All right. Good morning, everyone. We're going to get started. For those that don't know me, my name's Allison Poliniak. I am the senior analyst following industrial technology and transportation. We're excited to have J.B. Hunt with us today. We have a few people from J.B. Hunt. Shelley Simpson, the company's president; Nick Hobbs, COO and president of contract services; and Eric McGee, EVP of Highway Services. Shelley, why don't you just give us, you know, sort of a brief overview of J.B. Hunt for folks?
Yep. We are a North America-based transportation logistics organization that likes to think with our customers about how we can move their supply chain more efficiently. We have five business units that really span across the supply chain, that really think about bringing induction into the supply chain, which would really start with intermodal, our largest part of our business, all the way to final consumption, including your personal home, which would include our final mile business. We have three other business units: dedicated contract services, our truckload team, and our integrated capacity solutions team. If you looked at our organization in total in 2022, we finished just under $15 billion.
We have been on a growth streak over the last really couple of years through COVID, as our customers really leaned into our ability to solve really any need they had within the supply chain from our five different business units. For us, when you think about where we're positioned in the market from a business unit perspective in the intermodal business, that is our largest segment, about 50% of our overall revenue, and certainly generates a lot of our operating income. For us in that segment, we are positioned as the top provider inside that segment, as well as our dedicated contract services segment. Both of those segments are really the businesses that produce the most amount of operating income, also require the most amount of our operating capital as a result.
Our highway businesses, which are both JBT, that's going to be our trailing side of the business, is going to be the only parts of, of the business that's asset-based. On the trailer side, we actually use the power of other companies to create a more efficient movement of goods with trailers. We complement that with our ICS business unit, which is purely brokerage in total. Both of those really run together. That's actually what Eric McGee leads for us by using our digital freight platform, J.B. Hunt 360. We are one of the largest digital freight platforms and also one of the largest truckload providers. Finally, in our final mile segment, about $1 billion of our business, that's been a business unit that we have been doing tuck-in acquisitions and really building, over the last several years.
That business is also positioned really at the top of their industry. For us, we really want to give our customers the best answers on their supply chain and really achieving our mission statement, which is to create the most efficient transportation network in North America.
Great. A big topic of conversation, probably no surprise to you yesterday, was where are we in the freight cycle? Do you have any color? Are we bottoming, or are we seeing some green shoots? Just any color in order, you know, the recent trends.
In our fourth quarter earnings release, we did talk about that we had entered into a freight recession. I do not think that got a lot of headlines. I am not really sure why. We repeated it in Q1, and, boy, it became like the top headline that we said we were in a freight recession. One of the things that we commented on is that we did believe that we would be in a freight recession continuing into Q1 and that Q2 would start to have somewhat of a recovery. We did talk a little differently about that in February as our customers, you know, are still very optimistic about what the year could hold. We just feel like that our customers do not have the level of data that we need based on our own experience and history to have the same level of confidence.
Albeit we're not negative on what's going to happen, we just don't have the same level of confidence before we see more data and get more confident over a longer period of time overall. I would say this, you know, we have a few pockets where it's getting a little bit better. You have to kind of think of our business in two areas. Really think of Nick, who leads both dedicated contract services and final mile for us. Think of his dedicated business that's kind of at the end of the consumer. So point of sale business really does, replenish. Nick's business, I think Nick, you called it steady.
Steady.
That to me is kind of what the consumer is doing, is in a more steady state based on our dedicated contract services area. Then you look at the replenishment part of the business.
Mm-hmm.
That's the business that's experiencing a freight recession. In that part of the business, all four of our other segments are not immune to that. We are seeing, I would say, pockets of where we feel like things are moving along. We couldn't call whether the freight recession's going to end, you know, this month or three months or six months. You know, for us, we're just trying to build our business, thinking long-term on behalf of our customers, manage our costs based on short-term and what we understand from a short-term perspective. Really too early for us to call anything at this point. I would tell you we haven't seen things worsening. That's a good thing.
Okay.
I think that's a good point. I would say that's more around demand that I'm speaking about.
Right. Nick, let's keep it with you with dedicated. You know, how's the pipeline looking? Are people not as interested in dedicated now that the big crisis is over? Just thinking about that.
Yeah. A couple of things I would say on the dedicated. Our pipeline has actually picked up a little bit from where it was, let's say, a quarter ago. It is pretty steady, pretty consistent with where it was last year. What we've seen change is the decision-making. The dedicated we go after is private fleets, a little bit different than some of the other trucker friends we have. When we go after those private fleets, those are always out there. The decision-making, we normally say it's 18-22 months from when we start engaging until they make a decision. We're seeing that take a little bit longer. Also, our hit rate or our success rate is down from where it was. Just the uncertainty of what's to come, people have made decisions.
We are still going to sell somewhere gross sales of trucks is between 1,000 and 1,200 trucks, and we'll hit that sales target this year, not near what it's been the past two years, but still a very good sales year for us. We think that those sales are still coming. What we've seen so far, we're on track to do 1,000-1,200 trucks in dedicated.
Hey, Nick, can I just make a note on that? You mentioned, not what we've done the last two years, but your growth plan this year, how would that compare to previous years?
Our growth plan is probably, I don't know if you're talking to budget or what you're talking about there, but,
Just the number of new starts.
Yeah. The number of new starts, we will be in that 1,000-1,200 from sales, but our existing fleets are all down, going down two or three trucks because of customer demand. When you look at net year over year, we're going to be flattish is where we're going to be year over year on truck because we've had a lot of extra trucks. If you look at, we couldn't get new trucks, so we held trucks past their trade cycle. We had to hold extra trucks in there. When you net that down, we're going to be right at about the same truck count when we come into this year where we went out with new sales.
Got it. Let's keep with final mile, right? We're not ordering Pelotons anymore. People are really concerned that business is falling apart. Maybe talk to the dynamics there and sort of your longer term, your near and long-term view on that.
Yeah. Near term, the demand is clearly off. In our final mile business, it's made up of Appliances. Appliances are down some, depends on the customer, our customer. Some are still doing pretty well. Others are very slow. Appliances net are down some. Furniture is off dramatically. People bought a lot of Furniture during COVID, and they backed off of buying new Furniture right now. A lot of that has to do with the supply chain because they're still having the same type of Furniture, same design that they had two or three years ago. Inventory built up. They're trying to sell off. Till they get some new designs in, then that should pick up another year or so. Hopefully, Furniture will pick back up.
and then the Exercise equipment, demand is clearly off for that, but we are picking up market share in there. You'll see some growth from us in that from just getting market share because of service. The other part of our final mile is off-price retail. So think of T.J. Maxx, Ross, Burlington, that type. That's where we run DCs that we bring aggregated stuff in, combine it into truckload, and go out to stores. That business is, needless to say, picking up a little bit for us, because it's the season that we're at. That's kind of where we're at. When I think of big and bulky into the home, that portion is down quite a bit right now. We'll see when the consumer jumps back on that bandwagon.
Perfect. Eric, we're not letting you off the hook at this. JBT, ICS, how do you see this cycle evolving? You know, one of the comments we heard yesterday is it's not going to be demand, which obviously we're hearing today as well. Is it going to be a supply where we see more of the supply coming out that kind of, you know, solidifies that business a bit more?
Thank you. I think first what's probably important is kind of distinguish between JBT and ICS for us. If you think about, the broader market that J.B. Hunt goes after, it's about $650 billion. A little over half of that is in the truckload space, which falls into, to my area, which is highway. You take that a little deeper, it's about half in the drop trailer space, which is JBT, and about half is in the live space, which is our brokerage versus ICS. Obviously, we're the most impacted inside the market. If I think about which areas, less impacted, it'd be the drop trailer area, which is more similar to intermodal. It's larger lanes, denser lanes, larger, larger customers typically. Our network growth there has been strong.
We have some projects that we moved during COVID for some of our customers that are near and dear to us that were power-only, that took no assets. That is kind of muddling some of the volume numbers you see in there. I will tell you, we are taking market share when it comes to the drop trailer space. We feel good about how we are positioned there. We are growing. We have equipment to be able to really accelerate for our customers. On the brokerage side, it is the most impacted. The spot market has been challenged. The transactional market, we were positioned really well, I would say, going through COVID to be responsive to our customers' needs, that ebbed and flowed.
Coming out of that in the quick pivot left us probably a little overexposed in the spot market and needing more of the published business. We're progressing through the bid season right now. We're seeing growth come from that. We'll win throughout the bid season, and we'll probably look forward to another bid season in 2024 to help us position our published business there even better.
Great. We have to talk about intermodal, right? Demand's certainly down, but rail service is getting better. How do you see that cycle evolving for intermodal right now?
First, we'd love to talk about intermodal. We love to do that, as well. I would say intermodal has been impacted with the freight recession very similar to the way the other parts of our business, non-dedicated, have been overall. Rail service is improving. We have seen a nice recovery, particularly on the eastern network. All three of the major railroads that we use, Norfolk Southern, CSX on the east, and then BNSF on the west, have all improved. We still have some improvement to go in the West Coast, but much better than what has happened over the last couple of years. I would tell you from an intermodal perspective, we are really excited about our long-term growth story inside that segment.
I've served on our executive leadership the last 16 years. Previous to this role, for most of that time, I spent time with our customers. I would tell you from about 2016 until really early last year, a lot of discussion around PSR, reducing lanes that would be available, a lot less about solving on behalf of our customers. That tune has really changed from a railroad perspective, but also the way we talk with our customers as well. We are very thankful that all three of those railroads are led by commercial-viewing CEOs. All three of them came from a customer view, stepping into the role over the last couple of years. They leaned into us more, I would say, at least I will just speak from being in an executive role, more this last year than I have ever seen in the last 16 years.
I think that's saying something about growth prospects and what's available. We do know from how much bid work we do. Eric, I think, said earlier today he bids about $120 billion of freight. We recognize that there are millions of shipments on the nation's highways that need to convert into intermodal. One thing we're trying to do, Allison, is really think about what we've publicly stated last March, which is we're growing our intermodal fleet to up to 150,000 containers in the next three to five years. Now that would be in the next two to four years. That's based on what we believe is available in the market, where our railroad providers are at, and what our customers are telling us as well.
We're trying to balance the current freight environment along with making sure that we are prepared and ready for our customers. If Darren Field were here, he's our President of Intermodal, he would tell you we're a cold spring. We try to think of our customers, making sure that we're prepared and we're ready. It's not a matter of if we're going to come out of this freight recession. It's a matter of when. We wanna be prepared and ready in all five of our segments to really be able to take off, with our customers. That's important to us as we're trying to manage and maneuver through kind of the current environment and where we're at.
When you talk about modal share, could we be in a scenario where you start to recapture some of that modal share with the service getting better and people moving to intermodal? That could have stunned that, you know, decline in some of the freight volumes that you're seeing out there today.
I mean, certainly, that's part of our planning process.
Right. Right.
We're bringing in a lot of containers, overall. And we're trying to make sure that we think through how many do we need this year. You know, if we think about our bid season, although we budget for a calendar year, our bid season for the transactional part of the business, which would be intermodal and all of highway, really occurs from July through June of the next year. We're always on a half-year cycle. We're just getting ready to wrap up bid season with our customers this year. We're trying to project what growth that will look like. That helps us establish what we should be doing in total from a growth perspective, overall. I think for us and with the railroads, that growth is going to be more significant.
We would not be investing the amount of capital that we're investing into intermodal if we didn't have good confidence from the railroads and also good confidence from our customers. Our customers are hungry for intermodal.
Yeah.
They have been hungry for intermodal for a long time. You know, they've mode-shifted to truckload or haven't moved into intermodal because of inconsistency in service in total and available capacity, really, over the last couple of years. We see that changing. We see our customers changing. As a result, I think as we come through this freight recession, you're going to see us taking share off the highway into intermodal. Have a lot of confidence that we'll be able to do that.
That's great. I would say what two of the pushbacks that we get, around intermodal specifically is one, there's too much capacity, right? Is that going to create sort of a pricing pressure on that? The second piece is obviously truckload pricing is down, likely down again next year potentially. What kind of pressure does that add for you guys on the intermodal side?
I think those comments around there being too much intermodal capacity is very short-term in nature.
Yeah.
We tend to not manage our business for the quarter or even for this near term. We try to think about the opportunities that exist with our customers over the long term. Clearly, we don't believe that we have enough equipment to be able to convert enough shipments over into intermodal off the highway. For us, we continue to maintain our growth story over the next two to four years. From a price perspective, here's kind of what I would say. You know, we're finishing up bid season. There has been pressure on price, pretty much across the board, non-dedicated and maybe to some extent non-final mile. Think of intermodal and on the highway side. You know, I would tell you if you looked at our first quarter results, we actually grew eastern network.
Mm-hmm.
Think about the price pressure that was happening in the truckload sector. Intermodal, we were able to grow on the eastern network. I think that's an important note to make is that even in an environment where there is price pressure on the truckload side, there's still a more efficient way to move goods. That's how we're talking to our customers. Having said that, we're going to be finishing up intermodal bid season. Most of that will be implemented by the end of this quarter, and that'll be fully effective into Q3. You know, we're not certain when we're coming out of a freight recession, but certainly prices are resetting.
As we're coming into Q3, prices will be different in Q3 than what they have been here in the first half of the year, but still very confident about what return on invested capital that gives us over a long period of time. That is really how we're operating and thinking about our business. You know, we don't look at just what the truckers are doing and change our price in intermodal as a result to that. We also don't look at the amount of capacity we have and change our price. We really try to think about what makes the most sense for our network over a longer period of time, how do we build the right level of density, and how do we have the right return on invested capital. It's really the way we manage our intermodal business.
That's great. You touched on East Coast, West Coast. Clearly, the East Coast ports were gaining some share just given the challenges in the West Coast. Is that good for you? Indifferent? Bad? West Coast ever coming back?
I think what's really great for us is we have answers, you know, on both the eastern network and the western network. If East Coast is gaining share and we can talk to our customers about that, there's a lot of freight that's on the eastern network, clearly by our results, in Q1. Certainly, we would like the West Coast to start to rebound. I think that's really important if you look at what's happened on the imports into the West Coast. It's been hit, the most dramatic in total. Certainly, that impacted us. You know, our volume's not down near as much as what's happened on the import side. The western network's very important to the overall intermodal network.
Still, if you continue to look at what's the best way to import goods into the U.S., LA Long Beach still is a really great and optimal answer. I think some of that has to do with just some of the negotiations that are occurring and confidence that our customers have. I do think over a longer period of time, customers will continue to come back into the western network, but they've been working on that for a period of years. I would say both of those scenarios are good for us, as well as Mexico, you know, emerging and continuing to have nearshoring into Mexico. That's good for our business as well.
I wanna touch on J.B. Hunt 360.
Okay.
What drove the decision to build that business? You know, how does it benefit J.B. Hunt over the long term?
Let me let Eric kind of start there.
Sure.
Maybe at the top how we thought about it, and then I'll let you kind of go into that.
When we think about J.B. Hunt 360, what it allows us to do is connect the capacity inside the market. If you think about over the last five-plus years, the investments that we've made and what it's positioned us to now, we've connected to over a million trucks inside the market. If you think about solutions for a customer, if we're wanting to build the best answer for them, it's either trying to go to the customer and try to convince them that the truck that you have, that you own, is the best answer, or one of the trucks inside the market is a better answer for that customer.
The ability that for J.B. Hunt 360 to connect the Shipper, we really created a Shipper-facing door for our customers to come in and be able to view their shipments, get visibility, tracking, tracing, input loads, connect to our company. We have built the same thing on the carrier side. That is something I would say the carrier community never had was information, connectivity, visibility. It gives them the opportunity to come into what we call the marketplace, which is the interface of Shipper 360 and Carrier 360, and be able to interact. It provides a more efficient answer for our customers and a more efficient opportunity for our carriers to be able to spend more time driving, less time on the phone, more time making money, and really focus on service for our customers.
I'd say really trying to drive efficiency both for the Shipper community and the carrier community is what drove us to build out our 360 platform. We're excited where it is right now. We feel we're poised to continue to grow and build density. I think density is key for all of our business units. It really spurred out of ICS, I'd say, but.
Yeah.
The 360 is a, an enterprise platform. All of our five business units today benefit by, what is inside 360. I do not know, Shelley, if you have anything to add.
Yeah. I think that's really important as we operationalize it first in ICS. That's because we saw that there was a better way to really move shipments by connecting more quickly and finding the right truck on the right load at the right time. It was a really great solve, not only for our customers but also for our carriers. As we started evaluating freight and kind of how shipments move with our mission statement, creating the most efficient network, it's important that all five of our segments really participate, and that we have a good strategy behind that. As we start to think about what we're doing with intermodal, for example, that's a really great example where our
customers now have access and understand where's the best way to move goods in intermodal through Shipper 360. That connectivity that we're having, all of our intermodal dray work with our carriers actually is conducted inside 360. All of our highway part of the business is as well. Maybe the last part, one of the things we're doing in 360, you know about it from an externalization perspective, how we externalize it and commercialize it to our customers and carriers, but it's actually our internal system as well. If you think about what we really tried to design and we're still implementing as we speak, it is really designing the future of supply chain technology. Stuart Scott, who is our CIO, we onboarded him in 2016. First time we've onboarded an executive externally in, Nick, I don't know, 20 years or longer.
Yeah. Yeah.
We intentionally wanted to bring in somebody from the outside that could help us think about how do we do both. We have thought about our system from how do we reimagine it for the next 20 years. That system is actually empowering our team internally. The way we think about it is the same system that we are operating a multi-billion dollar company on is the same system our customers and carriers get access to. That is the way we connect J.B. Hunt 360 overall. In this freight environment.
Mm-hmm.
One of the advantages that we have is that one of the largest trucking fleets in North America is J.B. Hunt's. Nick's dedicated fleets or intermodal fleets have access to that freight as well. Nick and I have been on the road over the last year spending time with our teams. We have had some really great stories where you are seeing that connectivity.
Mm-hmm.
Between our segments and the sharing of assets and sharing of loads that are occurring through J.B. Hunt 360. We do look at it holistically. We also believe it can help us facilitate and empower our mission statement.
Great. I want to touch on power only. One of the pushbacks that we've gotten is saying people are using those trailers as sort of in, you know, warehousing, right? 'Cause warehousing was so tight. Now that it's loosened up, that power only sort of the demand goes away. Just any thoughts around that?
We saw that more during COVID, I'd say.
Yeah.
That we saw, I'd say, customer behavior around unloading was very difficult.
Mm-hmm.
We've seen it, at least in the truckload space, has improved quite a bit. Customers are destocking right now, whether that's out of our trailer or out of their warehouse. They're destocking. I don't see it as being as significant right now.
Mm-hmm.
For us, I'm very excited about our power only, which what we do is it's a 360 Box business, which is inside JBT. If we go back to what we talked about with 360, we really unlocked that by building 360 and really connecting to the right truck. What we do inside intermodal is we run a trailer network, and we power that with our trucks and with the railroad.
Mm-hmm.
What we have now done with 360 Box is we power that with our 360 platform. What we really are going out to answer for our customers is, if you think about what they need, effectively, there is about a $200 billion drop trailer market. Today, a little less than 10% of that is answered by intermodal. The rest of that is done by truckload.
Mm-hmm.
That is what we are able to do as a power only through our 360 Box platform. What it also gives is the opportunity for our customers to go into those shipments that have traditionally ran truckload that could run intermodal that Shelley mentioned earlier. We are able to go provide them the truckload answer now and move those and then work with them to move that over to intermodal. I'll tell you what we've had significant success in is being able to blend the two, to be able to go to a customer that has historically always ran it truckload and go in there now with our trailer and a power only answer and say, "We can do that three days a week for you on the trailer, and you can get benefits of intermodal on the other two days or the other four days.
" That's been something that has been very successful with our customers that they've not done. In the long run, it's going to allow us to continue to convert more of that business off the highway into intermodal.
I think it's important to note too that technology has changed the market for power only.
Okay.
I think if technology had not emerged, I don't know how much power only business there would be. It is the first time, so technology didn't even start emerging until 2017. We were one of the first ones to the market. Just like us recognizing that as an opportunity, it was actually our customers that recognized that as an opportunity. We talked to them about J.B. Hunt 360 in the marketplace. They said, "We really like the concept, but would you do that with trailers?" It was like, "Whoa, let us think through this." We didn't even bring that to market till 2019. If you think about a way now for Eric and the market to connect one million trucks to the asset of a trailer with 360 Box, it changes the dynamics of how we can serve our customers over the long term. I'm not sure how power only works with everyone else.
Yeah.
For us, those kind of operate together inside the platform, and we're able to blend the two networks where previous to technology, you really had big asset providers handling drop trailer business or about half the market, and then brokers handling the other. Now you're seeing those two things really come together. For us, it has changed for the long term.
Great. We talked about managing costs, but J.B. Hunt's been also pretty vocal about, "We don't let people go," right? "We're not doing these big headcount reductions." How do you manage the dynamics in this type of environment?
I think, you know, one advantage about our team being together a really long time, and it's not just the team you see here. If you actually go down in the organization, you'll find a lot of years of service inside our company. You know, something Brad Delco, if he were here, he leads our investor relations. He says, you know, we don't talk enough about our average tenure on an executive leadership team at J.B. Hunt is 25 years. That's not in the industry. That's.
Oh, yeah.
J.B. Hunt, which happens to be in the industry. I think that's really important because we've lived through probably the toughest cycle, which is the economic recession of 2009. That was something that we determined back in 2009 that we were going to make one major call on top of all the other strategic calls that we made for the business. The one that I think stuck the most for us was taking care of our people.
Mm-hmm.
It doesn't mean that we'll be soft on performance. It doesn't mean that we won't, expect excellence, but it does mean that we're going to think long term. We're going to think long term on behalf of our customers and shareholders. Ultimately, our people would benefit as a result. Us being, you know, Nick and I actually were in the room when we made that decision in 2009. It was pretty easy when COVID first started.
Mm-hmm.
We made that same decision. I'm thankful that we did. We didn't let go any of our drivers. We didn't let go any of our warehouse teams. We didn't let go of any of our employees. You know what happened? When we came out of COVID, wow, did we ramp up on behalf of our customers. It's one of the reasons that we grew so significantly from really mid-year 2020 through 2022. We think that same thing's going to occur. For us, it really is that we view the freight recession as short term in nature, and there are opportunities very long term. I think it's important that our people feel very safe.
Mm-hmm.
Yet we're managing costs. There is this balance that we're constantly working through. You know, Allison, I do feel like if we weren't as bullish about our long term.
Mm-hmm.
Opportunities, we'd probably have to make different decisions.
Sure.
We'd have to talk to our people, just that we didn't have the same view about the long term. For us, it is about managing our business long term. We certainly are evaluating every possible decision that is short term that doesn't impact our ability to create tremendous value for our customers and shareholders over the long term.
Yeah. We're managing our costs. We're trying to drive efficiency. We've got an elevation project, we call it, to really drive efficiency through a lot of things. If people leave and we have some attrition, we're not replacing.
Mm-hmm.
Our headcount is going down. If you had the ability to see that, you'll see our headcount is going down. We're just not doing layoffs. We're not hiring a bunch of people. We got other, dedicated, probably going to grow some from where they were middle part of last year. You'll see some growth. We'll just take those opportunities, and people will move around, but really driving efficiency and trying to make sure that we're taking care of everything. We are cost focused. We're just not having layoffs. Shelley said this best, but we've seen that when this thing turns, we'll be ready, and we'll be faster to the market to respond, to capture market share, and to pick up revenue on the opposite side.
Great. I certainly wanna touch upon ROIC, right? Your guiding light. How should we think through that medium term, near medium term ROIC, and then to your point, gaining share, the ROIC longer term for you guys?
Yeah. First, I wanna make sure that we talk through how we evaluate our business and how we think about it on behalf of our customers. When we're talking to customers, we're really trying to think about for them what's the best way to solve the problem that they have. How can we move goods the most efficient way possible? It just so happens that our businesses happen to generate very healthy return on invested capital, which is really good. All five business units stand on their own, from a margin target and also an ROIC target.
Mm-hmm.
In total. We evaluate that based on our own experience and also our competitors that are in this space. If we think about all of our businesses, you just heard Nick say, "Hey, we're going to grow inside dedicated." It happens to be the most capital intensive part of our business, but it's also the most resilient part of our business. It's the business that doesn't move a whole lot when it comes to returns, in total, but it is going to generate a little less ROIC than, let's say, intermodal, our largest part of our business. That business I've talked about will be getting repriced, on behalf of our customers, and that does have price pressure associated with that.
In the near term, you know, it's important for us to continue to talk about growth and to grow with our customers because that business, in the asset part of our business, has the greatest return profile for us. Certainly, on the non-asset part of the business, it has the greatest opportunity on ROIC, yet very low from an EBIT perspective in total, solves our customers' greatest challenges, but less on EBIT. I would say for us, ROIC is how we evaluate all of our businesses and how we actually model how we put together our budgets, how we think about our capital, and our planning around capital. I'll tell you, all five of those segments have healthy margin targets in front of them, feel confident about what ROIC. It'll come down to who's growing and at what pace it generates what the ROIC is for us.
Great. I think we're actually running out of time. Any closing remarks you'd like to leave with everybody on J.B. Hunt?
You know, I would just say for us, you know, we're very bullish about our long term prospects.
Yeah.
Our ability, although we've grown significantly, we're a 61-year organization powered by our people, and we're going to continue to invest in our people, technology, and capacity for the long term. We do believe that the market, it wants our services, and we wanna be prepared and ready. To steal Darren Field's quote, I think we'll start changing. Instead of saying we're a cold spring for intermodal, we're actually a cold spring as an organization. You know, for us, we're going to continue to be focused on three key things for us. We're going to continue to invest in our people, technology, and capacity. We're going to continue to drive value on behalf of our customers, and we're going to continue to give our shareholders long term compounding annual returns, in total. That's going to be our focus.
Great. Thank you very much.
Thank you, Allison.
Thank you.