Earnings Inflection Coming

Research evidence excerpt

Earnings Inflection Coming

Equity Research

Price Target Change — June 5, 2026

Logistics

Trucking

Raising Estimates Across Truck Complex as Cycle Inflects

Our Call Christian Wetherbee

With multiple TL supply catalysts coupling with improving ISM and LTL weight/ship, we Equity Analyst | Wells Fargo Securities, LLC

Christian.Wetherbee@wellsfargo.com | 212-214-8053

think the truck complex is likely to see a material earnings inflection. We're raising ests/

Robert H. Salmon, CFAtgts, and remain constructive even as further upside may be more modest.

Equity Analyst | Wells Fargo Securities, LLC

Robert.H.Salmon@wellsfargo.com | 212-214-5016

TL Supply Catalysts and Improving Industrial Activity Lead Estimates Higher - The Ryan Deveikis

truckload market has been tightening since 4Q, and the Montgomery ruling will add to Associate Equity Analyst | Wells Fargo Securities, LLC

safety/regulatory enforcement to further tighten the market. Spot rates are rising along Ryan.Deveikis@wellsfargo.com | 212-214-8040

with contracts. In addition, ISM has been above 50 for 5 months with new orders above Matthew Hortopan

56. In LTL,weight/ship is turning positive, which is typically a leading indicator along with Associate Equity Analyst | Wells Fargo Securities, LLC

ISM. This recipe should lead to an earnings inflection. Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Raising Estimates Across the Truck Complex - We are raising 2027 estimates by 12%

on average with TL moving up 20%, LTL estimates moving up 7% and Logistics moving up

12%. For TL we see the potential for HSD/LDD contract rate increases in both 2026 and

2027 and with LTL volume improving on industrial activity and TL tightness, we think core

LTL revenue growth (ex fsr) in 2027 can accelerate to ~10% with elevated incremental