SNDR

This article first appeared on GuruFocus. - Revenue (excl. fuel surcharge): $1.35 billion, up ~3% YoY - Adjusted Income from Operations: $63.8 million, up 66% YoY - Adjusted Operating Ratio: 95.3%, improved 170 bps YoY - Adjusted Diluted EPS: $0.29 vs. $0.12 prior year - Truckload Revenue (excl. fuel surcharge): $625 million, essentially flat YoY - Truckload Revenue per Truck per Week: Up ~8% YoY; Network up more than 20% YoY - Truckload Operating Income: $44 million, more than double prior year - Truckload Operating Ratio: 93%, improved 380 bps YoY - Intermodal Revenue (excl. fuel surcharge): $288 million, up ~2% YoY - Intermodal Revenue per Order: Up ~3% YoY, ~4% sequentially - Intermodal Operating Income: $23 million, up 35% YoY - Intermodal Operating Ratio: 92.1%, improved 190 bps YoY - Logistics Revenue (excl. fuel surcharge): $373 million, up more than 12% YoY - Logistics Income from Operations: Approximately breakeven vs. $6 million prior year - Logistics Operating Ratio: 100% vs. 98.1% prior year - Cost Savings Program: On track for $40 million target - Net Capital Expenditures: $80 million in Q3 vs. $108 million prior year - Free Cash Flow: $195 million year-to-date, roughly in line with prior year - Shareholder Returns: $52 million in dividends year-to-date - Debt and Finance Lease Obligations: $394 million as of September 30 - Cash and Cash Equivalents: $326 million as of September 30 - Net Debt Leverage: ~0.1x at quarter end - Full Year 2026 Adjusted Diluted EPS Guidance: $1.00$1.10 - Full Year 2026 Net Capex Guidance: $325$350 million (down from prior range) - Warning! GuruFocus has detected 6 Warning Signs with SNDR. - Is SNDR fairly valued? Test your thesis with our free DCF calculator. Release Date: October 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Schneider National Inc (NYSE:SNDR) delivered strong year-over-year earnings growth in Q3 2026, with adjusted income from operations up 66% and adjusted diluted EPS of $0.29 versus $0.12. - The company is on track to achieve its $40 million cost savings target, driving productivity gains and enhancing operating leverage. - Truckload segment operating income more than doubled year-over-year, with operating ratio improving 380 basis points to 93%. - Network business delivered its first positive quarterly earnings result in over three years, supported by pricing and productivity actions. - The new partnership with Norfolk Southern as primary rail provider for the Eastern intermodal network expands reach and creates growth opportunities, with potential upside from a Norfolk Southern-Union Pacific merger. - Logistics segment income from operations was approximately breakeven compared to $6 million last year, due to a confidential claims settlement and moderated project business. - Intermodal volumes declined modestly year-over-year after nine consecutive quarters of growth, reflecting difficult comparisons and moderation in import activity. - Truckload tractor counts declined year-over-year, partly due to the loss of a large dedicated customer and driver availability constraints. - Higher claims costs and a confidential claims settlement impacted logistics results, with insurance costs up sequentially. - The freight market remains fragile, with demand stable but uneven, and the pace of improvement may not be linear, posing risks to guidance. Q: What is your early view on 2027 pricing, given industry costs are up 30% over five years while contract rates are only approaching parity? A: CEO Jim Filter said there is significant runway for rate recovery, but not all of it will come back in 2027. He emphasized that pricing gains will come not only through bid events but also through freight selection, and noted the market is fragile because supply and demand are relatively closeany demand blip would accelerate their actions. Q: How disruptive has the Norfolk Southern transition been, and how does the new agreement position Schneider competitively? A: CEO Jim Filter said Schneider analyzed its options extensively and concluded Norfolk Southern offered the best competitive position, with the potential NS-UP merger as "icing on the cake." He cited the CPKC precedent19 consecutive quarters of intermodal growth after converting to single-line serviceand noted NS's broader Eastern network opens up a large part of the country not currently served by intermodal. Schneider's 100% owned containers, chassis, and company drivers differentiate it from competitors. Q: What drove the sequential increase in insurance costs and the significant change in interest expense from Q2 to Q3? A: CFO Darrell Campbell explained these were two separate claims-related items: a confidential brokerage-related claim settlement recorded in logistics, and a $7 million reversal of interest accruals following a favorable settlement of a previously disclosed prior-period claim. The two items largely offset at the net income level. He stressed the brokerage claim is not expected to be a run rate going forward, though post-Montgomery cost inflation remains a near-term consideration. Q: How are you navigating the difficult driver hiring environment, and is it an inhibitor or enabler of growth? A: CEO Jim Filter said Schneider remains disciplined, aligning pay increases to rate recovery and making surgical driver pay increases only where returns are commensurate. He emphasized that money alone doesn't solve the problemfreight selection, work configurations, driver treatment, and AI-enabled responsiveness matter. He noted intermodal truck count is already growing sequentially, evidence the approach is working. Q: Could the Norfolk Southern deal ruffle feathers among your other rail partners, particularly CPKC? A: CEO Jim Filter said CPKC remains a very important customer and he has assured them the NS agreement doesn't impact that relationship. He noted it's not unusual to compete with a railroad in one lane while partnering in another, and argued the U.S. is unusual among developed countries in lacking single-line transcontinental rail service, which puts the country at a strategic supply chain disadvantage. Q: How should we think about the P&L opportunity from the NS dealvolume growth, pricing, and profitability? A: CEO Jim Filter framed the opportunity around converting over-the-road freight and positioning Schneider relative to competitors, citing NS's terminal locations and population centers. He said a transcontinental railroad "unleashes absolutely the most growth," and that higher service levels should allow Schneider to extract more value with a smaller discount relative to truckload, while remaining disciplined about where and with which customers to grow. Q: What percentage of intermodal volume is impacted by the rail change, and is it all moving in January? A: CEO Jim Filter said January 1, 2027 is the official implementation date, though he declined to break down volume by railroad or ramp. He noted a dedicated transition team combining Schneider and Norfolk Southern has already been working on the conversion, with freight beginning to move to NS in November. Q: Will intermodal pricing increases in 2027 match the double-digit gains seen in truckload this year? A: CEO Jim Filter said intermodal pricing is comfortably in the mid-single-digit range but nowhere near truckload network increases, which makes sense because network rates fell far more sharply. He doesn't expect ~20% intermodal increases, but expects service improvements to narrow the truckload-intermodal pricing gap over time. Q: What did you learn from the prior UP rail transition, and how confident are you in avoiding service disruptions and customer or driver losses? A: CEO Jim Filter said Schneider is applying a proven playbook from the UP transition, where customer and driver reaction was extremely favorable and no drivers were lost. He noted a competitor that transitioned a year earlier stumbled, but Schneider did not, and customers should be confident given the advance planning and alignment with the railroads. Q: What is driving the year-over-year declines in dedicated and network tractor counts? A: CEO Jim Filter attributed part of the decline to the previously announced loss of a large dedicated customer, and part to deliberate pricing actionswalking away where Schneider couldn't get the price needed to reinvest in drivers. He said constructive discussions with the vast majority of customers are yielding needed rate, and the decline curve is beginning to flatten. Q: Network revenue per truck per week rose 21%how much was productivity versus rate per mile, and what are you seeing in 2027 bid season? A: CEO Jim Filter said productivity improved high single-digits through better freight selection and asset utilization, with the remainder from price. Going forward, he expects more of the improvement to come from price to fund capacity reinvestment. On 2027 bids, he said shippers are split between locking in reliable capacity early and waiting on expected pricesSchneider is comfortable with both as long as it's a fair value exchange. Q: Will the NS transition put intermodal volume growth on hold during 2027 bid season? A: CEO Jim Filter said nothe constraint on intermodal growth has always been dray capacity, not rail partners, and every box will still move, just via a different railroad. He said there will be no slowdown or layoffs, and Schneider won't use the NS transaction as an excuse for lack of volume growth; the focus is on extracting price to reinvest in the dray fleet. Q: Where are we in the truckload cycle regarding regulatory impacts on capacity? A: CEO Jim Filter said capacity remains constrained with no long-haul driver growth despite nearly a year of rising spot rates. Entry-level driver training standards are the biggest factor2021-22 saw ~50,000 drivers enter with sub-week training, versus five to six weeks and higher cost now, which means Schneider can participate in capacity growth this time. He expects the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, Oct. 29, 2026 - Vice President of Investor Relations - Christyne McGarvey - President and Chief Executive Officer - Jim Filter - Executive Vice President and Chief Financial Officer - Darrell Campbell Operator: Ladies and gentlemen, thank you for joining us and welcome to Schneider National third quarter 2026 earnings call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Christyne McGarvey, Vice President of Investor Relations. Please go ahead. Christyne McGarvey: Thank you operator, and good afternoon, everyone. Joining me on the call today are Jim Filter, President and Chief Executive Officer, and Darrell Campbell, Executive Vice President and Chief Financial Officer. Earlier today, the company issued an earnings press release. The press release and investor presentation are available on the investor relations section of our website at schneider.com. Our call will include remarks about future expectations, forecast plans and prospects for Schneider. These constitute forward-looking statements for the purposes of the safe harbor provisions under applicable federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. The company urges investors to review the risks and uncertainties discussed in our SEC filings, including, but not limited to, our most recent annual report on Form 10-K and those risks identified in today's earnings release. All forward-looking statements are made as of the date of this call, and Schneider disclaims any duty to update such statements except as required by law. In addition, pursuant to Regulation G, reconciliation of non-GAAP financial measures referenced during today's call can be found directly in our earnings release and investor presentation, which includes reconciliations to the most directly comparable GAAP measures. Now, I'd like to turn the call over to our CEO, Jim Filter. Jim Filter: Thank you, Christyne, and good afternoon, everyone. Thank you for joining the Schneider National earnings call today. I will begin by sharing my perspective on the freight market, our new partnership with the Norfolk Southern, and our performance in the third quarter. I will then turn it over to Darrell to review our financial results and outlook for the remainder of 2026. After that, we will open the call for