Earnings call transcript: Titanium Transportation Q4 2024 sees revenue growth

Titanium Transportation Group reported its financial results for Q4 2024, highlighting a steady increase in revenue and strategic operational shifts amid a challenging freight market. The company achieved a consolidated revenue of $114 million for the quarter, contributing to a full-year revenue of $460.3 million, marking a 4.9% increase from the previous year. Trading at 0.6x book value and with an EV/EBITDA multiple of 6.59x, InvestingPro analysis suggests the stock may be undervalued. Despite the positive revenue growth, the company withheld guidance for 2025 due to geopolitical uncertainties, which could affect future performance.

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Key Takeaways

• Q4 2024 revenue reached $114 million, contributing to a 4.9% increase year-over-year.
• The company paid down $53 million in debt and suspended dividends to maintain financial discipline.
• Investment in technology and a shift to an asset-light model are key strategic focuses.
• The freight market faces a downturn, with weak contract pricing and cross-border trade uncertainties.
• No 2025 guidance provided due to geopolitical uncertainties.

Company Performance

Titanium Transportation Group showed resilience in Q4 2024, with its revenue climbing to $114 million, helping to achieve a 4.9% increase in full-year revenue compared to 2023. According to InvestingPro data, the company’s revenue growth reached 8.24% in the last twelve months, though operating with a current ratio of 0.83 and a debt-to-equity ratio of 1.68. The company has been focusing on operational efficiency and technology-driven improvements, which have been crucial in navigating the prolonged downturn in the freight industry. Despite market challenges, Titanium’s diversified operations across Canada and the U.S. have provided a buffer against market fluctuations, with a beta of 1.43 indicating moderate market sensitivity.

Financial Highlights

• Q4 2024 Consolidated Revenue: $114 million
• Full Year 2024 Consolidated Revenue: $460.3 million (4.9% increase)
• Q4 2024 Consolidated EBITDA: $11.7 million
• Full Year 2024 EBITDA: $41.9 million (EBITDA margin 10.3%)
• Debt reduction: $53 million paid down
• Dividend: Suspended to maintain financial discipline

Outlook & Guidance

Titanium Transportation has withheld its 2025 guidance due to geopolitical uncertainties affecting the freight market. Despite market uncertainties, analyst consensus on InvestingPro maintains a Strong Buy recommendation, with price targets ranging from $2.10 to $3.36. The company expects a muted first half of 2025 but anticipates improvements in the latter half of the year, driven by renewed customer confidence and tightening spot market rates.

For comprehensive analysis including detailed financial metrics, growth projections, and expert insights, check out the Pro Research Report, available exclusively to InvestingPro subscribers.

Executive Commentary

CEO Ted Daniel emphasized the importance of financial discipline and resilience in the industry, stating, "Mathematics has to make sense, math will prevail." He expressed confidence in the industry’s resilience, noting, "We are delivering products that require people to consume." CFO Alex Fu highlighted the company’s strategic direction, saying, "Our goal is to continue to grow our asset-light model."

Risks and Challenges

• Freight Market Downturn: Prolonged weakness in the freight market with soft contract pricing.
• Cross-Border Trade: Uncertainties in U.S.-Mexico and U.S.-Canada trade could impact operations.
• Geopolitical Uncertainties: Potential impacts on market conditions and future guidance.
• Operational Costs: Continued focus on reducing costs and optimizing fleet operations.
• Technological Investments: Ongoing investments in technology to drive efficiency and competitiveness.

Q&A

During the earnings call, analysts inquired about customer behavior and supply chain adjustments. The company reported no significant reworking of supply chains and noted that customers are mostly maintaining a "business as usual" approach. Analysts also questioned the economic conditions in the U.S. and Canadian markets, to which the company responded that both markets are experiencing similar conditions, with some upward pricing pressure in the spot market.

Full transcript - Tourism Trade and Investment JSC (TTR) Q4 2024:

Conference Call Operator: Good morning, and welcome to Titanium Transportation Group Q4 twenty twenty four Conference Call. On today’s call, we have Ted Daniel, President and Chief Executive Officer Alex Fu, Chief Financial Officer and Marilyn Daniel, Chief Operating Officer. Before we begin, I would like to remind everyone that certain statements made on this call today may be forward looking in that regard.

