Core Insights - Schneider National, Inc. reported first-quarter 2025 earnings per share (EPS) of 16 cents, exceeding the Zacks Consensus Estimate of 14 cents and reflecting a 45% year-over-year improvement [1] - Operating revenues reached $1.40 billion, slightly below the Zacks Consensus Estimate of $1.44 billion, but showed a 6.2% year-over-year increase [1] - The company experienced a decline in consumer sentiment and market expectations due to increasing economic uncertainty [2] Financial Performance - Income from operations (adjusted) grew 47% year-over-year to $44.2 million [2] - Truckload revenues (excluding fuel surcharge) were $613.7 million, up 14% year-over-year, driven by the acquisition of Cowan Systems and improved revenue per truck per week [3] - Intermodal revenues (excluding fuel surcharge) increased 5% year-over-year to $260.4 million, supported by a 4% volume growth [5] - Logistics revenues (excluding fuel surcharge) reached $332.0 million, a 2% year-over-year increase [7] Segment Highlights - Truckload income from operations was $25.1 million, up 68% year-over-year, with an operating ratio improvement to 95.9% from 97.2% [4] - Intermodal income from operations surged 97% year-over-year to $13.8 million, with an operating ratio of 94.7% [6] - Logistics income from operations grew 50% year-over-year to $8.1 million, with an operating ratio of 97.6% [7] Liquidity and Cash Flow - Cash and cash equivalents at the end of the first quarter were $106.2 million, down from $117.6 million in the previous quarter [8] - Long-term debt increased to $565.8 million from $420.8 million [8] - The company generated $91.7 million in cash from operations during the quarter [8] Shareholder Returns and Guidance - Schneider announced a $150.0 million stock repurchase program, having repurchased 4.1 million Class B shares for $103.9 million as of March 31, 2025 [9] - A dividend of $0.095 per share was declared, payable on July 10, 2025 [9] - The company updated its 2025 adjusted EPS guidance to a range of 75 cents to $1.00, down from the previous range of 90 cents to $1.20 [10][11]

[PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section provides the unaudited consolidated financial information for Schneider National, Inc., including financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures [Financial Statements](index=6&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Schneider National, Inc. for the quarter ended March 31, 2025, including comprehensive income, balance sheets, cash flows, and detailed notes [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Unaudited)) For the first quarter of 2025, the company reported operating revenues of $1,401.8 million, an increase from $1,319.0 million in the prior year period, with net income rising to $26.1 million, or $0.15 per diluted share Consolidated Statements of Comprehensive Income (Q1 2025 vs Q1 2024) | Metric (in millions, except per share data) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating revenues | $1,401.8 | $1,319.0 | | Income from operations | $42.1 | $28.7 | | Net income | $26.1 | $18.5 | | Diluted earnings per share | $0.15 | $0.10 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets%20(Unaudited)) As of March 31, 2025, total assets were $4,978.5 million, a slight increase from year-end 2024, with total liabilities increasing to $1,990.3 million primarily due to a rise in long-term debt Consolidated Balance Sheet Highlights (as of March 31, 2025) | Metric (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,165.0 | $1,115.3 | | Net property and equipment | $2,875.5 | $2,869.4 | | Goodwill | $339.6 | $377.9 | | **Total Assets** | **$4,978.5** | **$4,933.7** | | Total current liabilities | $614.2 | $704.5 | | Long-term debt and finance lease obligations | $565.8 | $420.8 | | **Total Liabilities** | **$1,990.3** | **$1,946.8** | | **Total Shareholders' Equity** | **$2,988.2** | **$2,986.9** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash provided by operating activities was $91.7 million for the first quarter of 2025, a decrease from the prior year, while net cash used in investing activities increased to $126.7 million Cash Flow Summary (Q1 2025 vs Q1 2024) | Activity (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $91.7 | $97.6 | | Net cash used in investing activities | $(126.7) | $(102.1) | | Net cash provided by (used in) financing activities | $23.6 | $(30.6) | | **Net decrease in cash and cash