Schneider National (SNDR) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenues were $1.32 billion, down 2% year-over-year, with net income of $35.3 million, a 54% decrease from Q2 2023; sequential improvement was driven by cost containment and asset efficiency across Truckload, Intermodal, and Logistics.

• Adjusted net income for Q2 2024 was $36.3 million, with adjusted EBITDA at $152.9 million, both down over 50% year-over-year.

• Intermodal and Logistics contributed 51% of segment revenues and 46% of segment earnings in the quarter.

• The M&M Transport Services acquisition contributed to Dedicated segment growth but was offset by declines in Network, Intermodal, and Logistics.

• Free cash flow improved by $93.5 million year-over-year, aided by cost containment and capital discipline.

Financial highlights

• Adjusted income from operations was $52 million for Q2, down from $107 million year-over-year, but up $22 million (74%) sequentially from Q1.

• Adjusted diluted EPS was $0.21, compared to $0.45 in prior year; Q2 2023 included higher equipment sale gains, representing a $0.04 EPS headwind.

• Adjusted EBITDA reached $153 million, down from $199 million year-over-year, but up 70% sequentially from Q1.

• Operating ratio worsened to 96.1% from 92.3% year-over-year; adjusted operating ratio was 95.5%.

• Free cash flow for Q2 2024 was $112.9 million, compared to negative $57.1 million in Q2 2023.

Outlook and guidance

• Full-year 2024 adjusted diluted EPS guidance updated to $0.80–$0.90, assuming a 25% effective tax rate.

• Net capital expenditures guidance for 2024 set at $300–$350 million.

• Management expects margin improvement in the second half, supported by typical seasonality and ongoing cost actions.

• Freight allocation season outcomes have delayed anticipated pricing improvements.

• Management expects continued pressure on pricing and volumes due to soft freight market conditions.