Please refer to the risk factors and cautionary provisions outlined in the press release issued by the company yesterday as well as the filings made by Titanium on Cedar. Please note that this call is being recorded today, Tuesday, 03/18/2025. A replay of this call will be made available until midnight on 04/01/2025. The details of the replay can be found on Titanium’s website under the Investors section. I would now like to turn the call over to Titanium’s President and CEO, Ted Daniel.

Please go ahead, sir.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Good morning. Thank you, operator, and thank you all for joining us. The freight industry faced significant headwinds in 2024 with one of the most prolonged downturns in recent history, causing downward pressure from industry wide reductions in freight rates coupled with increased operational costs and economic uncertainty. Despite these challenges, Titanium grew its customer base and volume footprint, moving about 25,000 more loads in 2024 compared to 2023. For Titanium, twenty twenty four was a year of disciplined execution as we navigated this negative pricing environment and remained focused on what we can control, managing costs, leveraging technology driven solutions to enhance customer service, while developing continued operational process efficiencies.

Through this disciplined approach, we strengthened our balance sheet, optimized capital allocation and paid down debt by approximately $53,000,000 In an increasingly volatile geopolitical environment, we view this financial discipline as critical in mitigating risk and positioning the company well for sustainability and future emerging opportunities. In the fourth quarter, we generated $114,000,000 in revenue and $11,700,000 in consolidated EBITDA, up from $10,300,000 in Q3 of twenty twenty four. So looking at the full year, the company delivered consolidated revenue of $460,000,000 an increase of 5% year over year. We generated EBITDA of $41,900,000 with EBITDA margin of 10.1% and cash flow from operations of 27,100,000 I would like to reiterate that these results, though not ideal, are the backdrop of consistently challenging market conditions and once again speak to the resilience of our business model and our team’s sales and operational performance. Turning now to our segmented results.

Our trucking business delivered revenue of $54,900,000 in Q4 ’twenty four. EBITDA came in at $7,600,000 with dividend margin at 15.8%. Annually, this segment generated $229,800,000 in revenue, a 0.5 decrease over fiscal ’twenty three. EBITDA came in at $31,100,000 with an EBITDA margin of 15.6%, consistent with our commentary over previous quarters, the decline in profitability can be attributed to soft contract pricing reflecting a weak freight market. Logistics continued to drive growth during Q4 and fiscal twenty twenty four.

In the fourth quarter of twenty twenty four, logistics generated revenue of $62,000,000 up 18.4% compared to Q4 of ’twenty three with EBITDA coming in at $5,600,000 EBITDA margins for logistics during the quarter were 10% compared to 9.9% in Q4 of twenty twenty three. On an annual basis, logistics generated revenue of $220,000,000 an increase of 10.6% over fiscal twenty twenty three with EBITDA of 15,300,000 and an EBITDA margin of 7.2%. While profitability over the period was impacted due to market conditions as well as the timing of the integration of the Crane acquisition, we continue to support our customer base, remain committed to safety and remain resilient in these challenging times. The Asset Light Logistics segment continues to be an area of expansion despite weaker margins, particularly in The U. S.

Freight brokerage market. During Q4 of twenty twenty four, we announced two new logistics offices in The U. S. In Virginia Beach, Virginia and Irving, Texas. We expect these offices to be officially open in the coming quarter and will further strengthen our footprint in The U.

S. Marketplace. While integration of the Crane acquisition continues to temporarily decrease margins, we remain confident that these assets are central to our U. S. Domestic operations in 2025 and beyond, bolstering our freight management capabilities and driving long term growth.

Growing our U. S. Business remains a key driver of Titanium’s next stage of growth. In the fourth quarter of twenty twenty four, U. S.

Logistics revenue grew by 16.1%, reflecting the benefits of our ongoing expansion. Our asset light model in both Canada and The U. S. Uses technology to provide the flexibility to navigate potential disruptions while reinforcing our financial position amid challenges such as tariffs, fuel costs and market uncertainty. Complementing this strategy, we’re also focused on optimizing our fleet, driving operational efficiencies and investing in technology.