equivalents** | **$(11.4)** | **$(35.1)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20(Unaudited)) The notes detail key accounting policies and events during the quarter, including the acquisition of Cowan, the company's debt structure, and segment performance breakdowns - On December 2, 2024, the company acquired Cowan for approximately **$398.6 million**, financed through cash and borrowings under a **$400.0 million** delayed-draw term loan facility[29](index=29&type=chunk) - Goodwill decreased from **$377.9 million** to **$339.6 million** in Q1 2025 due to a **$38.3 million** adjustment related to the Cowan acquisition[62](index=62&type=chunk) Debt and Credit Facilities (as of March 31, 2025) | Facility (in millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Unsecured senior notes | $50.0 | $145.0 | | Revolving credit agreement | $50.0 | $— | | Receivables purchase agreement | $70.0 | $70.0 | | Delayed-draw term loan facility | $400.0 | $300.0 | | **Total debt and credit facilities** | **$570.0** | **$515.0** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for Q1 2025, highlighting a 6% increase in operating revenues and a 47% increase in income from operations, largely driven by the Cowan acquisition and improved Intermodal performance - Enterprise net income increased by **$7.6 million** (41%) in Q1 2025 compared to Q1 2024, driven by a **$13.4 million** increase in income from operations[122](index=122&type=chunk) - Operating revenues increased by **$82.8 million** (6%) in Q1 2025, primarily due to a **$75.6 million** increase in Truckload revenues (driven by the Cowan acquisition) and a **$13.2 million** increase in Intermodal revenues[124](index=124&type=chunk)[129](index=129&type=chunk) - Key operating expense increases in Q1 2025 vs Q1 2024 include a **$44.9 million** (13%) rise in salaries, wages, and benefits and a **$10.8 million** (11%) increase in depreciation, both primarily due to the Cowan acquisition[130](index=130&type=chunk) Income from Operations by Segment (Q1 2025 vs Q1 2024) | Segment (in millions) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Truckload | $25.1 | $14.9 | | Intermodal | $13.8 | $7.0 | | Logistics | $8.1 | $5.4 | | Other | $(4.9) | $1.4 | | **Total Income from operations** | **$42.1** | **$28.7** | [Truckload Segment Analysis](index=28&type=section&id=Truckload%20Segment) The Truckload segment's income from operations increased by 68% to $10.2 million in Q1 2025, driven by a 14% increase in revenues (excluding fuel surcharge) primarily from increased Dedicated volumes following the Cowan acquisition Truckload Segment KPIs (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenues (ex-fuel, $M) | $613.7 | $538.1 | | Average trucks | 12,279 | 10,884 | | Revenue per truck per week | $3,953 | $3,853 | | Operating ratio | 95.9% | 97.2% | - Truckload income from operations increased by **$10.2 million** (68%) year-over-year, driven by revenue growth from the Cowan acquisition, partially offset by higher insurance premiums[140](index=140&type=chunk) [Intermodal Segment Analysis](index=29&type=section&id=Intermodal%20Segment) The Intermodal segment's income from operations nearly doubled, increasing 97% to $6.8 million in Q1 2025, due to a 5% increase in revenues (excluding fuel surcharge) driven by volume and revenue per order growth Intermodal Segment KPIs (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Orders | 104,440 | 100,494 | | Revenue per order | $2,467 | $2,442 | | Operating ratio | 94.7% | 97.2% | - Intermodal income from operations increased by **$6.8 million** (97%) year-over-year, attributed to volume growth, higher revenue per order, and a decrease in rail-related costs[146](index=146&type=chunk) [Logistics Segment Analysis](index=29&type=section&id=Logistics%20Segment) The Logistics segment's income from operations grew by 50% to $2.7 million in Q1 2025, primarily due to a higher net revenue per order, which offset lower brokerage volumes - Logistics revenues (excluding fuel surcharge) increased by **$7.1 million** (2%) in Q1 2025, driven by the Cowan acquisition, but offset by lower revenue per order and volume in the brokerage business[149](index=149&type=chunk) - Logistics income from operations increased by **$2.7 million** (50%) year-over-year, mainly due to an increase in net revenue per order[150](index=150&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's primary liquidity source is cash from operations, supplemented by credit facilities, with Q1 2025 seeing a slight decrease in operating cash flow and increased