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Schneider National noted some green shoots across the modes it serves and said truckload demand has returned to normal seasonal patterns.
The Green Bay, Wisconsin-based multimodal transportation provider said Thursday it started seeing spot rates exceed contract rates (typically the requisite precursor to a positive inflection in contract rates) around last Thanksgiving, with the trend accelerating from that point into 2025. Schneider’s customers have been, “more receptive to rate restoration,” as “the freight market is continuing its path to recovery,” President and CEO Mark Rourke told analysts on a quarterly call.
He said seasonal strength in retail-related shipments was partially offset by prolonged auto production shutdowns in the fourth quarter. The company benefitted from “unseasonal strength” in intermodal volumes in the quarter and in January.
Schneider (NYSE: SNDR) reported adjusted earnings per share of 20 cents for the fourth quarter, which was in line with the consensus estimate and 4 cents higher year over year. The number included a 3-cent drag from insurance reserve adjustments tied to three prior accident claims. The result excluded nonrecurring costs from prior acquisitions, including the Dec. 2 purchase of dedicated carrier Cowan Systems.
Schneider issued full-year 2025 adjusted EPS guidance of 90 cents to $1.20, which at the midpoint was approximately 5% below the $1.10 consensus estimate at the time of the print.
The TL segment reported a 1.7% y/y increase in revenue (excluding fuel surcharges) to $560 million. Average trucks in service were off 0.2% y/y while revenue per truck per week increased 1.1% y/y (3.2% higher sequentially). The dedicated fleet saw a 1% increase in revenue per truck per week with the network (one-way) segment seeing only a slight increase. (The tractor count in one-way was cut 13% y/y, the result of a utilization improvement initiative.)
The period included a one-month contribution from Cowan, which operates 1,900 trucks and 7,600 trailers.
The TL unit reported a 96.5% adjusted operating ratio (inverse of operating margin), 10 basis points better y/y. Most of the insurance adjustment hit the TL unit, likely resulting in a more than 100-bp drag in the quarter.
The Cowan acquisition was accretive to earnings in the period.
Schneider’s full-year guidance assumes improving revenue per truck per week in dedicated as it tightens truck-to-driver ratios across recently acquired fleets. That will allow the company to allocate more equipment to new startup accounts. The dedicated unit is also expected to benefit from organic growth within existing customer accounts.