Knight-Swift Misses Earnings Estimates as Impairment Charges Weigh on Results

Core Viewpoint - Knight-Swift Transportation reported fourth-quarter adjusted earnings that fell short of analyst expectations, despite revenue meeting forecasts [1] Financial Performance - The company posted adjusted earnings per share of $0.31 for Q4 2025, below the consensus estimate of $0.36 [2] - Revenue totaled $1.9 billion, matching analyst expectations but declining 0.4% year over year [2] - Consolidated operating income dropped 66.1% to $26.5 million, primarily due to $52.9 million in non-cash impairment charges related to the integration of the Abilene truckload brand into Swift operations [2] Segment Analysis - The truckload segment, Knight-Swift's largest business, reported a 2.4% year-over-year decline in revenue excluding fuel surcharges, with loaded miles decreasing by 3.3% [3] - The segment's adjusted operating ratio worsened to 92.9%, an increase of 70 basis points from the prior year [3] Future Outlook - For Q1 2026, Knight-Swift forecasts adjusted earnings per share of $0.28 to $0.32 [4] - Truckload revenue is expected to decline slightly, with operating margins remaining relatively stable compared to the same period last year [4] - Full-year 2026 net cash capital expenditures are projected to range between $625 million and $675 million [4]