debt to fund the Cowan acquisition - As of March 31, 2025, the company had combined available capacity of **$234.5 million** under its revolving credit and receivables purchase agreements[154](index=154&type=chunk) - Net cash provided by operating activities decreased by **$5.9 million** in Q1 2025 compared to Q1 2024, while net cash used in investing activities increased by **$24.6 million**[161](index=161&type=chunk)[162](index=162&type=chunk) - Financing activities provided **$54.2 million** in cash, a reversal from the prior year, due to proceeds from the delayed-draw term loan and revolving credit agreements, partially offset by a large payment on unsecured senior notes[165](index=165&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=32&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that its market risks have not changed significantly from those disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no significant changes to market risks since the last annual report[172](index=172&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Based on an evaluation by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[173](index=173&type=chunk) - No changes occurred during the fiscal quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[174](index=174&type=chunk) [PART II. OTHER INFORMATION](index=33&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, and details on unregistered sales of equity securities and use of proceeds [Legal Proceedings](index=33&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in various lawsuits in the ordinary course of business, which are not expected to have a material impact on its operations or financial statements - The Company is party to various lawsuits in the ordinary course of its business, which are not expected to have a material impact[176](index=176&type=chunk)[89](index=89&type=chunk) [Risk Factors](index=33&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred to the risk factors disclosed in the 2024 Annual Report on Form 10-K[177](index=177&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=33&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the first quarter of 2025, the company repurchased 337,352 shares under its publicly announced program, with $46.1 million remaining available for future repurchases Share Repurchase Activity (Q1 2025) | Period | Total Shares Purchased | Avg. Price Paid | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | Jan 2025 | — | $— | — | | Feb 2025 | 210,776 | $27.29 | 53,352 | | Mar 2025 | 305,763 | $24.34 | 284,000 | | **Total** | **516,539** | | **337,352** | - As of March 31, 2025, the company had **$46.1 million** remaining under its **$150.0 million** share repurchase authorization[180](index=180&type=chunk)

Core Insights - Schneider National reported $1.4 billion in revenue for Q1 2025, a year-over-year increase of 6.3%, with an EPS of $0.16 compared to $0.11 a year ago, indicating positive growth in earnings [1] - The revenue fell short of the Zacks Consensus Estimate of $1.44 billion, resulting in a surprise of -2.87%, while the EPS exceeded expectations by 14.29% [1] Financial Performance Metrics - The operating ratio for consolidated operations was reported at 97%, slightly better than the average estimate of 97.2% from five analysts [4] - The intermodal operating ratio matched the average estimate of 94.7% from four analysts [4] - The truckload operating ratio was reported at 95.9%, compared to the estimated 96.4% [4] - The logistics operating ratio was 97.6%, slightly better than the estimated 98.1% [4] Revenue Breakdown - Fuel surcharge revenue was $143.50 million, below the average estimate of $150.91 million, representing a year-over-year decline of 8% [4] - Intermodal revenue was $260.40 million, slightly below the average estimate of $263.43 million, but showed a year-over-year increase of 5.3% [4] - Logistics revenue reached $332 million, exceeding the average estimate of $328.31 million, with a year-over-year growth of 2.2% [4] - Other revenues were reported at $88.70 million, below the average estimate of $106.53 million, reflecting a year-over-year decline of 5.9% [4] - Inter-segment eliminations revenue was -$36.50 million, worse than the average estimate of -$30.67 million, with a year-over-year change of -11.8% [4] - Excluding fuel surcharge, total revenues were $1.26 billion, slightly below the estimated $1.29 billion, but represented an 8.2% increase year-over-year [4] - Truckload revenue was $613.70 million, below the average estimate of $630.60 million, but showed a year-over-year increase of 14.1% [4] - Network revenue, excluding fuel surcharge, was $177.90 million, below the average estimate of $203.39 million, with a year-over-year decline of 9.3% [4] Stock Performance - Schneider National's shares have returned -8.8% over the past month, underperforming the Zacks S&P 500 composite, which changed by -0.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance in the near term [3]

