Knight-Swift Transportation (US:KNX)2026-01-21 21:07Financial Performance - Knight-Swift reported a fourth quarter 2025 net loss of $6.8 million, with an Adjusted Net Income of $50.9 million, compared to a net income of $69.5 million in Q4 2024[1][3] - Consolidated total revenue for Q4 2025 was $1.9 billion, a 0.4% decrease from Q4 2024, while Adjusted Operating Income decreased by 5.3% year-over-year to $100.6 million[2][3] - Operating income for Q4 2025 decreased to $26,457, down 66.0% from $77,953 in Q4 2024[38] - The company reported a comprehensive loss of $7,329 in Q4 2025 compared to a comprehensive income of $68,887 in Q4 2024[38] - Total revenue for Q4 2025 was $1,856,330, a slight decrease from $1,864,281 in Q4 2024, while year-to-date revenue increased to $7,469,689 from $7,410,078[46] - Adjusted Operating Income for Q4 2025 was $100,552, down from $106,133 in Q4 2024, with year-to-date Adjusted Operating Income rising to $396,845 from $347,867[46] - Adjusted EPS for Q4 2025 was $0.31, compared to $0.36 in Q4 2024, while year-to-date Adjusted EPS increased to $1.26 from $1.06[48] Segment Performance - The Truckload segment's revenue, excluding fuel surcharge, decreased by 2.4% year-over-year, with an Adjusted Operating Ratio of 92.9%, reflecting a 330 basis point improvement over Q3 2025[2][11] - LTL segment revenue, excluding fuel surcharge, increased by 7.0% year-over-year, driven by a 2.1% increase in shipments per day and a 5.0% increase in revenue per hundredweight[2][15] - The Logistics segment experienced a 4.8% decrease in revenue year-over-year, with an Adjusted Operating Ratio of 95.8%, a 210 basis point decline from the previous year[2][19] - Intermodal segment revenue decreased by 3.4% year-over-year to $95,663, with an operating loss improved to approximately breakeven, reflecting a 2.8% increase in revenue per load[20] - Truckload segment total revenue for Q4 2025 was $1,221,814, a decrease of 2.2% from $1,249,533 in Q4 2024[52] - LTL segment total revenue increased by 7.2% to $344,752 in Q4 2025 from $321,535 in Q4 2024[55] - Logistics segment revenue for Q4 2025 was $159,971, down 4.8% from $167,991 in Q4 2024[58] Cash Flow and Liquidity - Net cash provided by operating activities for the year ended December 31, 2025, was $1,266,647, an increase of $467,584 compared to 2024[23] - Free Cash Flow for the year ended December 31, 2025, was $763.2 million, supported by $1.3 billion in operating cash flows[25] - As of December 31, 2025, the company had $1.1 billion in unrestricted cash and available liquidity, with a net debt of $2.1 billion[25] - Free cash flow for the year-to-date period ending December 31, 2025, was $763,228, reflecting strong operational cash flows[61] Tax and Impairment - The effective tax rate on GAAP results for Q4 2025 was 21.6%, up from 13.4% in Q4 2024, indicating increased tax liabilities[4][9] - Knight-Swift combined its Abilene truckload brand into the Swift business, resulting in $52.9 million of non-cash impairment charges[1][4] - The company reported impairments of $52,891 in Q4 2025, significantly higher than $8,145 in Q4 2024, indicating potential challenges in asset valuation[47] Future Outlook - The company plans to focus on cost control, service quality, and expanding its network to drive future growth opportunities[5][6] - Expected net cash capital expenditures for full-year 2026 are projected to be between $625 million and $675 million, primarily for replacements and investments in technology[26] - Adjusted EPS guidance for the first quarter of 2026 is expected to range from $0.28 to $0.32, assuming stable market conditions[28] - Operating income for All Other Segments, excluding intangible asset amortization, is projected to be between $22 million and $26 million in the first quarter[29] - The company anticipates a gain on sale of operating assets in the range of $7 million to $12 million in the first quarter[33] - The effective tax rate on adjusted income before taxes is expected to be approximately 25% to 26% for the first quarter and for the full year 2026[33] Operational Metrics - Average revenue per tractor in the Truckload segment increased by 2.3% to $50,893 in Q4 2025 from $49,726 in Q4 2024[41] - Shipments per day in the LTL segment increased by 2.1% to 22,340 in Q4 2025 compared to 21,870 in Q4 2024[41] - Average length of haul in the LTL segment increased by 12.4% to 680 miles in Q4 2025 from 605 miles in Q4 2024[41] - The LTL tractor fleet included 649 tractors in Q4 2025, up from 638 in Q4 2024, while the LTL trailer fleet increased to 1,227 from 1,009 in the same period[43] Operational Efficiency - The operating ratio for Q4 2025 was 98.6%, compared to 95.8% in Q4 2024, indicating a decline in operational efficiency[46] - The adjusted operating ratio for the Truckload segment improved to 92.9% in Q4 2025 from 92.2% in Q4 2024[52] - The adjusted operating ratio for the LTL segment was 95.1% in Q4 2025, compared to 94.5% in Q4 2024[55] - Adjusted operating income for the Truckload segment in Q4 2025 was $76,739, down 10.7% from $85,969 in Q4 2024[52] - Adjusted operating income for the LTL segment was $14,490 in Q4 2025, a decrease of 4.8% compared to $15,216 in Q4 2024[55] - Adjusted operating income for the Logistics segment decreased to $6,696 in Q4 2025 from $10,560 in Q4 2024[58] Non-GAAP Measures - The company plans to continue focusing on non-GAAP financial measures to provide a clearer picture of core operating performance, despite the limitations of these measures[45]