What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-13 compared with 2026-05-14 · 180 added, 58 removed, 119 unchanged (67% of the section changed)

21 unchanged sentences

Our segments are also distinguished by the extent to which we dedicate personnel, equipment and other resources to support customer-specific requirements.

During the first quarter of 2026, we continued to operate in a challenging environment in certain parts of our business, particularly in intermodal and certain industrial and automotive end markets.

During the first half of 2026, we continued to operate in a challenging environment in certain parts of our business, particularly in intermodal and certain industrial and automotive end markets.

Freight demand remained uneven, customer activity levels remained below historical levels in certain markets, and elevated labor, insurance, equipment, maintenance and borrowing costs continued to pressure margins.

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Value-added services include material handling, sequencing, warehousing, returnable container management, specialty project development and other customer-specific logistics solutions.

The following table sets forth operating revenues from each of these service categories for the thirteen weeks ended April 4, 2026 and March 29, 2025, expressed as a percentage of total operating revenues.

The following table sets forth operating revenues from each of these service categories for the thirteen weeks and twenty-six weeks ended July 4, 2026 and June 28, 2025, expressed as a percentage of total operating revenues:

Thirteen Weeks Ended

Twenty-six Weeks Ended

Operating revenues:

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Results of Operations

The following table sets forth selected items derived from our consolidated statements of income for the thirteen weeks ended April 4, 2026 and March 29, 2025, expressed as a percentage of total operating revenues.

Thirteen Weeks Ended July 4, 2026 Compared to Thirteen Weeks Ended June 28, 2025

The following tables set forth selected items derived from our consolidated statements of income for the thirteen weeks ended July 4, 2026 and June 28, 2025, expressed as a percentage of total operating revenues.

The period-to-period discussion that follows should be read together with the table and focuses on the primary drivers of changes in revenues, operating expenses and profitability.

During the first quarter of 2026, lower freight demand, softer automotive production and continued cost pressures in labor adversely affected our operating margins.

During the second quarter of 2026, the gain on the sale of certain real property and improved segment execution favorably impacted our operating margins.

The favorable impact was partially offset by a non-cash asset impairment expense and charges related to developments in outstanding legal matters during the period.

Thirteen Weeks Ended

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Depreciation and amortization

Gain on disposal of property and equipment

Impairment expense

Total operating expenses

2 unchanged sentences

Other non-operating income

Income (loss) before income taxes

Income tax expense (benefit)

Net income (loss)

Income before income taxes

Income tax expense

Operating Revenues

Operating revenues decreased by $14.8 million, or 3.9%, to $367.6 million for the thirteen weeks ended April 4, 2026, from $382.4 million for the thirteen weeks ended March 29, 2025.

The decrease was primarily attributable to lower freight demand in our intermodal and trucking segments, continued softness in certain industrial and automotive end markets, and lower fuel surcharge revenue.

The decrease was partially offset by an increase in our contract logistics segment, primarily driven by an increase in our revenue from value-added programs.

Included in operating revenues for the thirteen weeks ended April 4, 2026, were separately identified fuel surcharges of $18.4 million, compared to $20.9 million in the prior year period.

Operating revenues decreased by $14.5 million, or 3.7%, to $379.3 million for the thirteen weeks ended July 4, 2026, from $393.8 million for the thirteen weeks ended June 28, 2025.

The decrease was primarily attributable to lower rates and volumes in our intermodal segment.

The decrease was partially offset by an increase in our contract logistics segment, primarily driven by an increase in our revenue from value-added programs and strong dedicated transportation volumes.

Included in operating revenues for the thirteen weeks ended July 4, 2026, were separately identified fuel surcharges of $24.8 million, compared to $20.2 million in the prior year period.

Purchased Transportation and Equipment Rent

Purchased transportation and equipment rent generally increases or decreases in proportion to the revenues generated through owner-operators and third-party capacity providers.

Purchased transportation and equipment rent was $60.7 million for the thirteen weeks ended April 4, 2026, compared to $79.7 million in the prior year period.

Purchased transportation and equipment rent was $67.0 million for the thirteen weeks ended July 4, 2026, compared to $81.5 million in the prior year period.

