“I’ll let [the OEMs] speak to their business … but I think they got some real obstacles ahead of them relative to anything that could lead to excess capacity coming into the market over the next couple of years,” Leathers said.The notion of a truck prebuy is also at odds with fourth-quarter reports, which showed many carriers are still struggling to effectively utilize the equipment they already own.His forecast also calls for replacement-level (or below) Class 8 tractor builds this year. It took the OEMs 1 ...

It has been about a month since the last earnings report for Knight-Swift Transportation Holdings (KNX) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Knight-Swift due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Knight-Swift Transportation Holdings Inc. bef ...

Financial Performance - Consolidated total revenue for 2025 was $7.5 billion, a 0.8% increase from 2024[278]. - Consolidated net income attributable to Knight-Swift decreased by 43.9% to $65.9 million in 2025[278]. - The adjusted net income attributable to Knight-Swift for 2025 was $204.7 million, compared to $172.1 million in 2024, reflecting a growth of approximately 19%[367]. - The adjusted earnings per diluted share (EPS) for 2025 was $1.26, up from $1.06 in 2024, indicating a year-over-year increase of about 18.9%[368]. - The operating income for 2025 was reported at $216.1 million, down from $243.4 million in 2024, resulting in an operating ratio of 97.1% compared to 96.7% in the previous year[370]. - Impairments in 2025 amounted to $98.3 million, significantly higher than $19.0 million in 2024, impacting overall profitability[370]. Segment Performance - Truckload segment reported a 97.0% operating ratio in 2025, with a 2.8% decrease in revenue, excluding fuel surcharge[279]. - LTL segment achieved a 97.4% operating ratio in 2025, with a 20.6% increase in revenue, excluding fuel surcharge[279]. - Logistics segment had a 96.0% operating ratio in 2025, with a 4.7% increase in revenue per load[279]. - Intermodal segment reported a 102.1% operating ratio in 2025, with a 19.2% decrease in operating loss despite a 1.0% improvement in revenue per load[279]. - Total revenue for the Truckload segment decreased by 3.4% year-over-year to $4,865,034, while revenue excluding fuel surcharge and intersegment transactions decreased by 2.8% to $4,283,398[301]. - The LTL segment achieved a revenue increase of 19.7% year-over-year, totaling $1,478,508, with revenue excluding fuel surcharge rising by 20.6% to $1,281,975[308]. - Intermodal segment revenue decreased by 5.8% to $364.9 million in 2025, driven by a 6.7% decrease in load count, partially offset by a 1.0% increase in revenue per load[318][319]. - All Other Segments reported a revenue increase of 7.9% to $287.5 million, with operating income rising by $40.6 million, primarily due to improvements in warehousing and leasing businesses[322]. Cash Flow and Liquidity - Operating cash flows for 2025 were $1.3 billion, boosted by $478.2 million from a new accounts receivable securitization program[280]. - The company ended 2025 with $1.1 billion in unrestricted cash and cash equivalents and $7.1 billion in stockholders' equity[281]. - Free Cash Flow for 2025 was reported at $763,228, reflecting strong operational cash generation[380]. - Total unrestricted liquidity as of December 31, 2025, was $1,097,231, with total liquidity including restricted cash at $1,185,551[382]. - The company had a working capital deficit of $143.7 million as of December 31, 2025, an improvement from a deficit of $258.0 million in 2024[393]. - Net cash provided by operating activities increased by $467,584 to $1,266,647 in 2025 compared to 2024[396]. - Net cash used in investing activities decreased by $238,728, primarily due to reduced cash invested in acquisitions[398]. - Net cash used in financing activities increased by $668,346, driven by higher repayments on finance leases and long-term debt[399]. Expenses and Cost Management - Consolidated salaries, wages, and benefits increased by 4.7% to $2.96 billion, largely due to a $129.5 million increase in LTL wages from service center expansion and increased shipment count[324][326]. - Fuel expenses decreased by 3.7% to $838.8 million, attributed to lower average weekly diesel prices and a 3.2% decrease in total miles driven by truckload company drivers[327][329]. - Insurance and claims expense decreased by 7.3% to $385.1 million, primarily due to exiting the third-party insurance business and improvements in claims experience[332][334]. - Operating taxes and licenses expenses increased by $7.6 million in 2025, primarily due to the expansion of the LTL network, representing a 5.9% increase compared to 2024[337]. - Communications expenses decreased by 5.9% to $29.3 million in 2025, remaining flat as a percentage of total revenue at 0.4%[338][339]. - Depreciation and amortization of property and equipment decreased by 0.9% to $711.1 million in 2025, accounting for 9.5% of total revenue[340][341]. - Amortization of intangibles increased by 2.3% to $77.0 million in 2025, primarily attributed to the DHE acquisition[343][344]. - Rental expenses decreased by 2.8% to $166.8 million in 2025, representing 2.2% of total revenue[345][346]. - Purchased transportation expenses decreased by 3.6% to $1.1 billion in 2025, accounting for 15.1% of total revenue[347][348]. - Miscellaneous operating expenses decreased by 9.6% to $179.0 million in 2025, primarily due to a $30.8 million increase in gains on sales of operating property[352][353]. Strategic Initiatives - The company plans to adopt the AAA Cooper brand across its entire LTL business effective January 1, 2026, to streamline operations and enhance customer experience[307]. - The company combined Abilene trucking operations into the Swift business to enhance efficiency and productivity[302]. - In 2025, Knight-Swift opened 16 new service centers, achieving a year-over-year growth in door count of 10.0%[311]. - Knight-Swift continues to seek both organic and inorganic opportunities for geographic expansion within the LTL market[311]. - The company plans to continue focusing on operational efficiencies and strategic acquisitions to enhance market position and profitability moving forward[373]. Tax and Impairments - The effective tax rate for 2025 was 31.2%, up from 22.1% in 2024, primarily due to a reduction in pre-tax earnings[360]. - The effective tax rate for adjusted EPS calculation was 26.7% in 2025, compared to 25.4% in 2024, reflecting changes in tax strategy[369]. - The company recorded a non-cash impairment of $27.4 million related to goodwill associated with the Abilene brand due to operational changes[407]. - The fair value of certain trade names was determined to be zero, resulting in non-cash impairments of $33.5 million for the MME, DHE, and Abilene brands[408]. Interest Rates and Financial Management - A hypothetical one percentage point increase in interest rates would increase annual interest expense by $13.4 million, given the current variable interest rate of 5.4%[428]. - The company primarily manages interest rate exposure through a mix of variable rate debt and fixed rate equipment lease financing[428]. - The company has not used derivative financial instruments to hedge fuel price exposure but continues to evaluate this possibility[429]. - Management judgment is required in determining the provision for income taxes and assessing the likelihood of recovering deferred tax assets[420].