Financial Data and Key Metrics Changes - Enterprise revenues excluding fuel surcharge were $1.26 billion, an 8% increase year over year [20] - Adjusted income from operations was $44 million, a 47% increase year over year [20] - Adjusted diluted earnings per share for the first quarter was $0.16 compared to $0.11 last year [21] - Enterprise adjusted operating ratio improved by 90 basis points compared to the first quarter of 2024 [21] Business Line Data and Key Metrics Changes - Truckload revenues excluding fuel surcharge were $614 million, a 14% increase year over year, primarily due to the acquisition of Cowen and higher dedicated and network revenue per truck per week [21] - Intermodal revenues excluding fuel surcharge were $260 million, a 5% increase year over year due to volume growth and increased revenue per order [22] - Logistics revenues excluding fuel surcharge were $332 million, a 2% increase year over year due to the acquisition of Cowen, partially offset by lower revenue per order [23] Market Data and Key Metrics Changes - The market remains highly competitive with truck network achieving low to mid single-digit percentage increases [11] - Intermodal rates remained largely flat year over year, with increased volume allocations in favorable geographies [12] Company Strategy and Development Direction - The company is focused on optimizing capital allocation across strategic growth drivers of dedicated truck, intermodal, and logistics [8] - A commitment to cost containment across all expense categories is critical to enhance competitive position and margins [14] - The company aims to transition to a more variable cost model by expanding owner-operator relationships [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is resilience in macroeconomic numbers, forward sentiment for customer freight demand is less clear due to tariff-driven uncertainty [13] - The company expects continued year-over-year improvement in results through 2025, despite moderating expectations for earnings improvement [27][28] Other Important Information - The company has established targets of more than $40 million in additional cost reductions across the enterprise [14] - The updated full-year 2025 guidance for adjusted earnings per share is $0.75 to $1, reflecting current trade policy and economic uncertainty [27] Q&A Session Summary Question: What are you seeing regarding the expected deceleration of imports? - Management indicated that intermodal is approximately 15% to 25% tied to imports and expects a drop-off in volume, but new business wins are anticipated to offset this decline [36] Question: Can you characterize the new business wins within intermodal? - New business wins are expected to ramp up in the second quarter, particularly in Mexico, which is seeing strong growth [44][45] Question: What is the outlook for dedicated growth? - Management believes there is still a long runway for dedicated growth, with many customers pivoting from private fleets to common carriers [109] Question: How much of the targeted $40 million cost reductions has been realized? - The company has been managing variable costs tightly and believes the $40 million target is achievable, though it will not be linear throughout the year [111]

Core Viewpoint - Schneider National reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.14 per share, and showing an increase from $0.11 per share a year ago, representing an earnings surprise of 14.29% [1][2] Financial Performance - The company posted revenues of $1.4 billion for the quarter ended March 2025, which was 2.87% below the Zacks Consensus Estimate, and an increase from $1.32 billion year-over-year [2] - Over the last four quarters, Schneider National has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Performance - Schneider National shares have declined approximately 26.6% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [3] - The current Zacks Rank for Schneider National is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.23 on revenues of $1.47 billion, and for the current fiscal year, it is $0.95 on revenues of $5.95 billion [7] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [6] Industry Context - The Transportation - Services industry, to which Schneider National belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8]

