Core Insights - Schneider National, Inc. (SNDR) reported second-quarter 2025 earnings per share (EPS) of 21 cents, matching the Zacks Consensus Estimate and the previous year's figure [1][8] - Operating revenues reached $1.42 billion, slightly missing the Zacks Consensus Estimate by 0.2%, but showing an 8% year-over-year improvement [1][8] - Income from operations (adjusted) grew 9% year over year to $56.8 million [1] Segment Performance - Truckload revenues (excluding fuel surcharge) for Q2 2025 were $622.2 million, a 15% increase year over year, driven by a 23% rise in Dedicated volume due to the acquisition of Cowan Systems [2] - Truckload income from operations was $40.1 million, up 31% year over year, with an operating ratio improving to 93.6% from 94.3% [3] - Intermodal revenues (excluding fuel surcharge) were $265.1 million, a 5% increase year over year, with income from operations rising 10% to $16.1 million [3][4] - Logistics revenues (excluding fuel surcharge) reached $339.6 million, up 7% year over year, but income from operations fell 29% to $7.9 million due to lower brokerage volume [5] Liquidity and Cash Flow - At the end of Q2, Schneider had cash and cash equivalents of $160.7 million, up from $106.2 million in the previous quarter, and long-term debt decreased to $512.7 million [6] - The company generated $175.5 million in cash from operations during the quarter, with net capital expenditures at $52.5 million [6] Shareholder Returns and Guidance - Schneider announced a $150 million stock repurchase program, having repurchased 4.1 million Class B shares for $103.9 million as of June 30, 2025 [7] - A dividend of $0.095 was declared, payable on October 9, 2025, with $33.7 million returned to shareholders in dividends year to date [7] - The company revised its 2025 adjusted EPS guidance to a range of 75 cents to 95 cents, down from the previous range of 75 cents to $1.00 [9][10]

Core Insights - Schneider National reported Q2 2025 earnings with GAAP revenue of $1,420.5 million, slightly exceeding analyst estimates of $1,412.24 million, and adjusted diluted EPS of $0.21, above the consensus of $0.20, indicating operational resilience despite market challenges [1][2][5] Financial Performance - Adjusted EPS remained flat at $0.21 compared to Q2 2024, while revenue increased by 7.9% year-over-year from $1,316.7 million [2][5] - Operating income rose to $55.0 million, a 7.8% increase, and net income reached $36.0 million, up 2% from the previous year [2][5] - Wage and benefit costs increased by 13.3% year-over-year, totaling $399.3 million, while cash and cash equivalents improved to $160.7 million [10] Business Segments Overview - The Truckload segment saw a 15% revenue increase year-over-year, driven by the integration of Cowan Systems and a 27% rise in average truck count [6][11] - Intermodal segment revenue grew by 5%, with a 10% increase in income from operations, supported by new business wins [7][12] - Logistics segment experienced a 7% revenue growth but faced a 29% decline in income from operations due to lower brokerage volume [8][13] Strategic Focus and Initiatives - The company is focused on expanding its portfolio through acquisitions and investing in technology, particularly artificial intelligence, to enhance efficiency and manage costs [4][14] - The acquisition of Cowan Systems has bolstered the Dedicated Truckload business, contributing to fleet growth and operational improvements [4][11] - Management aims for $40 million in annualized savings from technology investments, emphasizing cost reduction and productivity [14] Guidance and Future Outlook - Updated guidance for FY2025 adjusted diluted EPS is now projected at $0.75–$0.95, reflecting continued growth expectations [15] - Net capital expenditures are targeted between $325–$375 million for the full year, with an effective tax rate projected at 23.0% to 24.0% [15] - Ongoing challenges include trade-policy uncertainty, high industry capacity, and wage inflation, with a focus on pricing recovery and strategic acquisitions [16]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________________________ FORM 10-Q _____________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period f ...

