C.H. Robinson Worldwide, Inc. Jefferies Global Industrials Conference 2026

Robinson? Why don't you start off, Damon?

Yeah. I'd say post-Montgomery, first of all, I'll just start with, look, we're a lean company. We have a lean operating model. All of our major processes are always going through some level of continuous improvement. Carrier vetting is no different. I would say post-Montgomery, we did not have material changes to our carrier vetting process. So, roughly about, I'd say less than 3% of our active carriers were expelled from our network post-Montgomery. What does that tell you? That tells you is that we had an industry-leading carrier vetting process pre-Montgomery, and we still have an industry-leading carrier vetting process post-Montgomery. I would even add, the Lipe case, which has got the most recent attention. Post-Lipe, we've made no material changes to our carrier vetting process.

We've always felt really good that our carrier vetting process was of the utmost integrity and quality, was industry-leading. We felt that way after Montgomery. We feel that way after Lipe. We're going to continue to do what we do.

Just to add on to what Damon said, and we've been talking to investors, analysts about this and just putting some framing on this. We're a data company. We like to talk in facts and data, not in emotion, in a sense. So, if you think about it, we've been public for 28 years or so. We've had a docket. Everyone has a docket that's in this industry in doing that. We manage our docket pretty well. Our current docket, it consists of, say, tens of cases. That's on the lower end of tens of cases. You got to put that over an overlay of what's our annual shipments? 37 million annual shipments. Over a time, we manage hundreds of millions of shipments over a current docket of, say, tens of cases.

Our point there is that we are very good at managing a docket, defending ourselves about those things. Also, if you are going to have a lawsuit or thing, you got to have an accident. We do not have many in doing that. We do very good. We feel good about our carrier network. We feel good about our vetting processes. Again, we talk about numerator, denominator, the actual math of what is happening, and that is the scale. Tens of cases, hundreds of millions of shipments, and you just have to keep that in perspective when you are going through this.

Just to round out what Dave said. Look, 98% of our docket, right? So of our current docket, 98% historically and current of those cases get dismissed or settled. The settlement amount of that 98% is somewhere between the range of $1 million to $3 million, right? So historically speaking, legal liability has not been a material issue for C.H. Robinson. We do not believe it is going to be a material issue going forward. We believe the Lipe case is an anomaly. Certainly, the industry standard is to settle cases, not to let them go to jury trial.

Right. That ultimately, we believe, will be turned down on appeal.

So we feel that the historical precedent that we have set with having a very successful path of managing our legal docket successfully, that is going to continue going forward. I will just add one element because it is probably on top of mind is related to insurance.

Right. Just to provide some baseline insurance stats and then talk about what we think the future holds.

So automobile liability insurance today is only 25 bps of gross revenue for C.H. Robinson. So it is a relatively immaterial number to our cost structure. Even if you have inflation on that number going forward, we do not see that number being a material impact to our earnings potential going forward. So we certainly do not believe the earnings trajectory that we have been on, the outperformance that we have been on, in any way is going to be derailed by insurance. We are in early discussions with our insurance carriers. I would call those discussions reasonable and fair. I do not believe some of the more bear case scenarios that you have heard of insurance going up hundreds of percent is going to apply to C.H. Robinson. I think we'll ultimately end up in a situation that everybody gets a sense of calm once we're able to share some of those details.

Stephanie, as you know, we always say who's the best proxy for our current docket? It's our insurance carriers, right? They have an intimate knowledge of our current legal docket. They could be on the hook for that. So at the end of the day, how we progress with any type of increase of our insurance or the rate of that, it's our insurance carriers who will be a good proxy for people listening to this on how you judge Robinson on going forward, and we feel pretty good about ourselves.

Yeah. One last comment, Stephanie, if you allow me. We're in a bit of fog of war right now with the legal environment. We believe once we get on the other side of providing clarity around the legal docket, clarity around the insurance, we actually think this is quite bullish for C. H. Robinson. Very much. We believe the average small and medium-sized broker is going to have a very difficult time surviving in the post-Montgomery, post-Lipe world.