questions. As we look at our third quarter performance, we remain confident in Schneider's strategy. We are focused on profitable organic growth through differentiation across our multimodal platform, building an efficient low-cost operating model, and maintaining a returns-focused approach to investment. Those strategic priorities have not changed, but how we execute against them continues to evolve with changes in the marketplace. This is how we win. That agility is increasingly translating into earnings and margin improvement as the market recovers. Across the enterprise, our revenue management strategy is combining a disciplined approach to pricing with data-driven, profit-focused freight selection to extract the most out of improving market conditions. Traction on our $40 million cost savings target is driving productivity gains and cost reduction, which is enhancing our operating leverage as revenue improves. As customer needs, capacity conditions, and opportunities develop, our diversified multimodal platform is positioning us to respond rapidly. Finally, strong returns guide our investment decisions. The combination of productivity and price is funding targeted investments to meet customer demand. At the same time, we continue to strengthen Schneider's long-term competitive positioning. To that end, this afternoon, we announced that Schneider has entered into an agreement with Norfolk Southern to serve as the primary rail provider for our eastern Intermodal network beginning January 1st, 2027. Norfolk Southern's broader eastern network expands Schneider's reach and creates additional opportunities to grow with existing customers, pursue new freight, and convert Truckload shipments to Intermodal. By leveraging Schneider's 100% company-owned containers and chassis, which are complemented by our company-operated dray fleet, we expect this agreement to strengthen service, enhance network reach, and support our long-term growth strategy. A potential combination of Norfolk Southern and Union Pacific could provide additional upside through new single-line services and improved connectivity, but those benefits are not assumed in our current expectations. Still, the growth we have seen in Mexico following the combination that created the CPKC only reinforces our view of the long-term opportunities that an effective single-line rail network can provide. A combination of Norfolk Southern and Union Pacific stands to see similar benefits to speed and reliability on a broader scale while also introducing new Intermodal lanes. We see compelling value from positioning Schneider to be the only fully asset-based provider on the first single-line transcontinental railroad in the United States. Turning to the third quarter, the enterprise delivered strong year-over-year earnings growth, and results were largely consistent with what we anticipated as we brought momentum from successful price recovery across the portfolio and our $40 million cost savings program. While operating earnings declined sequentially, this reflects the typical seasonal patterns of our business as well as the loss of a large Dedicated customer and the moderation of certain project business as anticipated. The quarter also saw impacts from higher claims costs and Logistics that was a result of a confidential claim settlement. Though this was largely offset within net income by a positive impact from the favorable development of a separate settlement. Darrell will discuss this in more detail shortly. Importantly, our constructive view of the broader cycle has not changed. Looking at the freight environment, the supply thesis remains intact. Though capacity attrition occurred at a more measured pace than what we experienced in the first half of the year, we are continuing to see an overall constrained supply picture, despite spot rates now having moved higher for nearly a year. Capacity has remained hampered by driver availability, elevated operating costs, and increased barriers to entry. Further, we continue to see several factors that should support additional rationalization going forward. Regulatory enforcement efforts are ongoing in areas such as entry-level driver training and electronic logging devices. These actions should improve driver qualification and hours of service compliance and make it more difficult for irrational capacity to enter or remain in the market. At the same time, fuel costs have increased meaningfully. Driver wages are on the rise, and smaller carriers are facing increasing economic pressure. Together, these dynamics are limiting the ability of supply to respond to improving pricing conditions, and with non-compliant capacity exiting the market, we continue to expect supply to behave rationally as we move further through this upcycle. While supply dynamics remain constructive, freight activity saw a modest step back versus second quarter, a reflection of anticipated seasonal patterns coming out of the Fourth of July holiday. Consumer spending remained resilient overall, though this varied by category. Higher interest rates and affordability constraints continue to weigh on certain key end markets, such as housing and automotive. Altogether, we believe third quarter freight volume activity reflected typical seasonality and some normalization of inventory patterns rather than the deterioration of underlying demand trends, which remain stable. As a result, spot rates also moderated during the quarter. While the decline was greater than traditional seasonal patterns, particularly in August, it came following the significant strength in late spring and early summer. Year-over-year growth remained strong through the quarter, and spot rates began to improve again in September. At the same time, contract pricing continued to advance. In fact, we are seeing growing recognition from customers of the need for safe, compliant, and reliable capacity across our multimodal platform, which is further reinforcing our view that pricing recovery remains intact. As such, we expect additional rate recovery as customers continue to adjust to the higher underlying cost of dependable capacity. Industry operating costs have increased by over 30% over the last five years, while contract pricing is only approaching parity. Continued pricing progress is needed, not only to recover this cost inflation, but to support the service levels, capacity investments, and returns required for durable growth. Against that backdrop, our commercial execution was strong in the third quarter, though there remains additional runway for rates to move higher. Proof points are evident across the enterprise as pricing actions accelerate while customer retention remained healthy. In Network, average renewals reached nearly 20% in the quarter, with retention and win rates improving sequentially. Dedicated customers are increasingly receptive to the pricing adjustments required to secure capacity in a rapidly evolving driver market. Intermodal renewal pricing reached its strongest level since the pandemic, and mini-bid activity is also increasing. In Logistics, we are capitalizing on spot opportunities while repricing contract business, driving double-digit year-over-year growth in net revenue per order. These results reflect a combination of tightening market conditions, the value of Schneider's service offerings, and the execution of our revenue management strategy. Turning to our businesses in more detail, Truckload revenue was relatively stable year-over-year, while earnings more than doubled. Results benefit from the work we have done over the last several years to improve productivity, enhance asset efficiency, and execute disciplined pricing actions. Revenue per truck per week grew meaningfully across both Dedicated and Network and more than offset lower tractor counts. The latter continues to be constrained by driver availability, though this was compounded by the previously announced loss of a large customer in Dedicated. In Dedicated, growth opportunities remain attractive over the long term, but we also remain focused on profitability and returns, not simply truck count. Proactive pricing actions continued throughout the quarter, and we made progress on ensuring returns appropriately reflect increasing driver and operating costs. At the same time, we continue to see encouraging activity in our pipeline, including opportunities within specialty Dedicated solutions where differentiation remains strongest. Year-to-date, we have sold nearly 850 trucks across all our brands, which reinforces our confidence in continuing to address underperforming accounts. Network benefited from strong pricing gains, improved freight selection, and enhanced productivity, which drove double-digit improvement in revenue per truck per week year-over-year. While industry spot activity moderated from the elevated levels seen in the second quarter, our performance was supported by premium freight opportunities. We are encouraged by the progress we have made but also believe there remains meaningful opportunity ahead as pricing continues to recover. Execution on our commercial strategy is funding additional targeted investments in driver capacity. To strengthen retention while protecting returns, our compensation approach recognizes driver productivity and performance. We are also taking focused steps to expand the driver pipeline in our most constrained markets, including additional recruiting resources, broader use of AI-enabled tools, and selective utilization of pay increases and sign-on bonuses. Intermodal delivered solid earnings growth. After high single-digit growth last year, volumes declined modestly, which also reflected some moderation in import activity. Revenue per order grew sequentially and year-over-year, and earnings benefited from pricing execution, continued cost control, and an ongoing focus on profitable growth where we have differentiation. In the quarter, offered volume continued to climb, but disciplined freight selection enabled us to optimize profitability. Pricing gains are already translating into improvements in capacity, which is supporting additional growth. We believe the combination of increasing contract rates, strong service, and continued over-the-road conversion opportunities positions the business well from here. Further, as noted earlier, the partnership with the Norfolk Southern only extends our differentiation in the marketplace, setting us up for long-term success. Schneider has established a dedicated transition team and comprehensive implementation plan to manage the conversion. Drawing on our experience executing prior rail transitions, we are confident in our ability to complete the transition while maintaining the high level of service our customers expect. In Logistics, underlying operating performance continued to strengthen. Revenue management actions drove double-digit percentage increases in net revenue per order, which was supported by continued strength in premium freight and effective freight selection. Power Only also saw momentum in volume and profitability, benefiting from the proactive actions we have taken to reset pricing amid improving market conditions. Project business moderated versus second quarter as expected, but we are encouraged by the opportunities we see in the fourth quarter. We continue to expect our expertise and proven service in new verticals will be a powerful growth engine for Logistics. Altogether, we continue to believe we are in the early stages of rebuilding pricing and returns after several years of irrational industry dynamics. The pace of improvement may not be linear and demand remains an important swing factor, but constrained supply and continued rate recovery support our conviction that market fundamentals are moving in the right direction. Our multimodal portfolio allows us to adapt as customer needs and freight flows change, direct capacity to the best opportunities, and deliver reliable service. Combined with proactive revenue management, technology investments, and our low-cost operating model, this flexibility helps us translate market improvement into stronger margins and returns. Our exceptionally strong balance sheet gives us the capacity to invest decisively in differentiated organic growth, pursue accretive M&A, and return capital to shareholders, all while retaining the ability to capitalize on new opportunities as they emerge. Now I'll turn it over to Darrell. Darrell Campbell: Thank you, Jim, and good afternoon, everyone. I'll review our third quarter financial results, capital deployment activities, and our outlook for the remainder of 2026. Summaries of our financial results and guidance can be found in the investor presentation available on the investor relations section of our website. Starting with third quarter results, enterprise revenues excluding fuel surcharge were $1.35 billion, an increase of approximately 3% year-over-year. Adjusted income from operations was $63.8 million, up 66% versus the third quarter of 2025. Enterprise adjusted operating ratio improved 170 basis points year-over-year to 95.3%. Adjusted diluted earnings per share were $0.29 compared to $0.12 in the prior year period. Earnings improved significantly compared to last year, supported by pricing gains, productivity improvements, and ongoing execution against our cost initiatives. We remain on track to deliver against our $40 million target with significant traction in areas such as non-driver headcount, third-party spend, Network driver productivity, and synergies related to our acquisition of Cowan Systems. From a segment perspective, Truckload revenues excluding fuel surcharge were $625 million, essentially flat year-over-year. Revenue per truck per week grew approximately 8% year-over-year and offset lower tractor count. Network strength accelerated with revenue per truck per week increasing more than 20% year-over-year, reflecting both improved pricing and productivity, which grew high single digits. Truckload operating income was $44 million, more than double the prior year period. Operating ratio improved 380 basis points year-over-year to 93%. Sequentially, earnings moderated from the second quarter, primarily due to seasonality, friction costs related to churn in Dedicated, including the loss of a large customer and capacity constraints. Despite those factors, Truckload delivered meaningful year-over-year margin expansion. Network delivered its first positive quarterly earnings result in over three years, supported by the ongoing pricing and productivity actions mentioned earlier, as well as stronger gain on sale. Intermodal revenues excluding fuel surcharge were $288 million, up approximately 2% from the prior year. After nine consecutive quarters of volume growth, volumes were down modestly year-over-year, reflecting difficult comparisons, some moderation in import activity, and a continued focus on growing where we have commensurate returns in a backdrop of increasing third-party dray costs. However, proactive actions on pricing and mix drove revenue per order up approximately 3% year-over-year and nearly 4% sequentially despite shorter length of haul. Intermodal operating income was $23 million, an increase of 35% versus last year. Operating ratio improved 190 basis points year-over-year to 92.1%. Results benefited from improved revenue per order, freight mix, and continued cost discipline, which more than offset the volume decline. We remain encouraged by the earnings momentum in the business and the progress we are making on profitable growth. Logistics revenues, excluding fuel surcharge, totaled $373 million, up more than 12% year-over-year. However, income from operations was approximately breakeven compared to $6 million in the prior year period. Operating ratio was 100% compared to 98.1% last year. As discussed previously, several factors affected Logistics results during the quarter. Project-based activity moderated sequentially, partially offsetting continued improvement in the underlying business. Earnings declined $12 million from the second quarter, primarily reflecting the confidential claim settlement mentioned earlier. Absent additional regulatory reform following the Montgomery decision, insurance-related costs are likely to remain a structural consideration for the brokerage industry in the near term. However, the impact recognized this quarter should not be viewed as representative of an ongoing run rate for our Logistics segment. We continue to believe our asset-based model, investments in safety, and robust carrier vetting processes and controls leave us well positioned as the industry adjusts to a new economic and insurance paradigm. The claim impact in Logistics was largely offset at the net income level by a $7 million benefit from the reversal of interest accruals following the favorable settlement of a separate claim. This separate claim is a non-cash item that increased adjusted diluted earnings per share by approximately $0.03, and the impact will not persist in the fourth quarter. Turning to our balance sheet and capital allocation. Schneider remains in a position of strength. In the third quarter, net capital expenditures were $80 million compared to $108 million last year, primarily reflecting higher proceeds from equipment sales and the timing of purchases of transportation equipment. Year-to-date, free cash flow was $195 million, which is roughly in line with prior year. We returned $52 million to shareholders in the form of dividends year-to-date. As of September 30th, we had $394 million in debt and finance lease obligations and $326 million in cash and cash equivalents. As a result, our net debt leverage was approximately 0.1x at the end of the quarter. Looking forward, our capital allocation priorities remain unchanged, and we will continue to focus on disciplined deployment across organic growth, accretive M&A, and shareholder returns. During the quarter, we renewed and expanded our credit facilities, including a $350 million revolving credit facility maturing in 2031 and a $400 million receivables facility maturing in 2029. Together, these facilities provide an additional $300 million of available capacity. This additional dry powder and the strength of our balance sheet will allow us to remain nimble and execute across all three capital allocation priorities. For the full year, we now expect net capital expenditures to be in the range of $325 million-$350 million, down from our prior guidance range, reflecting stronger equipment sale proceeds, but ahead of prior year of $289 million. Looking ahead to the remainder of the year, the operating environment remains constructive. Supply conditions continue to support increased pricing while demand remains stable, though uneven across customers and end markets. Taken together, we expect the recovery to continue. Based on our year-to-date performance and the expectations for the fourth quarter, we are updating our full year 2026 adjusted diluted earnings per share guidance to a range of $1-$1.10. Our outlook assumes continued pricing improvements as well as additional benefits from our productivity and cost initiatives. The new low end and the high end of our range account for the risks and opportunities around holiday demand as well as capacity conditions as we close the year. Raising the low end of our guidance reflects the progress we have made on our strategic initiatives, including margin recovery. As Jim noted, we believe the industry remains in the early stages of rebuilding returns after several years of unsustainable economics. Rising capacity constraints and improving pricing reinforce our confidence that the market is moving in the right direction and that Schneider is well positioned to benefit as the recovery progresses. Against that backdrop, we remain confident in the actions we are taking across the enterprise. Progress on pricing, cost management, productivity, and resource allocation is strengthening the business and supporting enhanced operating leverage. Our differentiated multimodal platform provides customers with flexible capacity solutions as market conditions and supply chain needs evolve. With that, we will open the call for questions. Operator: Thank you. We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Ravi Shanker with Morgan Stanley. Ravi, your line is open. Please go ahead. Ravi Shanker: Good day to everyone. Jim. Jim Filter: I'm sorry, Ravi, I'm not hearing your question. Ravi Shanker: Sorry, I think there was an issue with the line. Would love to get your early views on 2027, especially related to wha`t early bid season looks like, and how that shapes up, whether demand does show up or not, given current supply conditions. Jim Filter: Yeah. Thanks, Ravi. I said in my opening here that industry costs are 30% above where they were five years ago, and we're seeing that contract rates are just approaching parity. There's a long ways to go here. But also understand, we're not going to get all of that back in one year. It's not all coming back in 2027. To us, it's really important that as we're working through this, we are going to see that there are opportunities to take price, not just through allocation events, but it's also going to be through order selection and we're going to be strategic as we go through this. Obviously early to put a number against that, but just know that we feel like there's a lot of runway out there in front of us that so far this has all been supply driven, and we see that supply and demand are relatively close. It's a bit of a fragile market. Any blip in demand would be something that would cause this to move a little bit faster. Ravi Shanker: Understood. That's really helpful. Maybe nearer term, I think in the press release, you said that peak season remains a variable for the guidance at the end of the year. What do you know so far? What is the optionality? What kind of visibility do you have on volume versus price and the potential emergence of late season peak projects going into peak season? Jim Filter: Yeah, Ravi Shanker. As it relates to peak season, maybe I'll just take a step back and look at third quarter. Early on in third quarter, there was a little bit of moderation. That was the typical post-July. I also believe that there was a little bit of a pull ahead that occurred in the second quarter. Here, as we're looking at where we're at right now, it's been a decade since we had what I would say has been a normal peak season, but this is one that so far really looks like what I would call a normal peak season demand patterns. We talked early on about having programs with all of our customers. Our guidance is really aligned to the midpoint of that guidance. I think this market remains fragile, and customers understand that risk. That's why they were very eager to put these programs in place. I think what's changed, though, in the last decade is the importance of e-commerce. That is an important swing factor when you look at our guidance, especially in the back half of it, because the quarter starts to become more about e-commerce, which is driven by actual customer demand as you move later into the quarter. That would be the factor that would cause us to move up or down from that midpoint. Ravi Shanker: Very helpful. Thanks, Jim. Jim Filter: You bet. Operator: Your next question comes from the line of Dan Moore with Baird. Your line is open. Please go ahead. Dan Moore: Hey, guys. Thanks for the question. Just a couple of things I was hoping to address. First off, obviously the announcement, with NS. Obviously, we've got a pending merger, and a desire to convert a lot of loads, assuming that transaction closes. Just curious, with the horse trading that's obviously occurred, how disruptive has that been? How do you feel about this new deal in terms of positioning in the market and the opportunities for growth going forward? Then, I have actually two follow-ups, but they'll be fairly quick. Thank you. Jim Filter: Well, yeah. Thanks, Dan. I know there's a lot of other people with questions, so I'll start with the Norfolk Southern announcement, and then we'll take one more of yours. But this is something we spent a lot of time analyzing the two options that we had, and we compare that to not only all the freight that we currently have under management, but we have a really good view of all the freight that gets moved in this country where we think Intermodal could play. As we were comparing all of the freight available to the options that we had, it became obvious to us that we had a better opportunity in our competitive positioning to put ourselves on the Norfolk Southern. And as you think about the merger, that is really just the icing on the cake for us, that this agreement on its own stands, it is economically and strategically beneficial for our organization. But when we looked at what we have done in Mexico, when that converted to a single line service, we had tried every single option available and really struggled to grow that Intermodal business until we moved to the CPKC because they were so effective in improving service, both speed, reliability, cost, and now we have grown 19 consecutive quarters. So that is why we are so excited about the benefits that this brings if the merger does go through, that you see that type of reliability on a much bigger scale when we talk about transcontinental U.S. And then further, there is a big part of the center of this country that just is not served by Intermodal because you have two railroads that make very short hauls and then have to have a rubber tire or steel wheel cross down there are going to be very difficult. This opens up a big chunk of the country, so we are really excited about that. In terms of the competitors that are on there, we feel really good about how we are able to differentiate the fact that we have 100% owned containers, chassis, high percentage of our company drivers. It is our history. We have been doing this for a long time. We have been doing this for 35 years, and customers are looking at that, our history, our ability to execute, and financial stability as a real differentiator. So we are excited about this right now and what this could mean for us in the future. Dan Moore: Yeah, no, appreciate the context. Then just a P&L related question here. So noticed insurance costs were up sequentially quite a bit. I was wondering, and maybe I missed that, you may have already addressed it in your comments earlier. Then interest expense, fairly significant change in interest expense from Q2 to Q3. I was wondering if you could address both of those P&L related items. Appreciate the time. Thanks. Darrell Campbell: Sure. Yes, this is Darrell. There are two separate claims related matters that are within the P&L, and they explain both of the questions that you have. In my prepared remarks, I talked about a confidential settlement that we had for a brokerage-related claim that is recorded in Logistics. We also had a separate claim that related to a prior period activity that we had previously disclosed, where we were appealing a verdict, and in the meantime, we have been accruing interest. We got a favorable outcome in terms of a settlement of that claim, so we reversed the interest in this quarter. That is the $7 million that you are seeing going all the way in terms of interest expense. From a net income perspective, those two separate items are largely offset. But as we know, claims do not develop in a linear fashion. The brokerage claim that we are talking about developed in a lumpy way, but not all claims develop adversely. We do see cases where claims develop favorably, which we did see with that older claim. The brokerage claim is by no means expected to be the run rate going forward. We acknowledge that in a post-Montgomery environment, there is going to be some inflationary impact in the near term. But we think we are well-positioned as a large asset-based provider. Dan Moore: Appreciate the additional context. Operator: Your next question comes from the line of Brian Ossenbeck with JPMorgan. Your line is open. Please go ahead. Brian Ossenbeck: Hey, thanks. Good evening. Appreciate taking the question. Let's give the two upfront. First off with the Norfolk Southern deal, you already work with Union Pacific. I don't know if there's anything related in there in terms of concessions or changes to that agreement, or is the deal with Norfolk separate from that? Then, Jim, maybe you can talk a little bit about the SMX service. I guess more broadly, we know you're talking about this being your primary partner in the East. I don't know if you can talk about if this is exclusive or if there's things like SMX that you're still working with CSX, CPKC on. That'd be helpful. Thank you. Jim Filter: Yeah. Thanks, Brian. Well, you know our rail agreements are long-term. They're confidential agreements, so a lot of those details I can't get into, and especially things with the Union Pacific. In terms of what we do with the CPKC, we're still excited about that. We've had 19 consecutive quarters of growth. I don't see an impact in terms of our ability to continue to execute that freight, so we're excited to continue to provide that service. That's not going away. Brian Ossenbeck: Sorry, is that the SMX, though, or is that the NMX? Is one of— Jim Filter: Yeah, we're still going to be able to. I'm not going to just get into the details on the second half of how we're moving that freight. But we're going to continue to provide service from Mexico into the Southeast and Northeast. Brian Ossenbeck: Yeah. Okay. All right. Thanks. Jim Filter: Yeah. Brian Ossenbeck: Good luck with the transition. Jim Filter: Thank you. Operator: Your next question comes from the line of Ari Rosa with Citi. Your line is open. Please go ahead. Ari Rosa: Hi, good afternoon. I am curious, a number of your peers talked about just the particularly difficult driver hiring environment. I was hoping you could speak to that and what kind of inflationary cost pressures you might be seeing there. It seems like, dare I say, you are navigating that slightly better than others. Is there anything different that you are doing, and just how do you see that as kind of an inhibitor to growth or maybe an enabler of growth for Schneider specifically as we look forward? Thanks. Jim Filter: Yeah. Thanks for the question. It really is a focus on discipline. Our way is to remain disciplined. We align pay increases to rate recovery. This ensures everyone, customers, our customer-facing associates, recruiting, operations, and most importantly, our drivers, we all have a common goal, which is to grow safe, reliable capacity. That is our way. I am encouraged that we are seeing the trajectory of the market improvement, but we are making very specific surgical increases into driver pay where the returns are commensurate. We are not just throwing money at everything. I would also say you just do not solve this by money alone. You have to focus on the driver experience. That comes from freight selection, work configurations, treatment of the drivers, how do we use AI to respond faster to the drivers? You are seeing some of that evidence within the results as well. If you look at Intermodal, our truck count is already growing sequentially because that is a place where we think we bring a really differentiated experience, and so you just cannot throw money on it. It is important to see an improvement in the market condition, but that cannot be the only way that you grow your capacity. Ari Rosa: Got it. That is helpful. Then just as a follow-up, if we could kind of continue on this line of questioning around the NS partnership. We heard an impassioned case against the rail merger last night from one of your Intermodal partners. I am just curious to what extent, if any, you kind of see a realignment that might be necessary among your kind of rail partners. Is there any concern that this could, I do not know, ruffle some feathers among some of those partnerships and maybe change alignments around? Or just how do we get comfort, I guess, that the path forward does not involve kind of a realignment with some of those rail partners? Thanks. Jim Filter: Yeah. CPKC is a very important customer to us. I have assured them that this does not impact what we do with them. We are really excited. But every railroad that you operate with, you are probably using a competing railroad in someplace else. It is not that unusual that you might have places where you work together on, but you are competing in someplace else. I think that is always been the case. If you look at the UP today, we are using the CPKC out of Mexico despite the fact that they have a service. They continue to operate with us and love everything that we are doing with them, but they understand there is a place that we do not use them. It is not that unusual that you are going to go with one provider for everything. We have a lot of support for this, by the way. You look at other developed countries in the world, I think we are the only one where you cannot hop on one train and take it all the way to the other coast. It is very unusual that every other country, you have this ability to do that. Yet here, you have to go to one place, and then remove that, go over to someplace else, and then move the rest of the way across the country. I think it puts the country at a strategic disadvantage. I think it is really important that this is something that gets done, just to improve supply chains across the country. Ari Rosa: Okay. Very helpful. Thank you for the thoughts, Jim. Jim Filter: You bet. Operator: Your next question comes from the line of Chris Wetherbee with Wells Fargo. Your line is open. Please go ahead. Chris Wetherbee: Hey, thanks. Good afternoon, guys. Sticking on the NS deal, I guess maybe if we could bring it back to your P&L to some degree and get a sense of maybe how you see the opportunity playing out. Happy to keep it kind of big picture or directed however you want, whether it be the opportunity for volume growth. That kind of seems relatively clear from what you're talking about. Maybe pricing, maybe profitability of this business. Anything meaningfully changing as we go forward? Or maybe just help us sort of understand how you're thinking about the opportunity here. Jim Filter: Yeah. The way we're thinking about the opportunity is how do we put ourselves in a position where we can convert over-the-road freight and position ourselves relative to others that are providing that service? When we look at the number of terminals, where they're operating at, where the population centers are in the U.S., and where we're moving towards, the NS gives us a really great option there going forward. On top of that, if you layer this new opportunity for transcontinental railroad, I think that's the one that unleashes absolutely the most growth. We're never going to look at growth and say we're going to do that just to grow. We're always going to remain disciplined as we're going through and growing in terms of where do we want to grow in our Network as well as which specific customers we want to add on to that service. I think there's a great opportunity, when you start providing higher levels of service, to extract more value and have a little bit of a smaller discount relative to Truckload. I think there's a lot of opportunities to be gained here going forward. Chris Wetherbee: Okay. That's super helpful. I appreciate that. Then maybe just coming back to the issue of settlements and insurance broadly, and I know this was in the Logistics segment, but I guess we can take it a little bit bigger than that. How do you think about the potential pressure you might see as we go forward? It's obviously something that's come up quite a bit over the course of the last couple of days, but also couple of months. Can you give us some perspective on how we need to be thinking about that for the Logistics business in 2027? Jim Filter: Yeah. Thanks. There's some near-term dynamics here as this industry is adjusting to new costs and insurance paradigm. It's a combination of safety, it's insurance costs, even that ability to access insurance. It's going to remain a brokerage industry consideration. I think it reinforces the value of an asset-based model and carrier vetting that we've been talking about for several quarters here, what we've done specifically. Having a program where we've moved from about 65,000 carriers down to 14,000 carriers as we implemented some goals that were set outside of Schneider. Now we're continuing to invest in some additional ones that are making us more effective as an asset-based carrier. But on a net, I see this as a positive for Schneider. There has been a diseconomy of scale for a number of years due to the cost of claims. Post Montgomery, that diseconomy of scale is being reduced, but the cost of claims aren't being absorbed by the small carrier, they're being absorbed by somewhere else in the supply chain, namely brokers and shippers. Not all brokers and shippers are considering safety at this point, but the ones that are, they're considering insurance levels, investment in safety, and they're willing to pay premiums. The job of people that are in supply chains are changing. In the past, they've always looked at service and cost. Now they need to look at those things still to understand value, but also consider the impact of safety because they also could be liable. I think this is something that it's a really big change in the industry. On net, it's a positive for Schneider. Chris Wetherbee: Okay. Appreciate the perspective. Thank you very much. Jim Filter: You bet. Operator: Your next question comes from the line of Scott Group with Wolfe Research. Your line is open. Please go ahead. Scott Group: Hey, thanks. Good afternoon. Can you give us some directional color? What percentage of your Intermodal volume is impacted by this sort of change? Is it all moving right away in January, or are you waiting to find out if the merger gets approved? Is it going to be gradual? Just any thoughts. Jim Filter: Yeah. Thanks, Scott. It is January 1st, 2027, is the official implementation. We do not break down how much we are doing by railroad or specific ramps. But we have obviously spent some time putting this together. We have a Dedicated transition team that is a combination of Schneider and Norfolk Southern. While we announced it today, those teams have been putting the work together for a long time. We have a proven playbook. We have done this before, so has Norfolk Southern. They have also been making some investments in facilities, getting things set up for us. There has been some track adjustments as well, making sure that we have the lift capacity. We have gone through all of those checks similar to what we did as we moved to the Union Pacific, as an example, where we get very granular going through that work, and we feel really good about their ability to execute. When we made our last transition, we did that primarily over the last month of the year. In this one, we are going to start here already in November, making that transition as we will start to move freight over to the NS and execute there. Scott Group: I guess what I was trying to figure out, roughly, what percentage of your volume is local East or Transcon, the Eastern part of Transcon? That was my first question. My second question, I guess, is this year it felt like bid season, clearly Truckload got a lot more price than Intermodal. Do you think that is a similar outcome as you think about 2027, or do you think they are more aligned in terms of increases? Jim Filter: Yeah. Let me just get into the price increases for Intermodal. We are starting to see some improvement there, comfortably in the mid-single digit range, but nowhere near what you saw for the Truckload, and specifically Truckload Network type business. At the same time, Scott, you look back at the decreases that we saw in the Network business, they were significantly larger. I would not expect that we are going to be talking about nearly 20% type increases in the Intermodal, because they just did not take the same type of decrease. Ultimately, it gets down to the competitiveness between the two. I am encouraged that we are starting to see increase in Intermodal. I would expect with service levels, we should start to see some of the gap between Truckload and Intermodal pricing get reduced. But I don't know that we're talking about the same level of increases as we go through next year for Intermodal. Scott Group: Okay. Thank you. Jim Filter: You bet. Operator: Your next question comes from the line of Ken Hoexter with Bank of America. Your line is open. Please go ahead. Ken Hoexter: Hey, great. Good afternoon. Jim, just to follow up on the Norfolk subject, you have done this before, right? When you moved from BNSF to UP. Maybe just talk a bit about that experience. How long until you got to normalization in your service levels? Can you talk about any scale of customer losses in your past experience, or how long it took you to do that? The contract, do you talk about how long? Is this like a decade or a five-year type of deal, and do you add new lanes? I guess just any more parameters would be great. Thanks. Jim Filter: Sure. Thanks, Ken. Yes. We do not discuss the details of the actual contract. But the biggest thing that as we approach these is we are thinking about the impacts of both customers and drivers. We had this playbook that we used last time. We learned a few things as we went through this last time, and that is what gives us a lot more confidence as we go through this one. I think last time when we went through this, there was someone that had made a change on the UP one year before us. They stumbled, and I think customers expected us to stumble, but we did not. The customer reaction as we went through the UP transaction or transition was extremely favorable. Same thing from drivers. As we spent time with our drivers, we showed them the work that we had done in advance so that they were going to have a really great experience. We were prepared that we might have some drivers that this would not be the best opportunity. We did not lose drivers as we made that transition either. We took those learnings, we have applied them here, and I believe that customers should be very confident. We have a number of them here in Green Bay. Today, tonight, we have a Packer game, and they are getting this information, spending time with the railroad, so giving them a great deal of confidence that, hey, we are really aligned, working together, and we are going to make this a great experience for them. We would not do anything that would harm our customer or driver experience. Ken Hoexter: All right. Great. Just a follow-up on the Truckload side. Dedicated fleet was down 5%, your Network down 13.5% year-over-year or 3% and 5% sequentially. Pretty big declines. I guess, is that going back to the customer loss Darrell talked about, or is there something else you are aiming to do with the fleet size? Jim Filter: Yeah. Part of it is the large Dedicated customer that we had as a loss. We had anticipated that, we had talked about it. But also, we see that this market is the trajectory of improvement. It has been the time to go out there and address price. That's where we had an impact here with that one large customer. But it's also been a situation that we needed to go through and work through those deals. The vast majority of customers have been. We've had very constructive discussions. They want to make sure that they have safe, reliable capacity, and we're able to get the price that we need to be able to reinvest back into our drivers. But where we're not getting the price or not moving quick enough, that is a little bit of a headwind to be able to maintain the capacity. Now, the fact that we are getting price, both in our Network and in our Dedicated, we're getting to a spot where we're seeing some moderation in that decline and beginning to see a flattening out of that curve. Ken Hoexter: Great. Thanks, Jim. Jim Filter: You bet. Operator: Your next question comes from the line of Jordan Alliger with Goldman Sachs. Your line is open. Please go ahead. Andre: Hey, thanks. This is Andre on for Jordan. Just curious on the revenue per truck per week within for-hire. It was up 21% year-over-year, up 16% last quarter. Are you able to speak to the miles per tractor improvement versus the revenue per mile there? Just trying to get a sense for productivity versus rate per mile. Then, relatedly, are you able to talk about bid season, whether contracts, are those being signed sort of in the double-digit range or comment on how that's looking for 2027? Jim Filter: Yeah. Thanks, Andre. The revenue per truck per week being up 21%, obviously a really big number. I think we even talked about it a little bit in the opening that our productivity improvement was up high single digits, and we're able to get that through better freight selection, in terms of what loads we're putting our drivers on. But also, going back to our assets as well. We've been really focused on how do we sweat our assets. I'd say, going forward, I think we've taken productivity out, or we've seen the productivity improvement, expect that to continue. Now it needs to be more from price, because we've got to be able to get additional revenue per truck per week to get to a spot where we can reinvest back further to grow our capacity. Difficult to say specifically what 2027 will hold as you go through bid season. There's shippers that think very strategically, and they say, I want to make sure that I have some reliable capacity that's going to last through the course of the year. There's others that say, You know what? Bid based off of what you expect the prices are right now, and then come back to me later. We're comfortable with both of those approaches. We just want to make sure that we're giving our customers what they want, and we're getting what we need in return, to make a really fair value exchange. Speaker 11: Appreciate the thoughts. Jim Filter: You bet, Jordan. Or Andre. Operator: Your next question comes from the line of Tom Wadewitz with UBS. Your line is open. Please go ahead. Tom Wadewitz: Yeah, good afternoon. And congratulations on the new deal with Norfolk Southern. Sounds like that's going to create some interesting opportunity, and it obviously has strategic value that's meaningful if assuming the merger gets approved. How do you think about, I guess, the impact to volumes while you go through the transition? I know you referred to learnings from the UP, transition over to UP a couple of years ago, whenever that was. Does this put on hold volume growth for a period of time where there'd be some probably not big hiccups, but a little bit of uncertainty as you transition over? And that's taking place in the midst of the bid season or early part of the bid season. Is that something that's realistic to say, Well, maybe volume growth is on hold, but we'll get a lot better on a multi-year basis. How do you think about that impact to the way Intermodal does at Schneider in 2027? Jim Filter: Yeah. Thanks, Tom. For a long time, the questions we've taken on Intermodal growth has been focused on number of containers out there. My response has always been the constraint for Intermodal growth is dray capacity for anyone that prioritizes profitable growth, which is us. I'd say that hasn't changed. We went through this transition before, and every box is going to get brought, it goes from a customer into a railroad, it's just going into a different railroad, it's going to land at a different one. We actually have a pretty good process to make that work. There's no slowdown, no laying off. Matter of fact, our focus here is how do we extract enough price so that we're able to reinvest back into that dray fleet. We're starting to make some of those surgical investments there. We won't be coming back and using the NS transaction as an excuse for lack of volume growth. Tom Wadewitz: Right. Okay. You're going to continue to focus on profitability and price. Obviously, that has an effect on what you do on volume. I guess it's good to do the transition in a tight market, right? That just gives you more stickiness with customers. Apologize if I missed this, but you gave some comments on the market. Where do you think we're at in Truckload in terms of regulatory initiatives and impact on capacity? It sounds like maybe less impact from those initiatives in 3Q, but I think when you look to 2027, you're still of the mindset that there's a lot more impact to go. How do you put the pieces together and say, Okay, this is what we think is going to have a big impact looking forward, a particular initiative? Just overall, I don't know, how much of the capacity reduction's already been affected? Thank you. Jim Filter: Yeah. As you look at capacity, I'll just start with the fundamentals here, is that capacity is still constrained. You're not seeing growth of long-haul truck drivers, despite the fact that spot rates have been increasing over the course of almost a full year at this point. The biggest factor right now is the entry-level driver training as I look at that. Because during 2021 and 2022, that's when you saw about 50,000 long-haul drivers enter the marketplace. They were entering, in a lot of cases, with a training that was less than a week to become a CDL and at very low price points. Now, we have standards for CDL training. The standards are putting you at five or six weeks to be able to get trained and at a higher expense. Back in 2021 and 2022, when those 50,000 drivers entered, companies like Schneider couldn't touch a driver that was entering a school where you only had one week of training. We'd say, You're not a safe driver. Now, when we do start to see growth in capacity, which we would expect at some point, prices will support that. We believe that we're going to be able to participate in that this time, which is a little bit different than last time. In my technical view of the duration of this cycle, I talked a little bit about industry cost versus price. Also, typically, up cycles mirror the prior down cycle. This last down cycle, it took four years and it was very deep. I think it's going to take us a while because you're not going to recover the amount of price that was given up over the last four years in one cycle, nor through one channel. It's going to take some time before we get all the way through that. So I believe it's very durable. Tom Wadewitz: Okay, so you think it is the funnel? So you think it is really that capacity does not grow from here as opposed to further reduction? Jim Filter: Yeah. I would say that I am not sure. There may be a little bit more reduction, but it is probably a little bit of flattening out, and eventually when capacity does enter, I think that is an opportunity for companies like Schneider to be able to start participating in any industry growth. Tom Wadewitz: Okay. Yeah. Great. Makes sense. Thank you. Jim Filter: You bet. Thanks. Operator: Your next question comes from the line of Bruce Chan with Stifel. Your line is open. Please go ahead. Bruce Chan: Hey, good afternoon, everyone. Jim, maybe just want to come back to a comment you made around leaning more into specialty Dedicated. I think that makes sense given your focus on price and value add here. But maybe you could just give a sense for what end markets you're going to be focused on and what that kind of process entails from an investment standpoint. Jim Filter: Yeah. Thanks, Bruce. There's actually a fairly broad set of end markets. Obviously, there's some that are very well known when we talk about things that require lift gates that are within retail. There's items within automotive where we have specialty equipment. But outside of that, it is an extremely broad range. Everything from garbage to lumber. It's an amazing mix. And right now, what we're starting to hear from more shippers, they're starting to have some concerns about capacity. There's also more that are starting to ask questions related to Montgomery. And so we want to make sure that we're finding those right opportunities and making those investments. And a lot of times it's just us sitting down with a shipper, understanding their supply chain, where we could bring value, and those are the ones that we want to focus on. It's more important that there's a problem that we're trying to solve that we think our organization can bring differentiation rather than picking a specific end market that we circle and say it has to be that one. Bruce Chan: Okay, great. I'll leave it there. Thank you. Jim Filter: All right. Thanks, Bruce. Operator: We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Schneider National, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Schneider National wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $334,631!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,312,844!* Now, it's worth noting Stock Advisor's total average return is 893% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Schneider National (SNDR) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Schneider National (SNDR) came out with quarterly earnings of $0.29 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this trucking company would post earnings of $0.22 per share when it actually produced earnings of $0.29, delivering a surprise of +31.82%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Schneider National, which belongs to the Zacks Transportation - Services industry, posted revenues of $1.59 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.09%. This compares to year-ago revenues of $1.45 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Schneider National shares have added about 12% since the beginning of the year versus the S&P 500's gain of 13.1%. While Schneider National has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Schneider National was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.34 on $1.57 billion in revenues for the coming quarter and $1.04 on $6.12 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the bottom 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Universal Logistics (ULH), has yet to report results for the quarter ended September 2026. This trucking and logistics company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents a year-over-year change of +33.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Universal Logistics' revenues are expected to be $390.4 million, down 1.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schneider National, Inc. (SNDR) : Free Stock Analysis Report Universal Logistics Holdings, Inc. (ULH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Operating Revenues $1.6 billion; $1.5 billion in 2025 - Income from Operations $62.1 million; $35.3 million in 2025 - Diluted Earnings per Share $0.28; $0.11 in 2025 - Adjusted Diluted Earnings per Share $0.29; $0.12 in 2025 - Raising full year 2026 Adjusted Diluted Earnings per Share guidance to $1.00 - $1.10 - Full year 2026 Net Capital Expenditures guidance of $325 - $350 million GREEN BAY, Wis., October 29, 2026--(BUSINESS WIRE)--Schneider National, Inc. (NYSE: SNDR, "Schneider" or the "Company"), a leading transportation and logistics services company, today announced results for the three months ended September 30, 2026. "Our third-quarter performance demonstrates how our strategy has positioned the enterprise to convert improving market conditions into stronger earnings and margins," said Jim Filter, President and Chief Executive Officer of Schneider. "Disciplined revenue management, productivity gains, and cost reductions are improving our operating leverage, while our diversified multimodal platform gives us the agility to respond as customer needs and freight flows evolve." Filter continued, "Truckload earnings more than doubled year-over-year, reflecting Network's return to profitability and continued progress on Dedicated portfolio actions. Intermodal delivered strong earnings growth supported by our differentiated offering and proactive price actions. While Logistics results were impacted by higher claim costs, the underlying business continued to improve including positive net revenue per order trends." "We continue to adapt our business to changes in the marketplace and strengthen Schneider's long-term competitive position," Filter commented. "We announced a new agreement with Norfolk Southern today and this is a strong example of that approach in action, further differentiating our Intermodal offering while enhancing service and supporting profitable growth." Results of Operations (unaudited)The following table summarizes the Company's results of operations for the periods indicated. | | | | | | Three Months EndedSeptember 30, | | Nine Months EndedSeptember 30, (in millions, except ratios & per share amounts) | | | 2026 | | | | 2025 | | | Change | | | 2026 | | | | 2025 | | | Change Operating revenues | | $ | 1,585.3 | | | $ | 1,452.4 | | | 9 | % | | $ | 4,552.5 | | | $ | 4,274.7 | | | 6 | % Revenues (excluding fuel surcharge) | | | 1,345.1 | | | | 1,299.7 | | | 3 | % | | | 3,916.5 | | | | 3,840.0 | | | 2 | % Income from operations | | | 62.1 | | | | 35.3 | | | 76 | % | | | 166.9 | | | | 132.4 | | | 26 | % Adjusted income from operations | | | 63.8 | | | | 38.4 | | | 66 | % | | | 172.1 | | | | 139.4 | | | 23 | % Operating ratio | | | 96.1 | % | | | 97.6 | % | | 150 bps | | | 96.3 | % | | | 96.9 | % | | 60 bps Adjusted total operating expenses, net of fuel surcharge revenue | | $ | 1,281.3 | | | $ | 1,261.3 | | | 2 | % | | $ | 3,744.4 | | | $ | 3,700.6 | | | 1 | % Adjusted operating ratio | | | 95.3 | % | | | 97.0 | % | | 170 bps | | | 95.6 | % | | | 96.4 | % | | 80 bps Net income | | $ | 49.5 | | | $ | 19.4 | | | 155 | % | | $ | 119.6 | | | $ | 81.5 | | | 47 | % Adjusted net income | | | 50.8 | | | | 21.7 | | | 134 | % | | | 123.5 | | | | 86.8 | | | 42 | % Adjusted EBITDA | | | 168.8 | | | | 148.9 | | | 13 | % | | | 492.4 | | | | 470.5 | | | 5 | % Diluted earnings per share | | | 0.28 | | | | 0.11 | | | 155 | % | | | 0.68 | | | | 0.46 | | | 48 | % Adjusted diluted earnings per share | | | 0.29 | | | | 0.12 | | | 142 | % | | | 0.70 | | | | 0.49 | | | 43 | % Weighted average diluted shares outstanding | | | 176.3 | | | | 175.9 | | | 0.4 | | | | 176.0 | | | | 175.9 | | | 0.1 | Enterprise Results Enterprise income from operations for the third quarter of 2026 was $62.1 million, an increase of $26.8 million, or 76%, compared to the same period in 2025. Diluted earnings per share were $0.28 and $0.11 in the third quarter of 2026 and 2025, respectively. Adjusted diluted earnings per share were $0.29 and $0.12 in the third quarter of 2026 and 2025, respectively. Cash Flow and Capitalization As of September 30, 2026, the Company had $393.6 million outstanding on total debt and finance lease obligations and cash and cash equivalents of $326.2 million. Net capital expenditures decreased during the three months ended September 30, 2026, compared to the three months ended September 30, 2025, primarily due to increased proceeds from the sale of equipment. As of September 30, 2026, year-to-date free cash flow was consistent with prior year. In January 2026, the Company announced the approval of a new $150.0 million share repurchase program. As of September 30, 2026, the Company had repurchased a total of 0.2 million Class B shares amounting to $5.2 million under the new program. In July 2026, the Company's Board of Directors declared a $0.10 dividend payable to shareholders of record as of September 11, 2026, which was paid on October 9, 2026. On October 26, 2026, the Company's Board of Directors declared a $0.10 dividend payable to shareholders of record as of December 11, 2026, expected to be paid on January 12, 2027. As of September 30, 2026, the Company had returned $52.1 million in the form of dividends to shareholders year to date. Results of Operations – Reportable Segments Truckload Truckload revenues (excluding fuel surcharge) for the third quarter of 2026 were $624.8 million, an increase of $0.3 million compared to the same period in 2025. The increase was driven by improved Network price and productivity, partially offset by lower volume within both Network and Dedicated. Truckload revenue per truck per week was $4,252, up $329, or 8%, compared to the same quarter of 2025, reflecting improvements in both Network and Dedicated. Truckload income from operations was $43.7 million in the third quarter of 2026, an increase of $23.9 million, or 121%, compared to the same period in 2025. The improvement was driven by improved Network price and productivity, acquisition-related cost synergies, higher gains on sales of equipment, and improved equipment utilization, partially offset by increased purchased transportation. Truckload operating ratio was 93.0% in the third quarter of 2026 compared to 96.8% in the third quarter of 2025, an improvement of 380 basis points. Intermodal Intermodal revenues (excluding fuel surcharge) for the third quarter of 2026 were $287.7 million, an increase of $6.3 million, or 2%, compared to the same quarter in 2025. The increase was driven by a 3% increase in revenue per order, reflecting an