Welcome again to our 30th annual B of A Transport Airline Industrial Conference. I'm Ken Hoexter, B of A's Air Freight and Surface Transportation and Marine Shipping Analyst. Next up, we've got Schneider National, a $5 billion market cap multi-service truckload, intermodal and logistics firm. Joining us on the day is from the company, we've got President and CEO, Mark Rourke, for his 5th time at our B of A conference. Steve Bruffett, CFO here for the 6th time, getting closer and closer to your 10-timer jacket. I know, Steve, you want one. This is Schneider National's 10th time joining us in the 22 years we've hosted, going all the way back to 2003 when the company was still private. Truly appreciate your dedication and contribution to the conference. Also in the audience, do we have Steve? There we go. All right, we've got Steve Bindas and Tyler Vander Gaster. Mark said to hit them with the tough questions before you leave. Mark, you know what? We've heard a lot through the last day and a half in terms of the backdrop for the market. Maybe you can set the stage from, you know, just given your breadth and your reach of so many different facets in transportation, a backdrop of, you know, kind of what you're seeing as we're midway through the Q2. Maybe not a lot has changed three weeks from our public earnings call, Ken, first of all, thanks for having us. I'd probably focus as we'll talk maybe about more present, but it hasn't taken our eyes off our strategic horizon here, which is making sure we're positioning the company for the long term and what we're trying to accomplish. First and foremost, we've really grown our dedicated share, which is what we're after to do in our trucking business, is to shift share and grow earnings, grow earnings contribution in a consistent, sustainable way. Last year, we added 1,800 or so units, half of that organically, half of that through acquisition. As we sit here today, we feel very confident. We had several hundred more units of growth organically and still looking at targeted acquisition opportunities to further enhance that. Again, we believe that positions us through cycles in a very consistent growth of both earnings and revenue over a multi-year horizon, and very excited about our progress there. Secondly, a lot of news in our intermodal offering as we've again, looking to double that business by 2030, and we've changed our Western rail partner. Exciting. We haven't got a chance to exercise that change yet with the current market conditions with the UP. Also, we're very bullish about Mexico and very pleased to be the anchor intermodal provider now for the new CPKC service northbound and southbound in and out of Mexico. As we think about the positioning of that business to offer great economics to our shipper community, but we also are going to offer sustainability benefits as that becomes more and more a critical component of their decision-making. Feel very good about the positioning of that business and really pleased with our rail underlying rail providers for us to go ahead and accomplish that. Ken, the third item on our stool is our logistics business, much less capital intensive. We're really leveraging other providers, capital base and driver base, and we've added in the last year and a half now, another tool to that toolbox with Power Only. Doesn't diminish what we're trying to accomplish in the traditional live-live business of brokerage, but gives us another avenue to grow our earnings stream by leveraging our competencies around managing assets and then, in a trailer configuration, give access to the small carrier, to big shippers using that trailer conveyance. Those are our three primary objectives. Look out towards the horizon. We'll get through this current economic cycle and freight cycle and get back to the real focus, which is growing the business on the top line and bottom line there. Yeah. No, I mean, obviously, and you've talked a lot about the third, and how you're going to grow and grow in each segment. Let's just knock off some of the near-term questions, and then we can kind of build up to the, cause I Your favorite. You know, you mentioned not a lot has changed in the 3 weeks. I wanna understand, does that mean nothing really has changed in terms of the levels that you were seeing in April and early May? I just wanna understand, is there any green shoots or anything that you can say, "Oh, we're starting to see," I don't know, kinda shifts? Is this really kinda, "Hey, we'll be lucky if we see any kinda second half rebound given what's going on in the truck market"? Yeah. I guess I'm phasing more toward your network than your dedicated side, right? In terms of your view of what's going on in market activity. Yeah. We typically see a little bit more green shoots, if that's the right term, this time of year, coming into the home improvement and the spring season and the food and beverage. We are seeing some increased tender volumes, and we are seeing some of that, Ken, it wouldn't be what I would consider what we would typically see. Still muted. You know, consistent with what we were discussing, three weeks ago. I think that's still more in front of us than what we're experiencing today. You ended up lowering your EPS target, right? About 7%, noting you expect 2Q3 at the trough of the cycle. That still pushes us a bit out, right? I mean, that still is about 6 months before you see the trough of the cycle, if I'm understanding your terminology. Just wanna see if that was, I guess, still your thought. Well, how we position that is, you know, we believe that we're by the time we get to the Q4, certainly we think the rest that's happening in particular the small carrier and