Knight-Swift Transportation (US:KNX)2025-10-22 20:07Financial Performance - Third quarter 2025 consolidated total revenue was $1.9 billion, a 2.7% increase from the third quarter of 2024[2] - Net income attributable to Knight-Swift for the third quarter was $7.9 million, a decrease of 74.2% year-over-year, with GAAP earnings per diluted share at $0.05 compared to $0.19 in Q3 2024[3] - Adjusted Operating Income for the third quarter was $106.0 million, a 4.2% increase year-over-year, driven by growth in LTL, warehousing, and leasing businesses[2] - Operating income decreased to $50,326 in Q3 2025 from $81,420 in Q3 2024, representing a decline of 38.2%[33] - The company reported a comprehensive income of $7,765 for Q3 2025, down from $31,459 in Q3 2024[33] - Adjusted EPS for Q3 2025 was $0.32, slightly down from $0.34 in Q3 2024, indicating a decrease of 5.9%[44] - Adjusted Net Income Attributable to Knight-Swift for Q3 2025 was $51,281, compared to $54,447 in Q3 2024, a decline of 5.4%[43] - The company reported impairments of $34,805 in Q3 2025, significantly higher than $1,008 in Q3 2024, indicating increased asset write-downs[43] Segment Performance - LTL segment revenue, excluding fuel surcharge, increased by 21.5% year-over-year, with shipments per day up 14.2%[16] - Truckload segment Adjusted Operating Ratio was 96.2%, with revenue, excluding fuel surcharge, down 2.1% year-over-year[11] - The Logistics segment's Adjusted Operating Ratio improved to 94.3%, with revenue per load increasing by 3.6% year-over-year[19] - Intermodal segment revenue decreased by 8.4% year-over-year to $94.1 million, with an operating loss of $2.3 million, including a $2.5 million impairment charge[20] - All Other Segments revenue increased by 29.9% year-over-year to $88.9 million, while operating income decreased by 46.3% to $6.2 million[21][22] - Total revenue for the Truckload Segment in Q3 2025 was $1,236,634, a decrease of 1.6% from $1,258,156 in Q3 2024[48] - The LTL Segment reported total revenue of $394,501 in Q3 2025, an increase of 21.2% from $325,412 in Q3 2024[52] - The Logistics Segment generated revenue of $140,404 in Q3 2025, a slight decrease of 2.7% from $143,581 in Q3 2024[54] - The Intermodal Segment reported revenue of $94,083 in Q3 2025, a decrease of 8.3% from $102,679 in Q3 2024[54] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the year-to-date period was $543.4 million, an increase of $18.7 million compared to the previous year[23] - As of September 30, 2025, the company had $1.0 billion in unrestricted cash and $7.1 billion in stockholders' equity, with net debt of $2.7 billion[23] - The company anticipates net cash capital expenditures for full-year 2025 to be between $475 million and $525 million, down from a previous range of $525 million to $575 million[23] - Free cash flow for the year-to-date period ending September 30, 2025, was $136,092, after adjusting for cash flows from operations of $543,431[56] Operational Efficiency - The effective tax rate on GAAP results was 47.0% for Q3 2025, compared to 32.0% for Q3 2024[9] - The average age of the tractor fleet in the Truckload segment was 2.7 years, while in the LTL segment it was 3.9 years as of Q3 2025[23] - Operating ratio for Q3 2025 was 93.8%, an improvement from 93.9% in Q3 2024, indicating better operational efficiency[42] - The adjusted operating ratio for the Truckload Segment improved to 96.2% in Q3 2025 from 95.6% in Q3 2024[48] - The adjusted effective tax rate for Q3 2025 was 29.6%, compared to 29.3% in Q3 2024[51] Strategic Initiatives - The company plans to adopt the AAA Cooper brand across its entire LTL business to streamline operations and enhance customer solutions[7] - The company opened one new service center and replaced two with larger sites, achieving an 8.5% growth in door count year-to-date[17] - The company expects a gain on sale of operating assets to be between $18 million and $23 million in Q4 2025[29] - All Other Segments included a loss contingency of $11.2 million related to insurance claims, impacting Adjusted EPS by $0.05[22]