1Q25 EARNINGS PRESENTATION April 29, 2025 1 DISCLOSURE STATEMENT This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are based on information presently available to the Company's management and are current only as ...

Financial Data and Key Metrics Changes - Revenues decreased by 7% year-over-year, with adjusted EPS at negative $0.12, down $0.25 from the previous year [6][23] - Adjusted operating margin was negative 0.3%, and adjusted TTS operating margin was 0.4% net of fuel surcharges [6][23] - Operating cash flow was $29 million for the quarter, representing 4% of total revenue, with free cash flow at $37 million or 5% of total revenues [32] Business Line Data and Key Metrics Changes - Truckload Transportation Services (TTS) total revenue was $502 million, down 9%, with revenues net of fuel surcharges declining 7% to $444 million [24] - Dedicated revenue net of fuel was $279 million, down 7%, representing 64% of TTS trucking revenues [25] - One Way Truckload revenue net of fuel was $154 million, a decrease of 9%, with revenue per truck per week decreasing 3.2% [27] Market Data and Key Metrics Changes - Approximately 10% of total revenues are from cross-border Mexico shipments, with a strong presence in manufacturing, industrial, and food and beverage products [19][20] - The retail vertical accounted for 62% of revenues in 2024, with stable volumes observed across discount retail customers [21] Company Strategy and Development Direction - The company is focused on three priorities: driving growth in core business, operational excellence, and capital efficiency [13][16] - The dedicated business is expected to benefit from supply chain uncertainty in 2025, with a strong pipeline of new contracts [9] - The company plans to increase its cost savings target for 2025 from $25 million to $40 million, aiming for a more cost-efficient operating model [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that first-quarter results did not meet expectations due to elevated insurance costs, extreme weather, and IT spending [5][6] - The company remains optimistic about long-term growth despite current challenges, citing structural improvements and strategic investments [40] - Management highlighted the importance of legislative reform to address nuclear verdicts and insurance claims, which continue to pressure results [58][61] Other Important Information - The company closed a new $300 million credit facility, increasing liquidity to $777 million, up nearly 70% from year-end [32][34] - The average age of the truck and trailer fleet at the end of the first quarter was 2.2 and 5.4 years, respectively [38] Q&A Session Summary Question: Discussion on dedicated margins versus OTR - Management indicated that dedicated margins typically outperform one-way margins, with recent wins expected to improve overall network health [44][46] Question: Insurance concerns and potential resolutions - Management emphasized the need for tort reform and legislative changes to mitigate the impact of nuclear verdicts on insurance costs [57][58] Question: Market capacity and demand issues - Management noted that while demand indicators were strong, tariff uncertainty and network disruptions have created challenges, but they expect capacity attrition to accelerate [66][68] Question: Volume exposure to overseas imports - Approximately 10% of one-way volume is exposed to the West Coast, with management expressing optimism about the resilience of retail customers despite uncertainties [74][80] Question: Performance of recent acquisitions - Management acknowledged that while acquisitions have not yet leveraged expected operating efficiencies, they remain optimistic about customer acceptance and growth [82][84]

Core Insights - Knight-Swift Transportation Holdings Inc. (KNX) reported first-quarter 2025 adjusted earnings of 28 cents per share, exceeding the Zacks Consensus Estimate of 25 cents and showing over 100% year-over-year improvement, although it fell below the guided range of 29-33 cents [1] - Total revenues reached $1.82 billion, surpassing the Zacks Consensus Estimate of $1.81 billion and reflecting a slight year-over-year increase of 0.1% [1] Financial Performance - Total operating expenses decreased by 2.5% year over year to $1.75 billion [2] - Truckload segment revenues totaled $1.04 billion, down 4.2% year over year due to a 5.4% decrease in loaded miles, with adjusted segmental operating income growing 59.7% year over year to $46.48 million [3] - The Less-Than-Truckload (LTL) segment generated revenues of $305.25 million, up 26.7% year over year, driven by a 24.2% increase in shipments per day, although adjusted segmental operating income fell 26.8% year over year to $17.72 million [4] - Logistics segment revenues amounted to $141.62 million, an increase of 11.8% year over year, with adjusted operating income rising 73.4% year over year to $6.30 million [5] - Intermodal revenues totaled $91.1 million, up 3.5% year over year, despite a 1.1% decline in revenue per load [6] - Revenues from all other segments declined 15.9% year over year to $71.56 million due to the winding down of a third-party carrier insurance program [7] Liquidity and Guidance - At the end of the first quarter, cash and cash equivalents were $209.48 million, down from $218.26 million in the prior quarter, while long-term debt decreased to $1.41 billion from $1.44 billion [8] - KNX has revised its second-quarter 2025 adjusted earnings per share guidance to a range of 30-38 cents, down from the previous range of 46-50 cents [9] - Truckload segment revenues are expected to increase in the low single-digit percent sequentially in the second quarter, while LTL segment revenues are projected to grow 25%-30% year over year [10]

