Core Insights - Knight-Swift Transportation Holdings Inc. (KNX) reported second-quarter 2025 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate by a penny and improving 45.8% year over year, within the guided range of 30-38 cents [1][10] - Total revenues reached $1.86 billion, slightly missing the Zacks Consensus Estimate by 0.4% but improving 0.8% year over year; revenues excluding truckload and LTL fuel surcharge grew 1.9% year over year to $1.67 billion [1] Financial Performance - Total operating expenses decreased 0.3% year over year to $1.78 billion [2] - Truckload segment revenues totaled $1.07 billion, down 2.7% year over year due to a 2.8% decrease in loaded miles; adjusted segmental operating income grew 87.5% year over year to $58.40 million, with an adjusted operating ratio falling 260 basis points to 94.6% [3] - The Less-Than-Truckload (LTL) segment generated revenues of $337.72 million, up 28.4% year over year, driven by a 21.7% increase in shipments per day; adjusted segmental operating income decreased 36.8% year over year to $23.35 million, with an adjusted operating ratio rising 720 basis points to 93.1% [4][5] - Logistics segment revenues amounted to $128.29 million, down 2.6% year over year, with an adjusted operating income increase of 13.3% year over year to $6.71 million [5] - Intermodal revenues totaled $84.06 million, down 13.8% year over year, with a segment operating ratio increasing 230 basis points to 104.1% [6] - Revenues from All Other Segments increased 9% year over year to $74.44 million, attributed to warehousing and leasing businesses [7] Liquidity and Guidance - Knight-Swift ended the second quarter with cash and cash equivalents of $216.32 million, up from $209.48 million in the prior quarter; long-term debt decreased to $1.39 billion from $1.41 billion [8] - For Q3 2025, KNX expects adjusted earnings per share in the range of 36-42 cents, with truckload segment revenues expected to increase in the low single-digit percent sequentially and LTL segment revenues projected to grow between 20% and 25% year over year [11][12]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements reflect stable total assets at $12.5 billion and increased net income and EPS for H1 2025 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $1,444,018 | $1,448,741 | | **Property and equipment, net** | $4,616,069 | $4,703,385 | | **Goodwill** | $3,962,142 | $3,962,142 | | **Total Assets** | **$12,523,435** | **$12,698,532** | | **Total Current Liabilities** | $1,625,012 | $1,706,751 | | **Total Liabilities** | $5,390,517 | $5,581,727 | | **Total Stockholders' Equity** | $7,132,918 | $7,116,805 | | **Total Liabilities and Stockholders' Equity** | **$12,523,435** | **$12,698,532** | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Income Statement Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $1,861,940 | $1,846,654 | $3,686,302 | $3,669,121 | | **Operating Income** | $72,616 | $63,460 | $139,279 | $84,015 | | **Net Income Attributable to Knight-Swift** | $34,243 | $20,300 | $64,882 | $17,665 | | **Diluted EPS** | $0.21 | $0.13 | $0.40 | $0.11 | | **Dividends Declared per Share** | $0.18 | $0.16 | $0.36 | $0.32 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary - Year-to-Date (in thousands) | Cash Flow Activity | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $325,929 | $310,700 | | **Net cash used in investing activities** | ($189,617) | ($258,841) | | **Net cash used in financing activities** | ($161,586) | ($182,288) | | **Net decrease in cash, restricted cash, and equivalents** | ($25,274) | ($130,429) | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates four reportable segments: Truckload, LTL, Logistics, and Intermodal. As of June 30, 2025, the company operated an average of **21,610 tractors** in its Truckload segment and **4,108 tractors** in its LTL segment[22](index=22&type=chunk) - On July 30, 2024, the company acquired the operating assets of Dependable Highway Express, Inc. (DHE) for a total consideration of **$185.0 million**, funded by borrowing on the 2021 Revolver. The goodwill from this acquisition is expected to be tax-deductible[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - The effective tax rate for Q2 2025 was **29.2%**, down from **37.2%** in Q2 2024. For the year-to-date period, the rate was **27.5%** in 2025 compared to **32.4%** in 2024, primarily impacted by an increase in pre-tax income[37](index=37&type=chunk) - On July 8, 2025, the company entered into a new **$2.5 billion** unsecured credit facility (the "2025 Debt Agreement"), which replaced the 2021 Debt Agreement and the 2023 Term Loan. This new facility includes a **$1.5 billion** revolver and two term loans totaling **$1.0 billion**[59](index=59&type=chunk)[63](index=63&type=chunk) - As of June 30, 2025, the company had outstanding commitments to purchase revenue equipment of **$416.4 million** for the remainder of 2025[67](index=67&type=chunk) - No share repurchases were made during the quarter or year-to-date periods ended June 30, 2025. The company has **$200.0 million** remaining under its 2022 share repurchase plan[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports significant operating income growth in H1 2025, driven by Truckload improvements, while LTL expansion costs pressured margins amid soft freight demand [Executive Summary](index=31&type=section&id=Executive%20Summary) - Consolidated operating income increased **65.8%** to **$139.3 million**, and net income attributable to Knight-Swift increased **267.3%** to **$64.9 million** for the first half of 2025 compared to the same period in 2024[112](index=112&type=chunk) - **Truckload:** Achieved a **96.3%** operating ratio (**95.1% adjusted**) in H1 2025, with a **1.3%** reduction in Adjusted Operating Expenses per mile[113](index=113&type=chunk) - **LTL:** Operating ratio was **95.8%** (**93.6% adjusted**) in H1 2025. Margins were negatively impacted by start-up costs from opening ten new locations[113](index=113&type=chunk) - **Logistics:** Achieved a **96.0%** operating ratio (**95.2% adjusted**) in H1 2025, with revenue increasing **4.4%** year-over-year[113](index=113&type=chunk) - **Intermodal:** Experienced a **103.0%** operating ratio in H1 2025, with declines in both revenue per load (**-1.3%**) and load count (**-4.3%**)[113](index=113&type=chunk) - Generated **$325.9 million** in operating cash flow and **$153.7 million** in Free Cash Flow during H1 2025. As of June 30, 2025, the company had **$216.3 million** in unrestricted cash[113](index=113&type=chunk) [Market Trends and Company Outlook](index=33&type=section&id=Market%20Trends%20and%20Company%20Outlook) - The second quarter experienced unprecedented trade actions, causing volatility and a general softness in freight demand, especially on the West coast, which differed from typical seasonal trends[117](index=117&type=chunk)[118](index=118&type=chunk) - The company is expanding its LTL network and seeing robust volume growth, but this expansion, along with integration costs, is currently pressuring margins[119](index=119&type=chunk) - **Q3 2025 Outlook:** - **Truckload:** Revenue up low single-digits sequentially - **LTL:** Revenue (ex-fuel) growth of **20-25%** YoY; Adjusted Operating Ratio to improve **100-200 bps** sequentially - **Logistics:** Revenue and Adjusted Operating Ratio to be fairly stable sequentially - **Intermodal:** Load count to improve high single-digits sequentially; operating loss to improve[121](index=121&type=chunk)[122](index=122&type=chunk)[127](index=127&type=chunk) - Full-year 2025 net cash capital expenditures are expected to be in the range of **$525 million** to **$575 million**[127](index=127&type=chunk) [Results of Operations — Segment Review](index=36&type=section&id=Results%20of%20Operations%20%E2%80%94%20Segment%20Review) Segment Operating Income (Loss) - Q2 2025 vs Q2 2024 (in thousands) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Truckload** | $45,420 | $23,483 | | **LTL** | $18,333 | $33,049 | | **Logistics** | $5,547 | $4,759 | | **Intermodal** | ($3,429) | ($1,717) | | **All Other Segments** | $6,745 | $3,886 | | **Total Operating Income** | **$72,616** | **$63,460** | - **Truckload (Q2):** Adjusted Operating Ratio improved **260 bps** to **94.6%** YoY, driven by a **2.6%** reduction in Adjusted Operating Expenses per mile. Miles per tractor improved **4.0%** YoY[147](index=147&type=chunk) - **LTL (Q2):** Revenue (ex-fuel) grew **28.4%** YoY, with shipments per day up **21.7%**. Adjusted Operating Ratio was **93.1%**, a **110 bps** sequential improvement from Q1 2025, but down from **85.9%** in Q2 2024 due to expansion costs[154](index=154&type=chunk) - **Logistics (Q2):** Adjusted Operating Ratio was **94.8%**. Revenue decreased **2.6%** YoY as an **11.7%** decline in load count was mostly offset by a **10.6%** increase in revenue per load[163](index=163&type=chunk) - **Intermodal (Q2):** Operating ratio increased to **104.1%**. The segment was significantly impacted by a **12.4%** decrease in load count and a **1.6%** decline in revenue per load[168](index=168&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) Sources of Liquidity as of June 30, 2025 (in thousands) | Source | Amount | | :--- | :--- | | Cash and cash equivalents, excluding restricted cash | $216,320 | | Availability under 2021 Revolver | $784,961 | | Availability under 2023 RSA | $270 | | **Total unrestricted liquidity** | **$1,001,551** | - Expected net cash capital expenditures for full-year 2025 are projected to be between **$525 million** and **$575 million**, primarily for replacing equipment and investing in the terminal network[247](index=247&type=chunk) - On July 8, 2025, the company replaced its 2021 Revolver with a new 2025 Revolver maturing in 2030. As of that date, **$810.0 million** was available under the new facility[248](index=248&type=chunk) - The company had a working capital deficit of **$181.0 million** as of June 30, 2025, primarily due to the current classification of the 2023 RSA, which it intends to refinance before its October 2025 maturity[253](index=253&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports that there have been no material changes from the market risks previously disclosed in its 2024 Annual Report on Form 10-K - There have been no material changes from the market risks discussed in the section entitled "Quantitative and Qualitative Disclosures About Market Risk" set forth in Part II, Item 7A of our 2024 Annual Report[263](index=263&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded the company's disclosure controls were effective as of June 30, 2025, with no material changes to internal controls during the quarter - The principal executive officer and principal financial officer have concluded that the company's disclosure controls and procedures are effective as of the end of the period covered by the report[264](index=264&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[265](index=265&type=chunk) [PART II OTHER INFORMATION](index=64&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) Information regarding the company's legal proceedings is incorporated by reference from Note 9 of the condensed consolidated financial statements - Information about legal proceedings is detailed in Note 9 of the financial statements[269](index=269&type=chunk) [Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report - The company refers to the risk factors described in its 2024 Annual Report, indicating no material changes[270](index=270&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q2 2025, retaining **$200.0 million** for future repurchases under its 2022 plan - No shares were repurchased during the period from April 1, 2025, to June 30, 2025[271](index=271&type=chunk) - As of June 30, 2025, the approximate dollar value of shares that may yet be purchased under the plan is **$200,041,000**[271](index=271&type=chunk) [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) During the second quarter of 2025, no director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the quarter ended June 30, 2025[272](index=272&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act of 2002 - Exhibits filed include CEO and CFO certifications pursuant to Section 302 and Section 906 of the Sarbanes-Oxley Act[275](index=275&type=chunk)

Financial Data and Key Metrics Changes - Revenue, excluding fuel surcharge, increased by 1.9% year over year, while adjusted operating income improved by 17.2% or $15.2 million year over year [12] - GAAP earnings per diluted share for the second quarter were $0.21, a 61.5% year over year increase, and adjusted EPS was $0.35, a 45.8% year over year increase [12] - Consolidated adjusted operating ratio was 93.8%, which was 80 basis points better than the prior year [12] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, decreased by 2.7% year over year, with loaded miles declining by 2.8% [14] - The LTL segment grew revenue, excluding fuel surcharge, by 28.4% year over year, driven by a 21.7% increase in shipments per day [20] - The Logistics segment experienced a revenue decline of 2.6% year over year, driven by an 11.7% decrease in load count [26] - The Intermodal segment saw a revenue decline of 13.8% year over year, with a 12.4% decrease in load count [27] Market Data and Key Metrics Changes - There was a general softness in freight demand for most of the quarter, especially on the West Coast, although a mild lift in freight opportunities was noted near the end of the quarter [6][7] - The effective tax rate was 29.2% on GAAP results and 28% on non-GAAP results, both lower year over year but higher than previously projected [12] Company Strategy and Development Direction - The company is focused on maintaining strong service levels while expanding its LTL network and customer base, despite pressures on margins due to expansion