The decrease was primarily attributable to lower transactional transportation volumes and a decrease in the mix of owner-operators versus employee drivers in certain intermodal operations.

Direct Personnel and Related Benefits

Direct personnel and related benefits expense was $176.2 million for the thirteen weeks ended April 4, 2026, compared to $164.5 million in the prior year period.

Direct personnel and related benefits expense was $164.8 million for the thirteen weeks ended July 4, 2026, compared to $168.0 million in the prior year period.

Trends in direct personnel and related benefits are generally correlated with operating facility requirements, headcount levels and labor utilization in our contract logistics segment, including value-added services and dedicated transportation, as well as the use of employee drivers in certain intermodal operations.

The increase in the current year period was primarily attributable to certain new contract logistics programs.

The decrease in the current year period was primarily attributable to fewer programs in our value-added rail services operations.

Operating Supplies and Expenses

Operating supplies and expenses include items such as fuel, maintenance, utilities, communications, equipment repairs, cost of materials and other operating costs.

Operating supplies and expenses were $48.3 million for the thirteen weeks ended April 4, 2026, compared to $51.3 million in the prior year period.

The decrease was primarily attributable to a decrease in maintenance and professional fees.

Operating supplies and expenses were $56.3 million for the thirteen weeks ended July 4, 2026, compared to $50.4 million in the prior year period.

The increase was primarily attributable to an increase in fuel expense on company tractors.

Commission Expense

Commission expense was $4.2 million for the thirteen weeks ended April 4, 2026, compared to $4.3 million in the prior year period.

The change was primarily attributable to decreases in revenue generated through our agent-based trucking operations.

Commission expense was $4.5 million for the thirteen weeks ended July 4, 2026, compared to $4.4 million in the prior year period.

The change was primarily attributable to increases in revenue generated through our agent-based trucking operations.

Occupancy Expense

Occupancy expense was $15.6 million for the thirteen weeks ended April 4, 2026, compared to $11.3 million in the prior year period.

The change was primarily attributable to additional properties being leased.

Occupancy expense was $16.3 million for the thirteen weeks ended July 4, 2026, compared to $11.8 million in the prior year period.

The change was primarily due to additional properties being leased under our contract logistics segment.

General and Administrative Expense

General and administrative expense was $14.6 million for the thirteen weeks ended April 4, 2026, compared to $13.2 million in the prior year period.

The change was primarily attributable to increases in salaries, wages and benefits.

General and administrative expense was $16.0 million for the thirteen weeks ended July 4, 2026, compared to $14.0 million in the prior year period.

The increase was primarily attributable to a reserve increase related to an outstanding legal matter during the period.

Insurance and Claims Expense

Insurance and claims expense was $7.6 million for the thirteen weeks ended April 4, 2026, compared to $7.0 million in the prior year period.

The change was primarily attributable to an increase in auto liability insurance premiums and claims expense.

Insurance and claims expense was $17.5 million for the thirteen weeks ended July 4, 2026, compared to $7.6 million in the prior year period.

The increase was primarily attributable to an increase in reserves for auto liability claims related to ongoing matters, including those involving third-party broker carriers.

Depreciation and Amortization

Depreciation and amortization expense was $35.6 million for the thirteen weeks ended April 4, 2026, compared to $35.5 million in the prior year period.

Depreciation and amortization expense was $33.2 million for the thirteen weeks ended July 4, 2026, compared to $36.2 million in the prior year period.

Depreciation expense decreased $0.2 million and amortization expense decreased $2.8 million.

The decrease in depreciation expense is primarily attributable to certain fixed assets becoming fully depreciated.

The decrease in amortization is due to the previous impairment of certain customer-relationship intangible assets in our intermodal segment in the third quarter of 2025.

Gain on Disposal of Property and Equipment

Gain on disposal of property and equipment was $45.3 million for the thirteen weeks ended July 4, 2026, compared to $0.0 million in the prior year period.

The increase was primarily attributable to the gain recognized on the sale of property located in Kearny, New Jersey to an affiliate.