Our acquisition of Crane Transport has further strengthened our presence in The U. S. Market and despite contraction helped us stabilize revenue on our Truck Transportation segment for 2024. Our young fleet continues to allow for lower maintenance costs, improved fuel efficiency and reduced capital expenditures. This allows us to allocate more reserves to operational improvements and strategic growth initiatives, enhancing cash flow to support both daily operations and long term financial goals.

By optimizing expenditures and strengthening liquidity, we’re reinforcing our balance sheet and positioning Titanium for sustainable financial performance. To further optimize our trucking operations, we’re investing in technology to enhance route planning, improve truck utilization and streamlined processes. Leveraging data analytics enables us to monitor market conditions in real time, adjust operations proactively and maintain a competitive edge in managing trade fluctuations, while pivoting to customer needs and opportunities. So as we start 2025, we are seeing renewed customer interest in a slowly improving rating environment despite the uncertainty of trade wars. Before I turn the call over to Alex, I’d like to add that given current market conditions and ongoing uncertainties impacting the transportation sector, Titanium Transportation has elected to withhold guidance at this time.

We remain confident in the fundamentals of our business and our long term strategic priorities. We will reassess providing guidance once there’s greater clarity in the geopolitical environment. With that, I’ll turn it over to Alex for more detailed discussions of our financial results for Q4 and fiscal twenty twenty four. Alex? Thank you, Ted.

In the fourth quarter of twenty twenty four, on a consolidated basis, Titanium generated revenue of $113,800,000 compared to $119,300,000 in Q4 of twenty twenty three, inclusive of discontinued operations. We delivered EBITDA of $11,700,000 up sequentially from $10,300,000 in Q3 of twenty twenty four with EBITDA margin of 11.6% also a sequential growth from 9.8% in the previous quarter. For the full year, Titanium recorded consolidated revenue of $460,300,000 an increase of 4.9% over fiscal twenty twenty three, again inclusive of discontinued operations with EBITDA of $41,900,000 and an EBITDA margin of 10.3. Diving deeper into segmented results, The Truck Transportation segment saw revenue of $54,900,000 in Q4 twenty twenty four with EBITDA of $7,600,000 and EBITDA margin of 15.8%. On a full year basis, this segment generated $229,800,000 in revenue, a 0.5% decrease over fiscal twenty twenty three, inclusive of discontinued operations.

EBITDA came in at $31,100,000 with an EBITDA margin of 15.6%. Despite pricing pressures caused by industry overcapacity and weakened end market demand, Contribution from Crane Transport helped stabilize revenue in our Trucks Transportation segment. Given current market conditions, we recognized an asset impairment of $23,100,000 in our Truck Transportation segment to reflect revised future cash flow projections. However, we remain confident that as industry fundamentals improve and pricing normalizes, cash flow in this segment will recover. Turning to the Logistics segment, as Ted highlighted, the segment continued to face pricing headwinds, but delivered strong performance with an impressive volume growth 25% year over year.

During Q4, logistics generated revenue of $61,500,000 up 18.4% compared to Q4 twenty twenty three with an EBITDA coming in at $15,300,000 EBITDA margins for logistics during the quarter were 10% compared to 11.7% in Q4 twenty twenty three. On an annual basis, Logistics generated revenue of $234,900,000 an increase of 10.6% over fiscal twenty twenty three with EBITDA of $15,300,000 and an EBITDA margin of 7.2%. We are encouraged by the continued organic growth of this segment and remain focused on growing our freight brokerage business. In addition to navigating the challenging environmental in challenging economic environment, we maintain our focus on strengthening our balance sheet. As part of our shift to a more asset light model, we strategically sold non core assets, including older equipment and underutilized properties, generating $21,000,000 in cash flow.

As part of this strategic alignment, we ceased operations in Cornwall and North Bay and discontinued selective service offerings in Oakwood. While all redundant assets were divested in 2024, except for the North Face Home Loans. Proceeds were directed towards debt reduction. This additional liquidity enabled us to pay down over $52,000,000 in bank debt and acquisition loans, further reinforcing our financial position. Prioritizing debt reduction not only improves our financial flexibility and lowers interest expenses, but also position us to see future growth opportunity as the market stabilizes.

Through 2024, we continue to emphasize debt repayment to ensure we have the capacity to navigate the economic uncertainties and drive long term profitability. In 2024, we returned $3,600,000 to shareholders through dividends. As previously announced, we have temporarily suspended our dividend to maintain financial discipline and prioritize prudent capital allocation. We will continue to review the company’s budget and cash flow forecast, growth opportunity and market conditions on a quarterly basis to determine when dividends will be reinstated in future quarters. As we move into 2025, we remain committed to disciplined, improved capital allocation strategy, ensuring our financial position is well positioned for long term success.

I would now like to turn the call back over to Ted. Thank you, Alex. It is relevant to be mindful of current macroeconomic conditions, particularly the impact of tariffs on U. S./Canada trade. A trade dispute could disrupt cross border trucking volumes, inflating supply chains and trade flows.

However, the transportation sector is still a vital and essential service industry. Titanium has positioned itself well with both Canadian and American asset fleet corporations as well as Canadian and American asset light corporations. In fact, only one third of the company’s freight moves cross border. The remaining two thirds of our freight moves domestically within the individual countries under separate entities. This structure allows us the ability to adjust the weight of the business as it becomes necessary.

Freight will continue to move on trucks, but the directions may change And we are already established and equipped to execute responsibly and effectively in both segments. In other words, maybe a little less North South and a little more movement East West. While the impact of imposed tariffs, if sustained, remains uncertain, the trucking industry continues to be the cornerstone of North American commerce. Trucks transport 85% of the freight that moves between The U. S.

And Mexico and 67% of freight moving between The U. S. And Canada. I believe the sector will necessarily demonstrate resilience. Operating in this environment, Titanium’s strategic shift towards an asset light model combined with a young, efficient fleet and disciplined capital allocation positions us to navigate evolving market conditions effectively.

Additionally, our truck transportation and logistics divisions are prepared to service any domestic freight should customers pivot towards temporary or long term on shoring in response to trade restrictions. By reducing debt, enhancing cash flow and maintaining operational agility, we’re well equipped to mitigate potential trade disruptions and external pressures. As we continue to focus our commitment to sustainable growth, operational excellence and technology driven efficiencies to navigate turbulent times in the industry, we recognize that there will be emerging opportunities in the future that will drive long term value for our shareholders. With that, I’ll turn it over back to the operator to open the line for questions.

Conference Call Operator: Thank

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: you.

Conference Call Operator: Your first question comes from David Campbell with Cormark Securities. Your line is now open.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: It does make sense why you guys are refraining from providing 25 guidance just given the changing tariff environment and it changes almost daily sometimes. But thinking just a little bit more near term, especially since we’re almost through the Q1 here, I was hoping you guys could provide a little bit more insight into how the quarter is going. Have you noticed customers stalling or pulling forward volumes just to get ahead of tariffs? Just anything around that would be great as we look to model our Q1 numbers here.

Conference Call Operator: Good morning. From a customer perspective, many of our customers are saying business as usual for the time being. We’ve only had a few customers that said in the long term position, they may make a change. But really in the short term right now, they are looking at business as usual. They’ll do what makes sense.

I know, Ted, is there anything else you wanted to add to that?

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: I think your question was along the lines of volume, right, David? Yes, volumes and pricing, if the Q4 trends are in the same into Q1. So, they’re not. I would definitely say Q1 is seems to be a little bit more exciting and vibrant as compared to Q3, Q4 of ’20 ’20 ’4. It seems like there is this sort of renewed demand.

I would say from it’s pretty sure and steady. We’re busy, which is kind of a nice change. So from a pricing perspective as well, what’s interesting, we’re also feeling the we’re actually finally feeling some tightening in terms of the, call it, the elasticity of the rating environment. I would say that one of the difficulties that I know that we all face in the industry is that we’ve got commoditized rates in a service environment. It’s not your traditional bill of materials.