the exit of capacity, and we are seeing more signs that we mentioned. We can certainly see some leading indicators in our brokerage insurance renewal stats. We see them in lease defaults on owner-operators. The third element that is always a leading indicator for us is what's happening in your driver replacement pipeline is heavily skewed to more of an experienced profile than we've experienced in the last several years. All of those give us insight that there is the capacity correction happening. Again, the dampened demand, I think where our customers are a bit more cautious, on their inventory levels, even though I think they're dealing well with the inventory. Mm-hmm. It's the replacement cycle, the punishment cycle is a bit delayed, and that's really our thought is as we're talking to customers, we're seeing the demand and the capacity condition is more back half loaded, but more steered towards late third, early fourth. Just sticking on that insurance thought, right? Because we've had, I guess, some debate in terms of what's going on with the capacity in the marketplace. I just wonder, in your view. You're saying, from that, you're seeing some of the capacity start to come out accelerated pace given how low spot rates are relative to cost or? It's been stubborn. Stubborn, okay. There's no doubt, but. That's probably more of what we heard this morning. Yeah. It's not coming out as As fast. There's always leading indicators, and those, in our, in our view, when we can see an insurance certificate a year ago being renewed in a brokerage from the trucks versus Y amount of trucks, as we see inexperienced versus experienced mix in the new driver pipeline, all of those, I think, are just leading indicators. Mm-hmm. We have to see those things happen before we ultimately see what we expect to have happen relative to the capacity coming out. Yeah. The leading indicators are starting to give you at least some belief. Yes. Even though we're not seeing the mass kind of. Exactly. It seems like even where you are seeing the capacity leave, you mentioned the drivers. You're getting more availability drivers, so they're just coming back over and I think what that suggests that the smaller carrier, the owner-operator, looking for a different house now because of the difficulty. Yeah. Yeah. Okay. again, only just a couple of short-term ones. Sure. You know, historically, your Q1, Q2 operating ratio would see about 150 basis point improvement on a sequential basis. Given the heightened freight pressures this year, I guess, do you still, would you still expect a kind of a sequential improvement given by some of the cost levers, or is just the backdrop, the macro backdrop too tough? Yeah. You want to hear a different voice? Okay. Yeah. I would say that consistent with what we said on our earnings call, we wouldn't expect normal seasonality, which would improve earnings in the Q2. While we try to stay out of the quarterly guidance game, we did try to steer things a bit on our earnings call to say that we expected more flattish type earnings as we move sequentially, because we don't see the demand part of the equation coming into play that soon in the cycle. We do think the Q2 will be our toughest year-over-year comps because a year ago, this Phenomenal. This was just beginning, this, part of the freight cycle that we're in, things were just beginning to soften. We think that'll be our toughest year-over-year, quarterly comparison. Great. Steve or Mark, I mean, I guess, you know, let's talk about long-term targets, right? You know, in terms of your truckload, I'll run them down right just for everybody's, kind of update, right? Tell me if I've got it right. Truckload, 12%-16%. Margin targets, 10%-14%. In intermodal, 5%-7%, and logistics. Maybe talk about what kind of growth pricing, you know, a backdrop is set up in those kind of targets to get in the top end, bottom end of those targets. And then is this the environment where you break, I think you mentioned, hey, there are periods where you're going to operate outside those bands. It happens, and then you kind of, you pick back up, but those are the long-term bands. Is that still kind of the right way to look at it? Yeah. Ken, let me open. I'll let Steve follow. You know, we look at those as an annual target. Mm-hmm. So quarterly can vary a bit, obviously, with the seasonality in the business. Those are, when we select those ranges, we believe those are what we'll be able to perform in through cycles. There can be an extraordinary cycle that can get us outside that on the upper end. There could be an extraordinary cycle that can get us out of that on the lower end. You know, out of a 10-year horizon, we would think 8 years that that's kind of our thought process that we would fit within that because that's the guidance that we're trying to give folks. We're still confident that even as we're dealing with these struggles, that's still what we think we can hit in this calendar year. Okay. I think he captured everything. He said you were add on some way. It was all the fairway stuff was described, so it was well done. Thought there was some more elegance in there. Let's go to segments, right? Dedicated. You sold 280 tractors in the Q1. Noted the pipeline remained strong. We just heard from the buyer kind of dedicated, you know, they're just working to replace has taken away some of that, the volume there. How do we think about tractor adds on dedicated side, and maybe throw in rate increase thoughts or rate change in there on the dedicated side? Yeah. That's more the stable. Yeah, a lot there. That's why we like that business. Yeah. It's multi-year contracts, very sticky. We're generally doing something more than just delivering from point A to point B. It could be extremely high service levels. It could be value add, product handling in and around the customer. It's a much more stable, high renewal rate. Drivers like being aligned to a customer and feeling ownership there. Just for a whole host of reasons, it fits very well to what we're trying to do strategically. As such, we have good mechanisms to deal with the inflationary impacts there. We would expect our pricing to increase year over year in recognition, particularly around driver wages. For the first time in a while, we're starting to get equipment more on schedule, particularly on the tractor front. We're actually trying to move up some startups versus trying to delay some startups, which is what we were doing the last couple of years. Still a little difficult on the specialty trailer front. They're a little more constrained there that, depending upon the configuration that we've sold to the customer. As we look at the value in success begets success, we're on a great momentum roll there. Ken, as we sit here today, we would expect several hundred units of growth. And we might be able to overachieve that if we can get to the equipment soon enough, based upon what we've already got contractual commitments from customers on. Well, yeah, I mean, you focused on growth on dedicated, I think a bit more lately, right? When you went public, right, we had the for hire. Yeah. The network and dedicated business. Is it the business is maturing or is it just that it's become so much obvious that, you know, you thought you could get a better returns on the prior cause you gotta get paid for the risk, but yet ultimately dedicated has been what's changed and matured that it. The industry has seemed to jump more toward the dedicated? Well, I think there's. I don't think that's a total industry piece. I think there's a few of us that are really good. Okay. having a balance sheet to do it, having the capability on startup and the scale, to do that well. I think scale does help in this environment. We're hearing more from the larger carriers that are focused on that. Yeah. Okay. That's, I think we're playing to our strengths, and there's a couple pieces. It's, increasingly, our driver community has choice of what they like to do and where, type of work configurations and dedicated fits that need better. Yeah. overall the network. We still have a number of drivers that have no interest in dedicated. They like the network business, but that's more and more rare relative to what drivers prefer. Labor and their interest is a key component to that. Also just the recognition of the longevity and the fact that everything doesn't get thrown up every 12 months on the allocation play. You can be much more strategic with your customer. You're much more linked together for your mutual success, and it's just a, in our view, just a better environment to achieve what we're trying to achieve in growing our earnings stream. You recently noted you were looking for potential inorganic opportunities in dedicated. anything, you know, does this market make it easier to attract that business? You know, what's your view on maybe the pace and scale? You know, I think what's really, probably more prevalent there for why there's activity in that space is we're at a phase now of where the founders of many of these businesses are looking for an alternative in their planning. Again, unfortunately, not all of the second and third generations of these companies want to take the helm and to keep the family business going. Right. Yeah. What we want to be is a acquirer of choice. How we approach that, how we align with a family business, we have a family kind of founding of our own that I think plays well there, and we're trying to certainly leverage those strengths. The activity is still there, and we would be excited if we could get something done here in the short term. Let's talk about the network side. Maybe I'll just start off simple, right? Obviously, this is March through May is bid season. We're here in mid-May. How did bid season pan out on the network side? This was our biggest quarter by far, both in our network businesses, whether that be intermodal or over-the-road. We would expect to be 65% or so, maybe upwards of 70% done as we get through the Q2. We're in the midst of a series of renewals presently. As we get to our next public call, we'll be in a much better position to give you additional guidance there. It's the busiest part. Q2 always is the busiest part for us. Tell us what you can in terms of the spread between contract and spot seems to be wider than normal, right? You know, still staying, I think we've heard a couple times, still staying about $0.60 apart from each other. Is that because the market, the spot market has shifted so dramatically, contract rates, as you said, the relationships stick around? Why are we seeing such an extreme when we didn't in prior cycles? Well, I think there's a couple things, and I understand the spot market is highly correlated, so I'm not dismissing that component. A, we don't play a lot in the spot market more than presently a few percentage points higher than we would like to in our network business. Also we play in the trailer pool space, and spot market and trailer pool are a little bit more disconnected. Customers, particularly ones that we align with mid to large shippers, need scale. They need trailer pools. So, while it's instructive, it's not as correlated as folks would believe. Yeah. what% is spot now in the business? Yeah. We are typically mid-single digits to 7, 8%, or we're around 10% presently in our network truck business. We're up a couple percentage points over what we would typically be. In terms of revenue per truck, right? It was down 11% in the Q1, you know, down to about $4,100 per truck. I guess, during COVID, it was as low as $3,400-$3,500 per truck. You know, are we seeing rates stabilize at this level? Is that kind of the message? Yeah. I think we're at the bottom of the cycle. Okay. In my view, I think we're up from here. There's pricing pressure, no doubt. The supply-demand condition and the, and the pokiness, if you will, of the recovery is still not what we would expected at this juncture, certainly as we would've given our original guidance back in January. All the signs are there, and it's just a matter of when, not if. I wanna just add on to that. When we talk about spot market pricing and so on, if you look at the charts, back a year ago and abruptly, a spot market correction took place. We think the opposite of that can be true on the other side of the cycle, and it just hasn't happened yet. We don't have a lot of proof behind this, but something that we think might have some credibility into why spot market prices have remained so low for so long, is the robustness of the other side of this cycle when things were really strong. We think that a lot of the small carrier capacity maybe made excess earnings, if you wanna call it that, and had some money in their bank accounts and weren't just living week to week. They gave them some durability, through this lower part of the cycle, that wasn't there in prior cycles. Our belief is that if that is the case, then they're tapping that out now. If that's the case, do you think that cushion is coming to an end? Is that still the Yeah. Not till the Q3, that's when Well, I think that's feeds into what Mark was saying earlier. Yeah. I think that we're seeing signs of it coming, it hasn't happened in a Okay. very noticeable way to date, but we are seeing, forward-looking indications of that. Well, that's what, you know, our Truckload Shipper Survey, right? The demand level has fallen, yet inventory levels finally off that peak. They're starting to tick down. Right. I think that's the setup you want, right? Okay, let's keep drawing that. We heard from Walmart yesterday, right? Walmart inventory is down. If you keep drawing that down, then when that supply demand meets, then you'll have that. Yeah, just need the demand part of that to hold up as well. That's right. Yeah, that's right. Not fall through the floor, which it is pretty weak. I mean, there's no doubt about that from the, at least from our survey. Yeah. Ken, I think as you look at this allocation season, I think we're now at the part of the cycle where I would expect both the carrier and the customer have to determine what's gonna be durable. Yeah. Right? Over-aggressive on either side, particularly on the rate side, I think would certainly draw into question whether what's gonna be durable, even as early as later this year. I think there's gonna be increasingly pressure on that durability factor. How about the shift to shorter term contracts, right? Moving away. You just talked about bid season, but moving away from one-year contracts, are you seeing more 3, 6-month tenders? Yeah, we have some examples of that, but I would say that's still fairly rare. I do think what we see, though, is more frequent mini-events. Still trying to, for the, again, for the large trailer pool shippers, trying to lock in that 80% around something more durable. When you say mini-event, how do I think about that differently than spot? It's still contraction, it's still committed, and it still will have an extended period of time. It's just something may have changed in the network or somebody who came back is not accepting freight. Could be a series of rationale behind the customer, but they're still looking for not, you know, today's rate or tomorrow's rate. They're looking for the next six to however long to their next allocation event is. Just an odd thought popped in my head. Driver turnover is what% now? It's improved. Again, depending upon configuration, we don't share our turnover stats. We put in our Corporate Responsibility Report. We put everything together. It's thousands of basis points better than we were a year ago. Give me industry number then if you don't wanna give Schneider number. Yeah. Still over 100? Yeah. I would say on a network basis, generally 100. dedicated configurations generally do better. Yeah. I wanna contrast that with the turnover at your, you know, you talked about the institutional memory. Are the, you know, going back to them and getting that repeat business, is the manager at the shipper, what's that turnover? There's customers that have a constant churning of the guard, and there's other customers that are quite stable. I say in general, there's probably about a 50% turnover, season to season. Yes. when you go back, that memory is still there, that, hey, you know, This is what we did for you last cycle? Or it's just as much of re-educate? It's very dependent. Very dependent. Got it. That, that was an interesting one. All right, let's switch over to intermodal, right? you know, I'll start with your plan of double boxes. you know, how is that progressing your timeline? You know, you talk about some growth opportunities with CPKC, but being anchor tenants, switching to UP. A lot of things going on, but yet this economy of extremely low box turns creeps in, so. Yeah. That's what's exciting for us, Ken. We can grow our volumes considerably without adding any additional capital. We've gone through a couple of periods of step changes there, both on the container front and the chassis front, so we're very well positioned. As you mentioned, we're down 20% or so on box turns. The good news is what we're seeing is more fluidity at our shippers, so less dwell time, quicker unloads. The rail terminals are more efficient. The rails are performing from a service standpoint. The impediment to growth isn't any of those items. The impediment is the demand picture of the imports coming through the ports. We could get to a quick recovery based upon the assets we have and the performance of the supply chain presently. I wanna hit on two things you just mentioned. One, the port flows. Are you seeing anything in terms of improving blank sailings, you know, as you get ready for summer season, beverage season? I don't know how, you know, what impacts that, but, you know, anything that you're seeing on a shift in the flows at the ports on the international side? I'll start with that and then come back. Right now we don't have a lot of recovery, particularly on the West Coast. Yeah. our eastern network is still, which is much more an alternative to Our eastern part of the network, and that service performance, dray performance doing really, really well there. What we need to see from a mix standpoint is particularly the West Coast have recovery, and that has to happen through the imports. Yeah. we're not seeing We're not seeing it. Anything on the West Coast. We had the Port of L.A. yesterday, talked about maybe some of the blank sailings starting to ease and was encouraged by that. Yet, not a change in the volume level out west, right? We're still seeing down Right. 30% at the ports, right? Right. Right. Okay. That blends right into, you know, once it hits the ports, rail service levels, you mentioned the yards, terminal. Maybe even jump in with the change from BN to UP over the last year, how that's progressed in. Yeah. Very steady improvement from the UP. They've done a terrific job, not only improving their technology in the terminals, particularly as it relates to our dray resources, adding lift capacity, the crews and the hiring, all of that is starting to play out in what we're seeing on the service front. And as you look at the public numbers, CSX has been just outstanding for a number of quarters, and they're really performing I was about to compare and contrast. We heard from the chairman of the Surface Transportation Board, still extremely upset and called out UP and BN both on really poor service levels. Yet you're talking about your experience with UP is improving, yet their overall service levels still seem to struggle. Compare that with CSX, where you're continuing to get great service levels. Yeah. What I would caution, let's talk intermodal trains versus others. Really what our customers want is consistency. Yeah. Right? If we say it's 6 days, let's be 6 days. Less concerned if it's 5 or it's 7, but let's be, let's hone in on a consistent transit and a consistent performance. Improvement, particularly, the last couple of months, that we're seeing from the consistency factor is what's most important to us. Do you talk number of lanes? We have X number of lanes on UP. Is that something you talk to? Yeah. We talked about the things that we were excited about the change. Again, BN was a terrific partner, and I'm not. What we're excited about on the transition is that we do have more origin destination pairs, things. Do you talk numbers or you don't? We don't. Okay. We don't talk numbers. We have more OD pairs, and we have more sailings. Okay. Something that may have been four days a week or five days a week on a lane in our prior relationship might be five days and six days today, which helps us with fluidity, helps us with managing our business, particularly around the dray resources. It's a lower cost. The other thing we talked about is it's a more steel wheel connections at many locations between the CSX and the UP, which takes friction, takes cost, and ultimately gives a better service product, end-to-end for our customers. I wanna come back to the box turns, right? You know, you mentioned a 20% downtick. We've gone from 1.8 down to 1.2, right? And I think the goal was 2, right? 2 turns per box per month. Is that kind of the right target? Is that length of haul? What gets you back to 2? Yeah. Well, that's certainly an impact of mix, right? If we're chewing up more time on the train, on the Transcon than we are on the east, it depends on. That's mix related. The other things that we look at there to drive that is what's our efficiency on the street, what's our efficiency with the dwell time at our shippers and consignees, and how's the rail performing on a consistent basis. All of that together determines what we believe we can achieve on a turn basis. Let's talk on% west versus east now. We don't. Don't break that out either. Gotta keep trying. Yeah, you do. Intermodal revenues per order down 2% ex-fuel. How should we think about rates there, cadence of renewals, you know, assuming no spot further reduction, or you're still seeing that pressure? How would you talk about pricing? Yeah. Sorry. When you look at revenue per order, it's a mix impact of the west versus east or now more prevalent Mexico business. In general, I would tell you that the intermodal pricing is more stable. It, and we're not going through the spot market quote impact that you see on the truck side of the business. We have great other value that we're providing there too. We have economics in our favor to start with, plus we have the sustainability features that go with intermodal. It's not immune to the overall market cycle, but it's more stable. Okay. Logistics. you know, you're still targeting a third, a third, a third in terms of your spread. maybe view on the market, I think we hit on the supply a little bit