The stock of Knight-Swift Transportation Holdings Inc. has been delivering consistent positive results in the last few months. But recently, one of their executive vice presidents recently liquidated their entire stake in the company. Michael K Liu, EVP - Operations at Knight-Swift (KNX 0.65%), disposed of 1,243 directly held shares in an open-market sale on Feb. 4, 2026, fully exiting his direct equity position according to a SEC Form 4 filing. Transaction summary MetricValueShares sold (direct)1,243Transa ...

分组1 - J.B. Hunt reported an 11% year-over-year increase in adjusted operating income despite a 2% dip in revenue, benefiting from a $100-million cost reduction program that improved operating margin by 80 basis points [1] - The release of a white paper by Algorhythm Holdings, claiming significant savings through AI tools in freight brokerage, led to a selloff in 3PL stocks and affected asset-based carriers [3][6] - Knight-Swift Transportation's fourth-quarter adjusted earnings fell short of expectations, with operating margins eroding across all business units except intermodal, although first-quarter guidance aligned with consensus [9][10] 分组2 - Carriers experienced decent peak-season demand, but improving fundamentals were noted late in the quarter, indicating a prolonged downturn [5] - Schneider National's fourth-quarter results and 2026 outlook were below expectations, with a net loss reported and a conservative adjusted EPS guide [15][17] - Covenant Logistics Group reported a modest miss in the fourth quarter, citing heightened regulatory enforcement and a government shutdown as challenges, but noted improved revenue trends in early January [18][20] 分组3 - Marten Transport saw a 9% year-over-year revenue decline but a 70% sequential improvement in adjusted operating income, attributed to aggressive cost controls [13][14] - Werner Enterprises reported a net loss before adjustments but announced a restructuring of its one-way unit to improve fleet utilization and profitability, following the acquisition of dedicated carrier FirstFleet [24][25]

We recently published 10 Big Names Already Crushing This February. Knight-Swift Transportation Holdings Inc. (NYSE:KNX) was one of the top performers on Monday. Knight-Swift saw its share prices jump by 7.37 percent on Monday to close at $59.16 apiece, as investors welcomed the appointment of a new president to support growth and recovery, as the company navigates a challenging market environment. In a statement, Knight-Swift Transportation Holdings Inc. (NYSE:KNX) named Joe Vitiritto as its new preside ...

Core Insights - Pzena Focused Value Strategy underperformed the Russell 1000® Value Index in Q4 2025, with a net return of 2.5% compared to the Index's 3.8% [1] - The firm identifies appealing valuation differences in the current market, suggesting a favorable environment for long-term value investors [1] Company Analysis: Knight-Swift Transportation Holdings Inc. (NYSE:KNX) - Knight-Swift Transportation Holdings Inc. is a freight transportation services provider with a market capitalization of $8.945 billion, closing at $55.10 per share on January 30, 2026 [2] - The stock experienced a one-month return of 1.94% but has lost 1.13% of its value over the past 52 weeks [2] - Pzena initiated a position in Knight-Swift during Q4 2025, noting that the company is facing a prolonged freight downturn due to excess capacity from the 2021 profit peak, which is impacting rates and earnings [3] - The firm believes that Knight-Swift's scale and network efficiency will enable profitability to recover as market conditions normalize [3] Hedge Fund Interest - Knight-Swift Transportation Holdings Inc. was held by 44 hedge fund portfolios at the end of Q3 2025, an increase from 43 in the previous quarter [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]

Core Insights - The Trucking Alliance, despite being a smaller lobbying group, includes major players in the trucking industry and focuses on safety issues to influence public policy [1][2] - Following a challenging 2025, the Trucking Alliance is outlining its agenda for 2026 and beyond, recognizing that some regulatory changes will take time to develop [2] Group 1: Leadership and Interviews - Freightwaves is presenting a three-part series featuring interviews with key members of the Trucking Alliance, including Steve Williams, Lane Kidd, Greer Woodruff, and Brett Sant [3] - The first part of the series addresses issues impacting drivers directly, while the second part focuses on safety measures primarily for carriers [4] Group 2: Regulatory Changes - The final part of the series discusses broader regulatory changes, emphasizing the interconnected nature of these changes and their effects on both drivers and carriers [5] - The Trucking Alliance highlights a significant issue regarding the minimum insurance requirement for carriers, which has remained unchanged at $750,000 since deregulation in 1980, viewing this as a major problem [6] Group 3: Insurance Concerns - There is a concern that the insurance industry, which was expected to regulate carriers, is not effectively underwriting many small fleet operators, leading to inadequate risk assessment [7] - An example is cited of a carrier with a 15% to 20% market share in trucking insurance, whose clients typically operate fleets of two power units or less, indicating a lack of thorough underwriting [7]

Group 1: Strong Buy Ratings - Technology sector shows strong momentum with five stocks rated as "Strong Buy": Meta Platforms Inc. (META), Cisco Systems Inc. (CSCO), Fortinet Inc. (FTNT), Microchip Technology Incorporated (MCHP), and Micron Technology Inc. (MU) [1][2][3][4] - Meta Platforms Inc. has a market capitalization of approximately $1.69 trillion, while Cisco Systems Inc. is valued around $304.27 billion [2] - Fortinet Inc. has a market cap of roughly $61.77 billion, and Microchip Technology Incorporated is valued at approximately $40.42 billion [3][4] - In the industrials sector, SLB Limited (market cap about $74.19 billion) and Quanta Services Inc. (market cap around $70.2 billion) also received "Strong Buy" ratings [2][3] Group 2: Downgrades to Hold - Some large-cap companies faced downgrades to "Hold," indicating a selective market sentiment. Cummins Inc. was downgraded by Wolfe Research, and Public Storage also moved to "Hold" from "Strong Buy" [5] - These downgrades suggest that while certain sectors are favored, investors are cautious about the broader market [5]

This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive brief: Knight-Swift Transportation Holdings’ intermodal segment nearly hit a “breakeven” operating ratio in Q4, the carrier reported on Jan. 21.  The company reported an adjusted operating ratio of 100.1%, a 140 basis point improvement from 101.5% a year prior. Knight-Swift credited the upswing to a 2.8% increase in revenue per load and structural cost redu ...