Impairment Expense

Impairment expense was $3.9 million for the thirteen weeks ended July 4, 2026, compared to $0.0 million in the prior year period.

The increase was attributable to a non-cash impairment charge related to a group of tractors that are no longer expected to be utilized in operations.

Interest Expense, Net

Net interest expense was $10.6 million for the thirteen weeks ended July 4, 2026, compared to $8.9 million in the prior year period.

The change reflects an increase in average interest rates on our outstanding borrowings.

As of July 4, 2026, total outstanding borrowings were approximately $695.5 million, compared to $798.6 million as of June 28, 2025.

Other Non-Operating Income

Other non-operating income was $0.0 million for the thirteen weeks ended July 4, 2026, compared to $0.1 million in the prior year period.

The activity in other non-operating income is not material.

Income Tax Expense

Income tax expense was $8.4 million for the thirteen weeks ended July 4, 2026, compared to income tax expense of $2.9 million in the prior year period.

The increase in income tax expense can be attributed to increases in pre-tax income.

Our effective income tax rate was 24.3% for the thirteen weeks ended July 4, 2026, compared to 25.7% in the prior year period.

The change in effective tax rate was due to a change in the mix of operating profits and losses between foreign and domestic tax jurisdictions.

Twenty-six Weeks Ended July 4, 2026 Compared to Twenty-six Weeks Ended June 28, 2025

The following tables set forth selected items derived from our consolidated statements of income for the twenty-six weeks ended July 4, 2026 and June 28, 2025, expressed as a percentage of total operating revenues.

The period-to-period discussion that follows should be read together with the table and focuses on the primary drivers of changes in revenues, operating expenses and profitability:

Twenty-six Weeks Ended

Percent Change in Dollar Amount

(Dollars in millions)

Operating revenues

Operating expenses:

Purchased transportation and equipment rent

Direct personnel and related benefits

Operating supplies and expenses

Commission expense

Occupancy expense

General and administrative

Insurance and claims

Depreciation and amortization

Gain on disposal of property and equipment

Impairment expense

Total operating expenses

Income from operations

Interest expense, net

Other non-operating income

Income before income taxes

Income tax expense

Operating Revenues

Operating revenues decreased by $29.3 million, or 3.8%, to $746.9 million for the twenty-six weeks ended July 4, 2026, from $776.2 million for the twenty-six weeks ended June 28, 2025.

The decrease was primarily attributable to lower rates and volumes in our intermodal segment.

Included in operating revenues for the twenty-six weeks ended July 4, 2026, were separately identified fuel surcharges of $43.2 million, compared to $41.1 million in the prior year period.

Purchased Transportation and Equipment Rent

Purchased transportation and equipment rent generally increases or decreases in proportion to the revenues generated through owner-operators and third-party capacity providers.

Purchased transportation and equipment rent was $127.7 million for the twenty-six weeks ended July 4, 2026, compared to $161.3 million in the prior year period.

The decrease was primarily attributable to lower transactional transportation volumes and a decrease in the mix of owner-operators versus employee drivers in certain intermodal operations.

Direct Personnel and Related Benefits

Direct personnel and related benefits expense was $341.0 million for the twenty-six weeks ended July 4, 2026, compared to $332.5 million in the prior year period.

The increase in the current year period was primarily attributable to certain new contract logistics programs, partially offset by fewer programs in our value-added rail services operations.

Operating Supplies and Expenses

Operating supplies and expenses include items such as fuel, maintenance, utilities, communications, equipment repairs, cost of materials and other operating costs.

Operating supplies and expenses were $104.6 million for the twenty-six weeks ended July 4, 2026, compared to $101.7 million in the prior year period.

The increase was primarily attributable to an increase in fuel expense on company tractors.

Commission Expense

Commission expense was $8.7 million for both the twenty-six week periods ended July 4, 2026 and June 28, 2025.

Occupancy Expense

Occupancy expense was $31.8 million for the twenty-six weeks ended July 4, 2026, compared to $23.1 million in the prior year period.

The change was primarily attributable to additional properties being leased under our contract logistics segment.

General and Administrative Expense

General and administrative expense was $31.1 million for the twenty-six weeks ended July 4, 2026, compared to $27.2 million in the prior year period.

The increase was primarily attributable to a reserve increase related to an outstanding legal matter during the period.

Insurance and Claims Expense

Insurance and claims expense was $25.1 million for the twenty-six weeks ended July 4, 2026, compared to $14.6 million in the prior year period.

The increase was primarily attributable to an increase in reserves for auto liability claims related to ongoing matters, including those involving third-party broker carriers.

Depreciation and Amortization

Depreciation and amortization expense was $68.8 million for the twenty-six weeks ended July 4, 2026, compared to $71.7 million in the prior year period.

Depreciation expense increased $2.6 million and amortization expense decreased $5.4 million.

1 unchanged sentence

The decrease in amortization is due to the previous impairment of certain customer-relationship intangible assets in our intermodal segment in the third quarter of 2025.

Gain on Disposal of Property and Equipment

Gain on disposal of property and equipment was $45.7 million for the twenty-six weeks ended July 4, 2026, compared to $0.0 million in the prior year period.

The increase was primarily attributable to the gain recognized on the sale of our property located in Kearny, New Jersey to an affiliate.

Impairment Expense

Impairment expense was $3.9 million for the twenty-six weeks ended July 4, 2026, compared to $0.0 million in the prior year period.

The increase was attributable to a non-cash impairment charge related to a group of tractors that are no longer expected to be utilized in operations.

Interest Expense, Net

Net interest expense was $9.7 million for the thirteen weeks ended April 4, 2026, compared to $8.2 million in the prior year period.

The change reflects increases in average borrowings outstanding as well as an increase in average interest rates on our outstanding borrowings.

As of April 4, 2026, total outstanding borrowings were approximately $754.7 million, compared to $740.0 million as of March 29, 2025.

Net interest expense was $20.3 million for the twenty-six weeks ended July 4, 2026, compared to $17.1 million in the prior year period.

The increase reflects an increase in average interest rates on our outstanding borrowings.

As of July 4, 2026, total outstanding borrowings were approximately $695.5 million, compared to $798.6 million as of June 28, 2025.

Other Non-Operating Income

Other non-operating income was $0.3 million for the thirteen weeks ended April 4, 2026, compared to $0.6 million in the prior year period.

The decrease can be attributed to a decrease in dividends and gains on marketable equity securities.

Income Tax (Benefit) Expense

During the thirteen weeks ended April 4, 2026, we had an income tax benefit of $(1.1) million, compared to income tax expense of $2.0 million in the prior year period.

The change is primarily attributed to a decrease in pre-tax income.

Our effective income tax rate was 24.2% for the thirteen weeks ended April 4, 2026, compared to 25.1% in the prior year period.

Other non-operating income was $0.3 million for the twenty-six weeks ended July 4, 2026, compared to $0.7 million in the prior year period.

The activity in other non-operating income is not material.

Income Tax Expense

Income tax expense was $7.3 million for the twenty-six weeks ended July 4, 2026, compared to income tax expense of $4.9 million in the prior year period.

The increase in income tax expense can be attributed to increases in pre-tax income.

Our effective income tax rate was 24.3% for the twenty-six weeks ended July 4, 2026, compared to 25.5% in the prior year period.

The change in effective tax rate was due to a change in the mix of operating profits and losses between foreign and domestic tax jurisdictions.

Segment Financial Results

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This presentation reflects the manner in which management evaluates the business, including the economic characteristics and operating performance of each segment.

The following tables summarize information about our reportable segments for the thirteen weeks ended April 4, 2026 and March 29, 2025 (in thousands):

The following tables summarize information about our reportable segments for the thirteen week and twenty-six week periods ended July 4, 2026 and June 28, 2025 (in thousands):

Operating Revenues

Thirteen Weeks Ended

Twenty-six Weeks Ended

Contract logistics

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Thirteen Weeks Ended

Twenty-six Weeks Ended

Contract logistics

Total income from operations

Thirteen Weeks Ended July 4, 2026 Compared to Thirteen Weeks Ended June 28, 2025

Contract Logistics

Operating revenues in our contract logistics segment were $269.5 million for the thirteen weeks ended April 4, 2026, compared to $255.9 million in the prior year period.