Shares of Old Dominion Freight Line (ODFL -7.36%) were falling today in sympathy with a disappointing report from rival Saia, another top less-than-truckload (LTL) carrier.Combined with the report from ODFL the day before, Saia's update is clear evidence that the trade war and weakening economy is already having an effect on the trucking sector.As of 11:58 a.m. ET, Old Dominion stock was down 6.7%, while Saia stock had plunged 29.1%. Trucking demand is weakeningOld Dominion managed to pass muster with its o ...

Financial Data and Key Metrics Changes - Universal reported total operating revenue of $382.4 million for Q1 2025, a decline from $491.9 million in the same period last year [4][14] - Net income was $6 million or $0.23 per share, down from $52.5 million or $1.99 per share year-over-year [13][14] - Operating margin for the quarter was 4.1%, compared to 15.3% in Q1 2024 [14] - EBITDA decreased to $51.7 million from $96.9 million year-over-year, reflecting a significant decline [14] Business Line Data and Key Metrics Changes - **Contract Logistics**: Revenue was $255.9 million with a 9.3% operating margin, down from $313.5 million and 26% margin last year. The decline was attributed to a lack of specialty project revenue and lower auto production volumes [5][15] - **Trucking**: Revenue decreased by 20.2% to $55.6 million, with a 3.9% operating margin, down from 5.3% last year. A 31.3% drop in volumes was noted, although revenue per load excluding fuel surcharges increased by over 24% [7][17] - **Intermodal**: Revenue fell to $70.7 million, resulting in an operating loss of $10.7 million, compared to a loss of $8.3 million last year. The segment faced a 3.4% drop in volumes and an 8.7% decline in rate per load [9][17] Market Data and Key Metrics Changes - The automotive sector showed a sluggish start in January but improved significantly in February and March, with auto production volumes increasing by 29% in February and 67.1% in March compared to January [6][27] - Intermodal volumes also improved, with a 13% increase in February and a 53% increase in March from January [27] Company Strategy and Development Direction - The company is focused on transforming underperforming segments and optimizing operations while maintaining a disciplined growth strategy [10] - There is a commitment to enhancing customer relationships and expanding logistics solutions, particularly in the automotive sector [30][32] - The company is actively monitoring tariff impacts and is prepared to adapt its strategies accordingly [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the transportation and logistics landscape but expressed confidence in the company's resilience and long-term strategic direction [3] - The outlook for the second half of 2025 is expected to improve, driven by increased production and operational adjustments [10][32] - Management noted a significant reduction in automotive inventory levels, which could lead to improved production numbers in the latter half of the year [32] Other Important Information - Capital expenditures for 2025 are projected to be between $100 million and $125 million, with real estate investments between $55 million and $65 million [18] - A quarterly dividend of $1.05 per share was declared, payable on July 1, 2025 [19] Q&A Session Summary Question: Trends with auto OEMs and expectations for the rest of the year - Management noted a slow start in January with a loss, but significant improvements were seen in February and March, indicating a rebound in auto production and logistics volumes [25][27] Question: Inventory management and tariff impacts - A wait-and-see approach is observed among customers regarding inventory and sourcing strategies due to tariff uncertainties [34][35] Question: Geographical dispersion of facilities - The company has a national presence with facilities near major ports and rail networks on both coasts, enhancing its logistics capabilities [37] Question: Potential reduction in imports - Management is aware of a projected 15% reduction in imports starting mid to late May and is monitoring its impact on the intermodal business [39] Question: Impact of flatbed market tightening - The heavy haul business has seen some expansion, but overall pricing in flatbed transportation remains stable without significant upward movement [42]

