Core Viewpoint - Knight-Swift Transportation reported fourth-quarter adjusted earnings that fell short of analyst expectations, despite revenue meeting forecasts [1] Financial Performance - The company posted adjusted earnings per share of $0.31 for Q4 2025, below the consensus estimate of $0.36 [2] - Revenue totaled $1.9 billion, matching analyst expectations but declining 0.4% year over year [2] - Consolidated operating income dropped 66.1% to $26.5 million, primarily due to $52.9 million in non-cash impairment charges related to the integration of the Abilene truckload brand into Swift operations [2] Segment Analysis - The truckload segment, Knight-Swift's largest business, reported a 2.4% year-over-year decline in revenue excluding fuel surcharges, with loaded miles decreasing by 3.3% [3] - The segment's adjusted operating ratio worsened to 92.9%, an increase of 70 basis points from the prior year [3] Future Outlook - For Q1 2026, Knight-Swift forecasts adjusted earnings per share of $0.28 to $0.32 [4] - Truckload revenue is expected to decline slightly, with operating margins remaining relatively stable compared to the same period last year [4] - Full-year 2026 net cash capital expenditures are projected to range between $625 million and $675 million [4]

Core Insights - Knight-Swift Transportation Holdings Inc. (KNX) reported fourth-quarter 2025 adjusted earnings of 31 cents per share, missing the Zacks Consensus Estimate of 36 cents and declining 13.8% year over year, falling below the guided range of 34-40 cents [1][10] - Total revenues for the quarter were $1.86 million, missing the Zacks Consensus Estimate of $1.89 million and decreasing 0.4% year over year [1][10] Financial Performance - Total operating expenses increased by 2.4% year over year to $1.83 billion [2] - Truckload segment revenues totaled $1.08 billion, down 2.4% year over year due to a 3.3% decline in loaded miles, with adjusted operating income falling 10.7% [3] - The Less-Than-Truckload (LTL) segment generated revenues of $298.50 million, up 7% year over year, with adjusted operating income decreasing by 4.8% [4] - Logistics segment revenues amounted to $159.97 million, down 4.8% year over year, with adjusted operating income decreasing 36.6% [5] - Intermodal revenues totaled $95.66 million, down 3.4% year over year, impacted by a 6% decrease in load count [6] Liquidity and Guidance - Knight-Swift ended the fourth quarter with cash and cash equivalents of $220.42 million, an increase from $192.67 million in the prior quarter, while long-term debt decreased to $1.02 billion from $1.05 billion [7] - For the first quarter of 2026, KNX expects adjusted earnings per share to be in the range of 28-32 cents, aligning with the higher end of the Zacks Consensus Estimate [8][10] - Truckload segment revenues are anticipated to decline slightly, while LTL segment revenues are expected to grow between 5% and 10% year over year [9]

Core Insights - The company is experiencing a generally stable truckload market with a lack of typical seasonal demand lift until late in the quarter, leading to lower truckload volumes than expected [2] - Despite a $125 million decline in truckload revenue, the company managed to grow adjusted operating income by $28 million through cost-cutting measures [1] - The company anticipates a stronger truckload market in 2026 due to capacity reductions and regulatory enforcement impacting lower-priced capacity [10][11] Financial Performance - In the fourth quarter, revenue excluding fuel surcharge decreased by 0.4%, and operating income declined by $51.5 million year-over-year, primarily due to noncash impairment charges of $52.9 million [15] - Adjusted operating income fell by 5.3% year-over-year, with GAAP earnings per diluted share showing a loss of $0.04 compared to a profit of $0.43 in the prior year [16] - The consolidated adjusted operating ratio was 94%, reflecting a 30 basis point increase year-over-year [16] Market Conditions - The truckload market is under pressure with a reduction in available capacity, which has led to a tightening spot market [2][12] - Regulatory enforcement has been a significant factor in reducing capacity, particularly affecting smaller carriers [11] - Market data trends indicate improved rejection rates and spot rates, suggesting potential for future growth [12][13] Operational Strategies - The company has made significant progress in cutting costs, maintaining cost per mile flat despite a 3.6% decline in miles [5][8] - Investments in technology and internal development are aimed at improving operational efficiency and revenue capture, with expected benefits to materialize in 2026 [9][28] - The company is focused on enhancing its network and operational capabilities to better position itself for earnings growth [6][9] Segment Performance - The LTL segment grew revenue by 7% year-over-year, although shipment growth was lower than previous quarters due to moderating demand [23] - The Logistics segment saw a revenue decline of 4.8% year-over-year, with gross margins pressured by sourcing difficulties [25] - The Intermodal segment improved its adjusted operating ratio by 140 basis points year-over-year, despite a revenue decline [29] Future Outlook - The company projects adjusted EPS for Q1 2026 to be in the range of $0.28 to $0.32, assuming stable conditions and seasonal trends [31] - There is optimism regarding the bid season, with expectations for improved contract rates as capacity continues to exit the market [62][65] - The company is prepared to leverage its scale and flexibility to capture opportunities as market conditions evolve [41][70]

