Latest news with #Truckload
Yahoo
a day ago
- Business
- Yahoo
5 Revealing Analyst Questions From Knight-Swift Transportation's Q2 Earnings Call
Knight-Swift Transportation's second quarter results were driven by a combination of ongoing softness in freight demand and the company's response to volatile trade dynamics. Management attributed the stable revenue performance to a flexible over-the-road network, disciplined cost reductions, and margin improvement, particularly in the Truckload segment. CEO Adam Miller noted that while the anticipated surge in import-driven freight did not materialize, the company's ability to adapt its fleet and contain costs prevented a deeper revenue decline. The growing contribution from the U.S. Xpress brand and a steady expansion of the less-than-truckload (LTL) network also supported the quarter's results. Is now the time to buy KNX? Find out in our full research report (it's free). Knight-Swift Transportation (KNX) Q2 CY2025 Highlights: Revenue: $1.86 billion vs analyst estimates of $1.87 billion (flat year on year, in line) Adjusted EPS: $0.35 vs analyst estimates of $0.33 (5.1% beat) Adjusted EBITDA: $280.3 million vs analyst estimates of $281.1 million (15.1% margin, in line) Adjusted EPS guidance for Q3 CY2025 is $0.39 at the midpoint, above analyst estimates of $0.38 Operating Margin: 3.9%, in line with the same quarter last year Sales Volumes fell 2.9% year on year (38.8% in the same quarter last year) Market Capitalization: $7.03 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Our Top 5 Analyst Questions Knight-Swift Transportation's Q2 Earnings Call Chris Wetherbee (Wells Fargo) asked about supply-demand equilibrium and the impact of inventory overhangs. CEO Adam Miller noted ongoing capacity exit from the market, but said demand remains stable, making forecasting difficult in the near term. Daniel Imbro (Stephens) requested clarity on mid-cycle Truckload margins. Miller emphasized disciplined cost control and flexibility, expecting margins to normalize as demand improves. CFO Andrew Hess highlighted Knight-Swift's enhanced position for large-scale one-way service. Ken Hoexter (Bank of America) asked about LTL share gains and margin normalization. Miller explained that recent expansion and integration efforts have created cost headwinds, but ongoing initiatives aim to optimize the network and restore margins. Richa Harnain (Deutsche Bank) inquired about further cost savings in Truckload. Hess detailed the company's use of lean management, proactive safety practices, and technology to drive additional fixed and variable cost reductions. Ariel Rosa (Citigroup) questioned the impact of brokers and price transparency. Miller said digital tools and third-party data have increased market efficiency, accelerating cycles but not fundamentally altering Knight-Swift's margin potential. Catalysts in Upcoming Quarters Looking to the remainder of the year, the StockStory team will monitor (1) Knight-Swift's progress in realizing LTL margin improvement through technology and network optimization, (2) the pace of incremental cost savings from automation and cross-segment fleet management, and (3) signs of freight volume recovery or tightening capacity, especially in peak season discussions with customers. Execution in these areas will be critical for future earnings growth. Knight-Swift Transportation currently trades at $43.36, down from $45.66 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Our Favorite Stocks Right Now When Trump unveiled his aggressive tariff plan in April 2024, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
TFI International Inc (TFII) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue Before Fuel Surcharge: $1.8 billion, down from $2 billion a year earlier. Operating Income: $170 million, representing a 9.5% margin. Adjusted Net Income: $112 million, compared to $146 million last year. Adjusted EPS: $1.34, down from $1.71. Net Cash from Operating Activities: $247 million, virtually flat with the prior year. Free Cash Flow: $182 million, up from $151 million in the second quarter of 2024. LTL Revenue Before Fuel Surcharge: $704 million, down 11% year over year. LTL Operating Income: $74 million, compared to $110 million in the prior year. LTL Operating Ratio: 89.5%, compared to 86.2% in the second quarter of 2024. Truckload Revenue Before Fuel Surcharge: $712 million, compared to $738 million a year earlier. Truckload Operating Income: $71 million, versus $81 million in the prior year. Truckload Operating Ratio: 90.1%, relative to 89% in the second quarter of 2024. Logistics Revenue Before Fuel Surcharge: $393 million, down from $442 million in the prior year. Logistics Operating Income: $38 million, compared to $51 million. Logistics Operating Margin: 9.6%, compared to 11.4% in the prior year second quarter. Funded Debt-to-EBITDA Ratio: 2.4 times. Share Repurchases: $85 million worth of shares repurchased during the quarter. Dividends Paid: $39 million, totaling $124 million of capital returned to shareholders. Third Quarter 2025 EPS Outlook: Expected range of $1.10 to $1.25. Net CapEx Expectation for Full Year: Approximately $200 million. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TFI International Inc (NYSE:TFII) reported strong free cash flow of $182 million, significantly above the previous year's $151 million. The company maintained a strong balance sheet and further strengthened it through a private placement bond offering. TFI International Inc (NYSE:TFII) achieved a 9.5% operating margin, an improvement from the previous year's 2.5%. The company repurchased $85 million worth of shares and paid out $39 million in dividends, returning a total of $124 million to shareholders. TFI International Inc (NYSE:TFII) implemented technology tools like Optum to improve efficiencies and reduce costs, particularly in linehaul operations. Negative Points Total revenue before fuel surcharge decreased to $1.8 billion from $2 billion a year earlier. Adjusted net income fell to $112 million from $146 million in the previous year, with adjusted EPS dropping from $1.71 to $1.34. The LTL segment saw a decline in revenue and operating income, with an operating ratio increase from 86.2% to 89.5%. Truckload segment revenue and operating income also decreased, with tariff-related uncertainties affecting demand. Logistics segment revenue and operating income declined, with a decrease in operating margin from 11.4% to 9.6%. Q & A Highlights Q: Can you remind us what is the margin ceiling you can achieve with further internal actions before the cycle starts to help you out on the LTL side? A: Alain Bedard, CEO, explained that TFI is very cost-sensitive and has implemented tools like Optum for linehaul and P&D to reduce costs. They have reduced linehaul miles on the rail from over 30% to closer to 20% and aim to further decrease this. Improvements in claims and safety are also targeted, with new hires to enhance safety culture. AI is being explored to reduce labor intensity and costs. Q: Can you give us a little more color on the Q3 guidance, $1.10 to $1.25, and the margin assumptions there? A: David Saperstein, CFO, stated that the guidance is based on historical seasonality, with expected sequential declines in margins across divisions. The company aims to offset some of this with idiosyncratic opportunities. Q: Are you seeing any signs that the macro environment could start to improve in the front half of '26? A: Alain Bedard, CEO, expressed optimism that the new US budget could revive industrial investment, potentially ending the freight recession. However, concrete improvements have not yet been seen, and any recovery might be more evident in late '25 or early '26. Q: Can you talk about the sustainability of the free cash flow? A: Alain Bedard, CEO, emphasized TFI's strong cash generation, even in difficult macro conditions. The company aims to maintain this by focusing on asset-light models, particularly in the US, and expects free cash flow to potentially reach close to $1 billion in a normal environment. Q: Are there any plans for M&A in the LTL sector, given the improvements seen this quarter? A: Alain Bedard, CEO, stated that while M&A for LTL is not currently on the table, the company aims to prove control over TForce Freight first. If successful, they might consider larger transactions in 2026, but for now, they focus on buying back TFI shares. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
TFI International Inc (TFII) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue Before Fuel Surcharge: $1.8 billion, down from $2 billion a year earlier. Operating Income: $170 million, representing a 9.5% margin. Adjusted Net Income: $112 million, compared to $146 million last year. Adjusted EPS: $1.34, down from $1.71. Net Cash from Operating Activities: $247 million, virtually flat with the prior year. Free Cash Flow: $182 million, up from $151 million in the second quarter of 2024. LTL Revenue Before Fuel Surcharge: $704 million, down 11% year over year. LTL Operating Income: $74 million, compared to $110 million in the prior year. LTL Operating Ratio: 89.5%, compared to 86.2% in the second quarter of 2024. Truckload Revenue Before Fuel Surcharge: $712 million, compared to $738 million a year earlier. Truckload Operating Income: $71 million, versus $81 million in the prior year. Truckload Operating Ratio: 90.1%, relative to 89% in the second quarter of 2024. Logistics Revenue Before Fuel Surcharge: $393 million, down from $442 million in the prior year. Logistics Operating Income: $38 million, compared to $51 million. Logistics Operating Margin: 9.6%, compared to 11.4% in the prior year second quarter. Funded Debt-to-EBITDA Ratio: 2.4 times. Share Repurchases: $85 million worth of shares repurchased during the quarter. Dividends Paid: $39 million, totaling $124 million of capital returned to shareholders. Third Quarter 2025 EPS Outlook: Expected range of $1.10 to $1.25. Net CapEx Expectation for Full Year: Approximately $200 million. Release Date: July 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points TFI International Inc (NYSE:TFII) reported strong free cash flow of $182 million, significantly above the previous year's $151 million. The company maintained a strong balance sheet and further strengthened it through a private placement bond offering. TFI International Inc (NYSE:TFII) achieved a 9.5% operating margin, an improvement from the previous year's 2.5%. The company repurchased $85 million worth of shares and paid out $39 million in dividends, returning a total of $124 million to shareholders. TFI International Inc (NYSE:TFII) implemented technology tools like Optum to improve efficiencies and reduce costs, particularly in linehaul operations. Negative Points Total revenue before fuel surcharge decreased to $1.8 billion from $2 billion a year earlier. Adjusted net income fell to $112 million from $146 million in the previous year, with adjusted EPS dropping from $1.71 to $1.34. The LTL segment saw a decline in revenue and operating income, with an operating ratio increase from 86.2% to 89.5%. Truckload segment revenue and operating income also decreased, with tariff-related uncertainties affecting demand. Logistics segment revenue and operating income declined, with a decrease in operating margin from 11.4% to 9.6%. Q & A Highlights Q: Can you remind us what is the margin ceiling you can achieve with further internal actions before the cycle starts to help you out on the LTL side? A: Alain Bedard, CEO, explained that TFI is very cost-sensitive and has implemented tools like Optum for linehaul and P&D to reduce costs. They have reduced linehaul miles on the rail from over 30% to closer to 20% and aim to further decrease this. Improvements in claims and safety are also targeted, with new hires to enhance safety culture. AI is being explored to reduce labor intensity and costs. Q: Can you give us a little more color on the Q3 guidance, $1.10 to $1.25, and the margin assumptions there? A: David Saperstein, CFO, stated that the guidance is based on historical seasonality, with expected sequential declines in margins across divisions. The company aims to offset some of this with idiosyncratic opportunities. Q: Are you seeing any signs that the macro environment could start to improve in the front half of '26? A: Alain Bedard, CEO, expressed optimism that the new US budget could revive industrial investment, potentially ending the freight recession. However, concrete improvements have not yet been seen, and any recovery might be more evident in late '25 or early '26. Q: Can you talk about the sustainability of the free cash flow? A: Alain Bedard, CEO, emphasized TFI's strong cash generation, even in difficult macro conditions. The company aims to maintain this by focusing on asset-light models, particularly in the US, and expects free cash flow to potentially reach close to $1 billion in a normal environment. Q: Are there any plans for M&A in the LTL sector, given the improvements seen this quarter? A: Alain Bedard, CEO, stated that while M&A for LTL is not currently on the table, the company aims to prove control over TForce Freight first. If successful, they might consider larger transactions in 2026, but for now, they focus on buying back TFI shares. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
A smaller Marten turns in a second quarter of 2025 much like a year earlier
Marten Transport turned in a second quarter performance that by various metrics was an echo of the corresponding quarter of 2024, but it did so on a base that reflected a somewhat smaller company. Compared to the second quarter of 2024, Marten's revenue was down 6.6%. Its total number of tractors declined 6.3%. Total trailers were down 6.8%. It drove fewer miles in both its Truckload and Dedicated segments. End result: net income was down about 9%. But there were several operating measures that showed improvement. Marten's operating ratio (OR) net of fuel in its Truckload segment, its largest by revenue, improved 120 basis points to 97.8% from 99%. Its Dedicated segment did see a deterioration in its OR, but it was only down 60 bps to 92.4% from 91.8%. There was deterioration in the OR for its intermodal segment (down 180 bps to 106.3%) and its brokerage segment (down 90 bps to 93.2%). The net result was where the year-on-year comparison looks most similar. Marten's (NASDAQ: MRTN) company-wide OR in the second quarter of 2025 net of fuel was 95.2%. A year earlier, it was 95.3%. There's another financial metric in the report signaling that Marten has strengthened its business in one respect: its balance sheet, which shows cash and cash equivalent on hand at $35 million at the end of the quarter, up from $17.3 million just since the end of 2024. The somewhat smaller size of Marten can also be seen in its figure for salaries, wages and benefits. They declined to $78.6 million from $86.5 million a year ago. For the six months, the number is down to $157.4 million compared to $175.3 million in the first half of 2024. One expenditure that barely changed over the last year: purchased transportation. It was $43.1 million in the quarter, down from $43.2 million a year earlier. That suggests Marten moved a larger percentage of its freight with independent owner operators, given the decline in salaries and wages. In his prepared remarks–Marten does not conduct an earnings call with analysts–Executive Chairman Randolph Marten focused on the company's Dedicated and Brokerage segments for the last six months and full year, though he did not specifically mention the quarterly performance of those segments. 