The change was primarily attributable to certain new value-added programs and increases in certain existing value-added program volumes.

Included in contract logistics segment revenues for the thirteen weeks ended April 4, 2026, were separately identified fuel surcharges from dedicated transportation services of $7.9 million, compared to $8.6 million in the prior year period.

Income from operations in the contract logistics segment was $17.5 million for the thirteen weeks ended April 4, 2026, compared to $23.9 million in the prior year period.

Operating revenues in our contract logistics segment were $271.4 million for the thirteen weeks ended July 4, 2026, compared to $260.6 million in the prior year period.

The change was primarily attributable to certain new value-added programs, increases in certain existing value-added program volumes, and strong dedicated transportation volumes.

These increases were partially offset by fewer programs in our value-added rail services operations.

Included in contract logistics segment revenues for the thirteen weeks ended July 4, 2026, were separately identified fuel surcharges of $10.5 million, compared to $7.3 million in the prior year period.

Income from operations in the contract logistics segment was $24.6 million for the thirteen weeks ended July 4, 2026, compared to $21.8 million in the prior year period.

Operating margin in the contract logistics segment was 9.1% for the current year period, compared to 8.4% in the prior year period.

The change in operating margin was primarily attributable to an increase in labor costs.

Operating revenues in our intermodal segment were $47.9 million for the thirteen weeks ended April 4, 2026, compared to $70.7 million in the prior year period.

The change was primarily attributable to decreases in load volumes and average operating revenue per load.

Included in intermodal segment revenues for the thirteen weeks ended April 4, 2026, were separately identified fuel surcharges of $5.4 million, compared to $8.2 million in the prior year period.

The change in operating margin was primarily attributable to a decrease in labor costs.

Operating revenues in our intermodal segment were $44.1 million for the thirteen weeks ended July 4, 2026, compared to $68.9 million in the prior year period.

The change was primarily attributable to decreases in load volumes and average operating revenue per load, excluding fuel surcharges.

Included in intermodal segment revenues for the thirteen weeks ended July 4, 2026, were separately identified fuel surcharges of $7.1 million, compared to $8.2 million in the prior year period.

Intermodal segment revenues also included detention, demurrage and storage charges of $5.2 million, compared to $9.2 million in the prior year period.

The loss from operations in the intermodal segment was $(13.1) million for the thirteen weeks ended April 4, 2026, compared to $(10.7) million in the prior year period.

The loss from operations in the intermodal segment was $(10.4) million for the thirteen weeks ended July 4, 2026, compared to a loss from operations of $(5.7) million in the prior year period.

Operating margin in the intermodal segment was (23.7)% for the current year period, compared to (8.2)% in the prior year period.

Operating revenues in our trucking segment were $50.2 million for the thirteen weeks ended April 4, 2026, compared to $55.6 million in the prior year period.

The change was primarily attributable to decreases in load volumes and average operating revenue per load.

Included in trucking segment revenues for the thirteen weeks ended April 4, 2026, were brokerage revenues of $16.2 million, compared to $18.0 million in the prior year period, and separately identified fuel surcharges of $3.6 million, compared to $3.5 million in the prior year period.

Income from operations in the trucking segment was $0.6 million for the thirteen weeks ended April 4, 2026, compared to $2.2 million in the prior year period.

The change in operating margin is primarily attributable to the impact of lower revenues on the segment’s fixed cost base.

Operating revenues in our trucking segment were $63.8 million for the thirteen weeks ended July 4, 2026, compared to $64.1 million in the prior year period.

The decrease was primarily attributable to a decrease in load volumes, which was mostly offset by an increase in the average operating revenue per load, excluding fuel surcharges.

Included in trucking segment revenues for the thirteen weeks ended July 4, 2026, were brokerage revenues of $18.8 million, compared to $18.4 million in the prior year period, and separately identified fuel surcharges of $5.6 million, compared to $3.4 million in the prior year period.

