Trucking and logistics companies face estimate cuts due to trade uncertainty and inventory building

From Yahoo Finance: 2025-03-26 17:00:00

Susquehanna Financial Group lowers estimates for trucking and logistics companies due to tariff uncertainty and inventory building. Analyst Bascome Majors warns of potential risks to annual pricing and margins in 2H25 and 1H26. Shippers and carriers face margin concerns amid changing trade landscape and pending tariffs.

Majors cuts earnings estimates for Knight-Swift Transportation and Schneider National for the first quarter. Truckload carriers, including Werner Enterprises, see estimate cuts for full-year 2025. Concerns over demand and pricing lead to reductions in 2H and 2026 estimates.

Majors downgrades J.B. Hunt Transport Services, citing a challenging 2025 with potential for stronger growth in 2026. Recent tariff-driven import activity boosts intermodal container volumes. Contractual bid season expected to be positive on major headhaul lanes, offset by softness on backhaul lanes.

Majors predicts a supply shock in 2026 due to changes in trade policy impacting Class 8 tractor prices. Truckload and intermodal demand may grow while the fleet shrinks, leading to price and margin improvements. Contractual rate renewals for 2025 bid season expected to be positive, based on industry feedback.

Read more: Truckload earnings estimates cut as Q1 draws to a close