Schneider National (SNDR) investor relations material

Market and demand trends

• Second quarter did not see the expected pull forward in demand; July started slow but ended above seasonal expectations, while August was steady but slightly sub-seasonal.

• Intermodal peak season may ramp down earlier than usual, with inventory location influencing inland moves.

• Contractual truckload rates remain in the mid-single-digit increase range, with more flexibility in the spot market for Q4 opportunities.

• Project business and demand pockets are similar to last year, with potential to outperform depending on total demand.

• Strategic customer discussions for 2026 are ongoing, focusing on goals and expectations rather than pricing or allocation.

Business strategy and operations

• Dedicated trucking is the long-term focus, with 70% of trucks in dedicated configurations under three- to five-year contracts.

• Dedicated segment has experienced higher churn this year, mainly from customers shifting to network solutions for price advantages.

• Despite churn, retention rates in dedicated remain above 90%, and the pipeline for new business is strong, indicating a return to growth.

• Private fleet growth has slowed, with more opportunities for dedicated conversions or augmentations as insurance and operational pressures mount.

• Focus is on durable, value-added dedicated solutions rather than generic offerings.

Industry capacity and regulatory environment

• Enforcement of existing rules, especially regarding B1 drivers and English language requirements, is reducing capacity and deterring shadow operators.

• New truck orders have been below replacement levels, signaling tightening supply.

• Barriers to entry remain low, but enforcement and industry initiatives, such as attracting more female drivers, are changing dynamics.