RXO (RXO) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and market position

• Spun out in 2022, now the third largest broker transportation provider in North America, with 70% truck brokerage, 20% last mile, and the remainder in managed transportation.

• Operates in a $750+ billion total addressable market, with $400 billion in brokerage, and continues to gain share.

Industry environment and regulatory changes

• Truckload market has experienced a prolonged downturn due to excess capacity post-COVID, but recent supply-side regulatory changes are removing significant capacity.

• New FMCSA rules and the Dalilah Law are expected to remove up to 200,000 non-domiciled CDLs over five years, tightening supply and raising rates.

• Tender rejections have risen to mid-teens, indicating tightening supply despite soft demand.

Business strategy and operational focus

• Emphasizes rigorous carrier vetting and compliance, leveraging a network of over 120,000 carriers to ensure quality and safety.

• Integration of Coyote is materially complete, with unified systems and sales force, and ongoing focus on extracting cost and purchased transportation synergies.

• Late-stage sales pipeline is up over 50% year-over-year, signaling strong future momentum.