Knight-Swift beats Q3 forecasts as truckload rates and utilisation improve

Knight-Swift Transportation reported third-quarter adjusted earnings of 83 cents a share, exceeding analysts’ consensus forecast by 7 cents and rising 51 cents from a year earlier, FreightWaves reported. The result also surpassed management’s guidance of 71–77 cents. Revenue reached $2.2 billion, an increase of 14% year on year, against expectations of $2.17 billion. Excluding fuel surcharges, revenue grew 8%.

The truckload business recorded revenue growth of 6.5% excluding fuel, with revenue per tractor increasing 11% despite a 4% reduction in the average number of tractors operating. Loaded miles per tractor rose 1%, marking an eighth consecutive increase. Empty running fell by 170 basis points to 12.1%, while revenue per loaded mile excluding fuel climbed 10%. The corresponding rate increase in over-the-road services was in the mid-teens, according to FreightWaves.

Truckload’s adjusted operating ratio improved by 700 basis points to 89.2%, matching the midpoint of management’s guidance. U.S. Xpress, acquired in 2023, recorded an adjusted operating ratio in the low 90s, compared with 88% for Knight-Swift’s established brands. In less-than-truckload operations, revenue excluding fuel increased by less than 1%. Tonnage rose 3%, but revenue per hundredweight excluding fuel declined 1%. Shipment weight increased 5% and length of haul rose 6%, with largely offsetting effects on yield. Revenue per shipment excluding fuel gained 4%, while contractual renewals increased by a mid-single-digit percentage.

Chief executive Adam Miller said in the company’s release that he expected momentum to strengthen as rates were reset and cost and operational measures continued. He also anticipated more seasonal spot and project opportunities than in recent years. Fourth-quarter adjusted earnings guidance of 78–84 cents a share encompassed the prevailing consensus estimate of 82 cents.

The earnings improvement also reflected financial benefits beyond operating performance. FreightWaves reported that a $22 million reduction in net interest expense added 10 cents a share year on year, while a lower tax rate contributed 5 cents and higher equipment-sale gains added 1 cent. A $3.5 million decline in other income reduced earnings by 2 cents a share. Knight-Swift shares rose 4.4% in Wednesday’s after-hours trading.