Income from operations in the trucking segment was $2.9 million for the thirteen weeks ended July 4, 2026, compared to $3.3 million in the prior year period.

Operating margin in the trucking segment was 4.5% for the current year period, compared to 5.2% in the prior year period.

The decrease in operating margin is due to a decrease in higher margin specialized heavy-haul services.

Twenty-six Weeks Ended July 4, 2026 Compared to Twenty-six Weeks Ended June 28, 2025

Contract Logistics

Operating revenues in our contract logistics segment were $541.0 million for the twenty-six weeks ended July 4, 2026, compared to $516.4 million in the prior year period.

The change was primarily attributable to certain new value-added programs, increases in certain existing value-added program volumes, and strong dedicated transportation volumes.

These increases were partially offset by fewer programs in our value-added rail services operations.

Included in contract logistics segment revenues for the twenty-six weeks ended July 4, 2026, were separately identified fuel surcharges of $18.4 million, compared to $16.0 million in the prior year period.

Income from operations in the contract logistics segment was $42.1 million for the twenty-six weeks ended July 4, 2026, compared to $45.6 million in the prior year period.

Operating margin in the contract logistics segment was 7.8% for the current year period, compared to 8.8% in the prior year period.

The change in operating margin was primarily attributable to an increase in occupancy expense.

Operating revenues in our intermodal segment were $91.9 million for the twenty-six weeks ended July 4, 2026, compared to $139.6 million in the prior year period.

The change was primarily attributable to decreases in load volumes and average operating revenue per load, excluding fuel surcharges.

Included in intermodal segment revenues for the twenty-six weeks ended July 4, 2026, were separately identified fuel surcharges of $12.5 million, compared to $16.3 million in the prior year period.

Intermodal segment revenues also included detention, demurrage and storage charges of $12.3 million, compared to $16.6 million in the prior year period.

The loss from operations in the intermodal segment was $(23.6) million for the twenty-six weeks ended July 4, 2026, compared to a loss from operations of $(16.4) million in the prior year period.

Operating margin in the intermodal segment was (25.6)% for the current year period, compared to (11.7)% in the prior year period.

The decrease in operating margin is primarily attributable to the effect of lower revenues on the segment’s fixed cost base.

Operating revenues in our trucking segment were $114.0 million for the twenty-six weeks ended July 4, 2026, compared to $119.7 million in the prior year period.

The change was primarily attributable to decreases in load volumes and decreases in brokerage revenue, which was partially offset by an increase in average operating revenue per load, excluding fuel surcharges.

Included in trucking segment revenues for the twenty-six weeks ended July 4, 2026, were brokerage revenues of $35.0 million, compared to $36.4 million in the prior year period, and separately identified fuel surcharges of $9.2 million, compared to $6.9 million in the prior year period.

Income from operations in the trucking segment was $3.4 million for the twenty-six weeks ended July 4, 2026, compared to $5.5 million in the prior year period.

Operating margin in the trucking segment was 3.0% for the current year period, compared to 4.6% in the prior year period.

The decrease in operating margin is due to a decrease in higher margin specialized heavy-haul services.

Liquidity and Capital Resources

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Working capital requirements are generally driven by customer payment terms, payroll, fuel costs, insurance costs, purchased transportation costs and other operating expenses.

As of April 4, 2026, we had cash and cash equivalents of approximately $17.9 million and approximately $286.1 million of availability under our revolving credit facility.

Total outstanding borrowings were approximately $754.7 million, including borrowings under our revolving credit facility, equipment financing arrangements, a term loan facility secured by real estate and approximately $189.4 million of CTL financing.

Although we were in compliance with all financial covenants as of April 4, 2026, our credit agreements require ongoing monitoring of leverage ratios, fixed charge coverage ratios, minimum liquidity levels and other financial covenants.

As of July 4, 2026, we had cash and cash equivalents of approximately $20.3 million and approximately $238.8 million of availability under our revolving credit facility.

Total outstanding borrowings were approximately $695.5 million, including borrowings under our revolving credit facility, equipment financing arrangements, and approximately $185.3 million of CTL debt.

