Knight-Swift turned in another uneven quarter as the carrier works through a long, grinding freight cycle. Third-quarter revenue inched up while profit was dented by insurance and legal items tied to past operations, and the company issued cautious guidance that assumes only modest peak-season lift. The mixed print underscores a two-speed enterprise: an LTL network that’s gaining traction, and a Truckload arm still absorbing the lingering costs of the downturn and the U.S. Xpress acquisition.
On the top line, Knight-Swift reported $1.93 billion in revenue, up 2.7% year over year. GAAP net income fell to $7.9 million (5 cents per share) after about $58 million of unusual items — including $28.8 million of trade-name and other impairments tied to unifying LTL brands under AAA Cooper, an $11.2 million loss contingency from the 2024 exit of a third‑party carrier insurance program, and $12 million of claims costs at U.S. Xpress related to two 2023 accidents. Adjusted EPS was 32 cents, down slightly from 34 cents a year ago. Management set fourth‑quarter adjusted EPS at 34 to 40 cents.
LTL remains the bright spot. Revenue excluding fuel rose 21.5% as shipments per day climbed 14.2% and revenue per hundredweight increased 6.1%. Importantly for margin watchers, the LTL adjusted operating ratio was 90.6% and improved 250 basis points sequentially — a notable counterseasonal step as new doors come online and cost work takes hold. The one‑time brand impairment pushed reported LTL results into a small loss, but on an adjusted basis operating income rose 10.1%, marking the segment’s first year‑over‑year improvement in five quarters.
Truckload remains heavier slogging. Segment revenue excluding fuel slipped 2.1% on lower loaded miles, and adjusted operating income fell 15%. The quarter included roughly $12 million of higher insurance and claims expense at U.S. Xpress, which management said reduced adjusted EPS by about five cents. Even so, miles per tractor improved 4.2% as the fleet continued to pull idle capacity and push utilization. Excluding U.S. Xpress, legacy TL brands operated at a 93.7% adjusted OR, highlighting ongoing cost progress beneath the headline.
Smaller pieces of the portfolio contributed incremental stability. Intermodal posted a 99.8% adjusted OR with sequential gains in load count and revenue per load, while Logistics held a 94.3% adjusted OR on a 17.8% gross margin. The company’s warehousing and leasing businesses helped lift the “All Other” bucket, with revenue up 29.9% and operating income up 86.4% year over year.
Beyond the numbers, executives highlighted two near‑term levers that could change the supply side of trucking. First, the company is consolidating its LTL operations under the AAA Cooper name to simplify selling and back‑office work, a move they expect will strengthen pricing discipline and network efficiency over time. Second, they pointed to stepped‑up enforcement of English proficiency and tighter controls on issuing or renewing non‑domiciled CDLs as potential catalysts to remove lower‑priced capacity and tighten the market through 2026 — a shift that would favor scaled carriers when demand firms.
The backdrop remains uneven. ATA’s for‑hire Truck Tonnage Index fell 0.9% in September, giving back late‑summer gains and reinforcing that demand has been choppy even as the index sits 2.1% above January’s low. For carriers, that means cost work and mix management still matter more than macro tailwinds — at least for now.
Investors took a wait‑and‑see stance. After the print, shares traded lower in the evening session on October 22 as the company’s conservative fourth‑quarter outlook met a market still hunting for clear inflection. The guide implies incremental OR improvement in Truckload and continued mid‑to‑high‑80s adjusted OR territory in LTL, with upside reserved for any late‑arriving holiday projects. For fleets, that playbook — defend price on contracts, take cost out, push utilization, and keep LTL momentum — is likely to define the rest of 2025.
Why it matters for trucking: Knight‑Swift’s quarter captures where the cycle sits for large carriers. Freight hasn’t snapped back, but disciplined networks can create their own tailwinds. If regulatory enforcement does trim fringe capacity, 2026 could bring a healthier rate environment. Between now and then, the enterprises that standardize brands, sharpen pricing, and squeeze waste from their networks will be best positioned to capitalize when volumes and bid cycles finally break their way.
Sources: FreightWaves, Knight-Swift Investor Relations (Form 8‑K Exhibit 99.1), MarketBeat (earnings materials hub), American Trucking Associations
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