Knight Swift Transportation : Swift Q1 2025 Earnings Presentation

Published: 2025-04-23 16:09:22 ET KNX

Knight - Swift Transportation

First Quarter 2025

Earnings

Q1 2025 Comparative Results

Solid start to quarter before tariff concerns negatively impacted seasonality

Total Revenue

Revenue xFSC

0.1%

1.2%

1,822

1,824

1,613

1,633

millions

1Q24

1Q25

1Q24

1Q25

Operating Income

Adj. Operating Inc. 1

224.3%

68.2%

1Q24

1Q25

1Q24

1Q25

Net Income

Adj. Net Income 1

129.5%

Earnings Per Share

Adj. EPS 1

133.3%

millions

(3)

1Q24

1Q25

1Q24

1Q25

$0.19

($0.02)

1Q24 1Q25

$0.28

$0.12

1Q24 1Q25

1 See GAAP to non-GAAP reconciliation in the schedules following this presentation

3 (Adj. NI / EPS uses normalized tax rate)

Adjustments

Q1 2025 Segment Overview

Continued year-over-year improvements in TL while LTL grows into our expanded network

Revenue

Adjusted

Q1 2025 Revenue Diversification

xFSC2

Op Income1

OR1

Truckload

$1,048.1M

$46.5M

95.6%

~15,800 irregular route and

~6,100 dedicated tractors

Less-than-

$305.3M

$17.7M

94.2%

173 service centers

Truckload

~6,300 door count

Logistics

$141.6M

$6.3M

95.5%

Gross margin 18.1%

Intermodal

$91.1M

($1.8M)

102.0%

622 tractors

12,546 containers

LTL 18%

Logistics

KNX

Intermodal

Other 4%

1.6B2

Truckload 63%

OTR 45% / Dedicated 18%

Operating Performance - Truckload

Modest improvements in truckload fundamentals drive income growth

Truckload Financial Metrics

Q1 2025

Q1 2024

Change

(Dollars in millions)

Revenue xFSC

$1,048.1

$1,094.1

(4.2 %)

Operating income

$44.6

$23.1

92.7 %

Adjusted Operating Income 1

$46.5

$29.1

59.7 %

Operating ratio

96.3%

98.2%

(190 bps)

Adjusted Operating Ratio 1

95.6%

97.3%

(170 bps)

Truckload Operating Statistics

Q1 2025

Q1 2024

Change

Average revenue per tractor

$47,838

$46,927

1.9 %

Average tractors

21,909

23,314

(6.0 %)

Average trailers

89,567

94,410

(5.1 %)

Miles per tractor

20,049

19,894

0.8 %

Operating Performance - Less-Than-Truckload

Expanded network creating new opportunities and leading to strong shipment growth

LTL Financial Metrics

Q1 2025

Q1 2024

Change

(Dollars in millions)

Revenue xFSC

$305.3

$241.0

26.7 %

Operating income

$12.7

$20.3

(37.4 %)

Adjusted Operating Income 1

$17.7

$24.2

(26.9 %)

Operating ratio

96.4%

92.8%

360 bps

Adjusted Operating Ratio 1

94.2%

90.0%

420 bps

LTL Operating Statistics

Q1 2025

Q1 2024

Change

LTL shipments per day

23,349

18,800

24.2 %

LTL weight per shipment

982

1,007

(2.5 %)

LTL revenue xFSC per hundredweight

$18.48

$16.91

9.3 %

LTL revenue xFSC per shipment

$181.52

$170.40

6.5 %

Three Brands

One Network

ACT, MME, and DHE Locations

One Operating System

Locations Added in Q1 2025

Operating Performance - Logistics

Complementing our truckload business while creating value for our customers

Logistics Financial Metrics

Q1 2025

Q1 2024

Change

(Dollars in millions)

Revenue ex intersegment

$141.6

$126.7

11.8 %

Operating income

$5.1

$2.5

108.0 %

Adjusted Operating Income 1

$6.3

$3.6

73.4 %

Operating ratio

96.4%

98.0%

(160 bps)

Adjusted Operating Ratio 1

95.5%

97.1%

(160 bps)

Logistics Operating Statistics

Q1 2025

Q1 2024

Change

Revenue per load

$1,956

$1,751

11.7 %

Gross margin

18.1%

16.8%

130 bps

Operating Performance - Intermodal

Continued year-over-year improvements in revenue and margin

Intermodal Financial Metrics

Q1 2025

Q1 2024

Change

(Dollars in millions)

Revenue ex intersegment

$91.1

$88.0

3.5 %

Operating (loss)

($1.8)

($4.9)

63.1 %

Operating ratio

102.0%

105.6%

(360 bps)

Intermodal Operating Statistics

Q1 2025

Q1 2024

Change

Average revenue per load

$2,587

$2,615

(1.1 %)

Load count

35,211

33,647

4.6 %

Average tractors

622

609

2.1 %

Average containers

12,546

12,582

(0.3 %)

Operating Performance - All Other Segments

Trailer leasing and warehousing operations providing value to our customers

All Other Financial Metrics

Q1 2025

Q1 2024

Change

(Dollars in millions)

Revenue

$71.6

$85.1

(15.9 %)

Operating profit / (loss)

$6.0

($20.4)

N/A

EPS Guidance

Expect Adjusted EPS to be in the range of $0.30 - $0.38 in Q2

Truckload

Less-than- Truckload

Guidance Assumptions

•Revenue xFSC up low single-digit % sequentially in Q2 with operating margins relatively stable sequentially •Revenue per mile fairly flat sequentially as contract rate improvement is offset by weakness in spot rates •Tractor count down low single-digit % sequentially in Q2 but offset by improvement in miles per tractor

•Revenue, excluding fuel surcharge, growth between 25-30% year-over-year in Q2, driven by shipment count growth from our expanding network, the inclusion of DHE, and yield improvement

•Adjusted OR improving sequentially in Q2, moving to the low 90's as shipment count growth improves optimization, efficiency, and costs absorption

Logistics

Intermodal

Other Areas

•Revenue down low single-digit % sequentially in Q2

•Adjusted operating ratio remains fairly flat with first quarter levels

•Load count and operating margin fairly stable sequentially in Q2

•All Other segments operating income, before including the $11.7M quarterly intangible amortization, approximately $8M to $12M in Q2.

•Gain on sale to be in the range of $18M to $23M in Q2 •Net interest expense fairly stable sequentially in Q2

•Net cash capital expenditures for the full year 2025 expected range of $575M - $625M •Effective tax rate on our adjusted results of approximately 24.5% to 25.5% for the full year 2025

Disclaimer

Knight-Swift Transportation Holdings Inc. published this content on April 23, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2025 at 20:08 UTC.