Financial Data and Key Metrics Changes - The company reported enterprise revenues excluding fuel surcharge of $1.3 billion, a 10% increase year over year [22] - Adjusted income from operations was $57 million, reflecting a 9% year-over-year increase [22] - Adjusted diluted earnings per share for the second quarter was 21 cents [23] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, was $622 million, up 15% year over year, driven by acquisitions and higher revenue per truck per week [24] - Intermodal revenues, excluding fuel surcharge, were $265 million, a 5% increase year over year, attributed to volume growth [25] - Logistics revenue, excluding fuel surcharge, totaled $340 million, up 7% from the previous year, driven by the Cowen acquisition [26] Market Data and Key Metrics Changes - The company experienced a 30% year-over-year volume growth in Mexico, which was a key driver for second quarter growth [18] - The dedicated segment now represents about 70% of the truckload fleet, indicating a strategic shift towards dedicated capacity [13] Company Strategy and Development Direction - The company is focused on restoring margins and maximizing through-cycle returns while leaning into areas of differentiation for growth [7][15] - The long-term strategy includes shifting towards dedicated and variable cost capacity to improve earnings resilience [15] - Recent acquisitions, including Cowen Systems, are expected to contribute positively to income from operations [20] Management's Comments on Operating Environment and Future Outlook - The management anticipates economic uncertainty to persist, but expects the freight environment to continue moving towards recovery [21] - There is a belief that strong execution on structural improvements will drive earnings higher in 2025 [22] - The company is monitoring trade policy and broader economic uncertainty as part of its guidance considerations [29] Other Important Information - The company is targeting over $40 million in cost reductions, with synergies from Cowen Systems expected to fully materialize by 2026 [12] - The net debt leverage improved to 0.6 times at the end of the quarter, down from 0.8 times [29] Q&A Session Summary Question: Long-term truckload target of 12% to 16% - Management indicated that the dedicated business is performing resiliently, while the network business requires price recovery to reach long-term targets [38][40] Question: Peak season development and guidance - Management noted a wide range of behaviors among customers regarding peak season, with intermodal peak surcharges already in place [44][45] Question: Competitive environment in segments - Management acknowledged that mid-sized competitors are exiting the market, which could lead to a meaningful amount of capacity leaving the truckload space [66][70] Question: Impact of gain on sale in truckload - The company expects a modest impact from gains on the sale of equipment, with improvements anticipated in the second half of the year [95][96] Question: Intermodal growth and rail consolidation - Management emphasized the importance of strategic partnerships and differentiation in intermodal services, particularly in light of potential rail consolidation [100][102]

