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]

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 EPS for Q4 2025 was $0.31, down from $0.36 in Q4 2024, with the consolidated adjusted operating ratio increasing by 30 basis points year-over-year to 94% [16][15] Business Line Data and Key Metrics Changes - Truckload revenue excluding fuel surcharge declined by 2.4% year-over-year, with adjusted operating income down by $9.2 million or 10.7% due to a 3.3% decline in loaded miles [19][18] - The LTL segment grew revenue excluding fuel surcharge by 7% year-over-year, with shipments per day up 2.1%, although adjusted operating income decreased by 4.8% [21][20] - Logistics revenue declined by 4.8% year-over-year, with gross margin dropping to 15.5%, down 230 basis points from the previous quarter [23][24] Market Data and Key Metrics Changes - The truckload market experienced stable demand but lacked the typical seasonal lift until late in Q4, with a tightening spot market observed in December [4][12] - Market trends showed improved rejection rates and spot rates exiting 2025 at their best levels since early 2022, despite muted demand [12][11] - The secondary equipment market weakened, impacting gains on sales, which were approximately $4 million below expectations [19][18] Company Strategy and Development Direction - The company aims to leverage its largest truckload fleet and improve cost structures to enhance margins as market conditions recover [8][10] - Investments in technology and operational efficiencies are expected to yield benefits starting in 2026, with a focus on AI and other methods to improve revenue capture [9][10] - The company is committed to a more deliberate pace of network expansion to restore margins while growing into existing investments [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the truckload market's potential recovery in 2026, driven by 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 as conditions shift [14][38] - Management acknowledged the challenges of Q1 due to seasonality but indicated confidence in improving margins through cost management and potential rate increases [39][40] Other Important Information - The company combined its Abilene truckload brand into its Swift business to enhance efficiency and productivity [15][20] - The logistics segment is tightening carrier qualification standards in response to increased cargo theft and market volatility [23][24] Q&A Session Questions and Answers Question: Outlook for Q1 and seasonality impacts - Management noted that Q1 is typically challenging due to seasonality, and while there is confidence in cost improvements, the benefits of rate increases may not be fully realized until later in the year [31][39] 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 bid season insights - The company is focusing on a unified brand approach to enhance customer relationships and is optimistic about the upcoming bid season, expecting constructive conversations around rates [58][62]

Financial Data and Key Metrics Changes - In Q4 2025, revenue excluding fuel surcharge decreased slightly by 40 basis points, and operating income declined by $51.5 million year-over-year, largely due to $52.9 million of non-cash impairment charges [14][15] - Adjusted EPS was $0.31 for Q4 2025 compared to $0.36 for Q4 2024, while the consolidated adjusted operating ratio was 94%, up 30 basis points year-over-year [15][16] Business Line Data and Key Metrics Changes - Truckload revenue excluding fuel surcharge declined 2.4% year-over-year, with adjusted operating income down $9.2 million or 10.7% year-over-year, primarily due to a 3.3% decline in loaded miles [18] - LTL business grew revenue excluding fuel surcharge by 7% year-over-year, with shipments per day up 2.1%, although adjusted operating income decreased by 4.8% [20] - Logistics revenue for Q4 declined 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 generally stable demand but lacked the typical seasonal lift until late in the quarter, with truckload volumes lower than expected [4] - Market spot rates and the spot versus contract spread improved, exiting 2025 at the best level since early 2022 [11] Company Strategy and Development Direction - The company is focused on cost-cutting initiatives and improving operational efficiency, with expectations for technology investments to yield benefits in 2026 [8][25] - The integration of the Abilene truckload brand into the Swift business aims to enhance efficiency and productivity [19][61] - The company anticipates a more deliberate pace of network expansion to restore margins while supporting annualized revenue growth of $2 billion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the truckload market's potential recovery in 2026, citing capacity reductions and regulatory enforcement as positive indicators [10][11] - The company is monitoring market trends and is prepared to adjust capacity deployment to capitalize on valuable opportunities as conditions shift [12] Other Important Information - The logistics segment is leveraging technology to improve cost efficiencies and responsiveness, which is expected to contribute to earnings in 2026 [25] - The company has seen a rise in cargo theft, prompting tighter carrier qualification standards [23] Q&A Session Questions and Answers Question: Outlook for Q1 and seasonality impacts - Management noted that while there are positive indicators for the market, Q1 results may not reflect the anticipated improvements due to seasonal factors and the need for further recovery in volumes [31][34] Question: LTL market dynamics and network expansion - Management acknowledged softer demand in the LTL market but highlighted opportunities for growth through expanded network capabilities and new customer relationships [49][51] Question: Brand integration strategy and bid season insights - The company is moving towards a unified brand strategy to enhance customer relationships and sales efforts, with constructive conversations around contract rates in the bid season [59][65]

