Valuation and Financial Performance - Schneider National, Inc. (SNDR) is trading at a forward 12-month price-to-sales ratio (P/S-F12M) of 0.80X, which is lower than the industry average of 1.46X, indicating an attractive valuation [1][7] - The company has a Value Score of B, suggesting it is undervalued compared to its peers [1] Capital Expenditures and Financial Flexibility - Schneider has seen a decline in capital expenditures, with net capital expenditures of $380.3 million in 2024, down from $573.8 million in 2023, and a revised guidance for 2025 of around $300 million [4] - The company ended Q3 2025 with cash and cash equivalents of $194.1 million, significantly higher than its current debt of $12.4 million, indicating strong financial flexibility [5] Shareholder Returns - Schneider has consistently paid dividends, totaling $55.7 million in 2022, $63.6 million in 2023, and $66.6 million in 2024, with $50.3 million returned to shareholders year-to-date as of September 30, 2025 [8] - The company has a share repurchase program approved for $150 million, with $103.9 million spent to repurchase 4.1 million Class B shares, which enhances shareholder value [9] Stock Performance - Schneider's stock has increased by 31.2% over the past three months, outperforming the transportation-services industry, which saw a 7.8% increase [10] Earnings Guidance and Challenges - The company has lowered its 2025 adjusted earnings per share guidance to approximately 70 cents from a previous range of 75-95 cents due to rising insurance-related costs and macroeconomic uncertainties [7][19] - Ongoing inflation and supply-chain disruptions are negatively impacting operating expenses and overall profitability [14][19] Market Sentiment and Analyst Revisions - The Zacks Consensus Estimate for Schneider's earnings has been revised downward for Q4 2025 and full-year 2025 and 2026, indicating a lack of confidence among analysts [16] - The current Zacks Rank for Schneider is 4 (Sell), reflecting the negative sentiment surrounding the stock [19]

BofA analyst Ken Hoexter raised the firm’s price target on Schneider National (SNDR) to $28 from $26 and keeps a Neutral rating on the shares. Given the sluggishness of November before a spot rate rise in December, the firm moved its EPS estimate below Schneider National’s and Street targets for Q4, down to 19c from 21c, and lowers its FY25 and FY26 EPS estimates 2% and 7%, respectively, but raised its price target on a slightly higher multiple, citing the set up into 2026 improving on rates. Claim 70% O ...

GREEN BAY, Wis.--(BUSINESS WIRE)--Schneider National, Inc. (NYSE: SNDR), a premier multimodal provider of transportation, intermodal and logistics services, is marking the one-year anniversary of its acquisition of Cowan Systems, LLC. Over the past twelve months, Schneider has significantly expanded and strengthened its Dedicated operations — building on Cowan's regional expertise, lightweight equipment and innovative solutions to deliver more capacity and efficiency for shippers nationwide. Th. ...

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Summary of Schneider National FY Conference Call Company Overview - **Company**: Schneider National (NYSE: SNDR) - **Industry**: Transportation Logistics - **Business Segments**: - **Truckload**: $2.5 billion, with 70% in dedicated configurations, focusing on longer contracts and deeper customer relationships [9][10] - **Intermodal**: $1 billion-$3 billion, asset-based with ownership of chassis and containers, partnerships with Union Pacific, CSX, and CPKC [9][10] - **Logistics**: $1 billion-$1.2 billion, including brokerage and new offerings like Power Only [10] Market Dynamics - **Current Freight Market**: - Demand has been stable but not dramatically improving; August and September were sub-seasonal [16][17] - Customers are cautious due to government uncertainties, leading to reduced volumes in consumer products [18] - **Regulatory Environment**: - Changes in regulations are being enforced differently, impacting supply dynamics [22][23] - Concerns about shadow capacity and the need for supply rationalization [22][23] Intermodal Market Insights - **Rail Merger Impact**: - Union Pacific and Norfolk Southern merger could create a more competitive environment; Schneider is optimistic about potential benefits [46][51] - Performance has improved, with a 10% year-over-year growth in the third quarter [48] Dedicated Market Dynamics - **Market Trends**: - Focus on specialty equipment and long-term contracts; pipeline activity has increased significantly [56][58] - Private fleets have grown disproportionately compared to for-hire services, but a correction is expected [56] Financial Outlook - **2026 Projections**: - Optimism for a more constructive environment due to fiscal and monetary stimulus, with expectations for mid to slow single-digit increases in contracts [75][76] - Focus on organic growth, capital deployment for dedicated and intermodal segments, and potential acquisitions [93][94] Technology and Automation - **AI and Automation**: - Schneider is investing in automation to improve efficiency and reduce costs; initiatives include using AI for low-value tasks [81][86] - A target of $40 million in annual savings has already been surpassed, indicating effective cost management [90][92] Shareholder Value - **Share Buybacks**: - Schneider views its stock as undervalued and is considering share purchases as part of its strategy [96] Key Takeaways - Schneider National is adapting to a dynamic freight market with a focus on dedicated and intermodal services - Regulatory changes and market conditions are influencing supply and demand dynamics - The company is leveraging technology to enhance operational efficiency and is optimistic about future growth prospects in 2026

