RXO (RXO) investor relations material

Market conditions and segment trends

• Freight market remains soft, with regional pockets of tightness and varying demand, especially post-produce season in the Southern and West Coast states.

• Industrial manufacturing, retail e-commerce, and food & beverage make up about 75% of exposure, with automotive as a smaller but significant segment.

• Housing market softness and muted consumer spending on large goods have extended the freight downcycle.

• Tariff direction around 15% has provided some planning clarity, but optimism among customers is mixed.

• Peak season expectations remain muted, with no significant demand change anticipated compared to recent years.

LTL growth and technology investments

• LTL share has grown from 10% to 32% of volume, with a target of 50% or higher, driven by demand from large enterprise customers.

• RXO Connect platform is a key tech solution, offering shipment visibility and data-driven optimization for customers.

• Technology investments have enabled better procurement, productivity, and customer experience, with ongoing focus on reducing manual processes.

• Asset-light brokerage continues to gain market share from asset-based carriers, expected to reach 30-40% over time.

Coyote integration and synergy realization

• Coyote integration is nearly complete, with high retention of key personnel and customers, and rapid tech platform unification.

• Profitability lagged expectations due to market cycle and weather events, but gross profit per load is improving.

• Synergy targets have been raised above $70 million, with further cost and operating leverage expected into 2026.

• Technology and automation are driving higher productivity, with loads per employee per day up 45% over two years.