Core Viewpoint - Knight-Swift Transportation Holdings Inc. reported disappointing earnings for the fourth quarter, missing both earnings and sales estimates [1] Financial Performance - The company posted quarterly earnings of 31 cents per share, below the analyst consensus estimate of 36 cents per share [1] - Quarterly sales amounted to $1.856 billion, missing the analyst consensus estimate of $1.900 billion [1] - For the first quarter, Knight-Swift anticipates adjusted earnings of 28 to 32 cents per share, compared to market estimates of 32 cents per share [1] Stock Performance - Knight-Swift shares increased by 0.1%, trading at $57.99 following the earnings announcement [2] Analyst Ratings and Price Targets - Stifel analyst J. Bruce Chan maintained a Buy rating and lowered the price target from $63 to $61 [7] - Susquehanna analyst Bascome Majors maintained a Neutral rating and raised the price target from $58 to $60 [7] - UBS analyst Thomas Wadewitz maintained a Neutral rating and raised the price target from $51 to $54 [7]

Core Viewpoint - Knight-Swift Transportation Holdings Inc. reported disappointing earnings for the fourth quarter, missing both earnings and sales estimates [1] Financial Performance - The company posted quarterly earnings of 31 cents per share, below the analyst consensus estimate of 36 cents per share [1] - Quarterly sales amounted to $1.856 billion, missing the analyst consensus estimate of $1.900 billion [1] - For the first quarter, Knight-Swift anticipates adjusted earnings of 28 to 32 cents per share, compared to market estimates of 32 cents per share [1] Stock Performance - Knight-Swift shares increased by 0.1% to $57.99 following the earnings announcement [2] Analyst Ratings and Price Targets - Stifel analyst J. Bruce Chan maintained a Buy rating and lowered the price target from $63 to $61 [7] - Susquehanna analyst Bascome Majors maintained a Neutral rating and raised the price target from $58 to $60 [7] - UBS analyst Thomas Wadewitz maintained a Neutral rating and raised the price target from $51 to $54 [7]

Core Insights - Knight-Swift Transportation missed fourth-quarter expectations but aims to improve margins in the new year despite not anticipating a lift in volume and rate [1] - The company reported a net loss of $6.8 million, or 4 cents per share, which included $53 million in noncash charges related to restructuring [2] - Adjusted EPS was 31 cents, 5 cents worse year over year and 4 cents below consensus estimates, with a reduction in interest expense providing a slight benefit [3] Financial Performance - Consolidated revenue for the quarter was $1.86 billion, slightly down year over year and just below the $1.9 billion consensus estimate [4] - Adjusted operating income decreased by 5% year over year to $101 million [4] - Truckload revenue fell 2% year over year to $1.08 billion, with a 5% decline in average tractors in service partially offset by a 2% increase in revenue per tractor [5] Market Conditions - Management indicated that they are not ready to declare a definitive market turn, although a reduction in available capacity has tightened the market [6] - The Truckload unit had an adjusted operating ratio of 92.9%, which is 70 basis points worse year over year but 330 basis points better than the third quarter [6] - The legacy Knight-Swift fleets operated at a 91.6% adjusted operating ratio, while U.S. Xpress saw a 430 basis point year-over-year improvement [7]