Core Insights - The trucking company reported a significant fourth-quarter loss of $6.8 million, contrasting sharply with a profit of $69.5 million in the same quarter of the previous year [1] Financial Performance - The fourth-quarter loss of $6.8 million indicates a substantial decline in financial performance compared to the previous year's profit of $69.5 million [1]

Core Insights - Knight-Swift Transportation reported a net loss of $6.8 million, or 4 cents per share, for the fourth quarter, which included $52.9 million in noncash charges related to the integration of the Abilene Motor Express brand under Swift Transportation [1] - The consolidated revenue for the quarter was $1.86 billion, falling short of the $1.9 billion consensus estimate, with all segments (excluding intermodal) experiencing year-over-year operating margin erosion [2] - The company provided first-quarter adjusted EPS guidance of 28 to 32 cents, which brackets the consensus estimate of 31 cents [3] Financial Performance - The adjusted EPS for the fourth quarter was 31 cents, which is 5 cents lower year-over-year and 4 cents below the consensus estimate [1] - Intermodal results showed improvement, but the segment still operated at a slight loss during the quarter [2] Future Outlook - Knight-Swift will host a call to discuss the fourth-quarter results at 4:30 p.m. EST on Wednesday [3]

Fourth Quarter 2025 Earnings Non-GAAP Financial Data 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 and un ...

