Knight-Swift Transportation (KNX) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income attributable to Knight-Swift was $30.6M, up 1262.8% year-over-year, with adjusted net income of $45.4M and adjusted EPS of $0.28, driven by margin gains and LTL expansion despite integration costs and market uncertainty.

• Consolidated revenue was $1.82B, up 0.1% year-over-year; operating income rose 224.3% to $66.7M, and adjusted operating income increased 68.2% to $87M.

• LTL segment revenue grew 26.7% year-over-year, with shipment volume up 24.2%, but adjusted operating income declined 26.8% due to DHE integration and start-up costs.

• Truckload segment saw adjusted operating income up 59.7% year-over-year, with improved utilization and the first post-acquisition profit for U.S. Xpress.

• Weather disruptions and trade policy uncertainty impacted March activity, but cost controls, asset optimization, and technology investments supported results.

Financial highlights

• Total revenue was $1.82B, nearly flat year-over-year; revenue excluding fuel surcharge was $1.63B, up 1.2%.

• Adjusted net income was $45.4M, up 129.5% year-over-year; GAAP EPS was $0.19, adjusted EPS was $0.28.

• Adjusted operating income increased 68.2% to $87M; adjusted operating ratio improved to 94.7% from 96.8%.

• Free cash flow for the quarter was $70.0M; operating cash flow was $109.4M; net capital expenditures were $39.4M.

• Quarterly dividend increased to $0.18 per share, paid March 25, 2025.

Outlook and guidance

• Q2 2025 adjusted EPS guidance is $0.30–$0.38, revised down from $0.46–$0.50 due to trade policy uncertainty and market volatility.

• Truckload revenue expected up low single digits sequentially in Q2, with stable margins; LTL revenue growth 25–30% year-over-year, with improved operating ratio.

• Logistics revenue expected down low single digits sequentially; Intermodal load count and margin stable.

• Full-year 2025 net cash capital expenditures expected at $575M–$625M; effective tax rate on adjusted income 24.5–25.5%.

• No Q3 guidance provided due to market uncertainty; will reassess after Q2.