Core Insights - Schneider National reported $1.42 billion in revenue for the quarter ended June 2025, marking a year-over-year increase of 7.9% and an EPS of $0.21, unchanged from the previous year [1] - The revenue figure was a slight miss of -0.24% compared to the Zacks Consensus Estimate, while the EPS met expectations [1] Financial Performance Metrics - The operating ratio for the consolidated segment was reported at 96.1%, slightly higher than the estimated 95.9% [4] - The intermodal operating ratio was 93.9%, better than the average estimate of 94.4% [4] - The truckload operating ratio was 93.6%, compared to the estimated 94.8% [4] - The logistics operating ratio was 97.7%, exceeding the estimated 97.2% [4] Revenue Breakdown - Fuel surcharge revenue was $138.5 million, below the estimated $141.51 million, reflecting a -6.9% year-over-year change [4] - Inter-segment eliminations revenue was reported at -$41.7 million, worse than the estimated -$33.34 million, but a +4.5% change year-over-year [4] - Logistics revenue reached $339.6 million, surpassing the estimated $327.16 million, with a +6.5% year-over-year increase [4] - Other revenues were $96.8 million, slightly below the estimated $98.43 million, showing a +1.3% year-over-year change [4] - Revenues excluding fuel surcharge totaled $1.28 billion, matching estimates and reflecting a +9.8% year-over-year increase [4] - Intermodal revenue was $265.1 million, exceeding the estimated $256.21 million, with a +4.7% year-over-year change [4] - Truckload revenue was $622.2 million, below the estimated $633.84 million, but showing a +15.2% year-over-year increase [4] - Network revenues excluding fuel surcharge were $181.9 million, below the estimated $193.67 million, reflecting a -6.1% year-over-year change [4] Stock Performance - Schneider National's shares have returned -4.6% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating 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 [21] - Adjusted income from operations was $57 million, a 9% increase year over year [21] - Adjusted diluted earnings per share for the second quarter was 21 cents [22] - Truckload revenue excluding fuel surcharge was $622 million, up 15% year over year [23] - Intermodal revenues excluding fuel surcharge were $265 million, up 5% year over year [24] - Logistics revenue excluding fuel surcharge totaled $340 million, up 7% from the same period a year ago [25] - Free cash flow increased approximately $10 million compared to the same period in 2024 [26] Business Line Data and Key Metrics Changes - Truckload operating income reached $40 million, a 31% increase year over year [23] - Intermodal operating income was $16 million, a 10% increase compared to the same period last year [24] - Logistics income from operations was $8 million, down 29% from last year's high watermark [25] - Truckload earnings improved nearly 60% sequentially and over 30% year over year [13] Market Data and Key Metrics Changes - Mexico was a key driver of second quarter volume growth, which rose 30% year over year [17] - Year-to-date win rates on the most accretive lanes in Mexico are trending at nearly double last year's levels [18] Company Strategy and Development Direction - The company is focused on restoring margins while maximizing through-cycle returns [5] - Emphasis on organic growth combined with accretive mergers and acquisitions [6] - The long-term strategy includes shifting the business toward dedicated and variable cost capacity to improve earnings resilience [14] - The company is leveraging its multimodal portfolio to capture available volume even in a tepid environment [14] Management's Comments on Operating Environment and Future Outlook - The economic uncertainty is expected to persist into the second half of the year, with trade policy continuing to evolve [19] - The company anticipates a gradual recovery in the freight environment, with capacity exiting the market at a slow but steady pace [20] - Management believes strong execution on structural improvements will drive earnings higher in 2025 [21] Other Important Information - The company is targeting structural cost savings of over $40 million, with full run rate benefits anticipated in 2026 [11] - The company has $526 million in total debt and lease obligations and $161 million of cash and cash equivalents as of June 30, 2025 [28] Q&A Session Summary Question: Long-term truckload target of 12% to 16% - Management indicated that the dedicated business is performing resiliently and achieving the low end of long-term guidance, while the network business requires price recovery to reach targets [35][36] Question: Peak season development and guidance - Management noted a wide range of behaviors among customers regarding peak season, with intermodal peak surcharges already in place [40][41] Question: Competitive environment in segments - Management observed mid-sized competitors exiting the market and noted that the dedicated segment is facing different competitive dynamics [61][65] Question: Impact of gain on sale in truckload - Management mentioned a modest impact on results from the sale of equipment, with expectations for improvement in the second half of the year [89][91]

Core Insights - Schneider National reported quarterly earnings of $0.21 per share, matching the Zacks Consensus Estimate, and consistent with the previous year's earnings [1] - The company posted revenues of $1.42 billion for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.24%, but showing an increase from $1.32 billion year-over-year [2] - The stock has underperformed, losing approximately 16.3% since the beginning of the year, while the S&P 500 has gained 8.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.23 for the upcoming quarter and $0.86 for the current fiscal year, with revenues expected to be $1.46 billion and $5.79 billion respectively [7] - The trend of estimate revisions for Schneider National has been unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Transportation - Services industry, to which Schneider National belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Another company in the same industry, RXO, is expected to report a quarterly earnings decline of 33.3% year-over-year, with revenues projected to be $1.45 billion, reflecting a 56% increase from the previous year [9][10]

Financial Performance - Operating revenues increased to $1421 million in 2Q25 from $1317 million in 2Q24[77] - Revenues excluding fuel surcharge were $1282 million in 2Q25, compared to $1168 million in 2Q24[77] - Adjusted income from operations improved by 9% year-over-year[82] - Adjusted EBITDA increased from $153 million in 2Q24 to $166 million in 2Q25[77] Segment Results - Truckload revenues excluding fuel surcharge increased 15% year-over-year due to the Cowan acquisition and higher revenue per truck per week[87] - Dedicated average trucks grew 27% year-over-year, primarily driven by the Cowan acquisition[87] - Intermodal revenues excluding fuel surcharge increased 5% year-over-year due to a 5% volume growth[91] - Logistics revenues excluding fuel surcharge increased 7% year-over-year due to the Cowan Systems acquisition and Power Only growth[94] Capital Allocation and Strategy - The company announced a $150 million, 3-year share repurchase program in February 2023, with approximately $46.1 million remaining as of June 30, 2025[61] - Dividends have increased 90% since the IPO in April 2017[61]