'Our unique multifaceted business model's value continued to be highlighted by the operating results of our dedicated and brokerage operations for the first six months of this year and throughout last year,' he said in his remarks. But for the quarter, operating income at Dedicated and Brokerage were significantly lower on a year-to-year comparison. Dedicated dropped 18.4% year over year, to an operating income of $5.43 million from a year earlier. Brokerage fell 6.8% to operating income of $2.7 million. For the six months, Dedicated's operating income was down 35.4% and Brokerage was down 13.1%. Truckload increased 27.4%. However, on an outright dollar basis, although Truckload produced about 40% of the company's operating revenue, Dedicated and Brokerage each produced more dollars of operating income. And both had lower ORs than Truckload. Dedicated's operating income of $5.42 million was about 230% of Truckload's, and Brokerage of $2.89 million was about 115% of Truckload, which came in at $2.34 million. Brokerage also increased its operations. For the six months, brokerage loads rose 4%. They were up 6.1% for the second quarter. Marten released its earnings while equity markets were open, which is unusual for any public company. Marten's stock showed no outright reaction to the earnings release. ,At approximately 3 p.m., it was up just 0.15%, or 2 cents, to $13.15. It has been a tough year for Marten shareholders. In the last 52 weeks, Marten stock is down about 28.5%, though in the last 3 months it is up 2.25%, per Barchart data. Randolph Marten acknowledged the market that it continues to face in its operations. 'Our earnings have continued to be heavily pressured by the considerable duration and depth of the freight market recession's oversupply and weak demand – and the cumulative impact of inflationary operating costs, freight rate reductions and freight network disruptions,' he said in the prepared statement. Most of the expenses listed by Marten in its earnings report were not noticeably higher with one exception: insurance. Second quarter insurance and claims expenses rose to $15.85 million from $12.56 million a year earlier. For the six months, the comparison was $29.23 million in the first half of 2025 and $24.22 million last year. There is a growing theme in the trucking segment that a bottom may have been reached because of an expected drop in capacity as a result of federal enforcement of regulations regarding a driver's ability to speak English. Marten addressed that in his prepared remarks. 'We remain focused on minimizing the freight market's impact – and the impact of the U.S. and global economies with the current trade policy volatility – while investing in and positioning our operations to capitalize on profitable organic growth opportunities,' Marten said. 'We expect such growth opportunities to be positively impacted by anticipated additional industry capacity exits relating to increased enforcement of the English Language Proficiency and B-1 visa regulations.' More articles by John Kingston Another broker liability case knocks at Supreme Court door, this one involving C.H. Robinson Werner loses again on issue of deaf driver, but dollar amounts are a lot lower XPO rating cut by S&P, agency cites continuing weak freight market The post A smaller Marten turns in a second quarter of 2025 much like a year earlier appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Schneider National Inc (SNDR) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Enterprise Revenue (excluding fuel surcharge): $1.26 billion, up 8% year over year. Adjusted Income from Operations: $44 million, a 47% increase year over year. Adjusted Operating Ratio: Improved by 90 basis points compared to Q1 2024. Adjusted Diluted Earnings Per Share: $0.16, compared to $0.11 last year. Truckload Revenue (excluding fuel surcharge): $614 million, 14% increase year over year. Truckload Operating Income: $25 million, up nearly 70% year over year. Truckload Operating Ratio: 95.9%, improved by 130 basis points compared to Q1 2024. Intermodal Revenue (excluding fuel surcharge): $260 million, 5% increase year over year. Intermodal Operating Income: $14 million, a 97% increase year over year. Intermodal Operating Ratio: 94.7%, improved by 250 basis points compared to Q1 2024. Logistics Revenue (excluding fuel surcharge): $332 million, 2% increase year over year. Logistics Operating Income: $8 million, a 50% increase year over year. Logistics Operating Ratio: 97.6%, improved by 70 basis points compared to Q1 2024. Total Debt and Finance Lease Obligations: $577 million. Cash and Cash Equivalents: $106 million. Net Debt Leverage: 0.8 times at the end of the quarter. Net Capital Expenditures: $97 million, compared to $112 million last year. Free Cash Flow: Increased by approximately $9 million compared to Q1 2024. Full Year 2025 EPS Guidance: $0.75 to $1. Full Year 2025 Net CapEx Guidance: $325 million to $375 million, down from $400 million to $450 million previously. Warning! GuruFocus has detected 6 Warning Signs with SNDR. Release Date: May 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Schneider National Inc (NYSE:SNDR) reported an 8% increase in enterprise revenues excluding fuel surcharge, reaching $1.26 billion compared to the previous year. The acquisition of Cowan Systems has been immediately accretive, contributing to a 14% increase in Truckload revenues and a 70% improvement in Truckload operating income year over year. Intermodal segment nearly doubled its earnings compared to the previous year, driven by a 4% order growth and increased shipping activity in the west of Mexico. Logistics segment improved earnings by 50% year over year, supported by effective net revenue management and the strength of the Power Only offering. The company has established a target of more than $40 million in additional cost reductions across the enterprise, focusing on AI-based digital assistant technologies and digital employee models to enhance productivity. Schneider National Inc (NYSE:SNDR) faces elevated churn in the second and third quarters due to select dedicated operations moving to network-based solutions and a more competitive landscape. The company anticipates lower net truck growth than originally expected due to asset efficiency actions and competitive pressures. Intermodal rates remained largely flat year over year, indicating challenges in achieving significant pricing improvements. The company is experiencing a more competitive environment in the dedicated segment, particularly in standard equipment, which may impact fleet growth. Schneider National Inc (NYSE:SNDR) has lowered its expectations for fleet growth and pricing improvements for the remainder of the year due to moderating economic conditions and trade policy uncertainties. Q: What are Schneider National's expectations regarding the deceleration of imports and its impact on the business? A: James Filter, Executive Vice President and Group President of Transportation and Logistics, explained that while Schneider does not move international boxes, about 15% to 25% of their Intermodal business is tied to imports. They anticipate some volume drop-off but expect new business wins to offset this decline. He also mentioned the potential for a "bullwhip" effect, where a drop in imports could lead to capacity exiting the market, potentially causing a rapid restart of imports with less capacity. Darrell Campbell, CFO, added that while tariffs have impacted volumes, new business wins are expected to offset these effects in the near term. Q: Can you provide more details on the new business wins within Intermodal and the competitive pressures in the dedicated segment? A: Mark Rourke, CEO, stated that Schneider had a successful first quarter in terms of commercial success in Intermodal, with new business wins expected to be implemented in the second quarter. He noted that Mexico has been a strong area for growth. In the dedicated segment, the most competitive environment is in standard equipment, but Schneider focuses on areas with differentiation, such as private fleet conversions and specialty equipment. Q: How does Schneider view the potential for earnings growth throughout 2025? A: Darrell Campbell, CFO, indicated that while they do not provide quarterly guidance, they expect year-over-year growth in price and margin for the remainder of the year. However, they have tempered expectations for earnings improvement due to current trade policy and economic uncertainty. Q: What is Schneider's approach to managing dedicated fleet growth amid competitive pressures? A: Mark Rourke, CEO, explained that while they expect to cover churn with new business, they are also focusing on driving efficiency within their dedicated portfolio. This includes actions like slip seating and tractor sharing, which will reduce net tractor growth but improve efficiency. Q: How is Schneider addressing cost containment and what impact is expected from digital tools and automation? A: Darrell Campbell, CFO, mentioned that Schneider has targeted more than $40 million in cost reductions across the enterprise, including investments in digital tools and automation. These efforts are expected to enhance productivity and are part of a broader strategy to manage costs effectively. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
