additional important information regarding forward-looking statements and disclosures disclosures and reconciliations of non-GAAP financial measures that the company uses when discussing its results. I will now turn the call over to Drew Wilkerson. Mr. Wilkerson, you may begin. Good morning, everyone. Thank you for joining today. There are four main points I want to convey this morning. First, we completed the most significant technology milestone of the Coyote integration, and our carrier network along with RxO carrier representatives, are now covering freight out of one transportation management system. Second, we're again raising our estimate for acquisition synergies. We now expect more than $70 million of cash synergies, which includes both operating expense and capital expenditures. As a reminder, this does not include the significant cost of purchased transportation and cross-selling benefits we expect to see. Third, in brokerage, we achieved 26% less than truckload volume growth. We also continue to see productivity increases through our investments in technology, including AI and machine learning. Fourth, we maintain the momentum that we achieved over the last several quarters in complimentary services. Managed transportation increased the synergy loads it provides to brokerage, and we grew last-mile stops by an impressive 24% year-over-year. ...