Q : Could you elaborate on the capital expenditure (CapEx) guidance of $700 million to $900 million for 2025? A : John Kuhlow, CFO, explained that the CapEx range accounts for $600 million to $700 million in replacements, primarily for power units. The range also includes property investments and is dependent on the success of dedicated sales in 2025.

Q : What steps can J.B. Hunt take to improve returns on capital and margins without relying on a market cycle recovery? A : Shelley Simpson, CEO, highlighted strategies such as optimizing network balance, controlling costs, and scaling into revenue growth. The company plans to engage with customers to ensure they are appropriately compensated for the value provided.

Q : Can you provide more details on the expected growth and challenges in the Dedicated Contract Services segment? A : Bradley Hicks, President of Highway Services, noted that while there are known fleet losses expected to continue into the second quarter, the company anticipates returning to net fleet growth in 2025. The focus will be on maintaining high customer retention and executing new sales to offset reductions.

Q : How is J.B. Hunt addressing the excess capacity in its intermodal network, and what are the expectations for utilization improvements? A : Darren Field, President of Intermodal, acknowledged significant underutilized capacity and emphasized the focus on scaling into existing capacity while improving pricing. The company is working on modifying and integrating Walmart's intermodal assets to enhance capacity utilization.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .