Knight-Swift Transportation faces challenges from trade uncertainties impacting customer decision making

From Yahoo Finance: 2025-04-23 20:35:00

Knight-Swift Transportation revised its second-quarter outlook and did not issue third-quarter guidance due to trade policy uncertainties impacting customer decision making. The company exceeded first-quarter earnings expectations, with adjusted EPS at 28 cents, higher than the consensus estimate and year over year. Analysts cut earnings expectations for trucking companies as the quarter ended.

CEO Adam Miller cited trade uncertainty affecting first-quarter momentum, with some customers adopting a wait-and-see approach. Truckload demand in early April mirrored first-quarter levels. Second-quarter adjusted EPS guidance was lowered to 30-38 cents from 46-50 cents, with a consensus estimate of 40 cents. The company will provide a third-quarter guidance in July.

Knight-Swift’s truckload unit reported a 4% y/y revenue decline to $1.05 billion but saw a 2% increase in revenue per tractor. The company continues to optimize fleet count for higher utilization rates. The less-than-truckload segment reported a 27% y/y revenue increase to $305 million, with contractual renewals averaging mid-single-digit increases. Operating ratio for the segment deteriorated to 94.2% y/y.

The logistics unit saw a 12% y/y revenue increase, driven by higher revenue per load. The intermodal segment booked an operating loss for an eighth consecutive quarter. Shares of KNX were down 3% in after-hours trading. Management is focused on cost reduction and asset optimization to improve margins across business segments.

Read more: Knight-Swift grappling with tariff-spooked customers in bid season