Core Insights - Schneider National, Inc. is launching Schneider Fast Track, a premium solution aimed at shippers with time-sensitive and high-service freight needs [1] - Fast Track integrates Schneider's extensive asset-based truckload and intermodal capabilities with strategic rail partnerships [1] - The initiative aims to establish a network of some of the fastest and most consistent intermodal lanes in the industry [1]

Revenue Performance - Operating revenues for Q3 2025 reached $1,452.4 million, a 10.4% increase from $1,315.7 million in Q3 2024[116]. - Revenues excluding fuel surcharge for the nine months ended September 30, 2025, were $3,840.0 million, up 9.4% from $3,508.6 million in the same period of 2024[120]. - Enterprise operating revenues increased by $323.3 million, approximately 8%, in the nine months ended September 30, 2025 compared to the same period in 2024[161]. - Truckload revenues (excluding fuel surcharge) increased by $249.8 million, or 16%, in the nine months ended September 30, 2025, driven by a 23% increase in Dedicated volume[177]. - Intermodal revenues (excluding fuel surcharge) increased by $41.9 million, approximately 5%, in the nine months ended September 30, 2025, primarily from a 6% increase in volume[183]. - Logistics revenues (excluding fuel surcharge) increased by $46.3 million, approximately 5%, in the nine months ended September 30, 2025, mainly due to the Cowan acquisition[186]. Income and Profitability - Adjusted income from operations for Q3 2025 was $38.4 million, compared to $44.3 million in Q3 2024, reflecting a decrease of 13.3%[121]. - Net income for the nine months ended September 30, 2025, was $81.5 million, slightly down from $84.4 million in the same period of 2024[116]. - Adjusted net income for Q3 2025 was $21.7 million, a decrease of approximately 31% compared to $31.5 million in Q3 2024[125]. - Enterprise income from operations decreased by $7.8 million, approximately 18%, in Q3 2025 compared to Q3 2024, primarily due to increased salaries and wages and equipment-related costs[131]. - Logistics income from operations decreased by $1.2 million, approximately 16%, in Q3 2025 compared to Q3 2024, primarily due to increased salaries and wages from the Cowan acquisition[156]. - Enterprise net income decreased by $2.9 million, approximately 3%, in the nine months ended September 30, 2025, primarily due to a $12.0 million unfavorable change in total other expenses[158]. Expenses and Costs - Total operating expenses for Q3 2025 were $1,417.1 million, an increase from $1,272.6 million in Q3 2024, reflecting rising operational costs[123]. - Total other expenses rose by $5.1 million in Q3 2025, mainly due to a $5.9 million increase in interest expense related to the Cowan acquisition[134]. - Total other expenses increased by $12.0 million, approximately 102%, in the nine months ended September 30, 2025, largely due to a $14.0 million increase in interest expense[165]. Cash Flow and Capital Expenditures - Free cash flow for the nine months ended September 30, 2025, was $193.7 million, down from $212.0 million in the same period of 2024[127]. - The company reported cash flow from operations of $184.2 million for Q3 2025, down from $206.4 million in Q3 2024[116]. - Net cash provided by operating activities decreased by $35.2 million to $451.4 million for the nine months ended September 30, 2025, compared to $486.6 million for the same period in 2024[198]. - Net capital expenditures decreased by $16.9 million to $257.7 million for the nine months ended September 30, 2025, compared to $274.6 million in 2024[201]. Taxation - The effective income tax rate increased to 26.5% in Q3 2025 from 22.1% in Q3 2024, with the provision for income taxes decreasing by $1.7 million, or 20%[137]. - The effective income tax rate was 25.0% for the nine months ended September 30, 2025, compared to 24.0% for the same period in 2024[169]. Strategic Focus and Growth Areas - The company continues to focus on acquisitions to enhance service offerings and broaden the customer base, supported by a strong balance sheet[105]. - The logistics segment remains a key area of growth, leveraging asset-light freight brokerage and supply chain services to meet customer demand[108]. - Truckload segment revenues (excluding fuel surcharge) increased by $92.3 million, approximately 17%, in Q3 2025 compared to Q3 2024, with dedicated volume growth of 22% attributed to the Cowan acquisition[145]. - Intermodal revenues (excluding fuel surcharge) increased by $16.7 million, approximately 6%, in Q3 2025 compared to Q3 2024, primarily due to a 10% increase in volume[151]. - Average trucks in the Truckload segment increased to 12,291 in Q3 2025 from 10,397 in Q3 2024, reflecting the impact of the Cowan acquisition[142]. Financial Position and Liquidity - As of September 30, 2025, cash and cash equivalents increased by $76.5 million compared to December 31, 2024[194]. - The company has a $250.0 million revolving credit facility maturing in November 2027 and a $200.0 million receivables purchase agreement maturing in May 2027, with a combined available capacity of $276.9 million as of September 30, 2025[193]. - An additional $100.0 million draw on the delayed-draw term loan facility was made, partially offset by a $95.0 million repayment of an unsecured senior note[194]. - The company anticipates that cash generated from operations and available credit facilities will be sufficient to meet its requirements for the foreseeable future[193]. Other Considerations - Goodwill impairment testing will be performed as of October 31, 2025, with the analysis expected to be finalized during the fourth quarter[204]. - There were no off-balance sheet arrangements that could materially affect the company's financial condition as of September 30, 2025[205].

