Schneider National (SNDR) Q3 2024 earnings summary

Executive summary

• Q3 2024 operating revenues were $1.32 billion, down 3% year-over-year; adjusted income from operations was $44 million and adjusted diluted EPS was $0.18, both slightly down from last year.

• Intermodal and Logistics segments contributed 52% of segment revenues and 50% of segment earnings in Q3 2024.

• Dedicated and Intermodal segments showed resilience, with Intermodal margin growth and Dedicated benefiting from new business.

• Free cash flow year-to-date increased by $154 million compared to the same period in 2023.

• Margin and capital restorative actions are positively impacting all business segments, positioning the company for resiliency and long-term value creation.

Financial highlights

• Adjusted income from operations was $44 million, down from $48 million year-over-year; adjusted EBITDA for Q3 was $143.8 million, down 1% year-over-year.

• Adjusted diluted EPS was $0.18, compared to $0.20 last year; lower gains on equipment sales and higher insurance costs each represented a $0.04 headwind.

• Net CapEx through September was $154 million below prior year, driving a corresponding improvement in free cash flow.

• Net debt leverage stood at 0.15x at quarter end; total leverage decreased to 0.44x in 2023 from 0.79x in 2017.

• Cash and cash equivalents at September 30, 2024 were $179.0 million; total debt was $263.7 million.

Outlook and guidance

• Full-year 2024 adjusted diluted EPS guidance updated to $0.66–$0.72, assuming a 24% effective tax rate.

• Net CapEx guidance for 2024 is approximately $330 million, in line with prior expectations.

• Fourth-quarter earnings expected to improve year-over-year, with stabilization across most business segments and improved seasonality, especially in truckload network and logistics.