Schneider National(US:SNDR)2025-05-01 15:32Financial Data and Key Metrics Changes - Enterprise revenues excluding fuel surcharge were $1.26 billion, an 8% increase year over year [20] - Adjusted income from operations was $44 million, a 47% increase year over year [20] - Adjusted diluted earnings per share for the first quarter was $0.16 compared to $0.11 last year [21] - Enterprise adjusted operating ratio improved by 90 basis points compared to the first quarter of 2024 [21] Business Line Data and Key Metrics Changes - Truckload revenues excluding fuel surcharge were $614 million, a 14% increase year over year, primarily due to the acquisition of Cowen and higher dedicated and network revenue per truck per week [21] - Intermodal revenues excluding fuel surcharge were $260 million, a 5% increase year over year due to volume growth and increased revenue per order [22] - Logistics revenues excluding fuel surcharge were $332 million, a 2% increase year over year due to the acquisition of Cowen, partially offset by lower revenue per order [23] Market Data and Key Metrics Changes - The market remains highly competitive with truck network achieving low to mid single-digit percentage increases [11] - Intermodal rates remained largely flat year over year, with increased volume allocations in favorable geographies [12] Company Strategy and Development Direction - The company is focused on optimizing capital allocation across strategic growth drivers of dedicated truck, intermodal, and logistics [8] - A commitment to cost containment across all expense categories is critical to enhance competitive position and margins [14] - The company aims to transition to a more variable cost model by expanding owner-operator relationships [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is resilience in macroeconomic numbers, forward sentiment for customer freight demand is less clear due to tariff-driven uncertainty [13] - The company expects continued year-over-year improvement in results through 2025, despite moderating expectations for earnings improvement [27][28] Other Important Information - The company has established targets of more than $40 million in additional cost reductions across the enterprise [14] - The updated full-year 2025 guidance for adjusted earnings per share is $0.75 to $1, reflecting current trade policy and economic uncertainty [27] Q&A Session Summary Question: What are you seeing regarding the expected deceleration of imports? - Management indicated that intermodal is approximately 15% to 25% tied to imports and expects a drop-off in volume, but new business wins are anticipated to offset this decline [36] Question: Can you characterize the new business wins within intermodal? - New business wins are expected to ramp up in the second quarter, particularly in Mexico, which is seeing strong growth [44][45] Question: What is the outlook for dedicated growth? - Management believes there is still a long runway for dedicated growth, with many customers pivoting from private fleets to common carriers [109] Question: How much of the targeted $40 million cost reductions has been realized? - The company has been managing variable costs tightly and believes the $40 million target is achievable, though it will not be linear throughout the year [111]