Schneider (SNDR) Q2 Revenue Up 7.9%

Core Insights - Schneider National reported Q2 2025 earnings with GAAP revenue of $1,420.5 million, slightly exceeding analyst estimates of $1,412.24 million, and adjusted diluted EPS of $0.21, above the consensus of $0.20, indicating operational resilience despite market challenges [1][2][5] Financial Performance - Adjusted EPS remained flat at $0.21 compared to Q2 2024, while revenue increased by 7.9% year-over-year from $1,316.7 million [2][5] - Operating income rose to $55.0 million, a 7.8% increase, and net income reached $36.0 million, up 2% from the previous year [2][5] - Wage and benefit costs increased by 13.3% year-over-year, totaling $399.3 million, while cash and cash equivalents improved to $160.7 million [10] Business Segments Overview - The Truckload segment saw a 15% revenue increase year-over-year, driven by the integration of Cowan Systems and a 27% rise in average truck count [6][11] - Intermodal segment revenue grew by 5%, with a 10% increase in income from operations, supported by new business wins [7][12] - Logistics segment experienced a 7% revenue growth but faced a 29% decline in income from operations due to lower brokerage volume [8][13] Strategic Focus and Initiatives - The company is focused on expanding its portfolio through acquisitions and investing in technology, particularly artificial intelligence, to enhance efficiency and manage costs [4][14] - The acquisition of Cowan Systems has bolstered the Dedicated Truckload business, contributing to fleet growth and operational improvements [4][11] - Management aims for $40 million in annualized savings from technology investments, emphasizing cost reduction and productivity [14] Guidance and Future Outlook - Updated guidance for FY2025 adjusted diluted EPS is now projected at $0.75–$0.95, reflecting continued growth expectations [15] - Net capital expenditures are targeted between $325–$375 million for the full year, with an effective tax rate projected at 23.0% to 24.0% [15] - Ongoing challenges include trade-policy uncertainty, high industry capacity, and wage inflation, with a focus on pricing recovery and strategic acquisitions [16]