Back to top

Image: Bigstock

Knight-Swift Q4 Earnings Miss Estimates, Decrease Year Over Year

Read MoreHide Full Article

Key Takeaways

  • KNX reported Q4 EPS of 31 cents, missing estimates and declining 13.8% year over year, below guidance.
  • KNX Q4 revenues of $1.86 million missed the Zacks Consensus Estimate and fell 0.4% year over year.
  • KNX expects its first-quarter 2026 adjusted earnings per share to be in the range of 28-32 cents.

Knight-Swift Transportation Holdings Inc.’s (KNX - Free Report)  fourth-quarter 2025 adjusted earnings of 31 cents per share missed the Zacks Consensus Estimate of 36 cents and declined 13.8% year over year. The reported figure came below the guidedrange of 34-40 cents.

Total revenues of $1.86 million missed the Zacks Consensus Estimate of $1.89 million and fell 0.4% year over year. Revenues, excluding truckload and LTL fuel surcharge, fell 0.6% year over year to $1.66 billion.

Total operating expenses (on a reported basis) grew 2.4% year over year to $1.83 billion.

KNX’s Q4 Segmental Results

Revenues (excluding fuel surcharge and inter-segment transactions) from Truckload totaled $1.08 billion, down 2.4% year over year, owing to a 3.3% decline in loaded miles. Adjusted operating income fell 10.7% year over year, owing to the reduction in miles and the related deleveraging impact on cost per mile. The fourth-quarter adjusted operating ratio was 70 basis points higher year over year.

The Less-Than-Truckload segment generated revenues (excluding fuel surcharges) worth $298.50 million in the fourth quarter, up 7% year over year. Revenues, excluding fuel surcharge, grew 7% year over year as shipments per day rose 2.1% and revenue per hundredweight, excluding fuel surcharge, increased 5%. Adjusted operating income fell 4.8% year over year, and the adjusted operating ratio of 95.1% grew 60 basis points year over year as the sequential slowdown in market demand in the fourth quarter weighed on operating cost per shipment.

Revenues from Logistics (excluding inter-segment transactions) amounted to $159.97 million, down 4.8% year over year, owing to a 1% decline in load count and a 4.1% decrease in revenue per load. Adjusted operating income decreased 36.6% year over year to $6.69 million. The adjusted operating ratio grew 210 bps to 95.8%.

Intermodal revenues (excluding inter-segment transactions) totaled $95.66 million, down 3.4% year over year, owing to an 6% decrease in load count, partially offset by the increase in revenue per load.

Within the All Other Segments, revenues grew 17.6%, and operating loss improved 37.3% year over year, owing to growth in the warehousing and leasing businesses.

Liquidity

Knight-Swift exited the fourth quarter with cash and cash equivalents of $220.42 million compared with $192.67 million at the prior-quarter end. Long-term debt (excluding current maturities) was $1.02 billion compared with $1.05 billion at the end of the prior quarter.

KNX’s Guidance

KNX expects its first-quarter 2026 adjusted earnings per share to be in the range of 28-32 cents. The Zacks Consensus Estimate of 32 cents met the higher end of the guidance.

Truckload segment revenues are expected to be down slightly, with operating margins relatively stable year over year in the first quarter. Tractor count is expected to be stable sequentially. LTL segment revenues, excluding fuel surcharge, are expected to be between 5% and 10% year over year in the first quarter, driven by shipment count growth and yield improvement.

Logistics segment revenues are expected to be down in the low single-digit percent on a year-over-year basis in the first quarter. Intermodal Segment load count is expected to be flat year over year in the first quarter. All Other Segments’ operating income, before including the $11.7 million quarterly intangible asset amortization, is anticipated to be between $22 million and $26 million in the first quarter.

Net interest expense is expected to decline modestly sequentially in the first quarter. Net cash capital expenditures for 2026 are expected to be in the range of $625 million-$675 million. Adjusted tax rate is expected to be between 25% and 26% for the first quarter and for 2026.

Currently, KNX carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q4 Performances of Other Transportation Companies

Delta Air Lines (DAL - Free Report) reported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.

Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown, mainly in the domestic segment, consistent with the company's disclosure last month.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.

Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and Truckload (JBT), respectively, a 1% decrease in average trucks in Dedicated Contract Services (DCS), and a 7% and 2% decline in load volume in Integrated Capacity Solutions (ICS) and JBI, respectively. The decrease in revenue, excluding fuel surcharge revenue, was partially offset by a 15% increase in volume in JBT, a 1% uptick in productivity, excluding fuel surcharge revenue, in DCS, and an increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased 2% year over year.

United Airlines Holdings, Inc. (UAL - Free Report) reported solid fourth-quarter 2025 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate.

UAL's fourth-quarter 2025 adjusted earnings per share (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.

Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year. Passenger revenues (which accounted for 90.4% of the top line) increased 4.9% year over year to $13.9 billion. UAL flights transported 45,679 passengers in the fourth quarter, up 3% year over year. Cargo revenues fell 6% year over year to $490 million. Revenues from other sources rose 9.1% year over year to $981 million.

Published in