Core Viewpoint - Saia reported a revenue of $787.58 million for the quarter ended March 2025, reflecting a year-over-year increase of 4.3%, but fell short of the Zacks Consensus Estimate of $810.08 million, resulting in a revenue surprise of -2.78% [1] - The company's EPS was $1.86, significantly lower than the $3.38 reported in the same quarter last year, leading to an EPS surprise of -32.85% against the consensus estimate of $2.77 [1] Financial Performance Metrics - Operating Ratio was reported at 91.1%, which is higher than the five-analyst average estimate of 87.6% [4] - LTL (Less-Than-Truckload) Shipments totaled 2,170, slightly below the three-analyst average estimate of 2,219 [4] - LTL Revenue Per Hundredweight (CWT) was $24.97, exceeding the three-analyst average estimate of $24.75 [4] - LTL pounds per shipment were 1,424, surpassing the three-analyst average estimate of 1,405 [4] - LTL Tonnage was reported at 1,545 KTon, compared to the three-analyst average estimate of 1,558.55 KTon [4] - LTL revenue per CWT, excluding fuel surcharge, was $21.12, lower than the average estimate of $21.50 [4] - LTL revenue per shipment, excluding fuel surcharge, was $300.76, compared to the average estimate of $302.52 [4] - LTL revenue per shipment was $355.48, slightly above the two-analyst average estimate of $353.03 [4] Stock Performance - Saia's shares have returned -5.8% over the past month, compared to a -4.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - Revenue excluding fuel surcharge increased by 1.2% year-over-year, while adjusted operating income improved by 68.2% or $35.1 million year-over-year [20] - GAAP earnings per diluted share for Q1 2025 were $0.19, and adjusted EPS was $0.28 [20] - Consolidated adjusted operating ratio was 94.7%, which was two basis points better than the prior year [20] Business Line Data and Key Metrics Changes - Truckload revenue excluding fuel surcharge decreased by 4.2% year-over-year, driven by a 5.4% decline in loaded miles, partially offset by a 1.5% increase in revenue per loaded mile [23] - LTL business grew revenue excluding fuel surcharge by 26.7% year-over-year, with shipments per day increasing by 24.2% [28] - Logistics revenue increased by 11.8% year-over-year, with revenue per load increasing by 11.7% [34] Market Data and Key Metrics Changes - The truckload market experienced a slowdown in volumes due to severe weather and increased uncertainty among shippers regarding tariffs and trade policies [9][10] - The LTL industry is expected to have less volatility in demand compared to truckload, with significant network expansion positioning the company for differentiated growth [18] Company Strategy and Development Direction - The company is focused on controlling costs and improving operational efficiency, including tightening the equipment fleet and investing in new technology [14][15] - The strategy includes disciplined pricing and intense cost control to navigate potential market volatility [26] - The company plans to continue expanding its LTL network while optimizing operational efficiency [32] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the operating environment, citing uncertainty in trade policies and potential impacts on consumer demand [16][17] - The company is adjusting its earnings guidance for Q2 2025, reflecting a wider range due to the uncertain business conditions [44] - Management remains optimistic about the potential for growth in the LTL segment and is focused on maintaining high service levels while optimizing costs [31][32] Other Important Information - The company opened seven new locations during the quarter, contributing to a 30% growth in daily shipments year-over-year in March [18] - The company is committed to maintaining a strong balance sheet and leveraging its diversified offerings to navigate the current landscape [19] Q&A Session Summary Question: How is the company managing its fleet in light of potential downside scenarios? - Management indicated they are tightening the fleet by selling underutilized tractors and trailers to improve productivity while maintaining flexibility to respond to market needs [52][54] Question: What is the outlook for the LTL segment and potential M&A opportunities? - Management expressed confidence in the LTL segment's growth and indicated that while they are open to M&A, they expect to focus on organic growth in 2025 [67][68] Question: How does the company view the impact of declining container imports on the truckload market? - Management anticipates a weaker May due to declining imports but is preparing to manage capacity and respond to market changes [121][125]