costs [9] - The company is committed to disciplined pricing and intense cost control to position itself for current volatility and potential opportunities [17] - Multiple initiatives are underway to accelerate the normalization of operational fundamentals and regain efficiencies in cost performance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being well-positioned to capitalize on future opportunities despite uncertainty in the freight market [10] - The company anticipates that as freight flows normalize, realized revenue per mile will recover [14] - Management noted that discussions with customers regarding potential projects during peak season are encouraging, indicating that one-way capacity is becoming more valuable [10] Other Important Information - The company opened three new service centers and replaced another with a larger facility during the quarter, focusing on growing existing investments [24] - The company projects adjusted EPS for the third quarter to be in the range of $0.36 to $0.42, assuming stable conditions and some seasonality [30] Q&A Session Summary Question: General outlook on supply and demand equilibrium - Management noted that capacity is slowly exiting the market, and demand appears stable, with some early signs of strength in July [36][40] Question: Truckload earnings growth outlook - Management expects mid-cycle margins in the truckload segment to operate in the mid-80s, with potential for improvement as the market stabilizes [46][48] Question: LTL segment performance and cost management - Management highlighted the importance of optimizing costs and leveraging technology to improve margins in the LTL segment [56][62] Question: Fourth quarter guidance and CapEx adjustments - Management refrained from providing specific fourth quarter guidance due to uncertainty but indicated that CapEx adjustments are primarily related to facility and IT investments [70][72] Question: Impact of brokers on market pricing - Management acknowledged that increased transparency in the market is leading to faster cycles, with brokers playing a role in the dynamics of supply and demand [100][102]

Financial Data and Key Metrics Changes - Revenue, excluding fuel surcharge, increased by 1.9% year over year, while adjusted operating income improved by 17.2% or $15.2 million year over year [10] - GAAP earnings per diluted share for Q2 2025 were $0.21, a 61.5% year over year increase, and adjusted EPS was $0.35, a 45.8% year over year increase [10] - Consolidated adjusted operating ratio was 93.8%, which was 80 basis points better than the prior year [10] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, decreased by 2.7% year over year, with loaded miles declining 2.8% [12] - The LTL segment grew revenue, excluding fuel surcharge, by 28.4% year over year, driven by a 21.7% increase in shipments per day [18] - The Logistics segment experienced a revenue decline of 2.6% year over year, driven by an 11.7% decrease in load count [23] - Intermodal segment revenue declined 13.8% year over year, impacted by a 12.4% decrease in load count [25] Market Data and Key Metrics Changes - There was a general softness in freight demand for most of the quarter, especially on the West Coast, although a mild lift in freight opportunities was noted near the end of the quarter [5][6] - The fluid policy environment has made forecasting more challenging, but discussions with customers regarding potential projects during peak season are ongoing [8] Company Strategy and Development Direction - The company is focused on maintaining competitive advantages through industry-leading scale and flexibility in its over-the-road model while driving costs out of its businesses [7] - Ongoing expansion of the LTL network and customer base is a priority, with a commitment to maintaining strong service levels [7] - The company is implementing multiple initiatives to normalize operational fundamentals and regain efficiencies in cost performance [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in being well-positioned to capitalize on future opportunities despite current market challenges [9] - The company anticipates that as freight flows normalize, realized revenue per mile will recover [12] - Management noted that while the market remains soft, there are signs of potential strength in the latter part of the quarter [38] Other Important Information - The effective tax rate was 29.2% on GAAP results and 28% on non-GAAP results, both lower year over year but higher than previously projected [11] - The company is projecting adjusted EPS for Q3 2025 to be in the range of $0.36 to $0.42, assuming stable conditions and some seasonality [28] Q&A Session Summary Question: General market equilibrium and inventory concerns - Management noted that capacity is slowly exiting the market, and demand appears stable, with some discussions about potential peak projects [34][39] Question: Truckload earnings growth outlook - Management expects mid-cycle margins in the truckload segment to operate in the mid-80s, with opportunities for margin improvement as the market stabilizes [44][46] Question: LTL segment growth and cost management - Management highlighted the importance of optimizing costs and leveraging technology to improve margins in the LTL segment while continuing to grow the customer base [56][60] Question: Fourth quarter earnings expectations - Management refrained from providing specific guidance for Q4 due to uncertainty but indicated that adjustments in revenue recognition could lead to more consistent revenue generation [67] Question: Impact of brokers on market pricing - Management acknowledged increased market transparency due to brokers and third-party data, which can lead to faster cycles in pricing adjustments [96][100]

Company Performance - Knight-Swift Transportation Holdings reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and up from $0.24 per share a year ago, representing an earnings surprise of +2.94% [1] - The company posted revenues of $1.86 billion for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 0.38%, and is slightly up from $1.85 billion year-over-year [2] - Over the last four quarters, Knight-Swift has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance - Knight-Swift shares have declined approximately 14.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.3% [3] - The current Zacks Rank for Knight-Swift is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $1.96 billion, and for the current fiscal year, it is $1.52 on revenues of $7.63 billion [7] - The outlook for the Transportation - Truck industry is currently in the bottom 8% of over 250 Zacks industries, which may impact Knight-Swift's stock performance [8]

Knight - Swift Transportation Second Quarter 2025 Earnings Disclosure This presentation, including documents incorporated herein by reference, will contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks ...

[Q2 2025 Earnings Overview](index=1&type=section&id=Knight-Swift%20Transportation%20Holdings%20Inc.%20Reports%20Second%20Quarter%202025%20Revenue%20and%20Earnings) Knight-Swift Transportation Holdings Inc. reported its second quarter 2025 financial results, highlighting revenue growth and significant profitability improvements [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Knight-Swift reported consolidated total revenue of **$1.9 billion** for Q2 2025, a **0.8%** increase year-over-year, with operating income growing **14.4%** to **$72.6 million** and significant EPS increases Q2 2025 Consolidated Financial Results (vs. Q2 2024) | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $1,861.9M | $1,846.7M | +0.8% | | Operating Income | $72.6M | $63.5M | +14.4% | | Adjusted Operating Income | $103.8M | $88.5M | +17.2% | | Net Income (attributable to KNX) | $34.2M | $20.3M | +68.7% | | Adjusted Net Income (attributable to KNX) | $57.2M | $39.4M | +45.2% | | Diluted EPS | $0.21 | $0.13 | +61.5% | | Adjusted EPS | $0.35 | $0.24 | +45.8% | - The consolidated operating ratio for Q2 2025 was **96.1%**, an improvement of **50 basis points**, while the Adjusted Operating Ratio was **93.8%**, an **80 basis point** improvement over Q2 2024[2](index=2&type=chunk) [CEO Commentary](index=3&type=section&id=CEO%20Commentary) CEO Adam Miller emphasized leveraging cost initiatives to overcome a soft truckload market, noting progress in U.S. Xpress profitability and strong LTL volume growth despite integration costs - The company successfully navigated a soft truckload market by focusing on cost initiatives and operational agility, leading to sequential improvement in the Truckload segment's operating income and margin[7](index=7&type=chunk) - The LTL segment is experiencing strong customer response and shipment growth due to its service quality, but is also facing cost pressures from the integration of DHE and organic network expansion[7](index=7&type=chunk) - Customer uncertainty regarding the macroeconomic and policy landscape is making it challenging to forecast demand and plan for peak season activities[8](index=8&type=chunk) [Other Financial Items (Income, Taxes, Dividend)](index=3&type=section&id=Other%20Financial%20Items) Q2 2025 saw a significant increase in "Other income, net" to **$13.2 million**, a