Financial Performance - Knight-Swift reported a fourth quarter 2025 net loss of $6.8 million, with an Adjusted Net Income of $50.9 million, compared to a net income of $69.5 million in Q4 2024[1][3] - Consolidated total revenue for Q4 2025 was $1.9 billion, a 0.4% decrease from Q4 2024, while Adjusted Operating Income decreased by 5.3% year-over-year to $100.6 million[2][3] - Operating income for Q4 2025 decreased to $26,457, down 66.0% from $77,953 in Q4 2024[38] - The company reported a comprehensive loss of $7,329 in Q4 2025 compared to a comprehensive income of $68,887 in Q4 2024[38] - Total revenue for Q4 2025 was $1,856,330, a slight decrease from $1,864,281 in Q4 2024, while year-to-date revenue increased to $7,469,689 from $7,410,078[46] - Adjusted Operating Income for Q4 2025 was $100,552, down from $106,133 in Q4 2024, with year-to-date Adjusted Operating Income rising to $396,845 from $347,867[46] - Adjusted EPS for Q4 2025 was $0.31, compared to $0.36 in Q4 2024, while year-to-date Adjusted EPS increased to $1.26 from $1.06[48] Segment Performance - The Truckload segment's revenue, excluding fuel surcharge, decreased by 2.4% year-over-year, with an Adjusted Operating Ratio of 92.9%, reflecting a 330 basis point improvement over Q3 2025[2][11] - LTL segment revenue, excluding fuel surcharge, increased by 7.0% year-over-year, driven by a 2.1% increase in shipments per day and a 5.0% increase in revenue per hundredweight[2][15] - The Logistics segment experienced a 4.8% decrease in revenue year-over-year, with an Adjusted Operating Ratio of 95.8%, a 210 basis point decline from the previous year[2][19] - Intermodal segment revenue decreased by 3.4% year-over-year to $95,663, with an operating loss improved to approximately breakeven, reflecting a 2.8% increase in revenue per load[20] - Truckload segment total revenue for Q4 2025 was $1,221,814, a decrease of 2.2% from $1,249,533 in Q4 2024[52] - LTL segment total revenue increased by 7.2% to $344,752 in Q4 2025 from $321,535 in Q4 2024[55] - Logistics segment revenue for Q4 2025 was $159,971, down 4.8% from $167,991 in Q4 2024[58] Cash Flow and Liquidity - Net cash provided by operating activities for the year ended December 31, 2025, was $1,266,647, an increase of $467,584 compared to 2024[23] - Free Cash Flow for the year ended December 31, 2025, was $763.2 million, supported by $1.3 billion in operating cash flows[25] - As of December 31, 2025, the company had $1.1 billion in unrestricted cash and available liquidity, with a net debt of $2.1 billion[25] - Free cash flow for the year-to-date period ending December 31, 2025, was $763,228, reflecting strong operational cash flows[61] Tax and Impairment - The effective tax rate on GAAP results for Q4 2025 was 21.6%, up from 13.4% in Q4 2024, indicating increased tax liabilities[4][9] - Knight-Swift combined its Abilene truckload brand into the Swift business, resulting in $52.9 million of non-cash impairment charges[1][4] - The company reported impairments of $52,891 in Q4 2025, significantly higher than $8,145 in Q4 2024, indicating potential challenges in asset valuation[47] Future Outlook - The company plans to focus on cost control, service quality, and expanding its network to drive future growth opportunities[5][6] - Expected net cash capital expenditures for full-year 2026 are projected to be between $625 million and $675 million, primarily for replacements and investments in technology[26] - Adjusted EPS guidance for the first quarter of 2026 is expected to range from $0.28 to $0.32, assuming stable market conditions[28] - Operating income for All Other Segments, excluding intangible asset amortization, is projected to be between $22 million and $26 million in the first quarter[29] - The company anticipates a gain on sale of operating assets in the range of $7 million to $12 million in the first quarter[33] - The effective tax rate on adjusted income before taxes is expected to be approximately 25% to 26% for the first quarter and for the full year 2026[33] Operational Metrics - Average revenue per tractor in the Truckload segment increased by 2.3% to $50,893 in Q4 2025 from $49,726 in Q4 2024[41] - Shipments per day in the LTL segment increased by 2.1% to 22,340 in Q4 2025 compared to 21,870 in Q4 2024[41] - Average length of haul in the LTL segment increased by 12.4% to 680 miles in Q4 2025 from 605 miles in Q4 2024[41] - The LTL tractor fleet included 649 tractors in Q4 2025, up from 638 in Q4 2024, while the LTL trailer fleet increased to 1,227 from 1,009 in the same period[43] Operational Efficiency - The operating ratio for Q4 2025 was 98.6%, compared to 95.8% in Q4 2024, indicating a decline in operational efficiency[46] - The adjusted operating ratio for the Truckload segment improved to 92.9% in Q4 2025 from 92.2% in Q4 2024[52] - The adjusted operating ratio for the LTL segment was 95.1% in Q4 2025, compared to 94.5% in Q4 2024[55] - Adjusted operating income for the Truckload segment in Q4 2025 was $76,739, down 10.7% from $85,969 in Q4 2024[52] - Adjusted operating income for the LTL segment was $14,490 in Q4 2025, a decrease of 4.8% compared to $15,216 in Q4 2024[55] - Adjusted operating income for the Logistics segment decreased to $6,696 in Q4 2025 from $10,560 in Q4 2024[58] Non-GAAP Measures - The company plans to continue focusing on non-GAAP financial measures to provide a clearer picture of core operating performance, despite the limitations of these measures[45]

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Wall Street analysts expect Knight-Swift Transportation Holdings (KNX) to post quarterly earnings of $0.36 per share in its upcoming report, which indicates no change from the year-ago quarter. Revenues are expected to be $1.9 billion, up 1.8% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 6.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over th ...

Core Viewpoint - Abilene Motor Express is being integrated into the Swift Transportation segment of Knight Swift as part of a strategy to enhance operational efficiency and streamline operations [1][4]. Group 1: Company Operations - Abilene will continue to operate under its name until January 27, and its drivers will transition to Swift with support throughout the process [2]. - The integration aims to create greater alignment across the Knight-Swift network, ensuring reliable service for drivers and customers [4]. - The CEO of Knight Swift emphasized that this transition reflects a commitment to operational efficiency and long-term success [4]. Group 2: Company Structure - Abilene is one of several brands under Knight Swift, which also includes U.S. Xpress, ACT, MME, Barr-Nunn, and DHE [5]. - The finality of Abilene's standalone status was highlighted by the president of Abilene, who expressed gratitude to team members for their dedication [3].