Proficient Auto Logistics, Inc. Common Stock Q3 FY2025 earnings call

• Q3 operations: July auto sales/deliveries stronger than expected, August/September SAAR stronger y-o-y driven by EV purchases. Revenue and unit volumes up 21% and 25% y-o-y respectively, nearly matching Q2 revenue. Improved profitability sequentially and y-o-y.
• Restructuring: Recognized a $1.9 million restructuring charge in Q3, expecting over $3 million in annual savings from restructuring actions. Insurance expense may have greater volatility but anticipates annual savings.
• Synergies: Leveraging national scale for cost synergies, unified accounting and transportation management systems providing visibility and efficiency. Sister hauls (load sharing) grew to 11% of revenue from 9% prior quarter, reducing empty miles and improving asset utilization.

In the third quarter of 2025, operating revenue was $114.3 million, which was 24.9% higher than the third quarter of 2024. Units delivered totaled 605,341, an increase of 21% compared to the third quarter of 2024. Revenue per unit excluding fuel surcharge was approximately $173, up approximately 3% from the third quarter of 2024. OEM contract business generated approximately 93% of total transportation revenue in the quarter. The dedicated fleet business generated $4.2 million in third quarter revenue, consistent with the expected run rate for the full year 2025.

• Full-year top line growth expected in the range of 10% to 12% compared to the combined company's 2024 total.
• Expect Q4 revenue to be modestly lower than Q3 but expect similar adjusted operating ratio and cash flow.
• Target to improve operating ratio by at least 150 basis points in 2026 over the 2025 results.

• Volatility in automotive manufacturing and purchase levels due to supply chain issues, expiring EV tax credits, interest rate adjustments, and tariffs.
• Insurance expense may have greater quarter-to-quarter volatility due to larger retention and frequency/severity of accidents/injuries.
• Regulatory impacts like non-domiciled CDLs and English language proficiency could affect trucking capacity, though less impact on Proficient.

Q: Patrick Brown asked if revenues up 10% to 12% for the full year are off of the $388.8 million base and about systems transition.

A: Bradley Wright confirmed it's off $388.8 million and Amy Rice stated they are fully transitioned on the TMS across all 7 opcos.

Q: Ryan Merkel asked about October revenue year-over-year increase and November/December growth.

A: Amy Rice said October had Brothers and incremental market share gains, November/December typically have end-of-year purchase pattern but current market is sluggish.

Q: Alexander Paris asked about free cash flow and stock recognition.

A: Bradley Wright said annualizing Q3 free cash flow gets closer to $35 million and they're as flummoxed as investors about market recognition of free cash flow characteristic.

Q: Andrew Baxter Cox asked about CapEx and regulatory impacts.

A: Bradley Wright discussed CapEx expectations and Amy Rice talked about non-domiciled CDL impact on trucking capacity.