Core Viewpoint - Schneider National's shares fell 8% following a disappointing earnings report, driven by weak demand and increased insurance costs, leading to a significant reduction in the company's full-year outlook [1][2]. Financial Performance - The company reported third-quarter adjusted earnings per share (EPS) of 12 cents, which was 8 cents below consensus estimates and 6 cents lower year-over-year. This figure included a 7-cent impact from higher insurance claims costs [2]. - Consolidated revenue reached $1.45 billion, marking a 10% year-over-year increase and slightly exceeding the consensus estimate of $1.43 billion, primarily due to the acquisition of Cowan Systems [4]. Guidance and Outlook - Schneider lowered its full-year 2025 adjusted EPS guidance to approximately 70 cents, down from a previous range of 75 to 95 cents. Without the insurance impact, the guidance would have been closer to 77 cents, aligning more with the 80-cent consensus estimate [2][3]. Market Conditions - Freight demand remains below seasonal averages in October, although it has improved compared to September. The company noted that July's demand was boosted by a pull forward ahead of tariffs, while August and September were weaker than normal [3]. - Management indicated that shippers are becoming more selective in choosing carriers as regulatory enforcement increases, which has led to a rise in Schneider's spot market exposure from 5% to 6% [6]. Operational Insights - The truckload (TL) unit generated revenue of $625 million, reflecting a 17% year-over-year increase, while the dedicated fleet saw a 26% revenue increase due to a 28% rise in truck count from the Cowan acquisition [8]. - The Outbound Tender Reject Index, a measure of truck capacity, indicates that current tender rejections are higher than the previous year but do not signal a recovery in the market [7].

Core Insights - Schneider National reported revenue of $1.45 billion for the quarter ended September 2025, reflecting a year-over-year increase of 10.4% [1] - The company's EPS was $0.12, down from $0.18 in the same quarter last year, indicating a significant decline [1] - Revenue exceeded the Zacks Consensus Estimate of $1.44 billion by 1.01%, while EPS fell short of the consensus estimate of $0.21 by 42.86% [1] Financial Performance Metrics - Operating Ratio for the consolidated segment was reported at 97.6%, higher than the estimated 96.2% [4] - Intermodal Operating Ratio was 94%, slightly above the average estimate of 93.4% [4] - Truckload Operating Ratio was 96.8%, compared to the estimated 94% [4] - Logistics Operating Ratio was 98.1%, exceeding the average estimate of 97.5% [4] Revenue Breakdown - Fuel surcharge revenue was $152.7 million, surpassing the average estimate of $143.47 million, marking a year-over-year increase of 10.6% [4] - Inter-segment eliminations revenue was reported at -$56.1 million, worse than the estimated -$39.23 million, representing a 46.9% increase year-over-year [4] - Logistics revenue reached $332.1 million, slightly above the average estimate of $328.12 million, with a year-over-year growth of 5.9% [4] - Other revenues were $117.8 million, exceeding the estimated $104.9 million, reflecting a 12% year-over-year increase [4] - Revenues excluding fuel surcharge totaled $1.3 billion, above the average estimate of $1.29 billion, with a year-over-year change of 10.4% [4] - Intermodal revenue was $281.4 million, surpassing the average estimate of $275.21 million, indicating a 6.3% year-over-year increase [4] - Truckload revenue was $624.5 million, slightly below the average estimate of $631.49 million, but still showing a 17.3% year-over-year increase [4] - Network revenue excluding fuel surcharge was $187.4 million, below the estimated $199.29 million, with a year-over-year change of 1.2% [4] Stock Performance - Schneider National's shares returned +8.6% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Enterprise revenues excluding fuel surcharge were $1.3 billion, up 10% year over year [20] - Adjusted income from operations was $38 million, a 13% decrease year over year [20] - Adjusted diluted EPS for the third quarter was $0.12 compared to $0.18 for the same period in 2024 [20] Business Line Data and Key Metrics Changes - Truckload revenue excluding fuel surcharge was $625 million, up 17% year over year, primarily due to the Cowan Systems acquisition [21] - Intermodal revenues excluding fuel surcharge were $281 million, up 6% year over year, reflecting volume growth of 10% [23] - Logistics revenue excluding fuel surcharge totaled $332 million, up 6% from the same period a year ago [24] Market Data and Key Metrics Changes - The company experienced softer volumes with existing customers and retreating spot rates in August and September [8] - Retention rates of incumbent business jumped 10 points quarter over quarter in Intermodal, contributing to a 10% volume growth in the quarter [13] - The company noted that third quarter volumes grew over 50% in Mexico, with the highest growth rate in the eastern U.S. since 2022 [13] Company Strategy and Development Direction - The company is focusing on structural improvements in three main areas: revenue strategy, productivity actions, and capital discipline [10] - The company aims to drive growth in specialty segments, which are considered more durable and offer unique services [35] - The company plans to leverage its strong pipeline in Dedicated to upgrade its overall portfolio by moving away from lower-yielding operations [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while market conditions have been subdued, there are catalysts for supply-side rationalization that could improve dynamics [28] - The company expects volume trends to remain sub-seasonal and spot rate conditions to be an important swing factor [27] - Management expressed confidence in navigating the current environment and highlighted ongoing efforts to improve asset efficiency and lower costs [66] Other Important Information - The company recorded $16 million more in claims-related costs than anticipated, primarily due to unfavorable developments on three prior year claims [7] - The company has a structural cost savings target of over $40 million, which will continue to build in the fourth quarter [21] - Net CapEx was $108 million compared to $93 million last year, with a reduction in expected full-year CapEx to approximately $300 million [25][26] Q&A Session Summary Question: About Dedicated wins and market demand - The majority of wins in Dedicated were from the company's pipeline, with a focus on specialty segments that offer durability and unique services [35] Question: On the broader truckload market view - The supply picture is more constructive going into 2026, with regulatory actions expected to impact capacity positively [56] Question: Demand environment for the network business - The demand picture is steady but unspectacular, with the consumer holding up well, while industrial demand remains in contraction [115]