Great. Well, welcome everyone. I'm Rucha Harnain. I do freight transportation research here at Deutsche Bank. Welcome to our industrials conference. Very happy to be joined by FedEx Freight today, your first webcast as an independent company. We're honored to have you. We have Marshall Witt, who's a Chief Financial Officer at FedEx Freight, along with members of the IR team, Marianna Rose and Samantha Morris. Very pleased to have all of you here today and doing this discussion with us. Yeah, maybe we can just start with a question about the state of the market. Obviously, a lot of exciting things happening under the hood at FedEx Freight as you optimize the business as a standalone enterprise. You're also the largest LTL operator in North America. You see a lot, and as you assess the economic tea leaves, where do you think things stand as far as the state of the industry, opportunity for cyclical recovery after three-plus years of a very painful recession, if you will, in the freight market? Rucha, thanks for having me and for the introduction. Before I start, I have to do my disclaimer on forward-looking comments. Oh, yes. I've got a couple opening comments. I forgot about that. Yes, you do. Then I promise I'll get to the economic questions you had. Okay. Before we start, certain statements I'll say today can be considered forward-looking statements as defined in the Private Securities Litigation Reform Act. Matter are subject to factors that could cause actual results to differ materially from those expressed or implied. For additional information, please refer to our press release and filings with the SEC. Just a few comments before we kick it off to the first question. Super excited to be here today, discuss FedEx Freight, the opportunity we see lie ahead for us as a standalone company. As many of you know, June 1 marked an important milestone for us as we rang the opening bell on the New York Stock Exchange, began trading as an independent standalone company with the ticker FDXF. We're roughly 70 days into it, into our journey as an independent publicly traded company. We are at where we hope to be as we are 70 days into this, both strategically, operationally, and also financially. The separation has gone smoothly. As you all may know, a significant amount of investment has been underway in regards to not only FedEx Express or FedEx Corporation's investments, but FedEx Freight investments. It is going very smoothly, with strong execution across the organization. Our teams do remain focused on delivering the commitments that we outlined at Investor Day. Early execution reinforces our continued confidence in our ability to successfully operate as a standalone company. We continue to have strong confidence in the business and in our long-term opportunities. The medium-term outlook and the financial framework that we provided at Investor Day remains unchanged. Early progress continues to reinforce our conviction that we can and will achieve our stated strategies. Still, we are in early innings, if you want to call it that, in regards to our initiatives, but we are encouraged by the momentum we are seeing across our business. We are beginning to see the strategy translate into tangible results. From a standalone perspective, we will continue to sharpen our strategic focus, our ability to have a dedicated investment strategy thesis enables us to accomplish that. The enhancement of accountability throughout the organization has been evident and seen, and it is really neat to see that play through. The allocation of capital with a singular objective of maximizing long-term potential for FedEx Freight continues to be our North Star, and better positioning from a focusing of resources and decision-making on opportunities that we believe will generate shareholder value. While the independence is new to us, the strength of our franchise, as many of you know, is long established, starting with Viking Freight and adding to that American Freightways, and then also with Watkins Motor Lines, and the combination of those three acquisitions created a North American footprint that does allow us to be the largest LTL carrier and does put us in a position of strength, really to enter the next chapter as the industry's largest LTL carrier. We operate the fastest and densest LTL network in North America by published transit standard times, and it is supported by a proven operating model and a renewed focus on high quality, efficient, and profitable service. Recent quarter, which was ended May 31st, delivered meaningful improvements in a number of areas, specifically safety, claims ratio, and customer service. From a technology standpoint, that continued to be a key driver for future performance and future performance improvement. We continue to invest in those tools and capabilities that allow us to improve visibility, efficiency, and value. We are focused on enhancing the customer experience. That is a journey that will continue on for quite some time. That allows us to continue to optimize our operational footprint. We want to leverage our advanced analytics, continue to expand automation, and deliver digital solutions across the business. Our goal is to be a more responsive, efficient network and an easier customer experience, which we call easy to do business with attitude in regards to our customers. From a commercial perspective, we are firing on all cylinders for the first time in more than a decade. We have a dedicated LTL sales force focused exclusively on growing our