The CTL debt is generally non-recourse to the Company and its subsidiaries, except for customary limited-recourse obligations under indemnity and guaranty agreements relating to environmental matters, lease-term compliance, and certain representations, warranties, and covenants.

Although we were in compliance with all financial covenants as of July 4, 2026, our credit agreements require ongoing monitoring of leverage ratios, fixed charge coverage ratios, minimum liquidity levels and other financial covenants.

Given the continued pressure on earnings from uneven freight demand, elevated interest rates and higher labor, insurance and maintenance costs, we continue to actively monitor covenant compliance, liquidity and borrowing capacity.

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Capital Expenditures

Capital expenditures were $9.6 million for the thirteen weeks ended April 4, 2026.

Capital expenditures primarily consisted of investments in transportation equipment, terminal facilities and expenditures in support of value-added programs.

In June 2026, we received a real property facility located in Newark, New Jersey with a fair value of $55.6 million as partial consideration in connection with the sale of a real property facility in Kearny, New Jersey.

See Note 11 in the Notes to Consolidated Financial Statements (Unaudited) for further information.

Excluding the property exchange, capital expenditures for the twenty-six weeks ended July 4, 2026 were $22.9 million and consisted primarily of investments in transportation equipment, terminal facilities and expenditures in support of value-added programs.

For the remainder of 2026, we currently expect capital expenditures to be approximately $80.0 million.

1 unchanged sentence

Discussion of Cash Flows

Net cash provided by operating activities was $33.4 million for the thirteen weeks ended April 4, 2026.

Net cash provided by investing activities was $2.0 million and primarily reflected the proceeds from the sales of marketable securities and equipment, which was partially offset by capital expenditures.

Net cash used in financing activities was $50.4 million and primarily reflected net borrowings, equipment financing activity, dividend payments and other financing transactions.

Net cash provided by operating activities was $73.9 million for the twenty-six weeks ended July 4, 2026, compared with $110.0 million during the same period last year.

The decrease primarily reflected lower operating results in each of our reportable segments, particularly intermodal, and higher cash interest payments, partially offset by lower cash income tax payments.

The decrease also reflected $3.9 million of cash used for working capital during the current-year period, compared with $10.5 million of cash provided by working capital during the prior-year period.

This change was driven largely by trade and other accounts receivable, which used $12.7 million of cash during the current-year period, compared with providing $36.3 million during the prior-year period, primarily due to the timing of customer billings and collections.

Net cash provided by investing activities was $28.0 million for the twenty-six weeks ended July 4, 2026, compared with $130.0 million of net cash used in investing activities during the same period last year.

The change primarily reflected a decrease in capital expenditures to $22.9 million from $136.8 million, due principally to the timing and level of investments in transportation equipment, terminal facilities and value-added programs.

The change also reflected an increase in proceeds from sales of property and equipment to $40.3 million from $4.5 million, primarily attributable to the sale of the Kearny Facility, and an increase in proceeds from sales of marketable securities to $10.6 million from $2.3 million.

Net cash used in financing activities was $113.1 million for the twenty-six weeks ended July 4, 2026, compared with $30.3 million of net cash provided by financing activities during the same period last year.

The change primarily reflected an increase in term-debt repayments to $160.0 million from $63.5 million, including the repayment in full of our Real Estate Facility, a decrease in term-debt borrowings to $9.4 million from $37.2 million and a decrease in net borrowings under our revolving credit facility to $43.8 million from $62.2 million.

Off-Balance Sheet Arrangements

As of April 4, 2026, we had no off-balance sheet arrangements that have had, or are reasonably likely to have, a material current or future effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

As of July 4, 2026, we had no off-balance sheet arrangements that have had, or are reasonably likely to have, a material current or future effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

A summary of our critical accounting policies is presented in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies,” included in our Annual Report on Form 10-K for the year ended December 31, 2025.

There have been no material changes to our critical accounting policies during the thirteen weeks ended April 4, 2026.

There have been no material changes to our critical accounting policies during the thirteen weeks ended July 4, 2026.

Our value-added logistics services experience seasonal demand patterns driven by automotive production schedules, customer shutdown periods and model changeovers.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis