Knight-Swift Transportation (KNX) - 2025 Q1 - Quarterly Results

Financial Performance - Knight-Swift reported Q1 2025 net income of $30.6 million, a significant recovery from a net loss of $2.6 million in Q1 2024[1][3]. - Total revenue for Q1 2025 was $1.8 billion, reflecting a 0.1% increase year-over-year, while operating income surged 224.3% to $66.7 million[2][3]. - Adjusted EPS for Q1 2025 was $0.28, up 133.3% from $0.12 in Q1 2024, with GAAP EPS at $0.19 compared to a loss of $0.02 in the prior year[1][3]. - Operating income increased to $66,663,000 from $20,555,000 year-over-year[42]. - Adjusted Net Income Attributable to Knight-Swift for Q1 2025 was $45,372 thousand, up from $19,774 thousand in Q1 2024[53]. - Earnings per diluted share for Q1 2025 was $0.19, compared to a loss of $0.02 in Q1 2024[54]. - Free cash flow for Q1 2025 was reported at $69,991, after adjusting for cash flows from operations of $109,429 and capital expenditures of $122,048[67]. Segment Performance - The Truckload segment's revenue, excluding fuel surcharge, decreased by 4.2% year-over-year, but Adjusted Operating Income increased by 59.7%[5][12]. - LTL segment revenue grew 26.7% year-over-year, driven by a 24.2% increase in shipments per day, despite a decline in Adjusted Operating Income by 26.8% due to start-up costs[5][15][17]. - Logistics segment revenue increased by 11.8% year-over-year, with an Adjusted Operating Ratio of 95.5% and a gross margin of 18.1%[5][21]. - Intermodal segment revenue rose 3.5% year-over-year, with an improved operating ratio of 102.0%, down 360 basis points from the previous year[5][22]. - In Q1 2025, the Truckload segment reported total revenue of $1,192,550, a decrease from $1,263,015 in Q1 2024, while operating income increased to $44,600 from $23,147[59]. - The LTL segment's total revenue rose to $352,401 in Q1 2025 from $282,122 in Q1 2024, but operating income decreased to $12,694 from $20,287[63]. - The Logistics segment achieved revenue of $141,621 in Q1 2025, up from $126,729 in Q1 2024, with operating income increasing to $5,143 from $2,473[65]. - The Intermodal segment reported revenue of $91,103 in Q1 2025, slightly up from $87,985 in Q1 2024, with an operating loss reduced to $1,812 from $4,908[65]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased significantly to $109,429,000 from $37,275,000, a change of $72,154,000[25]. - Free Cash Flow for the quarter was $70,000,000, reflecting $109,429,000 in operating cash flows and $39,438,000 in cash capital expenditures[27]. - Expected net cash capital expenditures for the full year 2025 are projected to be between $575 million and $625 million[27]. - The company had $1.0 billion in unrestricted cash and available liquidity as of March 31, 2025[27]. Tax and Dividend Information - The effective tax rate for GAAP results was 25.4% in Q1 2025, a significant decrease from 55.1% in Q1 2024[10]. - The adjusted effective tax rate for Q1 2025 was 25.4%, compared to 19.7% in Q1 2024[58][67]. - The company declared a quarterly cash dividend of $0.18 per share, an increase from the previous $0.16 per share[11]. Operational Metrics - Average revenue per tractor in the Truckload segment increased by 1.9% to $47,838[45]. - Shipments per day in the LTL segment rose by 24.2% to 23,349[45]. - Average length of haul in the LTL segment increased by 11.5% to 639 miles[45]. - Operating ratio improved to 96.3% in Q1 2025 from 98.9% in Q1 2024[50]. - The adjusted operating ratio for the Truckload segment improved to 95.6% in Q1 2025 from 97.3% in Q1 2024[59]. Other Financial Information - Revenue for the All Other Segments decreased by 15.9% year-over-year to $85,079,000, primarily due to the winding down of the third-party carrier insurance program[24]. - Operating income for All Other Segments was a loss of $20,444,000, compared to an operating income of $6,038,000 in the previous year[23]. - Total current assets as of March 31, 2025, were $1,454,857 thousand, slightly up from $1,448,741 thousand as of December 31, 2024[44]. - Total liabilities decreased to $5,483,267 thousand from $5,581,727 thousand[44]. - The total operating expenses for the Truckload segment were $1,147,950 in Q1 2025, down from $1,239,868 in Q1 2024[59]. - The company recognized non-cash impairments of $28 in Q1 2025, compared to $3,099 in Q1 2024[59]. - Legal accruals in Q1 2025 included increased estimated exposure for accrued legal matters, impacting miscellaneous operating expenses[56].