Corporate Participants
- Adam Miller – Chief Executive Officer
- Andrew Hess – Chief Financial Officer
- Brad Stewart – Vice President, Investor Relations
Prepared Remarks
Brad Stewart: Good afternoon, and welcome to Knight-Swift fourth quarter 2025 earnings call. Joining me are Adam Miller, CEO, and Andrew Hess, CFO.
Adam Miller: Knight-Swift delivered results that reflect operational execution in a challenging freight environment. Revenue was $1.8 billion with EPS of $0.48.
Our diversified platform performed well. Truckload showed resilience with improved utilization and cost management. LTL operations expanded margins through service improvements and yield management. Logistics segment grew double digits.
We continue to focus on operational excellence, technology investments, and disciplined capital allocation. Our scale and diversification position us well for the eventual market recovery.
Andrew Hess: Revenue was impacted by softer truckload demand. However, operating ratio improved sequentially to 93.5% as cost actions took effect. We generated $180 million of free cash flow and reduced debt by $150 million.
Q&A Session
Analyst: What are you seeing in the truckload market and when do you expect improvement?
Adam Miller: The market remains competitive with excess capacity. However, we are seeing early signs of rationalization. Carrier exits are accelerating, and contract rates are stabilizing. We expect gradual improvement through 2026.
Analyst: How are you thinking about M&A in this environment?
Adam Miller: We remain active in evaluating opportunities. Our balance sheet strength allows us to be opportunistic. We are particularly interested in LTL assets and technology capabilities that enhance our platform.
Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, we cannot guarantee that all information is complete or error-free. Please refer to the company's official SEC filings for authoritative information.