Schneider Earnings in Line, Revenues Miss Estimates in Q4

Core Insights - Schneider National, Inc. (SNDR) reported fourth-quarter 2024 earnings per share (EPS) of 20 cents, meeting the Zacks Consensus Estimate and reflecting a 25% improvement year-over-year [1] Financial Performance - Operating revenues for Q4 2024 were $1.33 billion, missing the Zacks Consensus Estimate of $1.38 billion and declining 2.4% year-over-year; revenues excluding fuel surcharge increased by 1% to $1.20 billion [2] - Adjusted income from operations grew 38% year-over-year to $45 million [2] Segment Performance - Truckload revenues (excluding fuel surcharge) reached $560.1 million, up 2% year-over-year, driven by the acquisition of Cowan Systems and organic growth, despite lower Network volumes; truckload revenue per truck per week was $4,100, a 1.1% increase year-over-year [3] - Truckload income from operations was $19.8 million, a 5% increase year-over-year, with an operating ratio of 96.5% compared to 96.6% in the prior year [4] - Intermodal revenues (excluding fuel surcharge) were $276.2 million, up 6% year-over-year, supported by a 3% volume growth and a 2% increase in revenue per order to $2,536 [5] - Intermodal income from operations surged 177% year-over-year to $17.2 million, with an improved operating ratio of 93.8% from 97.6% in the previous year [6] - Logistics revenues (excluding fuel surcharge) were $323.9 million, down 5% year-over-year, attributed to lower brokerage revenue and volumes; however, logistics income from operations increased 39% year-over-year to $8.5 million [7][8] Liquidity and Cash Flow - At the end of Q4 2024, cash and cash equivalents stood at $117.6 million, down from $179 million in the prior quarter; long-term debt increased to $420.8 million from $124.7 million [9] - Cash generated from operations was $199.5 million, with free cash flow totaling $93.8 million and net capital expenditures at $105.7 million [9] Shareholder Returns - In February 2023, SNDR approved a $150 million stock repurchase program, repurchasing 3.8 million Class B shares for $95.5 million by December 31, 2024 [10] - The company returned $66.6 million to shareholders in dividends year-to-date for 2024 [12] 2025 Outlook - For 2025, SNDR anticipates adjusted EPS in the range of $0.90 to $1.20, with a Zacks Consensus Estimate of $1.13; the company expects continued improvement in freight market conditions leading to revenue and earnings growth [13] - Projected net capital expenditures for 2025 are between $400 million and $450 million [13] - The effective tax rate for the full year is expected to be between 23% and 24% [14]