Knight-Swift Posts Revenue, Earnings Rise in Challenging Q2
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Knight-Swift Transportation Holdings delivered an increase in revenue and earnings despite challenging freight market conditions during the second quarter of 2025, .
The Phoenix-based truckload motor carrier posted net income of $34.2 million, or 21 cents a diluted share, for the three months ending June 30. That was 68.7% higher than the $20.3 million, or 13 cents a share, during the same time the previous year. Total revenue increased 0.8% to $1.86 billion from $1.85 billion last year.
The second quarter saw unprecedented trade actions, which brought a range of responses by shippers, and volatility and freight flows that differed meaningfully from normal patterns, Knight-Swift CEO Adam Miller said during a call with investors. This called for agility from our businesses and our people responded, demonstrating the flexibility of our over-the-road capacity and network in order to mitigate pressure on miles and earnings.
Miller added that there was freight demand softness during the quarter even as the anticipated import cliff did not prove to be as stark as expected. He also noted there was a mild lift in freight opportunities and projects near the end of the quarter, though that still fell short of the seasonal increases in freight volumes that the company usually experiences in Q2.
Given this backdrop, we are pleased that our truckload business was able to prevent a deeper decline in revenues while growing margins and operating income meaningfully year over year, Miller said. Further, we are pleased to see our U.S. Express brand build on the profitability it established in the first quarter by expanding operating margins sequentially.
RELATED: Knight-Swift Posts Q1 Profit as LTL Revenue Soars
The results were slightly below expectations by investment analysts on Wall Street, which had been looking for 34 cents per share and quarterly revenue of $1.87 billion, according to Zacks Consensus Estimate.
While we continue to drive costs out of our businesses, we are careful not to sacrifice the competitive advantage we have through our industry-leading scale and the flexibility that our over-the-road model provides, allowing us to deliver distinctive value to our customers, Miller said. We are continuing to grow our LTL network, customer base and volumes, and we are committed to doing this while maintaining strong service levels.
Miller said he is encouraged to see customers responding with more opportunities to grow at a time when industry volumes remain under pressure. But he also noted that efforts to capture expected growth by increasing staffing and fleet assets have put further pressure on margins. The company is responding with multiple initiatives aimed at normalizing operational fundamentals.
The fluid policy environment makes forecasting even more difficult than normal, Miller said. Were staying close with our customers as the situation unfolds, delivering solid service and bringing our capacity and creativity to bear in responding to disruptions created by the shifting landscape.
- Truckload segment revenue decreased 2.7% to $1.07 billion from $1.1 billion during the same time last year. This was driven by a decrease in loaded miles. Revenue per loaded mile was flat year over year when excluding fuel surcharges and intersegment transactions. But the report also highlighted that it was down 1.4% from the first quarter as a result of mix changes and spot market weakness given the lull in import-driven demand during the quarter. Miles per tractor improved 4% year over year as a result of company efforts to drive productivity and reduce underutilized assets. Operating income surged 93.4% to $45.4 million from $23.5 million.
- Less-than-truckload segment revenue increased 28.4% to $337.7 million from $263.1 million. The report highlighted that shipments per day increased 21.7% year over year, which includes the prior-year acquisition of Dependable Highway Express. Revenue per hundredweight and revenue per shipment also increased from the prior-year period. The average length of haul continued to climb, and the company won new business across its network as well. Operating income fell 44.5% to $18.3 million from $33.1 million.
- Logistics segment revenue decreased 2.6% to $128.3 million from $131.7 million. This was driven by a decline in load count that was largely offset by an increase in revenue per load. The report highlighted that price discipline and diligence in carrier qualifications helped the company to provide customer value and maintain profitability. Operating income increased 16.6% to $5.55 million from $4.76 million.
- Intermodal segment revenue decreased 13.8% to $84.1 million from $97.5 million. This was the result of a decrease in load count and revenue per load year over year. The earnings report noted that the segment was most impacted by the decline in import volumes on the West Coast. But the company still expects load count to grow sequentially as a result of new customer awards and a return of normalized volumes of existing customers. The segment also experienced an operating loss of $3.43 million, compared to $1.71 million.
Knight-Swift ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
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