Knight-Swift Third-Quarter Profit Hits $0.72 A Share Versus $0.05, And CEO Says 2027 Needs More Rate Gains
The truckload operator guided fourth-quarter adjusted earnings to $0.78 to $0.84 a share and trimmed its 2026 capital spending range.
Knight-Swift's third-quarter net income was $118.3 million, or $0.72 per diluted share, against $0.05 a year earlier, according to its earnings release furnished with an 8-K on Wednesday. CEO Adam Miller said ongoing cost inflation and tight capacity will require "further meaningful rate growth in 2027."
What the results show
Adjusted earnings per share, which add back items such as intangible amortization, were $0.83 against $0.32 a year earlier. Total revenue rose 14.2% to $2.2 billion, and operating income climbed 255.1% to $178.7 million.
The prior-year quarter carried $34.8 million of impairment charges and an $11.2 million loss contingency. This year's quarter had a $22.8 million drop in interest expense and a 19.6 percentage point lower effective tax rate on standard accounting results, the company said.
Truckload revenue excluding fuel surcharge grew 6.5%, driven by a 9.7% rise in revenue per loaded mile, partly offset by a 3.0% decrease in loaded miles. The segment's adjusted operating ratio, operating costs as a share of revenue, improved 700 basis points (7 percentage points) to 89.2%.
Other segments:
- Intermodal revenue grew 30.6%, with load count up 13.3%.
- Logistics revenue fell 1.0% as revenue per load rose 46.7% and load count dropped 32.6%.
- LTL (less-than-truckload) revenue excluding fuel surcharge rose 0.4%, and its adjusted operating ratio worsened 80 basis points to 91.4%.
What management said and guided
Miller said spot pricing stayed well above contract rates and that tender rejection rates run two to three times broader market measures. He said fuel and driver costs were sequential headwinds, and that the company has put in place more peak-season project arrangements than at any time since the pandemic.
For the fourth quarter, Knight-Swift expects adjusted earnings of $0.78 to $0.84 per share. It assumes pressured capacity, stable demand and typical seasonal patterns, with truckload revenue ex-fuel up a low double-digit percent.
The company lowered its 2026 net cash capital spending range to $600 million to $625 million, from $600 million to $650 million. It reported $373.2 million of free cash flow for the first nine months, and net debt of $2.1 billion at September 30.
What to watch
Knight-Swift hosted its earnings call at 5:30 p.m. ET Wednesday, after the results. KNX closed at $63.20 at Wednesday's close, before the release.
The company said it anticipates another supportive bid cycle through 2027 to close the remaining pricing gap at U.S. Xpress.
Sources
- 8-K Filing — Knight-Swift Transportation Holdings Inc. (KNX) — SEC EDGAR
- Exhibit exhibit99109302026.htm — Knight-Swift Transportation Holdings Inc. 8-K exhibit — SEC EDGAR
- Exhibit exhibit9229302026.htm — Knight-Swift Transportation Holdings Inc. 8-K exhibit — SEC EDGAR