Core Insights - Knight-Swift Transportation Holdings reported a revenue of $1.86 billion for the quarter ended December 2025, reflecting a year-over-year decline of 0.4% and an EPS of $0.31 compared to $0.36 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $1.9 billion, resulting in a surprise of -2.16%, while the EPS also missed the consensus estimate by -14.29% [1] Financial Performance Metrics - The operating ratio was reported at 98.6%, significantly higher than the five-analyst average estimate of 95.4% [4] - The adjusted operating ratio was 94%, matching the average estimate by five analysts [4] - The adjusted operating ratio for the Truckload segment was 92.9%, slightly better than the 93% estimated by four analysts [4] - The adjusted operating ratio for the LTL segment was 95.1%, exceeding the average estimate of 94.6% by four analysts [4] Revenue Breakdown - Truckload and LTL fuel surcharge revenue was $190.31 million, below the average estimate of $195.63 million, but representing a year-over-year increase of +1.4% [4] - Revenue excluding truckload and LTL fuel surcharge was $1.67 billion, lower than the $1.7 billion estimated by five analysts, marking a -0.6% change year-over-year [4] - Operating revenue for the LTL segment was $344.75 million, compared to the average estimate of $365.64 million, showing a +7.2% change year-over-year [4] - Operating revenue for the Truckload segment was $1.22 billion, below the three-analyst average estimate of $1.25 billion, reflecting a -2.2% year-over-year change [4] - Operating revenue for the Intermodal segment was $95.66 million, compared to the average estimate of $100.57 million, indicating a -3.4% change year-over-year [4] - Revenue excluding fuel surcharge for the Truckload segment was $1.08 billion, lower than the average estimate of $1.11 billion, representing a -2.4% year-over-year change [4] - Operating revenue for the Logistics segment was $159.97 million, below the average estimate of $163.53 million, reflecting a -4.8% year-over-year change [4] - Revenue excluding fuel surcharge for the LTL segment was $298.5 million, compared to the average estimate of $307.84 million, showing a +7% change year-over-year [4] Stock Performance - Knight-Swift shares have returned +2.7% over the past month, contrasting with the Zacks S&P 500 composite's -0.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - The truckload market is stable but experienced a lack of seasonal demand until late in the quarter, with improvements noted in December primarily due to reduced capacity rather than increased demand [1][4] Financial Performance - Knight-Swift reported a GAAP loss per diluted share of $0.04, while adjusted EPS was $0.31, down from $0.36 a year earlier [2][7] - The consolidated adjusted operating ratio increased to 94%, up 30 basis points year over year, with operating income down approximately $51.5 million [2][7] - Non-cash impairment charges of $52.9 million were included in the GAAP results, primarily due to the integration of the Abilene brand into Swift [3][7] Truckload Segment - Truckload volumes were softer, with loaded miles down 3.3%, and revenue excluding fuel surcharge declined by 2.4% year over year [6][9] - The adjusted operating income for the truckload segment fell by $9.2 million, a decrease of 10.7% [9] - Management combined the smaller Abilene brand into Swift to enhance efficiency and network utilization [6][12] Less-Than-Truckload (LTL) Segment - The LTL business saw revenue excluding fuel grow by 7% year over year, with shipments per day increasing by 2.1% [5][14] - Despite revenue growth, adjusted operating income declined by 4.8%, and the adjusted operating ratio worsened by 60 basis points year over year [5][15] - Management emphasized the need for market-driven pricing to normalize margins and highlighted ongoing cost-reduction efforts [5][21] Logistics and Intermodal - In logistics, fourth-quarter revenue declined by 4.8% year over year, with volumes falling by 1% and revenue per load dropping by 4.1% [17] - Intermodal improved its adjusted operating ratio by 140 basis points year over year, driven by a 2.8% increase in revenue per load [18] Future Guidance - Management guided for first-quarter 2026 adjusted EPS of $0.28 to $0.32, assuming stable current conditions and a seasonal recovery in LTL [20] - The company expects a rebound in the all-other category following a seasonal slowdown and has reduced its expected gain-on-sale range due to trends in the secondary equipment market [20]

分组1 - Knight-Swift Transportation Holdings reported quarterly earnings of $0.31 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.36 per share a year ago, representing an earnings surprise of -14.29% [1] - The company posted revenues of $1.86 billion for the quarter ended December 2025, which also missed the Zacks Consensus Estimate by 2.16%, remaining unchanged from year-ago revenues [2] - Knight-Swift shares have increased by approximately 5.3% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [3] 分组2 - The earnings outlook for Knight-Swift is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Knight-Swift was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.32 on revenues of $1.88 billion, and for the current fiscal year, it is $2.00 on revenues of $7.96 billion [7] 分组3 - The Transportation - Truck industry, to which Knight-Swift belongs, is currently ranked in the bottom 3% of over 250 Zacks industries, suggesting that the industry's outlook can significantly impact stock performance [8] - Another company in the same industry, ArcBest, is expected to report quarterly earnings of $0.45 per share, reflecting a year-over-year decline of 66.2%, with revenues anticipated to be $968.81 million, down 3.3% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company reported a GAAP loss of $0.04 per diluted share for Q4 2025, compared to a profit of $0.43 in the prior year, primarily due to $52.9 million in non-cash impairment charges [16][15] - Revenue excluding fuel surcharge decreased by 0.4%, while operating income declined by $51.5 million year-over-year, largely attributed to the impairment charges [15][16] - Adjusted operating income fell by 5.3% year-over-year, reflecting a lighter demand environment [15] Business Line Data and Key Metrics Changes - The truckload segment experienced a revenue decline of 2.4% year-over-year, with adjusted operating income down by $9.2 million, or 10.7% [19] - The LTL segment grew revenue by 7% year-over-year, with shipments per day up 2.1%, although adjusted operating income decreased by 4.8% [20] - Logistics revenue declined by 4.8% year-over-year, with gross margin down 230 basis points from the previous quarter [23] Market Data and Key Metrics Changes - The truckload market saw stable demand but lacked the typical seasonal lift until late in the quarter, with truckload volumes lower than expected [4] - Market trends showed improved rejection rates and spot rates exiting 2025 at the best levels since early 2022, despite muted demand [12] - The secondary equipment market weakened, impacting gains on sales and reflecting regulatory enforcement effects on smaller carriers [19] Company Strategy and Development Direction - The company aims to enhance its operational efficiency through cost-cutting initiatives and technology investments, expecting benefits to materialize in 2026 [9] - The strategy includes a focus on leveraging its large fleet and improving utilization to drive incremental margins as market conditions recover [8] - The company is committed to a unified brand strategy to enhance sales efforts and customer relationships across its network [60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the truckload market improving in 2026 due to capacity reductions and regulatory enforcement [10][11] - The company is monitoring market trends closely and is prepared to adjust capacity deployment to capitalize on valuable opportunities [14] - There is confidence in the ability to push rates higher during the bid season, although the full benefits may not be realized until later in the year [35][38] Other Important Information - The company combined its Abilene truckload brand into its Swift business to improve efficiency and productivity [20] - The logistics segment is leveraging technology to enhance cost efficiencies and responsiveness in a volatile market [25] Q&A Session Summary Question: Outlook for Q1 and seasonality impacts - Management noted that Q1 is typically challenging due to seasonality, and while there is confidence in pushing rates higher, the benefits may not be fully realized until later in the year [31][35] Question: Strategic goals and margin progression - Management emphasized the need for both cost management and revenue growth to improve margins, indicating that cost improvements alone may not suffice [43][46] Question: LTL market dynamics and network expansion - Management acknowledged softer demand in the LTL market but highlighted opportunities for growth through a unified brand strategy and expanded network capabilities [49][53] Question: Brand strategy and customer retention - The company is focused on maintaining brand recognition while integrating operations to enhance customer service and operational efficiency [58][60] Question: Bid season insights and capacity concerns - Management reported constructive conversations with customers regarding contract rates and noted a shift towards increasing asset coverage among shippers [62][66]