Knight-Swift eyeing margin improvement in 2026

Core Insights - Knight-Swift Transportation missed fourth-quarter expectations but aims to improve margins in the new year despite not anticipating a lift in volume and rate [1] - The company reported a net loss of $6.8 million, or 4 cents per share, which included $53 million in noncash charges related to restructuring [2] - Adjusted EPS was 31 cents, 5 cents worse year over year and 4 cents below consensus estimates, with a reduction in interest expense providing a slight benefit [3] Financial Performance - Consolidated revenue for the quarter was $1.86 billion, slightly down year over year and just below the $1.9 billion consensus estimate [4] - Adjusted operating income decreased by 5% year over year to $101 million [4] - Truckload revenue fell 2% year over year to $1.08 billion, with a 5% decline in average tractors in service partially offset by a 2% increase in revenue per tractor [5] Market Conditions - Management indicated that they are not ready to declare a definitive market turn, although a reduction in available capacity has tightened the market [6] - The Truckload unit had an adjusted operating ratio of 92.9%, which is 70 basis points worse year over year but 330 basis points better than the third quarter [6] - The legacy Knight-Swift fleets operated at a 91.6% adjusted operating ratio, while U.S. Xpress saw a 430 basis point year-over-year improvement [7]