Knight-Swift Transportation Holdings Inc. (KNX) Earnings & Analysis

Latest quarter

Knight-Swift reported third-quarter revenue of $2.2 billion, above the $2.1 billion consensus and up from $1.9 billion a year earlier. Adjusted earnings per share of $0.83 also exceeded the $0.75 consensus; diluted earnings per share rose to $0.72 from $0.05.

The company’s filing attributed an $87.2 million increase in Truckload operating income primarily to higher revenue per loaded mile, partly offset by fewer loaded miles. LTL operating income increased $26.6 million, helped by higher revenue per shipment and a trade name impairment in the prior-year quarter. Logistics revenue fell 1.0% as a decline in load count outweighed higher revenue per load, while Intermodal revenue grew 30.6% on higher load count and revenue per load.

Knight-Swift’s operating margin rose to 8.12% from 2.61%, while gross margin declined to 69.8% from 73.7%. Free cash flow was $182.8 million, compared with −$28.0 million a year earlier. The filing also reported $799.9 million in operating cash flow for the first nine months of 2026.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CEO Adam Miller said Truckload capacity remained tight even though broad industry demand was largely stable. Knight-Swift had more peak-season project arrangements in place than at any time since the pandemic, he said, and freight tenders had begun under several projects. CFO Andrew Hess said contract rate changes, primarily in the one-way division, drove an acceleration in realized revenue per mile during the third quarter.

Hess said Truckload revenue per total mile excluding fuel surcharge rose 12.2% year over year in the third quarter, with 68% of the rate improvement flowing through to margin. He identified driver pay and fuel as cost pressures and said pay actions were targeted by market, fleet and tenure: “On driver pay, we’re not making broad across-the-board increases.”

Asked about upcoming contract bids, Miller said Knight-Swift would begin the season seeking low- to mid-double-digit increases, with the outcome depending on capacity, demand and the timing of individual renewals. He also said some customers were exploring dedicated service as one-way capacity tightened.

Analysts pressed executives on whether the company could grow its fleet. Miller said Knight-Swift was testing recruiting and pay initiatives across brands, but the early sample was small. Hess said the company planned new academies and partner schools and was using technology to assist recruiting and training. He added that the fourth quarter is historically difficult for growing the seated truck count.

On LTL, Hess said demand was steady with pockets of improvement and renewals were running at a mid-single-digit pace. Miller said the Logistics business had restricted its carrier pool to prioritize safety and profitability over load count.

Asked about the quarter ahead, Miller said warehouse revenue typically falls in the fourth quarter while lease costs remain fixed; he expected lower activity against a higher cost base. Hess said the 2027 quarterly cadence should be roughly similar to 2026, while not addressing revenue or margin amounts.

Guidance

Knight-Swift narrowed its full-year 2026 net cash capital expenditure forecast to $600.0 million to $625.0 million from its previous range. The company left the lower end of the range unchanged and reduced the upper end.