What we’re seeing are rates now that are coming back to what makes a lot more sense. And that is actually very refreshing to me and it does give me a certain amount of confidence and belief that and I’ve always said this before, mathematics has to make sense, math will prevail and it’s certainly starting to feel that way, which is it’s good news. Got it. And then just thinking more big picture on just your asset side of the business. Do you feel like your mix right now as it stands today between owner ops is the right mix?

Or is it going to tilt more one way or the other as we move throughout 2025 and maybe even into 2026?

Conference Call Operator: We value our fleet and all our drivers, as you know, but we have shifted to a heavier owner operator versus company driver mix. That’s been a target for us through 2024 and into 2025. So we’ll continue in that direction.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Marilyn, does that change your margin outlook in any way? Or does it just make the returns on invested capital look that much better since you don’t have the assets on your side?

Conference Call Operator: I’ll turn that to Alex. Okay.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Yes. Well, okay. We can I think we’re both there’s two sides to it? Yes, obviously, Mike, I mean, when you’ve got an owner operator on your P and L, yes, that does change the margin profile a little bit. But on the other hand, it also changes your debt profile, right?

So I think there’s two sides to that coin. There are also there are differences in the operational environment as well. I would say that we are very happy with the size of the fleet that we have right now. There is good demand out there and our customers are very happy with the service that we’re providing them. So we’re happy with the level of company structure we have.

Our growth will be, however, without putting too much strain on the balance sheet, our growth will be more so from an owner operator environment. And from a macro Sorry, go ahead, David. No, no, go ahead. I cut you off, Alex. From a macro standpoint, yes, you’re right.

The EBITDA margin will probably drop because the owner operator takes up more of the margin. But like Ted said, the debt profile improves so that EPS should improve as a ending plan. Got it. And then last one for me before turning the call over. Logistics put up a very strong quarter.

I mean, volume growth has been an ongoing theme for 2024. But I guess the biggest surprise is just the quarter over quarter inflection on margin. Was there anything one time in there, Alex, that’s worth calling out? Or do you think this is a level of sustainable going forward? So 10% is high.

There is some year end adjustments in there, but we have seen a pretty significant improvement in the margin profile for especially American Logistics. Not to say that that’s going that’s going to be a trend going forward, but it seems like the busy season, so to speak, for Logistics was there this year compared to previous years. Is it fully there? No. But like Ted alluded to earlier, it is a promising sign to see some sort of uptick in the rating environment for sure.

Okay. That’s perfect. I’ll hand the call over. Thanks, Lucas. Thank you.

Thanks, David.

Conference Call Operator: Your next question comes from Yuri Zorida with Canaccord Genuity. Your line is now open. Thank you and good morning.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Good morning, Yuri.

Conference Call Operator: Could you talk a little more about where your focus is on to match 2025 headwinds and just on 2025 overall? And if you can, and this is related to your last answer perhaps a little bit as well, On how you’re thinking about margins in 2025 versus 2024, which also had, it seems like more of a headwind from integrating Crane?

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: I’ll tackle the margin component of your question. And I’ll leave the other part to Ted and Marilyn. For 2025, we are expecting the first half to be rather muted and sort of the same as 2024. However, that’s given there is no more movement in the tariff environment than the trade environment. That’s difficult to anticipate, so I’ll leave that out.

But from just our business in a bubble, so to speak, we are expecting 2025 to be rather muted in the first half. And second half, we expect some signs of improvement, so margins after second quarter should improve, again, given that there’s no movement in the geopolitical environment? And I’ll pass it off to Pat Merriam for the first part of the question.

Conference Call Operator: I’m not sure I understood entirely the first part of the question. It’s a bit of an unknown in terms of 2025. I think overall, we have more confidence in 2025. And as Alex mentioned, the first half of the year, we expect to be rather muted and we do expect to see an uptick in the second half of the year. We’re getting that fee from our customers as well.