reduced effective tax rate, and a declared quarterly cash dividend of **$0.18** per share - Other income, net was **$13.2 million** in Q2 2025, compared to **$4.9 million** in Q2 2024[8](index=8&type=chunk) - The effective tax rate for Q2 2025 was **29.2%** on GAAP results and **28.0%** on non-GAAP results, down from **37.2%** and **31.1%** respectively in Q2 2024[9](index=9&type=chunk) - The board of directors declared a quarterly cash dividend of **$0.18** per share, which was paid on June 23, 2025[10](index=10&type=chunk) [Segment Financial Performance](index=4&type=section&id=Segment%20Financial%20Performance) This section details the financial and operational performance of Knight-Swift's individual business segments, including Truckload, LTL, Logistics, Intermodal, and other services [Truckload Segment](index=4&type=section&id=Truckload%20Segment) The Truckload segment significantly improved profitability with **87.5%** Adjusted Operating Income growth and a **260 basis point** Adjusted Operating Ratio improvement, driven by cost reductions and increased productivity Truckload Segment Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue (ex-fuel/intersegment) | $1,073.3M | $1,102.8M | -2.7% | | Adjusted Operating Income | $58.4M | $31.2M | +87.5% | | Adjusted Operating Ratio | 94.6% | 97.2% | -260 bps | - The improvement in operating ratio was driven by cost-reduction efforts, with U.S. Xpress improving its margin by **300 basis points**[4](index=4&type=chunk)[13](index=13&type=chunk) - Productivity increased, with miles per tractor improving **4.0%** year-over-year due to efforts to reduce underutilized assets[13](index=13&type=chunk) [LTL Segment](index=5&type=section&id=LTL%20Segment) The LTL segment achieved strong **28.4%** revenue growth but faced profitability challenges from DHE integration and network expansion, resulting in a **720 basis point** deterioration in Adjusted Operating Ratio LTL Segment Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue (ex-fuel surcharge) | $337.7M | $263.1M | +28.4% | | Adjusted Operating Income | $23.4M | $37.0M | -36.8% | | Adjusted Operating Ratio | 93.1% | 85.9% | +720 bps | - Key growth drivers included a **21.7%** increase in shipments per day and a **9.9%** increase in revenue per hundredweight (excluding fuel)[14](index=14&type=chunk) - The company opened three new service centers and replaced one during the quarter, contributing to a **27.5%** year-over-year growth in door count[15](index=15&type=chunk) [Logistics Segment](index=6&type=section&id=Logistics%20Segment) The Logistics segment improved profitability with a **13.3%** increase in Adjusted Operating Income and a **70 basis point** improvement in Adjusted Operating Ratio, driven by gross margin gains despite lower load volume Logistics Segment Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $128.3M | $131.7M | -2.6% | | Adjusted Operating Income | $6.7M | $5.9M | +13.3% | | Adjusted Operating Ratio | 94.8% | 95.5% | -70 bps | - Profitability was driven by operating efficiency and a **100 basis point** improvement in gross margin, which reached **18.9%**[4](index=4&type=chunk)[17](index=17&type=chunk) - A **11.7%** decline in load count was largely offset by a **10.6%** increase in revenue per load[17](index=17&type=chunk) [Intermodal Segment](index=6&type=section&id=Intermodal%20Segment) The Intermodal segment experienced a **13.8%** revenue decline and an operating loss of **$3.4 million** due to weak import volumes, leading to a **104.1%** operating ratio Intermodal Segment Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $84.1M | $97.5M | -13.8% | | Operating Loss | $(3.4)M | $(1.7)M | -99.7% | | Operating Ratio | 104.1% | 101.8% | +230 bps | - The revenue decrease was primarily due to a **12.4%** drop in load count, which was impacted by a decline in import volumes on the West coast[18](index=18&type=chunk) [All Other Segments](index=6&type=section&id=All%20Other%20Segments) The "All Other" segments, including warehousing and leasing, reported strong results with **9.0%** revenue growth and **73.6%** operating income growth year-over-year All Other Segments Financials (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $74.4M | $68.3M | | Operating Income | $6.7M | $3.9M | - The growth in revenue and operating income was primarily driven by the company's warehousing and leasing businesses[20](index=20&type=chunk) [Financial Position and Outlook](index=7&type=section&id=Consolidated%20Liquidity%2C%20Capital%20Resources%2C%20and%20Earnings%20Guidance) This section outlines Knight-Swift's liquidity, capital resources, and forward-looking