Core Insights - Knight-Swift Transportation Holdings reported a revenue of $1.82 billion for Q1 2025, reflecting a year-over-year increase of 0.1% and an EPS of $0.28, up from $0.12 a year ago, indicating strong earnings growth [1] - The revenue exceeded the Zacks Consensus Estimate of $1.81 billion by 1.03%, while the EPS surpassed the consensus estimate of $0.25 by 12% [1] Financial Performance Metrics - Adjusted Operating Ratio was reported at 94.7%, matching the average estimate from five analysts, while the Operating Ratio was 96.3%, slightly above the average estimate of 95.7% [4] - Revenue excluding truckload and LTL fuel surcharge was $1.63 billion, exceeding the average estimate of $1.60 billion, representing a year-over-year change of 1.3% [4] - LTL Segment revenue, excluding fuel surcharge, was $305.26 million, surpassing the estimated $294.25 million, marking a significant year-over-year increase of 26.7% [4] - Operating revenue for the Intermodal segment was $91.10 million, which was below the estimated $99.98 million but still showed a year-over-year increase of 3.5% [4] - Operating revenue for the LTL segment was $352.40 million, exceeding the average estimate of $337.40 million, reflecting a year-over-year growth of 24.9% [4] - Truckload segment revenue was $1.05 billion, aligning with the average estimate but showing a year-over-year decline of 4.2% [4] Stock Performance - Knight-Swift's shares have returned -11.9% over the past month, underperforming the Zacks S&P 500 composite, which saw a decline of -6.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance in the near term [3]

Core Insights - Covenant Logistics Group reported a decrease in adjusted earnings per share to $0.32 for Q1 2025, down from $0.42 in Q1 2024, primarily due to lower equipment utilization caused by adverse weather and avian influenza outbreaks [2][3] - The company remains optimistic about its strategy and market position, with expectations of revenue growth in its Dedicated, Managed Freight, and Warehousing divisions compared to Q2 2024 [2][3] - A new $50 million stock repurchase program was announced, reflecting the company's confidence in its future [2][15] Financial Performance - Total revenue for Q1 2025 was $269.4 million, a decrease of 3.4% from $278.8 million in Q1 2024 [3][21] - Freight revenue, excluding fuel surcharge, was $243.2 million, down 1.8% from $247.7 million in the prior year [3][21] - Net income increased to $6.6 million in Q1 2025 from $4.0 million in Q1 2024, with diluted earnings per share rising to $0.24 from $0.14 [3][22] Segment Performance - Truckload operations saw total revenue decrease by 0.9% to $188.3 million, with freight revenue growing by 2.0% [5][6] - The Expedited segment's freight revenue decreased by 7.3% to $80.2 million, while the Dedicated segment's freight revenue increased by 13.1% to $82.1 million [5][6] - Managed Freight's revenue fell by 9.6% to $56.9 million, but operating income improved by 35.9% [9][10] - Warehousing segment revenue decreased by 6.0% to $24.0 million, with operating income dropping to $1.0 million [10] Operating Metrics - Operating income for Q1 2025 was $7.6 million, compared to $4.3 million in Q1 2024, with an operating ratio of 97.2% [3][21] - The average freight revenue per tractor per week decreased to $5,416 from $5,651, while average miles per tractor per period fell to 27,521 from 31,201 [4][22] - The company reported a weighted average of 2,331 tractors for the period, an increase from 2,167 in the prior year [4][22] Capitalization and Liquidity - Total indebtedness increased by $5.8 million to approximately $225.4 million as of March 31, 2025 [11][12] - The net indebtedness to total capitalization ratio rose to 33.7% from 33.4% at the end of 2024 [11][12] - Cash and cash equivalents totaled $11.2 million, with available borrowing capacity of $90.1 million under its ABL credit facility [13] Outlook - The company anticipates a gradual improvement in the general freight market, although uncertainties regarding global trade policies may pose challenges [16] - Plans for net capital equipment expenditures for 2025 are projected to be between $55 million and $65 million, subject to change based on growth opportunities [14]

Is Old Dominion stock a buy? Investors should not expect a quick turnaround for this business. Freeman said "there continues to be uncertainty" in the economy, and with the full impact of tariffs only now beginning to hit U.S. ports, there will likely be a further slowdown in domestic trucking up ahead. The good news is Old Dominion has the wherewithal to survive a downturn, and its best-of-class operations should help it to recover along with the economy. But trading at 30 times forward earnings in the fac ...