Schneider National(SNDR) - 2025 Q3 - Quarterly Results

Financial Performance - Operating revenues for Q3 2025 were $1.452 billion, a 10% increase from $1.316 billion in Q3 2024[5] - Net income for Q3 2025 was $19.4 million, a decrease of 37% compared to $30.6 million in Q3 2024[7] - Adjusted diluted earnings per share for Q3 2025 were $0.12, down 33% from $0.18 in Q3 2024[6] - Operating revenues for Q3 2025 reached $1,452.4 million, a 10.4% increase from $1,315.7 million in Q3 2024[23] - Net income for the nine months ended September 30, 2025, was $81.5 million, compared to $84.4 million for the same period in 2024, reflecting a decrease of 3.4%[23] - The company reported a basic earnings per share of $0.11 for Q3 2025, down from $0.17 in Q3 2024[23] - Adjusted net income for Q3 2025 was $21.7 million, down from $31.5 million in Q3 2024, reflecting a 30.8% decrease[57] - Free cash flow for Q3 2025 was $76.1 million, a decline of 32.8% from $113.4 million in Q3 2024[61] - Adjusted EBITDA for Q3 2025 was $148.9 million, slightly up from $143.8 million in Q3 2024[59] Revenue Segments - Truckload revenues (excluding fuel surcharge) increased by 17% to $624.5 million, driven by a 22% increase in Dedicated volume[10] - Intermodal revenues (excluding fuel surcharge) grew by 6% to $281.4 million, with a volume growth of 10%[12] - Logistics revenues (excluding fuel surcharge) rose by 6% to $332.1 million, primarily due to the acquisition of Cowan Systems[14] - The Truckload segment generated revenues of $624.5 million in Q3 2025, up 17.3% from $532.2 million in Q3 2024[27] - Intermodal segment revenues increased to $281.4 million in Q3 2025, compared to $264.7 million in Q3 2024, marking a growth of 6.3%[27] - Logistics segment revenues for Q3 2025 were $332.1 million, an increase of 5.0% from $313.7 million in Q3 2024[27] - Revenues (excluding fuel surcharge) for Q3 2025 were $1,299.7 million, up 10.3% from $1,177.6 million in Q3 2024[49] - Operating revenues for the nine months ended September 30, 2025, were $4,274.7 million, an increase of 8.2% from $3,951.4 million in the same period of 2024[49] Expenses and Capital Expenditures - Total operating expenses for the nine months ended September 30, 2025, were $4,142.3 million, up from $3,828.6 million in 2024, representing an increase of 8.2%[23] - Total operating expenses for the nine months ended September 30, 2025, were $4,142.3 million, compared to $3,828.6 million in 2024, reflecting a 8.2% increase[54] - Net capital expenditures for 2025 are expected to be approximately $300 million, revised from a previous range of $325 - $375 million[16] Cash and Debt Management - As of September 30, 2025, total debt and finance lease obligations stood at $522.8 million, with cash and cash equivalents of $194.1 million[8] - Cash and cash equivalents increased to $194.1 million as of September 30, 2025, compared to $117.6 million at the end of 2024[24] - The company repurchased 4.1 million Class B shares for $103.9 million under a $150 million stock repurchase program[9] Operational Challenges and Risks - The Company faces risks from unfavorable economic conditions, including inflation and trade disputes, which could impact financial performance[65] - Operational challenges in the truckload and transportation industry include managing cyclical driver shortages and maintaining key customer relationships[65] - The Company is dependent on its reputation and brand equity, with potential risks from adverse publicity affecting customer demand[65] - Fluctuations in fuel prices and the ability to recover fuel costs through surcharge programs are critical to maintaining profitability[65] - The Company must effectively manage capital investments to align with customer demand to avoid financial losses[65] - There are significant risks associated with attracting and retaining qualified drivers and third-party carriers to support service offerings[65] - The Company is exposed to regulatory changes that could increase compliance costs and impact operations[65] - Cybersecurity events and systems disruptions pose risks to operational integrity and financial stability[65] - The Company must adapt to new technologies and competition within the truckload and transportation industry to sustain growth[65] Forward-Looking Statements - Full year 2025 adjusted diluted earnings per share guidance is approximately $0.70, down from prior guidance of $0.75 - $0.95[16] - The Company does not commit to publicly revising forward-looking statements based on future events or circumstances[66]