earnings guidance, reflecting market uncertainties and strategic capital expenditure adjustments [Liquidity and Capital Resources](index=7&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Knight-Swift maintained strong liquidity with **$1.0 billion** in cash and available liquidity, **$2.6 billion** in Net Debt, and **$153.7 million** in year-to-date Free Cash Flow Year-to-Date Cash Flow Summary (as of June 30) | Cash Flow Item (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $325,929 | $310,700 | | Net cash used in investing activities | $(189,617) | $(258,841) | | Net cash used in financing activities | $(161,586) | $(182,288) | - The company generated **$153.7 million** in Free Cash Flow for the year-to-date period ended June 30, 2025[23](index=23&type=chunk) - Full-year 2025 net cash capital expenditure guidance has been lowered to **$525 million - $575 million**, down from the original range of **$575 million - $625 million**[23](index=23&type=chunk) [Q3 2025 Earnings Guidance](index=8&type=section&id=Guidance) Due to market uncertainty, Q3 2025 Adjusted EPS is projected between **$0.36** and **$0.42**, with expectations for sequential improvements in Truckload and LTL segments - Q3 2025 Adjusted EPS is expected to range from **$0.36** to **$0.42**[25](index=25&type=chunk) - Guidance highlights by segment for Q3 2025: - **Truckload:** Revenue to be up low single-digit percent sequentially - **LTL:** Revenue (ex-fuel) to grow **20% - 25%** YoY, with Adjusted Operating Ratio improving **100-200 basis points** sequentially - **Logistics:** Revenue and Adjusted Operating Ratio to be fairly stable sequentially - **Intermodal:** Load count to improve high single-digit percent sequentially[26](index=26&type=chunk)[29](index=29&type=chunk) - The expected effective tax rate on adjusted income for Q3 2025 is approximately **27%** to **28%**[29](index=29&type=chunk) [Financial Statements and Reconciliations](index=11&type=section&id=Financial%20Statements) This section provides the unaudited consolidated financial statements, including income statements and balance sheets, along with detailed segment operating statistics and non-GAAP financial reconciliations [Condensed Consolidated Financial Statements](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) This section presents the unaudited Condensed Consolidated Statements of Comprehensive Income and Balance Sheets for periods ending June 30, 2025, detailing the company's financial position and performance Year-to-Date Financial Summary (as of June 30, 2025) | Metric (in thousands) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Total Revenue | $3,686,302 | $3,669,121 | | Operating Income | $139,279 | $84,015 | | Net Income Attributable to Knight-Swift | $64,882 | $17,665 | | Total Assets | $12,523,435 | N/A | | Total Liabilities | $5,390,517 | N/A | | Total Stockholders' Equity | $7,132,918 | N/A | [Segment Operating Statistics](index=13&type=section&id=Segment%20Operating%20Statistics%20(Unaudited)) This section provides unaudited operating statistics for each segment, offering insights into performance drivers such as miles per tractor, shipments per day, and load counts Q2 2025 Key Operating Metrics (vs. Q2 2024) | Segment & Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Truckload** - Miles per tractor | 21,335 | 20,518 | +4.0% | | **LTL** - Shipments per day | 24,918 | 20,482 | +21.7% | | **Logistics** - Revenue per load | $2,025 | $1,831 | +10.6% | | **Intermodal** - Load count | 32,682 | 37,290 | -12.4% | [Non-GAAP Financial Reconciliations](index=14&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section explains and reconciles non-GAAP financial measures like Adjusted Operating Income and Adjusted EPS, used by management to assess core operating performance by excluding specific non-recurring or non-cash items - The company uses non-GAAP measures to improve comparability by removing items that, in management's opinion, do not reflect core operating performance, such as amortization, impairments, and certain legal or severance costs[40](index=40&type=chunk) Q2 2025 Reconciliation of GAAP Net Income to Adjusted Net Income | Item (in thousands) | Amount | | :--- | :--- | | **GAAP: Net income attributable to Knight-Swift** | **$34,243** | | Amortization of intangibles (pre-tax) | $19,621 | | Impairments (pre-tax) | $10,584 | | Severance expense (pre-tax) | $941 | | Provision for income tax expense at effective rate | $(22,203) | | **Non-GAAP: Adjusted Net Income Attributable to Knight-Swift** | **$57,179** |

Core Viewpoint - Analysts expect Knight-Swift Transportation Holdings (KNX) to report quarterly earnings of $0.34 per share, reflecting a year-over-year increase of 41.7%, with revenues projected at $1.87 billion, up 1.2% from the previous year [1]. Earnings Estimates - Revisions to earnings estimates are crucial for predicting investor actions, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2]. - The consensus EPS estimate has been revised 5.1% lower over the last 30 days, indicating a collective reevaluation by analysts [1]. Revenue Projections - Revenue, excluding truckload and LTL fuel surcharge, is projected to reach $1.67 billion, indicating a year-over-year change of +1.8% [4]. - Truckload and LTL fuel surcharge is expected to be $194.42 million, reflecting a decrease of -5.1% from the year-ago quarter [4]. Operating Revenue and Ratios - Analysts estimate 'Operating revenue- LTL' at $383.17 million, a +25% increase from the previous year [5]. - The average prediction for 'Revenue, excluding fuel surcharge- LTL Segment' is $330.41 million, indicating a +25.6% change from the prior-year quarter [5]. - The consensus estimate for 'Adjusted Operating Ratio' is 93.6%, compared to 94.6% from the previous year [5]. Additional Metrics - 'Operating Ratio' is forecasted to reach 94.7%, down from 96.6% year-over-year [6]. - 'Adjusted Operating Ratio - Logistics' is expected to be 95.8%, slightly up from 95.5% last year [6]. - 'Adjusted Operating Ratio - Truckload' is estimated at 94.1%, down from 97.2% in the same quarter last year [6]. - 'Adjusted Operating Ratio - LTL' is projected at 92.2%, compared to 85.9% from the previous year [7]. - Average revenue per load - Intermodal is expected to be $2619.25, slightly up from $2615.00 year-over-year [7]. - Average tractors - Truckload is forecasted to be 21,374, down from 22,828 in the same quarter last year [7]. - Load count - Intermodal is expected to reach 35,366, down from 37,290 in the same quarter last year [8]. Stock Performance - Over the past month, Knight-Swift shares have recorded returns of +0.9%, compared to the S&P 500 composite's +5.9% change [8].

Core Viewpoint - Knight-Swift Transportation Holdings (KNX) is positioned well to continue its trend of beating earnings estimates in the upcoming quarterly report [1]. Group 1: Earnings Performance - Knight-Swift has a strong history of beating earnings estimates, particularly in the last two quarters, with an average surprise of 10.55% [2]. - In the last reported quarter, Knight-Swift achieved earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, resulting in a surprise of 12.00% [3]. - For the previous quarter, the company was expected to post earnings of $0.33 per share but delivered $0.36 per share, yielding a surprise of 9.09% [3]. Group 2: Earnings Estimates and Predictions - Estimates for Knight-Swift have been trending higher, influenced by its history of earnings surprises [6]. - The company currently has a positive Zacks Earnings ESP (Expected Surprise Prediction) of +3.22%, indicating bullish sentiment among analysts regarding its earnings prospects [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [9]. Group 3: Earnings ESP Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8]. - The next earnings report for Knight-Swift is expected to be released on July 23, 2025 [9].

Company Overview - Knight-Swift Transportation Holdings (KNX) is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year increase of +41.7% [3] - Revenues are anticipated to reach $1.87 billion, which is a 1.4% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on July 23, and the stock may rise if the results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has been revised down by 5.08% over the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Potential - Knight-Swift has a positive Earnings ESP of +3.22%, suggesting analysts are optimistic about the company's earnings prospects [12] - The company has a Zacks Rank of 3, indicating a neutral outlook, but the combination of a positive Earnings ESP and this rank suggests a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Knight-Swift exceeded the expected earnings of $0.25 per share by delivering $0.28, resulting in a surprise of +12.00% [13] - Over the past four quarters, the company has surpassed consensus EPS estimates three times [14] Industry Context - Heartland Express (HTLD), a competitor in the trucking industry, is expected to report a loss of $0.08 per share, marking a year-over-year change of -100% [18] - Heartland's revenues are projected to decline by 13.9% to $236.65 million, with a significant downward revision of 800% in the consensus EPS estimate over the last 30 days [19]