business. We have an increased focus that helps deepen the existing customer relationships and expand into attractive and profitable markets. Our sales team is ramping quickly and integrating seamlessly across the organization, and already we are seeing meaningful impact with customers and our frontline employees. One of our greatest competitive advantages is our dual service model. That is the Priority and Economy services that we offer through a single integrated network. Both operate in the same asset base, allowing us to be efficient, and currently generate similar operating margins. It provides customers with the flexibility and choice while optimizing our network productivity. To us, it creates attractive returns and strengthens the customer relationships, as approximately 50% of our customers use both of those services. It is a powerful differentiator that supports efficiency across our network. From a financial strength and capital allocation perspective, we are executing from a position of strength. It is supported by a strong balance sheet with substantial financial flexibility. If you think about our capital allocation priorities, they remain straightforward and disciplined. We want to invest in our business. We also want to deliver and maintain a high grade of balance sheet with investment-grade rating. We want to deliver attractive shareholder returns, and at the right time, evaluate selected M&A opportunities. We are focused on strengthening our competitive position while creating shareholder value. We believe FedEx Freight and the value proposition is simple and compelling. It provides significant opportunity to unlock value that has long existed within our franchise. It is supported by proven leadership and a highly dedicated set of employees and leadership team, and it brings deep industry expertise, operational experience, and disciplined execution. These strengths give us the momentum and confidence in the opportunities that we see ahead of us. Why are we excited and why are we here today? First, we are the largest and densest LTL network in North America, delivering unmatched speed, reliability, and scale. We have meaningful opportunities to improve efficiencies, enhance our customer experience, and modernize our platform and our technologies. We have attractive end markets that are supported by a focused commercial strategy with an experienced team to deliver that, and a differentiated dual service model that combines customer flexibility with attractive network economics. And a strong financial position with a disciplined capital allocation and a relentless focus on shareholder value. Before I turn it back over to Richa into closing, our strength really positions us for long-term profitable growth. We expect to generate consistent free cash flow with sustainable shareholder value over time. As an independent company, we are uniquely positioned to capitalize on future opportunities, leveraging our market-leading network, focusing on our strategy, leaning on our experienced leadership team, and our strong financial foundation. Look forward to sharing more of the FedEx Freight story with you. Excited to hear it. Now I can talk about the economy? Yes, please. I appreciate you allowing me to just give a little bit of preface about where we're at and where we're going. From an economic standpoint, when we gave our guidance for the sub-period, which is June 1st through December 31st- a seven-month period, we expect to see a slow, steady recovery in regards to average daily volume. As we were looking at quarter 3 and quarter 4, and that's a fiscal under FEC- relationship, we were seeing 5% decline year-over-year in ADV. As we're coming into the June period, we expect that to slowly improve from an overall negative comparison, such that when we get to that December time period, we should be at about a flat breakeven year-over-year compare. What does that mean for calendar year 2027? We should be in a position to see, for the first time, growth in our network. Okay. I guess a common theme from the other LTL providers that presented before you today, was that we are seeing some cracks, I guess, in the smaller regional or privately held carriers maybe struggling to keep up with customer service expectations. Maybe their capacities, they don't have as much excess capacity and demand is starting to come back. Like you said, you're going to go from down 5% to sort of flat by the end of the year. If you could talk about that. Does that create share opportunities for folks like yourselves? Are you benefiting from that, beyond what the general economy is giving you? Yeah. For us, we're more focused on what we have in terms of our strategy and what we're controlling. If we think about the segments that we're leaning into strategically, we're looking at SMB being a net new, brand-new play for us in regards to differentiation. We spoke previously, and I spoke previously about that dedicated LTL sales force. With that SMB play, we think that that's going to provide tremendous upside for us as we move forward. We think about the overall investment we want to have in technology and in healthcare and in grocery. Those are the other verticals that we spoke to on Investor Day that we think have significant promise, not only in terms of revenue growth, but margin expansion as well. We've certainly spoken about our reliability and our service. We've spoken about the current economy. There's some other areas that we also service, which is we have a FedEx Freight Retail Flex, which is a retail type service for those customers that have specific needs and demands. We have a FedEx Freight Direct service that enables residential deliveries to be done, which has continued to grow and be an important part of our service offering. We have cross-border solutions and services that encompass both Mexico and Canada. In addition to our FedEx Freight Priority and FedEx Freight Economy, we have other features and services that we're seeing help us gain and grow that momentum. We're less focused on what we're seeing in terms of whether it's service disruptions with other carriers or other regional carriers, and more focused on what we're doing in terms of controlling our destiny. All right. So heads down. Yep. And so maybe more on that specifically. You talked about your outlook, June to December, the transition period. Volume is going to sort of improve throughout that period. At least the year-over-year declines get less, and then we are at a steady state by the end of the year. Let's talk about margin, right? So you are at 11.8% operating margin, or that is what you are expecting on like 4%-6% growth. No margin expansion. Though you have about 250 basis points of pressure from variable comp TSA agreements. So on one hand, that could screen conservative, given, again, no profitability improvement embedded in that guidance. Despite decent revenue growth, right, 4%-6%. On the other, if I strip out that discrete headwind, you are calling for 200 basis points-250 basis points of margin expansion, and that, the way we calculate it, 60% incremental margins on 5% revenue growth. So a long-winded way, I guess, to ask, what would you say to this and how are you framing the outlook? And maybe what is the biggest risk to the outlook? What is the biggest opportunity? Sure. If I think about the guide that we gave for the seven-month period, we did get that 4%-6% growth rate. The larger element of that is the forecast we have for fuel surcharge. If you remove that and you look at the base business, we are on track with hitting where we need to be strategically, where we are in terms of operations, where we are in terms of customer service and in our sales strategy. If you think about the TSAs, we spoke to that being a unique headwind that we expect to be about $65 million in the stub period or in the transition period. That will continue into the first half of calendar 2027. That headwind starts to decline as we get to the second half of 2027. In regards to variable comp, we had shown that in the bridge as well. In the prior year of 2025, that same 7-month period, the funding rate was around 25%. In the stub period for this period year, it's expected to be at plan. That headwind, as we lap next year, goes away. If you think about the goals that we're setting out there, they are prudent. We think they're reasonably achievable. But we do think that as we get into next year, there's going to be some further investments that we have spoken to around our operational technology and our transformation investments we're going to be making there. As you may know, that's an area that we intentionally stayed away from in regards to our investments and pre-spend. But if you think about where our operational opportunities lie, these will be investments in P&D, Dock and Line Haul- that will create significant productivity improvements but will serve as a net of cost element as we get into 2027. Okay. Then I think about the biggest opportunities and threat. Probably the biggest threat for us would just be the geopolitical environment. The uncertainty around what's happening on a global basis and how that could influence whether it's fuel prices and those longer-term demand impacts on our business. That's potentially one of those risks. The opportunities, I would say, it's that collective unlock. If we continue to see an improvement in our customer experience, and we continue to see a more accurate relationship with our customer in terms of invoice accuracy, the ability to improve the digital solutions and the connectivity that become more automated and seamless with our customers. Combining that with the momentum that we're building in our SMB strategy with our dedicated sales teams and those verticals. If those continue to show promise, that is future and further unlock to what we have in our stub period. Okay. In terms of risk regarding the things you can control, talk to us about the tech journey and things like that. Do you feel okay about where you are on that path and integration of new technology platforms or whatever? Have you done all the heavy lift and that's less of a risk for you or? Yeah. So on our technology platform, we talked about the TSAs, and just to put a little more color on what that is. Those are FedEx Corporation technology platforms that they are charging us for- as we begin to stand up our own technology solutions and then remove reliance on them. That technology journey is what Mike Riser walked through at Investor Day, which is getting the pricing, getting the website set up, getting the simplicity around our customer hierarchy completed, putting in a new pricing platform, enabling us to have an enterprise-wide financial system in place. Then the next step for us would be to stand up the solutions around our operational technology and investments. Just to give some color to us here in the room, the current operational system is probably 25 years old. Very reliable, very resilient, but in need of a lot of improvement around technology innovation. There is a lot of human requirements necessary to allow that operating system to work efficiently. We realize that as we can take what is a lot of off-the-shelf solutions today in the technology stack for operational support or solutions for LTL, we think we can quickly leverage that, and that can create more opportunities for us moving forward. Okay. Cool. Let's turn to the opportunity side of the ledger. You mentioned one of them is your dedicated sales force. Maybe you can discuss that a bit more. If the team of yours is fully ramped today, how are they incentivized, and what impact you are seeing on customer acquisition, growth, overall revenue quality as you have brought these folks on? Yeah. If I think about where the team is at today, we are fully ramped. But with that said, just like a lot of the way we have structured the support requirements for FedEx Freight, we believe it is the appropriate structure to address where we need to go as an organization. We think about the sales team and what it was and what it is. It is important to lay that history. Pre-spin, our LTL team was part of Federal Express Corporation, or FEC, and it was a sales team that collectively and was responsible for selling Express, Parcel, and LTL. If you think about that focus and prioritization, there was majority of the investment in time and focus, and incentive was on the Express and Parcel solutions, and there wasn't as much attention to focus given to the LTL play. In terms of leveraging the growth there, pivoting and shifting that team out and it having being dedicated to the LTL structure, we believe does a fusion for us that allows us to get properly aligned to the customer segmentation that we have, allows us to have the right focus on a regional presence in terms of the amount of care and need that is necessary to go out and reach existing customers that use us, and also to go out and reach new customers that haven't used us in a while. Again, way back 10 years ago, we had a regional sales team, and we had that relationship with the customers. The other thing that's really important with that relationship is it's not just the salesperson doing that call by themselves, him or herself. It's in partnership with the service center. It's in partnership with the driver. The driver is an equal sales leader and part of that effective tool in terms of how we reach the customer. They see the dock. They unload and load every day. So bringing those eyes and ears and having someone like a sales rep in that same location enables them to be able to do something with that opportunity, the ability to connect it back to the service center. So there's an operational alignment that didn't take place in the past that we're bringing back into the region, which is helping from a staffing standpoint. If I think about incentives, pre-spin, it was primarily focused on revenue, and mostly on farming, and less on the hunting side of it. In the post-spin world, we've got dedicated folks that are doing farming, we got dedicated folks that are doing hunting, and the combination of that incentive is it's revenue and it's margin. So it's that balance to ensure that we're getting profitable growth and that there's accountability to both of those, not just one or the other. Customer acquisition, we are seeing good progress on that front, specifically in the SMB space. We are seeing expansion of existing customers and net new customers as well. We are encouraged by the meaningful incremental volumes that we are experiencing there. In the technology space, and again, just to remind you what that is, these are the data centers that are going to grow forever. But they do have meaningful desire and need for a network like us that can take their supply chain on a North American scale and create lower cost solutions that they prefer for us to do rather than to service it through their own DCs. Price isn't as important. Service matters a ton, and reliability is extremely critical. We are seeing wins in that space as well. We expect that to continue to grow. Same with grocery and healthcare. On grocery, as many of you may know, we have Custom Critical, which is one of our subsidiaries that has a lot of expertise in that area. We have got the capabilities to continue to deliver the requirements necessary to produce outcomes in that. Okay. It seems like already you are seeing some new customer additions, some great traction, and it was just a matter of basically turning this feature on, right? The dedicated sales force. I guess, if we can just focus a little bit around why it is important to have a dedicated sales force. Like before, when you had a sales force that was selling Express, Parcel, plus LTL, you often talked about how LTL was overlooked because it is more difficult to sell. You made it seem very easy, Marshall, but what is really difficult here that you have sort of conquered by establishing the sales force? Yeah, for us, there's complexity in any sales solution, but certainly in LTL, we have our own complexities in terms of how we go to market. When we had slowly moved away from that SMB regional approach, we had a number of dedicated LTL sales folks that over time we just lost. That mind share and that understanding of the sophistication of what our customers need also went away. It's not as if we're more complex than the other industries, but it is just, it's a unique sell. In many cases, there's two ways that customers connect. They have their own pricing platforms based on, may not be antiquated pricing structures, but they're long-standing pricing structures that are commodity based or class based that have been established for years, maybe decades, that have been deeply discounted, and it gets tricky very quickly if you don't have the right LTL salesperson to understand how to see through that. Having that skill set back in-house and strengthening them is enabling us to have a more customized discussion and solution for our customers. Just in terms of who are these sales folks, 60% of these sales folks came over from FedEx Express Corporation. We've got a lot of good legacy knowledge in just in terms of the customers and the culture and the requirements. We also hired a number of sales folks from outside of Freight or outside of FedEx to bring that third-party expertise that have the LTL experience in. It's good to have that good balance and understanding. The other piece of that difficult to sell is also creating a more simplified structure of selling to our customers. We know that in order to do that, our customers have to have a system to accept that. We have to be able to sell both in a complex kind of an older structure and a new pricing dynamic that is much more simplified. Creating both of those needs and putting that on the shoulders of every one of our sales reps is going to be one of those critical things that enables us to win. Okay. You said you are fully ramped now with where you want to be, right? I'll comment on that. For our structure and our design, we have the right sales structure in place. Like in many of our functions, I can even use the CFO function. We have stood up a lean organization that properly supports where we need to go as an organization. We also are going to kind of ramp and move that volume based on, or the resources based on where the volume is going. We feel good about the structure today. There's really no immediate need to either take it down or move it up. I wouldn't be surprised over time if we were to see even more dedicated technical sales expertise around these sectors that we continue to focus on. In that case, you would have a generalist approach. We have an SME, a team that covers the Chicagoland. Then you could have your experts that come in that talk about technology sales and how we focus on those data center, those hyperscalers, how we actually provide the right solution to them without requiring every SME person to have that same skill set. It's that localized coverage and that technical expertise, and as that blends together, we could see some movement there, but not in terms of reduction, but more in terms of volume. Yep. All right, very good. Okay, let's talk a little bit more about your growth plan. You highlighted several industries. You reminded us of your focus on grocery, healthcare, data center, et cetera. Maybe talk about what makes you better positioned to go after these high-value verticals today than where you were under the FedEx Corp umbrella. I mean, the sales force is one thing, but what else? Yeah. So for us, I think let's step back and say, what is different now? Well, it's a board that's dedicated to FedEx Freight. A leadership team that is 100% dedicated to what we're doing in terms of controlling and managing our outcomes. That may seem simplistic, but just that 100% fit for LTL strategy does enable us to put us in a better position than what we were. So we're not necessarily saying we're the best positioned across every industry and every peer set, but where we were coming from, we've got a much more intentional focus. That value, that visibility, that velocity- the decision speed is accelerated. Our ability to know the facts and act on those quickly- is much flatter and more concise. The technology platforms that I spoke to earlier around enabling a much more simplified solution is something we didn't have in the past. Again, this is really more of our journey than it is compared to other peers. If you think about our journey in terms of revenue quality, our customer experience scores have been not the greatest historically. At one point in time, we were much higher in the Mastio outcomes and reports, and we've fallen from that. We've got quite a bit of good news and goodness in front of us to improve those, and a lot of it is around that customer experience journey. Simplifying that relationship with the customer, making the quality of that interaction much higher. Sometimes that translates into simple things such as having an accurate invoice, and being able to do that in a repeated, in a standard way that's reliable, that provides a lot more satisfaction in that experience for that customer. Beyond just the structure itself in terms of those segments that have meaningful impact for us going forward, there's a lot of fundamental things that we are now just doing better that enable that cheaper to go to customer. Yeah. I love that line. The intentional focus, I think goes a long way, right? I guess one of the other aspects is the service improvement that we've seen. Just in your last quarter, you gave some really good examples of that, and I think some Mastio results that speak to how you improved intra-quarter. Maybe you can talk about what that means for your ability to improve pricing. If you're improving service faster than the industry, should your yield growth outpace the industry as you sort of price for that higher level of service? Or do you think it'll take more consistency on the service side to sort of unlock the opportunity for outsized pricing gains? The strength about our network today is that we have a very reliable operational organization, just in terms of transit standards, SLA metrics, on-time service. The operational team has just been phenomenal in terms of being very consistent. As I mentioned previously, there's things we're going to be doing in terms of just allowing that team to be even better. in terms of supporting our customers. Think about where we have been from a yield or a pricing or a margin standpoint. It is important to go back in time to set the stage for where we are going in the future. That is being part of a FedEx Corporation sales team organization, there was a requirement and a need for us to go into what I will call a no-loss mentality on volume. Coming out of COVID, there was quite a bit of network infrastructure that was heavy on fixed costs for which volume was important to bring in. What did it mean for FedEx Freight? It meant that we found ourselves in a kind of flat to declining yield environment for most of 2024 into 2025. At the end of 2025, we then decided to bring in that dedicated LTL sales team back to freight. We started to see the momentum turn. Typically, what happens in a declining yield environment, it takes some time to get that yield back. We understand that. We know it is not going to be a light switch. We know that it is more than just one or two things. It is that customer value, which Mastio has shown we have room for improvement in that customer value. It is creating a better customer experience, as we just went through and gave some examples of that. Going forward, yield growth is clearly one of the key elements for success. It is over half of our margin improvement in the medium-term guidance that we have provided. The expectation is that yield is going to be critical for us. But I think it's a combination of having that dedication back into the FedEx Freight business, putting discipline around the requirements for getting the yields that we need to run the business, but also realizing that it's going to take some time for some of the decisions from a pricing standpoint that we had made in the past. Mm-hmm. Okay. All right. Maybe we can switch gears a little bit and talk about the unbundling risk, because I often get asked about that. Maybe the unbundling opportunity, if you want to phrase it that way. Not sure how you'd characterize it, but maybe walk us through the customer debundling process as FedEx Freight separates from FedEx, what you've accomplished thus far, what's left to go, and how significant an undertaking it has been. What it's been like in terms of customer retention, any potential breakage, and where you see the remaining areas of execution risk as you move through the transition. Maybe putting parameters around it. I know you've shared how much of your revenue is currently in bundle and how that sort of flows. Sure. You're right, there was pre-spin, we'd made an assessment that slightly under 10% of the total portfolio had bundling characteristics to it. But in regards to freight, it represented about 1%-2% of freight revenue in terms of discounts offered. It's not a significant impact to the freight business. Because of the way that the spin has been structured, the systems were required to be separated at spin. There is no bundling that is taking place post-spin that's- all been addressed beforehand. If I think about what our customers are experiencing from that, what is the time horizon for how we lap those accounts that had bundling solutions? Most of our contracts with our customers are 12 months. By this time next year, we will have gotten through the cycle of anything that had any form of discount to it. I will say that the margin profile of those bundled customers are no different than those that do not have the bundle, just in terms of the margin outlook, and it was not a second class of customers with a lower margin profile. I do realize and recognize that regardless of whatever we are going through, whether it is unbundling the discounts, new pricing platform, our peers are certainly going to use that to their advantage and say, "Hey, come use our service" while they are figuring out what they want to do and where they want to go. We have not seen any breakage outside of normal attrition that happens within our business. We are continuing to see what I had given early on about that projection of volume decline improving over time, and how coming out of the step period, we should be in a positive growth story. That continues to hold true. There is nothing that we are seeing post-spin that is giving me concern that breakage is greater than we had thought, that we had hoped. That we are seeing some kind of exodus in certain segments. The bundling process will continue. The unbundling process is done. The discounting part, we will continue to negotiate that as it plays out when we renew those customer relationships. The yield management strategy of continuing to increase and improve price is underway, and we feel really good about that. From an execution risk standpoint, again, 70 days into it, we are not seeing anything that is causing some concern. Okay. I am surprised you said, so you said the margin profile is kind of similar. Is that just a function of the fact that the discount is very limited on those? They are separate negotiations, so even pre-spin, when we were negotiating whatever margins required for Freight, we still needed to get the right margins for the business. It was not as if we were taking a hit that was unacceptable to the margin profile for us. So it is not as if we have to take an incremental price increase above, call it the normal price expectation, to get us back kind of in line with. Okay. Great. I guess flipping from the bundled customers to your 3PL customers, you mentioned in the past you needed maybe some better technology to make sure that when you plug into 3PLs, it was an optimized sort of solution. Can you discuss what you meant by that and your general 3PL strategy going forward? Yeah. If we think about 3PLs, it is an important customer set for us. We didn't necessarily give a precise quantification on the pie chart, but it is a very important part of our customer base. When we are talking about technology, we have the technology to properly cost and price our 3PL relationships. What was limited was the ability for us to be very precise on our costing model and its correlation with premise pricing. What I mean by that is when we were part of the FEC sales team, there was less ability for us to use those knobs in a much more direct way. in a more precise way than what we can post-spin. Part of that is just being given the authority to go out and align those costing and pricing solutions. Let me give you an example of what that means. In many respects, if you thought about market, we use Chicagoland as that opportunity. We were limited to what I will call more of a peanut butter spread pricing, rather than looking at a delivery that was 5 miles versus a delivery that was 30 miles. We were creating an overpriced situation for a short haul and not winning that business, and underpricing the longer haul and getting too much of that business. Now being able to properly price that and go to market with those unique lane or pairings allows us to optimize. If you think about a customer that uses us for, we will call it 20 lanes. They could have been really good on 18, but 2, we just didn't do a good job on. We are fixing those 2 lanes, and so it overall should help improve the overall performance and matches that we are more competitive in the lanes we serve. Mm-hmm. That sounds like also just a better optimization on pricing overall. Is there anything unique to 3PL? Or it is just better tackling all your pricing? Yeah. The other piece to that is we weren't very frequent in our updates in regards to taking the cost information we have and flowing it through the pricing models for our 3PLs. It was very infrequent, which means we were pricing on old costing data, and it wasn't reflective of the current situation. Got it. Now it's very frequent. It happens often, and so there's a much more real-time outcome to how we optimize our pricing. All right, perfect. Let's switch to the topic of excess capacity. It seems like a lot of the successful LTL platforms consistently talk about that as being an important differentiator, having ample capacity to service demand when it comes to fruition. I think you recently said you could add 10,000 shipments and not have to buy a piece of equipment. That is, I believe, 10% plus more than you currently do in terms of your daily shipments. You also confirmed you have 30% facility capacity today. Maybe discuss this in detail a little bit more. Is that 30% in terms of shipments per door or shipments per service center? How does the driver availability sort of play into all of this? Do you agree that you have a big opportunity to scale based on the current amount of resources you have? Yep. We had said a few things. One, that we have 30% capacity in our network, and that is a door comment, not a terminal comment. Okay. We like our locations, we like where our doors are positioned, but we have an opportunity to take on more volume with the current network capacity. If I click down to that next level of capacity, it is our equipment. We probably have a 10%-15% capacity availability on equipment as well, and you click down a little bit lower than that is our resources, and our driver teams. That is probably around 5%-10%. If I flip that around and I look at where we are at today, we are roughly around 90,000 shipments per day. We can get to around 100,000 shipments before we start to feel a need to increase our driver workforce. Our driver workforce today, combined with dock, is over 23,000 people. We have a massive operational team that does a wonderful job of cross-utilizing their expertise. For example, our dock workers become CDL certified. They can be flexible to accommodate growth within the P&D engine if that were to grow. We have drivers that can go from line to P&D. We have significant flexibility amongst that. But right around the 100,000 is where we see the need to expand our resources there. We have an incredible apprenticeship program in place that has been here forever, a long time. The structure itself is not new, and it is a healthy process that enables us to continue to bring in that next wave of talent necessary to accommodate our growth. If we get above 100,000 maybe to 105,000, that is when the capacity starts to get constrained around our equipment, and we will start to expand our equipment based on growth requirements. If we get to around 110,000, that is probably where we start to see that door pressure kick in, where we have to think about what else do we do here to accommodate growth beyond the 26,000 doors we have today. That is how I think about various levers and layers of capacity constraints or capacity availability we have in our network. Great. That is helpful. By the way, if anyone has questions, please feel free to raise your hand and jump in. But maybe we can switch gears and talk about your dual product offering. As you started off by saying, that is another differentiator for you in the market. I guess it is intriguing to us that both classes of service are the same margin profile, your faster versus your normal speed, I guess. Do you see opportunity for better margin at the more premium speed of your option, given you are the only LTL to basically offer this? Along those lines, maybe it would be helpful to understand how much and what type of customers value speed today. Okay. We certainly like the value prop that we have in the two product services, and that it is going to be leveraged. We also acknowledge that demonstrating that in terms of margin differentiation is not where it is needed. Clearly, we have got room to improve in that, and we expect to do that. The interim guidance is kind of the first stepping stone to get there. We think that that one network, two services, and that, as I said earlier, the customers that use both continues to provide unique capabilities to us that differentiate us, and I think over time will prove competitive and was the right decision to be made. The type of customers that view priority, clearly there is a lot of expedited freight, time-sensitive requirements, from an expedited perspective that utilize our priority service. 60%-65% of our current volume is priority, so there is a tremendous amount of demand and need for that. The choice of an economy allows a lower price offering and a lower cost of solution, which ultimately drives that similar margin economics because we leverage the rail. I will speak to that in a little bit. In terms of better margins going forward, for sure. If we find, as our customer experience and our value proposition continues to improve, and we can continue to increase our pricing around priority and economy, there is no reason why one cannot grow faster than the other. There is no reason why one cannot have a higher price than the other. Historically, they just had similar margin outcomes. On the economy side, the reason why it is similar is that we leverage the rail for a significant amount of our economy service. Our economy service is 98% on time. We have a significant relationship with our railroad carriers. We get dedicated capacity. We get committed service requirements and standards in that space to make them a reliable partner for us. We have a great relationship with them. They are highly reliable. They are great during the winter months. You think about Chicago and the storms that come through here, those rails still cut. There is significant consistency that can happen there, and there is quite a bit of pivoting that happens when it comes to the wintertime weather. If I think about the value creation that we have going forward, I think is certainly significantly better than those medium-term guidance that we gave around 15% margins. There is nothing structurally that concerns me around continuing to get close to our peers. We also recognize that some of the work in front of us, certainly over the next 12 to 18 months, is significant and meaningful. We want to be cautious and prudent and thoughtful around how we transform the business to where we want it to go. Okay, excellent. We are up on time, but maybe we can just end with capital allocation. You mentioned potential for a dividend either late this year or early next year. You talked about a share repurchase program at some point in the near future. In the past, you have also signaled potential for M&A, which we did not really get into. But curious, as you put all those things together, CapEx requirements, et cetera, just lay out your capital allocation priorities and what you are looking forward to. Sure. Just in terms of priority, reinvesting back in the business is the number one priority. We are demonstrating that. That is what we have just been spending the last 40 minutes talking about. Second to that is we're mindful of our debt load and our leverage and staying investment-grade rating or credit rating. We expect to receive incremental cash flow that allows us to pay down our term loan debt, which is around $600 million. So we plan to pay that down and get to about a 2.5 times leverage, about this time next year. So we want to be mindful of that and have the right balance on leverage. Then from there, looking at what is the right return to shareholder in the form of dividends and share repurchases. If I think about dividends, we expect to have a dividend. We expect it to be stable and meaningful as we go and grow over time. That capital allocation structure will be better defined as we meet again after the September full month close. We'll speak to what that capital allocation framework looks like going into 2027. From a share repurchase standpoint, right now, we're thinking more of an anti-dilution position as we go into 2027. Then opportunistic M&A, certainly in the background, just given what else we have in front of us and the returns that are more meaningful in those other areas of investment than in M&A. Just with respect to priority number one, investing back in the business, your CapEx to sales, you feel like the ratio you're running at now is reasonable to consider for go forward? We do. Just think about the capacity conversation we had. A lot of the current CapEx today is around maintenance and optimization rather than growth. We think that's the right prescription to take. Perfect. Well, thank you so much.