Results of Operations (unaudited) Schneider National, Inc. Announces Second Quarter 2025 Results Green Bay, Wis. - July 31, 2025 – Schneider National, Inc. (NYSE: SNDR, "Schneider" or the "Company"), a leading transportation and logistics services company, today announced results for the three months ended June 30, 2025. "We delivered another quarter of earnings growth driven by solid execution, particularly in our Truckload and Intermodal segments. The second quarter saw consistent demand trends with some ...

Summary of Schneider National (SNDR) 2025 Conference Call Company Overview - **Company**: Schneider National (SNDR) - **Date**: June 10, 2025 - **Speakers**: Mark Rourke (President and CEO), Daryl Campbell (EVP and CFO), Christine McGarvey (VP of Investor Relations) Current Market Conditions - **Market Sentiment**: There was significant uncertainty at the macro level, but the worst-case scenarios have not materialized, indicating a resilient consumer demand [6][7][8] - **Volume Trends**: A downturn in West Coast volumes was noted, but strength was observed in other regions, particularly in Mexico and the Midwest [9][10] - **Customer Expectations**: Mixed signals from customers regarding future demand, with some expecting a surge while others anticipate steady activity [10] Business Segments Performance - **Intermodal**: Less reliance on imports compared to truckload, with steady domestic demand. Productivity enhancements are being pursued [12][13] - **Capacity and Pricing**: The market is approaching equilibrium with modest price increases observed despite ongoing challenges [18][20] - **Used Truck Market**: Prices for used trucks, especially sleepers, have been healthy, indicating stress in the market for small carriers [22][24] Pricing Dynamics - **Contract Rates**: Contractual improvements are being maintained, with a focus on not signing unfavorable agreements [29][30] - **Spot vs. Contract Rates**: A significant disparity exists between spot and contract rates, with contract rates showing flat to positive trends [31][32] Cost Management and Productivity - **Cost Control**: The company has focused on cost management and productivity improvements, resulting in year-over-year margin improvements [38][40] - **Acquisition Synergies**: The recent Cowen acquisition is expected to yield synergistic opportunities, particularly in cost management [42][64] Regulatory Environment - **English Language Provision**: New enforcement guidelines for the English language requirement could disrupt the market, particularly for smaller carriers [46][50] - **B1 Mexican Program**: Increased enforcement may tighten capacity around the border, impacting operations [50][52] Intermodal Growth - **Market Position**: Schneider National is optimistic about intermodal growth, particularly in the Mexico market, with strong service performance noted [54][56] - **Pricing Trends**: Intermodal pricing remains flat to slightly up, with expectations for continued stability [63] Capital Allocation Strategy - **Growth Focus**: The company prioritizes organic growth but remains open to strategic acquisitions, particularly in dedicated and intermodal segments [64][66] - **Leverage Profile**: The company is comfortable with a leverage ratio of up to 2.5 times for the right acquisitions [70][72] Guidance and Outlook - **Earnings Guidance**: EPS guidance is set between $0.75 and $1.00, reflecting a more optimistic outlook than previously anticipated [80][82] - **Market Sentiment**: The negative forward sentiment has moderated, leading to a more favorable industry outlook [92] Key Takeaways - **Resilience in Demand**: The company is experiencing steady demand despite macroeconomic uncertainties - **Focus on Cost Management**: Continuous efforts in cost control and productivity enhancements are yielding positive results - **Strategic Growth Opportunities**: Schneider National is well-positioned for growth in intermodal and dedicated segments, with a balanced approach to capital allocation and acquisitions.