Financial Data and Key Metrics Changes - The company reported enterprise revenues excluding fuel surcharge of $1.26 billion, an 8% increase year over year [18] - Adjusted income from operations was $44 million, a 47% increase year over year [18] - Adjusted diluted earnings per share for the first quarter was $0.16 compared to $0.11 last year [19] - The enterprise adjusted operating ratio improved by 90 basis points compared to the first quarter of 2024 [19] Business Line Data and Key Metrics Changes - Truckload revenues excluding fuel surcharge were $614 million, a 14% increase year over year, driven by the acquisition of Cowen and higher revenue per truck per week [19] - Truckload operating income was $25 million, up nearly 70% year over year [20] - Intermodal revenues excluding fuel surcharge were $260 million, a 5% increase year over year, with operating income increasing by 97% [20][21] - Logistics revenues, excluding fuel surcharge, were $332 million, a 2% increase year over year, with operating income up 50% [21] Market Data and Key Metrics Changes - The market remains highly competitive, with truck network achieving low to mid single-digit percentage increases [10] - Intermodal rates remained largely flat year over year, with increased volume allocations in certain geographies [11][12] - The company noted a potential drop in intermodal volume due to tariff uncertainty, but new business wins are expected to offset this impact [32] Company Strategy and Development Direction - The company is focused on optimizing capital allocation across dedicated truck, intermodal, and logistics [6] - A commitment to cost containment across all expense categories is critical to enhance competitive positioning and margins [13] - The company aims to transition to a more variable cost model by expanding owner-operator relationships [15] - The strategic focus includes enhancing asset efficiency and exploring inorganic growth opportunities [28] Management's Comments on Operating Environment and Future Outlook - Management expressed that the freight market remains resilient, but forward sentiment for customer freight demand is less clear due to tariff-driven uncertainty [12] - The company expects continued year-over-year improvement in results through 2025, despite moderating pricing improvements [25] - Management acknowledged the challenges posed by a competitive landscape and the need for disciplined pricing strategies [10][25] Other Important Information - The company has established targets of more than $40 million in additional cost reductions across the enterprise [13] - The updated full-year 2025 guidance for adjusted earnings per share is $0.75 to $1, reflecting current trade policy and economic uncertainty [24] Q&A Session Summary Question: What are you seeing regarding the expected deceleration of imports? - Management noted that intermodal is approximately 15% to 25% tied to imports and expects some drop-off in volume, but new business wins are anticipated to offset this [32] Question: Can you characterize the new business wins within intermodal? - New business wins are expected to start implementing in the second quarter, with strengths noted in Mexico and other areas [38] Question: How do you expect to achieve EPS growth year over year? - Management expects year-over-year growth in price and margin but does not provide quarterly guidance [45] Question: What is the outlook for dedicated growth? - Management believes there is still meaningful room for expansion in the dedicated segment, despite current competitiveness [95] Question: How is the company managing pricing conversations in the current environment? - Management emphasized the importance of stating assumptions with customers and remaining flexible in negotiations [63]