There’s a lot of uncertainty right now, and there’s adjustments being made on the customer level in terms of how they’re managing the uncertainties right now. So, we look forward to seeing sort of how 2025 shapes up, but we see renewed confidence in the market.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Yes, it’s definitely feeling more bullish this year, which is kind of interesting. And in spite of the whole, I guess, call it volatility with the tariffs coming in and coming out, coming in, coming in, the whole thing, I mean, it’s interesting in that we are seeing a tighter environment that gives seems to be supporting a kind of, call it, busier environment, which is good news. And so, I think that part of that as well is the fact that there is some tightening in capacity. And I always do believe in the power of the consumers and that they will continue to drive this economy even if there is a consumer recession. At the end of the day, people still need to eat and they need to exist.

And essentially, we are delivering products that require people to consume. And that’s why I believe in the resilience of the industry and the resilience of the products that we’re providing.

Conference Call Operator: Thank you. Thanks. That’s helpful. And second one from me. In terms of balance sheet management in what seems to be another complex year, How comfortable are you with your balance sheet now?

And are there any other levers you could move or you’re thinking of moving?

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Yes. I mean, as far as as you know, we are in the process of rationalizing redundant assets. So North Bay is listed and that will contribute some additional cash. The balance sheet is in pretty decent shape. We are happy with it.

But obviously, our goal is to become a to continue to grow our asset light model. So from that perspective, you’re going to see obviously over time on a relative basis, you’re going to see not one necessarily shrink, but one grow more than the other. So I believe that at this point in time, what you’re going to see over time is the balance sheet will change only because of the growth of certain product lines obviously. Right as Virginia and Texas come online in Q2, you’re going to see again increased revenues and cash flows that will pay down the debt. And I think that from that perspective, I would like to see it come down quite a bit.

Conference Call Operator: Thanks for taking my questions. I’ll jump back in the queue.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: No problem. Thank you.

Conference Call Operator: Your next question comes from Gianluca Tucci with Haywood. Your line is now open.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Hey, good morning guys. Good morning. Good morning, Gianluca. Good morning. Hi, morning.

But to start off at a high level, Ted, are you seeing customers as rework supply chains in the near term and all this noise going on at a macro perspective? I’m just curious what customers are doing right now to update defense. No, customers actually aren’t. They’re just dealing with the situation. If I speak to all the different parts of our business, the feedback that we’re getting from most of our customers is either and for the most of it, it’s business as usual.

That is what we’re getting. That is the majority of our answers. Business as usual, if they have to adjust their pricing a little bit, they’re going to adjust their pricing and that’s how life’s going to work. It’s going to be another increase to inputs and it’s going to get transferred into the formulas. Think of it as a it’s like any other input on the bill of materials.

If that’s the way it’s going to be, well, add it into the app and it’s going to just cost a little bit more to buy that case of Coca Cola or whatever the case may be. Right. Okay. Well, that’s encouraging to hear that. And on the brokerage side of the business, is it the plan to open up a couple of offices this year?

Can you update us as the roadmap on your brokerage business? Yes. So we are absolutely excited to open Virginia and Texas. Those installs are expected to occur or to be completed by Q2 of this year. So very soon because it’s already mid March.

And so that’s really exciting. We’ve already got management ready to go for those locations. And then we’re going to grow them and we’re going to grow our existing offices. We if we’re looking at any other new announcements this year, again, I think that’s going to depend on whether or not the environment warrants any additional offices beyond the existing nine that we currently have, that’s really just going to be an economic decision, right? Yes.

Yes. Okay. That’s good to hear, Ted. And perhaps a question for Alex. Your wages and casual labor really declined sequentially.

Is this a new run rate for you guys at this level here for that line item? No. As we talked about, there is some year end adjustment, so that number would not be the runway. It would be hardly the average of the full year. Got it.

Okay. Thanks for that. And then just on your CapEx plans, like you know, it kind of seems like your CapEx cycle is still in the rearview mirror. But can you update us, Alex, on any plans to refresh rolling stock or anything like that for this year? No.

Our fleet is pretty young and we’re quite happy where we’re at right now. If we do so there’s no plans to buy anything, but if we do buy something, it’s because the market made us buy more. That’s a good sign. Right. Okay.

