Knight-Swift Transportation (KNX) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income attributable to Knight-Swift rose to $30.6M, up 1262.8% year-over-year, with adjusted net income at $45.4M and adjusted EPS at $0.28, driven by strong LTL shipment growth and improved truckload fundamentals, despite weather and trade policy headwinds.

• Consolidated revenue was $1.82B, up 0.1% year-over-year; adjusted operating income increased 68.2% to $86.6M.

• LTL network expanded by seven new locations, with shipments per day up 24.2% and revenue up 26.7% year-over-year, though integration and start-up costs impacted margins.

• U.S. Xpress achieved its first quarterly operating profit since acquisition, contributing to improved truckload segment results.

• Leadership remains confident in navigating uncertainty due to a strong balance sheet, diversified offerings, and operational scale.

Financial highlights

• Total revenue was $1.82B, nearly flat year-over-year; adjusted operating income rose 68.2% to $86.6M; adjusted net income was $45.4M, up 129.5%; adjusted EPS was $0.28, up from $0.12; GAAP EPS was $0.19.

• Adjusted operating ratio improved to 94.7% from 96.8% year-over-year; truckload adjusted operating ratio improved 170 bps to 95.6%; LTL adjusted operating ratio was 94.2%.

• Free cash flow for the quarter was $70.0M; operating cash flow was $109.4M; unrestricted cash and equivalents stood at $209.5M.

• Amortization expense from M&A was $19.6M in Q1 2025.

• 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, reflecting trade policy uncertainty and downside risk.

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

• Logistics revenue expected to decline slightly sequentially; Intermodal load count and margin to remain stable.

• Net cash capital expenditures for 2025 forecasted at $575M–$625M; effective tax rate for adjusted results expected at 24.5–25.5%.

• No third quarter guidance provided due to lack of clarity; will reassess after Q2.