Financial Data and Key Metrics Changes - Enterprise revenues excluding fuel surcharge were $1.26 billion, an 8% increase year over year [19] - Adjusted income from operations was $44 million, a 47% increase year over year [19] - Adjusted diluted earnings per share for the first quarter was $0.16 compared to $0.11 last year [20] - Enterprise adjusted operating ratio improved by 90 basis points compared to the first quarter of 2024 [20] Business Line Data and Key Metrics Changes - Truckload revenues excluding fuel surcharge were $614 million, a 14% increase year over year, primarily due to the acquisition of Cowen and higher dedicated and network revenue per truck per week [20] - Truckload operating income was $25 million, up nearly 70% year over year [21] - Intermodal revenues excluding fuel surcharge were $260 million, a 5% increase year over year, with operating income increasing by 97% to $14 million [22] - Logistics revenues excluding fuel surcharge were $332 million, a 2% increase year over year, with operating income up 50% to $8 million [23] Market Data and Key Metrics Changes - The market remains highly competitive, with truck network achieving low to mid single-digit percentage increases [10] - Intermodal rates remained largely flat year over year, with increased volume allocations in certain geographies [11] - The dedicated retention rate remains in the low nineties, with expectations of elevated churn in the second and third quarters [9] Company Strategy and Development Direction - The company is focused on optimizing capital allocation across strategic growth drivers, including dedicated truck, intermodal, and logistics [7] - A commitment to cost containment across all expense categories aims to enable reinvestment in growth initiatives [13] - The company aims to transition to a more variable cost model by expanding owner-operator relationships [15] - The strategic differentiators include unique dedicated brands and strong rail relationships, enhancing reliability for intermodal shippers [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter results were in line with expectations despite weather impacts and economic uncertainty [14] - There is a recognition of potential volume drop in intermodal due to tariff uncertainty, but new business wins are expected to offset this [35] - The company anticipates continued year-over-year improvement in results through 2025, despite moderating expectations for earnings improvement [26] Other Important Information - The company has established targets of more than $40 million in additional cost reductions across the enterprise [13] - The updated full-year 2025 guidance for adjusted earnings per share is $0.75 to $1, reflecting current trade policy and economic uncertainty [26] Q&A Session Summary Question: What are you seeing regarding the expected deceleration of imports? - Management indicated that while intermodal is tied to imports, new business wins are expected to offset anticipated declines in volume [35] Question: Can you characterize the new business wins within intermodal? - New business wins are expected to ramp up in the second quarter, with strengths noted in Mexico and other areas [42][44] Question: What is the outlook for dedicated growth? - Management believes there is still a long runway for dedicated growth, with many customers pivoting from private fleets to common carriers [106] Question: How much of the targeted $40 million cost reductions has been realized? - The company is looking at various cost categories, with the full-year annualized impact expected to be achievable [110] Question: How do you view the pricing environment? - Management expects pricing to moderate in the near term, with continued year-over-year improvements anticipated [62]

Financial Performance - Q1 2025 - Operating revenues increased to $1402 million from $1319 million in 1Q24[71] - Revenues excluding fuel surcharge were $1258 million, compared to $1163 million in 1Q24[71] - Adjusted income from operations improved nearly 50% year-over-year[76], rising from $30 million to $44 million[71, 98] - Adjusted diluted earnings per share increased from $011 to $016[71, 100] - Adjusted EBITDA increased to $155 million from $131 million in 1Q24[71, 99] Segment Results - Q1 2025 - Truckload revenues increased 14% year-over-year due to the acquisition of Cowan Systems[81] - Intermodal revenues increased 5% year-over-year primarily due to volume growth of 4%[85] - Logistics revenues increased 2% year-over-year due to the acquisition of Cowan Systems[89] Capital Allocation and Shareholder Returns - $170 million in dividends paid out year to date as of March 31, 2025[58] - $83 million of shares repurchased in the quarter[76] - Approximately $461 million remaining authorization for share repurchase program as of March 31, 2025[58]