That is helpful. And then just one final one, perhaps for Marilyn. Like, when you look at the two markets, Canada and The US, with all this noise going on, are the economics differentiating right now? Or, I’m just curious what you’re seeing in these two individual markets, like with all this activity happening, is pricing stronger and like the state as opposed to Canada? Or how are you kind of assessing the lay of the land right now?

Conference Call Operator: Rather similar both sides of the border at the moment. We’re very fortunate, I guess, that our business model was set up with the way it has with our exposure in The USA Canada, having an asset light model. From the customer base, I’m really not seeing a big difference in terms of rating between Canadian and The U. S. We are seeing margins or sorry, carrier costs coming up a little bit on the logistics side, which gives me some renewed hope that the bottom is kind of coming up from where it was last year.

But overall, very hard. It’s still early in

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: the

Conference Call Operator: year. There’s a sentiment in The U. S. Versus Canada. As you know, it’s a little bit different.

There is some renewed confidence that The U. S. Marketplace will thrive in the environment being created with the Trump administration. And obviously, on our side, we have just because of the balance of trade, we have a little bit more worry from our population, I guess, and our customer base, but not significant rate differences. It’s not like I could share it and say, yes, The U.

S. Market is showing faster growth in the rates versus the Canadians. They’re rather similar.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: I think that a really important point that Marilyn made was that the spot market has shown more upward pressure. Yes, so for sure, you’re seeing an increase in the spot market, which is actually that’s a really interesting phenomenon at this point in time. We’re definitely seeing some meaningful increases in spots. And that’s relevant because particularly in The U. S, the business models there tend to be more reliant on the spot market than the contractual environment that we see in Canada.

So, we’re a little bit more regionalized. And so, we tend to have that kind of more sort of, I guess, lack of a better term, call it stable pricing. But we’re definitely seeing upward pressure in the spot market, actually on both sides of the border. That is very encouraging. Thanks for the time guys.

Thank you.

Conference Call Operator: Your next question comes from Steve Hansen with Raymond James. Your line is now open.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Ted, just curious on just thinking about The U. S. Liquidity gains out of the border in particular. I mean, are you seeing from a cross border perspective anything change in particular? I know you described some of the dynamics earlier, but like where are you seeing within your network, any kind of weakness in particular?

Just trying to sort of isolate in on where you’re most focused on monitoring demand conditions? We’re not actually really seeing all that much because I think that the cross border that we do is quite essential to really consumer fundamentals. Keep in mind that only about a third of our business is true cross border trans border freight that goes back and forth. The other two thirds, we are quite well entrenched in both the Canadian domestic and The U. S.

Domestic environments. So, I guess, we’re pretty steady and busy that way. It’s kind of interesting.

Conference Call Operator: The other important part of it is some of our customers may shift in their cross border freight to more domestic freight. So it’s a movement of as mentioned earlier, it’s a movement of the direction of the freight, not much the volume of the freight, especially in the markets that we’re in and the industries that we serve. As you know, we’re not dependent on any one sector. We never have been. So, it’s kind of beneficial to us at this time.

Even when we look at some of the core CPG products that we’re shipping cross border, they may change and ship more domestically as a lot of our customer base does have Canadian and U. S. Operations.

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: Our biggest customer only makes up 6% of our top line. And by the way, that is primarily a domestic U. S. Domestic volume customer. So, even from that perspective, I think what we’ve set up is, call it a very resilient, very flexible, agile model that allows us to be, I guess, defensive on the one hand and offensive on the other, right?

So, appreciate it, Pargra. That’s great. Yes. Thank you.

Conference Call Operator: There are no further questions at this time. I will now turn the call over to Ted for closing remarks. Okay,

Ted Daniel, President and Chief Executive Officer, Titanium Transportation Group: great. Thank you, operator, and thank you all for joining us today. We appreciate your interest in our company. I look forward to providing an update on our progress and all of our priorities discussed today when we report our Q1 twenty twenty five results in May. If there are any further questions, please feel free to contact us.

Thank you for joining us on the call today.

Conference Call Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating in Athens. Please disconnect your lines.

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