in terms of what capacity is exiting. How do you think what's going on in the pricing, market and the demand side? Yeah. What's attractive about the logistics business is that our largest cost structure there is purchased transportation. It's variable to what the market pricing the customer is. We're able to rapidly through our tools, adjust to the market on both sides of that equation. We don't have all the project work, we don't have all the distress that is very attractive as well. It's a very stable on the base business because of our ability to flex both the purchased transportation in concert with what goes on relative to the shipper side of the house. Conversely, on power only, a little bit more contracted, as we make commitments, to customers on a trailer pool basis, and we can optimize between our assets and power only a bit there to the advantage of both the customer but also to what fits our network needs. Again, we generally are buying on the spot with the carrier and buying contract with the customer. Steve, let me, let me throw you one. Sorry, we don't wanna avoid you. $150 million share repurchase authorization, yet you bought no shares back last quarter. Still a large discount between Schneider and some of the other carrier multiples. Is it really the buyback solely for diluting equity grants, or is it, you know, can you take advantage of this? Or is it that you still see investment opportunities in downturn, time to jump on and grow the business and maybe make some acquisitions and so save the dry powder? How should we think about your capital? You had mentioned the $430 million of cash on the balance sheet. That's. Always. That's what I was getting at, is yeah. It was a blind reference. To have a lot of capital. Let me go back to the beginning of that. The you mentioned that we didn't buy any in the Q1, but let me put context to that because we just got authorization for this program in late January. Then we proceeded to set the program up, and by the time we got through that process, we decided to just wait until we were out of our quiet period after we released earnings and so on, so that we didn't have any activity in this nascent program. We do have activity in the Q2. Kind of we've commenced activity there. We view it as a complementary part of our use of capital across the spectrum of investments that we can make in the business and are happy to have this as a component of it. At the same time, we recognize that our public float is what it is, and that creates some limitation as to how large of a program that we would execute over time. At a minimum, we see it offsetting grants for equity compensation. We'll probably go a little bit beyond that and provide investors with a relatively constant share base to use in the EPS calculation. See it a complementary part. Thoughts on leverage as you look at acquisition opportunities? I mean, you've made some tuck-ins. What are your thoughts on that? Yeah, I think it could be an opportunity for a strategic recapitalization of the company. We'd certainly be open to that. I mean, very comfortable with a leverage ratio of something like 1 times EBITDA, but certainly for the right opportunities would go north of that. Always targeting investment-grade type profile, but, and a strong conservative balance sheet. Certainly there's a lot of firepower there with Is it Oh. Really, we have a great deal of optionality. Our first priority is organic growth. We kind of laid out our drivers there of dedicated intermodal and Power Only and logistics. Clearly, second in our list would be strategic acquisitions and while we've done a couple of very nice tuck-ins, we have the appetite to do something much larger if we can find something that makes strategic sense against what we've laid out. Our balance sheet, our cash position, all of that gives us terrific optionality to take advantage. I was just gonna throw in, would it be something leaving those three? I mean, you tried last mile and then shut it down. Would you venture outside of those three, or does it have to fit into the? No. kind of dedicated No, I would just handicap it that I think our most likely would be something in the specialty arena, something with nice moat around it. We're not excluding anything. We're just most likely gonna be in the specialty truck space. I think we've got just maybe a minute or two left here. Let me, if I can just try to sum up and then just you give me your three, four takeaways that you want us to leave with. You know, obviously there's still some seasonality, still a muted backdrop. Capacity is probably more stubborn to leave, but feel like we're at the bottom of the cycle. You know, that's kinda my big picture overview is gonna get some different targets and stuff. You know, what kind of messages? I mean, you're still looking, I mean, the big picture is still looking to grow in the three core areas. Yes. We talked about the long-term targets. What, what other messages? Yeah. We're being prudent to the current condition, making sure we're being smart about managing our cost position. We do think we're at the tail end of the cycle to get into more of a recovery mode. The beauty about where at Schneider, our three growth drivers are, we think those can be successful in all markets. One of the reasons that we're strategically aligned to those as our growth drivers. That doesn't discount what we think a healthy network business can do at, one with scale that can be complementary to that. We're looking forward to a better condition there as we finish out the year. Mark, Steve, thank you very much. Thank you. Appreciate your continued contribution to the company. Thank you. Thank you, Ken. Thank you.