Ryder System, Inc.

Good morning and welcome to the Rider System second quarter 2026 earnings release conference call. All lines are in a listen-only mode until after the presentation. Today's call is being recorded. If you have any objections, please disconnect at this time. I would now like to introduce Ms. Calene Candela, Vice President, Investor Relations for Rider. Ms. Candela, you may begin.

Thank you. Good morning and welcome to RIDER's second quarter 2026 earnings conference call. I'd like to remind you that during this presentation, you'll hear some forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in economic, business, competitive, market, political, and regulatory factors. More detailed information about these factors and a reconciliation of each non-GAAP financial measure to the nearest GAAP measure is contained in this morning's earnings release, earnings call presentation, and in Rider's filings with the Securities and Exchange Commission, which are available on Rider's website. Presenting on today's call are John Diez, Chief Executive Officer, and Cristina Gallo-Aquino, Executive Vice President and Chief Financial Officer. Additionally, Tom Havens, President of Fleet Management Solutions, and Steve Sensing, President of Supply Chain Solutions and Dedicated Transportation Solutions, are on the call today and available for questions following the presentation. At this time, I'll turn the call over to John.

Good morning, everyone, and thanks for joining us. The Rider team delivered our seventh consecutive quarter of comparable EPS growth. Solid results were primarily driven by consistent execution on our strategic initiatives. Improving market conditions and used vehicle sales also contributed to our higher results. I'll begin today's call by providing an update on our balanced growth strategy and will then provide you with key highlights from our second quarter performance. Christy will provide you with an overview of our segment performance and discuss our capital spending and capital deployment capacity. I'll then review our outlook for 2026. Let's begin with a strategic update. Consistent execution on our balanced growth strategy has demonstrated the resiliency of our transform model and has enabled Rider to outperform prior cycles. By executing on our strategy, the Rider team built a solid foundation that reflects actions taken to de-risk the portfolio, enhance returns and cash flow, and shift to a less capital-intensive, more resilient business mix. Building on this transformed foundation, our strategic priorities remain focused on executing relentlessly, investing in the future, and growing contractual customer relationships. These priorities are aimed at creating value for our customers as well as our shareholders. Operational excellence is where we stand out and what enables us to leverage our full end-to-end capabilities to solve our customers' toughest logistics and transportation challenges. Investing in customer-centric innovation that enables a proactive supply chain gives our customers a competitive advantage. In RiderShare and RiderGuide, we're embedding agentic AI in order to enhance capabilities and drive the evolution of these proprietary platforms. We're also leveraging AI across the company, including FMS customer service and roadside assistance, where agentic AI is enhancing the customer experience while improving effectiveness. Additionally, we continue to deploy automation and robotics in our warehouses to drive operating efficiencies. We're focused on profitably growing our contractual relationships by increasing customer engagement across our portfolio of port-to-door solutions. Over 90% of our revenue is generated by long-term contracts. Our high-quality contractual base has proven to be a key driver of business model resilience over the cycle and reflects the actions taken to de-risk the model and enhance returns. Our Transform model has delivered meaningful outperformance relative to prior cycles, demonstrating the effectiveness of our balanced growth strategy. Our three complementary business segments are leaders in North America logistics and transportation, with secular trends that support further growth opportunities. Finally, we're encouraged by the earnings power and resilient performance of our Transform business model and believe that it positions us well to benefit from a cycle upturn. Turning to page five, key financial and operating metrics have improved since 2018, reflecting the execution of our strategy. In 2018, prior to the implementation of our balanced growth strategy, the majority of our 8.4 billion of revenue was from FMS. Rider generated comparable EPS of $5.95 and return on equity of 13%. Operating cash flow was 1.7 billion, This was during peak freight cycle conditions. Now let's look at Rider today. Our revenue mix has shifted towards supply chain and dedicated with approximately 60% of 2026 expected revenue generated by these asset-like businesses compared to 44% in 2018 as a result of organic growth, strategic acquisition, and innovative technology. Our increased 2026 comparable EPS forecast range of $14.40 to $14.80 is more than double 2018 comparable EPS of $5.95. Our return on equity forecast of 18% is also well above the 13% generated during the 2018 cycle peak. As a result of profitable growth in our contractual lease dedicated supply chain businesses, Forecasted operating cash flow to $0.7 billion is up $1 billion, or approximately 60% from 2018. In 2026, the business is expected to significantly outperform prior cycles, even when comparing the pre-transformation peak to the current market environment. Moving to key performance highlights from the second quarter. Copper Bull EPS for the quarter was up 12%, making it our seventh consecutive quarter of comparable EPS growth. Results reflect the strength of our contractual portfolio, benefits from strategic initiatives, as well as improving market conditions in used vehicle sales. Return on equity was solid at 17% in line with our expectations given where we are in the freight cycle. We remain on track to deliver 70 million in incremental benefits from strategic initiatives during 2026. These initiatives are part of a $170 million multiyear program launched in 2024. Consistent execution on these initiatives is the key driver of expected earnings growth this year. And finally, we're encouraged to see continued momentum from improving freight cycle conditions. Contractual sales activity was strong across all three segments, reflecting customer confidence. We continue to see improved fleet management and dedicated sales activity, which have been experiencing sales headwinds due to the extended freight downturn. Supply chain continued to generate strong sales activity with record sales in 2025 and year-to-date 2026, reflecting the value of our solutions. Used vehicle sales results were higher year-over-year and retail pricing improved sequentially for both trucks and tractors. Commercial Rental Utilization returned to target levels of 75%, driven by our planned asset management actions. That said, market conditions remain below normalized levels, and geopolitical and macroeconomic factors continue to influence the pace and durability of the recovery. I'll now turn the call over to Christy to further review our second quarter performance.