Financial Performance - Operating revenues for Q1 2025 were $1.4 billion, a 6% increase from $1.3 billion in Q1 2024[5] - Net income for Q1 2025 was $26.1 million, up 41% from $18.5 million in Q1 2024[5] - Adjusted diluted earnings per share for Q1 2025 were $0.16, a 45% increase from $0.11 in Q1 2024[6] - Income from operations rose to $42.1 million for Q1 2025, a significant increase of 46.3% compared to $28.7 million in Q1 2024[28] - Adjusted net income for Q1 2025 reached $27.7 million, up 42.1% from $19.5 million in Q1 2024[55] - Adjusted EBITDA for Q1 2025 was $154.8 million, representing a 18.4% increase from $130.7 million in Q1 2024[57] - Diluted earnings per share for Q1 2025 were $0.15, compared to $0.10 in Q1 2024, marking a 50% increase[60] - Adjusted diluted earnings per share for Q1 2025 were $0.16, up 45.5% from $0.11 in Q1 2024[60] Revenue Segments - Truckload revenues (excluding fuel surcharge) increased by 14% to $613.7 million, driven by the acquisition of Cowan Systems[10] - Logistics revenues (excluding fuel surcharge) increased by 2% to $332.0 million, despite lower brokerage revenue per order[14] - The Truckload segment reported revenues of $613.7 million, a 14.0% increase from $538.1 million in Q1 2024[27] - The Intermodal segment achieved a revenue per order of $2,467, up from $2,442 in Q1 2024, indicating a growth of 1.0%[37] Operational Efficiency - Intermodal income from operations rose 97% to $13.8 million, with an operating ratio improvement of 250 basis points to 94.7%[13] - The adjusted operating ratio improved to 96.5% in Q1 2025 from 97.4% in Q1 2024, demonstrating enhanced operational efficiency[52] - Average trucks in the Truckload segment increased to 12,279 in Q1 2025, compared to 10,884 in Q1 2024, marking a growth of 12.8%[32] Cash Flow and Expenditures - Free cash flow increased by $8.9 million compared to the same period in 2024[8] - Free cash flow for Q1 2025 was negative $5.4 million, an improvement from negative $14.3 million in Q1 2024[59] - Net cash provided by operating activities was $91.7 million for Q1 2025, down from $97.6 million in Q1 2024[25] - The company reported a net decrease in cash and cash equivalents of $11.4 million for Q1 2025, compared to a decrease of $35.1 million in Q1 2024[25] - Net capital expenditures guidance for 2025 is adjusted to $325 - $375 million, reduced from $400 - $450 million[16] Shareholder Actions - The company repurchased 4.1 million Class B shares for a total of $103.9 million under a $150 million stock repurchase program[9] Assets and Liabilities - Total assets increased to $4,978.5 million as of March 31, 2025, compared to $4,933.7 million at December 31, 2024, reflecting a growth of 0.9%[24] - Long-term debt increased to $565.8 million as of March 31, 2025, from $420.8 million at December 31, 2024, reflecting a rise of 34.5%[24] Guidance and Risks - Full year 2025 adjusted diluted earnings per share guidance is revised to $0.75 - $1.00, down from previous guidance of $0.90 - $1.20[16] - The company highlighted potential risks including economic conditions, operational challenges, and regulatory changes that could impact future performance[63] - Acquisition-related costs for Q1 2025 were $0.2 million, while there were no such costs in Q1 2024[55] - Depreciation and amortization expenses increased to $113.6 million in Q1 2025 from $102.8 million in Q1 2024[57]

Company Overview - Schneider National, Inc. (SNDR) is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company's earnings estimates have been revised downward significantly, with a 21.1% decrease for the current quarter and a 16% decrease for the current year [1] Price Performance - SNDR's shares have declined by 23.3% year-to-date, compared to an 11.2% decline in the transportation-services industry [2] Earnings and Rank - SNDR holds a weak Zacks Rank of 4 (Sell) [6] - The company has a negative earnings surprise history, missing the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 5.11% [6] Operational Challenges - The company's revenue is impacted by lower network volumes and reduced brokerage revenue per order, despite the acquisition of Cowan Systems [7] - Ongoing inflation and supply-chain disruptions are driving up costs, particularly in insurance, which negatively affects operating expenses [8] Industry Context - The transportation-services industry has a Zacks Industry Rank of 187 out of 247 groups, placing it in the bottom 24% of Zacks industries [10] - The performance of SNDR is likely to be influenced by the overall weak industry conditions, as studies indicate that 50% of a stock's price movement is tied to its industry group [10]