increase in price, partially offset by a decrease in volume. Intermodal income from operations for the third quarter of 2026 was $22.6 million, an increase of $5.8 million, or 35%, compared to the same quarter in 2025. The increase was driven by freight mix and the revenue per order impact noted above. These favorable impacts were partially offset by higher purchased transportation expenses. Intermodal operating ratio was 92.1% in the third quarter of 2026 compared to 94.0% in the same quarter in 2025, an improvement of 190 basis points. Logistics Logistics revenues (excluding fuel surcharge) for the third quarter of 2026 were $372.5 million, an increase of $40.4 million, or 12%, compared to the same quarter in 2025, primarily due to higher revenue per order, partially offset by lower brokerage volume. Logistics income from operations for the third quarter of 2026 decreased $6.4 million, or 100%, compared to the same quarter in 2025. The decrease was driven by higher purchased transportation costs and increased insurance expense related to a specific prior year claim, partially offset by the revenue impacts listed above. Logistics operating ratio was 100.0% in the third quarter of 2026 compared to 98.1% in the third quarter of 2025, an increase of 190 basis points. Business Outlook | | (in millions, except per share data) | Current Guidance Adjusted diluted earnings per share | $1.00 - $1.10 Net capital expenditures | $325-$350 "Third quarter results underpin the progress we are making to structurally improve the business and position Schneider to generate stronger earnings as freight market conditions improve," said Darrell Campbell, Executive Vice President and Chief Financial Officer of Schneider. "As a result, the enterprise was able to deliver 66% growth in adjusted income from operations." "Based on our year-to-date performance and expectations for the remainder of the year, we are raising our full-year adjusted diluted earnings per share guidance to $1.00 to $1.10 and now expect net capital expenditures to be in a range of $325 million to $350 million," Campbell added. "Our outlook anticipates continued contract rate recovery and further benefits from our productivity and cost initiatives, while also recognizing that peak season demand and driver capacity remain important variables as we close the year. The guidance assumes a full year effective tax rate of approximately 22%." Non-GAAP Financial Measures The Company has presented certain non-GAAP financial measures, including revenues (excluding fuel surcharge); adjusted income from operations; adjusted total operating expenses, net of fuel surcharge revenues; adjusted operating ratio; adjusted net income; adjusted EBITDA; free cash flow; and adjusted diluted earnings per share. Management believes the use of non-GAAP measures assists investors in understanding the business, as further described below. The non-GAAP information provided is used by Company management and may not be comparable to similar measures disclosed by other companies. The non-GAAP measures used herein have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of results as reported under GAAP. A reconciliation of net income per share to adjusted diluted earnings per share as projected for 2026 is not provided. Schneider does not forecast net income per share as the Company cannot, without unreasonable effort, estimate or predict with certainty various components of net income. The components of net income that cannot be predicted include expenses for items that do not relate to core operating performance, such as costs related to potential future acquisitions, as well as the related tax impact of these items. Further, in the future, other items with similar characteristics to those currently included in adjusted net income, which have a similar impact on the comparability of periods, and which are not known at this time may exist and impact adjusted net income. About Schneider National, Inc. Schneider National, Inc. and its subsidiaries (together "Schneider," the "Company," "we," "us," or "our") are among the largest providers of surface transportation and logistics solutions in North America. We offer a multimodal portfolio of services and an array of capabilities and resources that leverage artificial intelligence, data science, and analytics to provide innovative solutions that coordinate the timely, safe, and effective movement of customer products. The Company offers truckload, intermodal, and logistics services to a diverse customer base throughout the continental United States, Canada, and Mexico. We were founded in 1935 and have been a publicly held holding company since our IPO in 2017. Our stock is publicly traded on the NYSE under the ticker symbol SNDR. Our diversified portfolio of complementary service offerings enables us to serve the varied needs of our customers and to allocate capital that maximizes returns across all market cycles and economic conditions. Our service offerings include transportation of full-truckload freight, which we directly transport utilizing either our company-owned transportation equipment and company drivers, owner-operators, or third-party carriers under contract with us. We have arrangements with most of the major North American rail carriers to transport freight in containers. We also provide customized freight movement, transportation equipment, labor, systems, and delivery services tailored to meet individual customer requirements, which typically involve long-term contracts. These arrangements are generally referred to as dedicated services and may include multiple pickups and drops, local deliveries, freight handling, specialized equipment, and freight network design. In addition, we provide comprehensive logistics services with a network of thousands of qualified third-party carriers. We also lease equipment to third parties through our wholly owned subsidiary Schneider Finance, Inc., which is primarily engaged in leasing trucks to owner-operators, including, but not limited to, owner-operators with whom we contract, and we provide insurance for both company drivers and owner-operators through our wholly owned insurance subsidiary. Conference Call and Webcast Information The Company will host an earnings conference call today at 4:30 p.m. Eastern Time. The conference call can be accessed by dialing 800-715-9871 toll-free or 646-307-1963 (conference ID: 2793697). A webcast of the conference call can also be accessed on the Investor Relations section of the Company's website, Schneider.com, along with the current quarterly investor presentation. Source: Schneider SNDR SCHNEIDER NATIONAL, INC.CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(in millions, except per share data) | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Operating revenues | $ | 1,585.3 | | | $ | 1,452.4 | | | $ | 4,552.5 | | | $ | 4,274.7 | Operating expenses: | | | | | | | Purchased transportation | | 590.4 | | | | 505.4 | | | | 1,635.0 | | | | 1,482.9 | Salaries, wages, and benefits | | 396.0 | | | | 402.6 | | | | 1,193.7 | | | | 1,201.9 | Fuel and fuel taxes | | 165.0 | | | | 111.5 | | | | 448.7 | | | | 326.8 | Depreciation and amortization | | 107.7 | | | | 112.9 | | | | 328.1 | | | | 338.8 | Operating supplies and expenses—net | | 179.8 | | | | 191.6 | | | | 553.4 | | | | 547.2 | Insurance and related expenses | | 49.4 | | | | 60.1 | | | | 129.9 | | | | 143.8 | Other general expenses | | 34.9 | | | | 33.0 | | | | 96.8 | | | | 100.9 | Total operating expenses | | 1,523.2 | | | | 1,417.1 | | | | 4,385.6 | | | | 4,142.3 | Income from operations | | 62.1 | | | | 35.3 | | | | 166.9 | | | | 132.4 | Other expenses (income): | | | | | | | Interest income | | (2.6 | ) | | | (1.3 | ) | | | (6.1 | ) | | | (4.4 | ) Interest expense | | (1.9 | ) | | | 9.5 | | | | 12.0 | | | | 25.9 | Other expenses—net | | 1.0 | | | | 0.7 | | | | 2.6 | | | | 2.3 | Total other expenses (income)—net | | (3.5 | ) | | | 8.9 | | | | 8.5 | | | | 23.8 | Income before income taxes | | 65.6 | | | | 26.4 | | | | 158.4 | | | | 108.6 | Provision for income taxes | | 16.1 | | | | 7.0 | | | | 38.8 | | | | 27.1 | Net income | $ | 49.5 | | | $ | 19.4 | | | $ | 119.6 | | | $ | 81.5 | | | | | | | | Weighted average shares outstanding | | 175.3 | | | | 175.3 | | | | 175.2 | | | | 175.3 | Basic earnings per share | $ | 0.28 | | | $ | 0.11 | | | $ | 0.68 | | | $ | 0.47 | | | | | | | | Weighted average diluted shares outstanding | | 176.3 | | | | 175.9 | | | | 176.0 | | | | 175.9 | Diluted earnings per share | $ | 0.28 | | | $ | 0.11 | | | $ | 0.68 | | | $ | 0.46 | SCHNEIDER NATIONAL, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(in millions) | | | | | | September 30, 2026 | | December 31, 2025 Assets | | | | Cash and cash equivalents | | $ | 326.2 | | $ | 201.5 Trade accounts receivable—net | | | 733.7 | | | 578.3 Other current assets | | | 371.8 | | | 401.4 Net property and equipment | | | 2,653.5 | | | 2,719.6 Other noncurrent assets | | | 912.9 | | | 939.3 Total Assets | | $ | 4,998.1 | | $ | 4,840.1 | | | | Liabilities and Shareholders' Equity | | | | Trade accounts payable | | $ | 268.0 | | $ | 208.6 Current maturities of debt and finance lease obligations | | | 11.8 | | | 11.1 Other current liabilities | | | 414.3 | | | 336.1 Long-term debt and finance lease obligations | | | 381.4 | | | 390.9 Deferred income taxes | | | 592.1 | | | 593.8 Other noncurrent liabilities | | | 233.1 | | | 274.9 Shareholders' equity | | | 3,097.4 | | | 3,024.7 Total Liabilities and Shareholders' Equity | | $ | 4,998.1 | | $ | 4,840.1 SCHNEIDER NATIONAL, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)(in millions) | | | | | | Nine Months EndedSeptember 30, | | | 2026 | | | | 2025 | Net cash provided by operating activities | | $ | 403.2 | | | $ | 451.4 | Net cash used in investing activities | | | (208.4 | ) | | | (311.5 | ) Net cash used in financing activities | | | (70.1 | ) | | | (63.4 | ) Net increase in cash and cash equivalents | | $ | 124.7 | | | $ | 76.5 | | | | | Net capital expenditures | | $ | (208.7 | ) | | $ | (257.7 | ) Schneider National, Inc.Revenues and Income (Loss) from Operations by Segment(unaudited)Revenues by Segment | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, (in millions) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Truckload | | $ | 624.8 | | | $ | 624.5 | | | $ | 1,870.4 | | | $ | 1,860.4 | Intermodal | | | 287.7 | | | | 281.4 | | | | 803.2 | | | | 806.9 | Logistics | | | 372.5 | | | | 332.1 | | | | 1,060.9 | | | | 1,003.7 | Other | | | 109.0 | | | | 117.8 | | | | 312.3 | | | | 303.3 | Fuel surcharge | | | 240.2 | | | | 152.7 | | | | 636.0 | | | | 434.7 | Inter-segment eliminations | | | (48.9 | ) | | | (56.1 | ) | | | (130.3 | ) | | | (134.3 | ) Operating revenues | | $ | 1,585.3 | | | $ | 1,452.4 | | | $ | 4,552.5 | | | $ | 4,274.7 | Income (Loss) from Operations by Segment | | | | | Three Months Ended September 30, | Nine Months Ended September 30, (in millions) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Truckload | | $ | 43.7 | | | $ | 19.8 | | | $ | 115.3 | | | $ | 85.0 | Intermodal | | | 22.6 | | | | 16.8 | | | | 51.9 | | | | 46.7 | Logistics | | | — | | | | 6.4 | | | | 18.6 | | | | 22.4 | Other | | | (4.2 | ) | | | (7.7 | ) | | | (18.9 | ) | | | (21.7 | ) Income from operations | | $ | 62.1 | | | $ | 35.3 | | | $ | 166.9 | | | $ | 132.4 | Schneider National, Inc.Key Performance Indicators by Segment(unaudited)We monitor and analyze a number of KPIs to manage our business and evaluate our financial and operating performance.TruckloadThe following table presents our Truckload segment KPIs for the periods indicated, consistent with how revenues and expenses are reported internally for segment purposes. Our Truckload segment is comprised of two operating units:Dedicated - Transportation services utilizing equipment dedicated to customers under long-term contracts.Network - Transportation services primarily consisting of one-way shipments. | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Dedicated | | | | | | | | Revenues (excluding fuel surcharge) (1) | | $ | 427.8 | | | $ | 436.5 | | | $ | 1,292.7 | | | $ | 1,312.4 | Average trucks (2) (3) | | | 8,051 | | | | 8,472 | | | | 8,276 | | | | 8,509 | Revenue per truck per week (4) | | $ | 4,107 | | | $ | 3,982 | | | $ | 4,072 | | | $ | 4,015 | Network | | | | | | | | Revenues (excluding fuel surcharge) (1) | | $ | 196.5 | | | $ | 187.4 | | | $ | 578.4 | | | $ | 547.2 | Average trucks (2) (3) | | | 3,296 | | | | 3,819 | | | | 3,466 | | | | 3,760 | Revenue per truck per week (4) | | $ | 4,605 | | | $ | 3,792 | | | $ | 4,350 | | | $ | 3,787 | Total Truckload | | | | | | | | Revenues (excluding fuel surcharge) (5) | | $ | 624.8 | | | $ | 624.5 | | | $ | 1,870.4 | | | $ | 1,860.4 | Average trucks (2) (3) | | | 11,347 | | | | 12,291 | | | | 11,742 | | | | 12,269 | Revenue per truck per week (4) | | $ | 4,252 | | | $ | 3,923 | | | $ | 4,154 | | | $ | 3,945 | Average company trucks (3) | | | 10,005 | | | | 10,920 | | | | 10,417 | | | | 10,923 | Average owner-operator trucks (3) | | | 1,342 | | | | 1,371 | | | | 1,325 | | | | 1,346 | Trailers (6) | | | 50,687 | | | | 52,323 | | | | 50,687 | | | | 52,323 | Operating ratio (7) | | | 93.0 | % | | | 96.8 | % | | | 93.8 | % | | | 95.4 | % (1) | | Revenues (excluding fuel surcharge), in millions, exclude revenue in transit. (2) | | Includes company and owner-operator trucks. (3) | | Calculated based on beginning and end of month counts and represents the average number of trucks available to haul freight over the specified timeframe. (4) | | Calculated excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes, using weighted workdays. (5) | | Revenues (excluding fuel surcharge), in millions, include revenue in transit at the operating segment level; therefore, amounts presented above do not sum to total. (6) | | Includes entire fleet of owned trailers, including trailers with leasing arrangements between Truckload and Logistics. (7) | | Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level. IntermodalThe following table presents the KPIs for our Intermodal segment for the periods indicated. | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Orders (1) | | | 114,619 | | | | 116,592 | | | | 327,953 | | | | 329,250 | Containers | | | 26,331 | | | | 26,394 | | | | 26,331 | | | | 26,394 | Trucks | | | 1,378 | | | | 1,377 | | | | 1,378 | | | | 1,377 | Revenue per order (2) | | $ | 2,486 | | | $ | 2,413 | | | $ | 2,417 | | | $ | 2,440 | Operating ratio (3) | | | 92.1 | % | | | 94.0 | % | | | 93.5 | % | | | 94.2 | % (1) | | Based on delivered rail orders. (2) | | Calculated using rail revenues excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes. (3) | | Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level. LogisticsThe following table presents the KPI for our Logistics segment for the periods indicated. | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2026 | | 2025 | | 2026 | | 2025 Operating ratio (1) | | 100.0 % | | 98.1 % | | 98.2 % | | 97.8 % (1) | | Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level. Schneider National, Inc.Reconciliation of Non-GAAP Financial Measures(unaudited)In this earnings release, we present the following non-GAAP financial measures: (1) revenues (excluding fuel surcharge), (2) adjusted income from operations, (3) adjusted operating expenses, net of fuel surcharge revenues, (4) adjusted operating ratio, (5) adjusted net income, (6) adjusted EBITDA, (7) free cash flow, and (8) adjusted diluted earnings per share. We also provide reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.Management believes the use of each of these non-GAAP measures assists investors in understanding our business by (1) removing the impact of items from our operating results that, in our opinion, do not reflect our core operating performance, (2) providing investors with the same information our management uses internally to assess our core operating performance, and (3) presenting comparable financial results between periods. In addition, in the case of revenues (excluding fuel surcharge), we believe the measure is useful to investors because it isolates volume, price, and cost changes directly related to industry demand and the way we operate our business from the external factor of fluctuating fuel prices and the programs we have in place to manage such fluctuations. Fuel-related costs and their impact on our industry are important to our results of operations, but they are often independent of other, more relevant factors affecting our results of operations and our industry. Free cash flow is used as a measure to assess overall liquidity and does not represent residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt.Although we believe these non-GAAP measures are useful to investors, they have limitations as analytical tools and may not be comparable to similar measures disclosed by other companies. You should not consider the non-GAAP measures in this report in isolation or as substitutes for, or alternatives to, analysis of our results as reported under GAAP. The exclusion of unusual or infrequent items or other adjustments reflected in the non-GAAP measures should not be construed as an inference that our future results will not be affected by unusual or infrequent items or by other items similar to such adjustments. Our management compensates for these limitations by relying primarily on our GAAP results in addition to using the non-GAAP measures.Adjustments to arrive at non-GAAP measures are made at the enterprise level, with the exception of fuel surcharge revenues, which are not included in segment revenues.Revenues (excluding fuel surcharge)We define "revenues (excluding fuel surcharge)" as operating revenues less fuel surcharge revenues, which are excluded from revenues at the segment level. Included below is a reconciliation of operating revenues, the most closely comparable GAAP financial measure, to revenues (excluding fuel surcharge). | | | | | | Three Months EndedSeptember 30, | | Nine Months EndedSeptember 30, (in millions) | | | 2026 | | | 2025 | | | 2026 | | | 2025 Operating revenues | | $ | 1,585.3 | | $ | 1,452.4 | | $ | 4,552.5 | | $ | 4,274.7 Less: Fuel surcharge revenues | | | 240.2 | | | 152.7 | | | 636.0 | | | 434.7 Revenues (excluding fuel surcharge) | | $ | 1,345.1 | | $ | 1,299.7 | | $ | 3,916.5 | | $ | 3,840.0 Adjusted income from operationsWe define "adjusted income from operations" as income from operations adjusted to exclude certain items that do not reflect our core operating performance. A reconciliation of income from operations, the most directly comparable GAAP measure, to adjusted income from operations is provided below. The items excluded for the periods presented are described in the table and notes below. | | | | | | Three Months EndedSeptember 30, | | Nine Months EndedSeptember 30, (in millions) | | | 2026 | | | 2025 | | | 2026 | | | 2025 Income from operations | | $ | 62.1 | | $ | 35.3 | | $ | 166.9 | | $ | 132.4 Acquisition-related costs (1) | | | — | | | — | | | — | | | 0.2 Intangible asset amortization (2) | | | 1.7 | | | 1.7 | | | 5.2 | | | 5.4 Severance (3) | | | — | | | 1.4 | | | — | | | 1.4 Adjusted income from operations | | $ | 63.8 | | $ | 38.4 | | $ | 172.1 | | $ | 139.4 (1) | | Advisory, legal, and accounting costs related to the acquisition of Cowan Systems. (2) | | Amortization expense related to intangible assets acquired through recent business acquisitions. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to transportation services provided to our customers. (3) | | Severance related to workforce rightsizing. Adjusted operating ratioWe define "adjusted operating ratio" as total operating expenses, net of fuel surcharge revenues, divided by revenues (excluding fuel surcharge). A reconciliation of operating ratio, the most directly comparable GAAP measure, to adjusted operating ratio is provided below. | | | | | | Three Months EndedSeptember 30, | | Nine Months EndedSeptember 30, (in millions, except ratios) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | GAAP Presentation | | | | | | | | Operating revenues | | $ | 1,585.3 | | | $ | 1,452.4 | | | $ | 4,552.5 | | | $ | 4,274.7 | Total operating expenses | | | 1,523.2 | | | | 1,417.1 | | | | 4,385.6 | | | | 4,142.3 | Income from operations | | $ | 62.1 | | | $ | 35.3 | | | $ | 166.9 | | | $ | 132.4 | | | | | | | | | Operating ratio (1) | | | 96.1 | % | | | 97.6 | % | | | 96.3 | % | | | 96.9 | % | | | | | | | | Non-GAAP Presentation | | | | | | | | Operating revenues | | $ | 1,585.3 | | | $ | 1,452.4 | | | $ | 4,552.5 | | | $ | 4,274.7 | Less: Fuel surcharge revenues | | | 240.2 | | | | 152.7 | | | | 636.0 | | | | 434.7 | Revenues (excluding fuel surcharge) | | $ | 1,345.1 | | | $ | 1,299.7 | | | $ | 3,916.5 | | | $ | 3,840.0 | | | | | | | | | Total operating expenses | | $ | 1,523.2 | | | $ | 1,417.1 | | | $ | 4,385.6 | | | $ | 4,142.3 | Adjusted for: | | | | | | | | Fuel surcharge revenues | | | (240.2 | ) | | | (152.7 | ) | | | (636.0 | ) | | | (434.7 | ) Acquisition-related costs | | | — | | | | — | | | | — | | | | (0.2 | ) Intangible asset amortization | | | (1.7 | ) | | | (1.7 | ) | | | (5.2 | ) | | | (5.4 | ) Severance | | | — | | | | (1.4 | ) | | | — | | | | (1.4 | ) Adjusted total operating expenses, net of fuel surcharge revenues (2) | | $ | 1,281.3 | | | $ | 1,261.3 | | | $ | 3,744.4 | | | $ | 3,700.6 | | | | | | | | | Adjusted operating ratio (3) | | | 95.3 | % | | | 97.0 | % | | | 95.6 | % | | | 96.4 | % (1) | | Calculated as total operating expenses divided by operating revenues. (2) | | Adjusted total operating expenses, net of fuel surcharge revenues are defined as total operating expenses, adjusted to exclude fuel surcharge revenues and certain expenses that do not reflect our core operating performance. (3) | | Calculated as adjusted total operating expenses, net of fuel surcharge revenues divided by revenues (excluding fuel surcharge). Adjusted net incomeWe define "adjusted net income" as net income, adjusted to exclude certain items that do not reflect our core operating performance. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted net income is provided below. | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, (in millions) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Net income | | $ | 49.5 | | | $ | 19.4 | | | $ | 119.6 | | | $ | 81.5 | Acquisition-related costs | | | — | | | | — | | | | — | | | | 0.2 | Intangible asset amortization | | | 1.7 | | | | 1.7 | | | | 5.2 | | | | 5.4 | Severance | | | — | | | | 1.4 | | | | — | | | | 1.4 | Income tax effect of non-GAAP adjustments (1) | | | (0.4 | ) | | | (0.8 | ) | | | (1.3 | ) | | | (1.7 | ) Adjusted net income | | $ | 50.8 | | | $ | 21.7 | | | $ | 123.5 | | | $ | 86.8 | (1) | | Our estimated tax rate on non-GAAP items is determined annually using the applicable consolidated federal and state effective tax rate, modified to remove the impact of tax credits and adjustments that are not applicable to the specific items. Due to the differences in the tax treatment of items excluded from non-GAAP income, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP items may differ from our GAAP tax rate and from our actual tax liabilities. Adjusted EBITDAWe define "adjusted EBITDA" as net income, adjusted to exclude net interest expense, provision for income taxes, depreciation and amortization, and certain items that do not reflect our core operating performance. A reconciliation of net income, which is the most directly comparable GAAP measure, to adjusted EBITDA is provided below. | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, (in millions) | | | 2026 | | | | 2025 | | | 2026 | | | 2025 Net income | | $ | 49.5 | | | $ | 19.4 | | $ | 119.6 | | $ | 81.5 Interest expense, net | | | (4.5 | ) | | | 8.2 | | | 5.9 | | | 21.5 Provision for income taxes | | | 16.1 | | | | 7.0 | | | 38.8 | | | 27.1 Depreciation and amortization | | | 107.7 | | | | 112.9 | | | 328.1 | | | 338.8 Acquisition-related costs | | | — | | | | — | | | — | | | 0.2 Severance | | | — | | | | 1.4 | | | — | | | 1.4 Adjusted EBITDA | | $ | 168.8 | | | $ | 148.9 | | $ | 492.4 | | $ | 470.5 Free cash flowWe define "free cash flow" as net cash provided by operating activities less net cash used for capital expenditures. | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, (in millions) | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | Net cash provided by operating activities | | $ | 138.9 | | | $ | 184.2 | | | $ | 403.2 | | | $ | 451.4 | | | | | | | | | Purchases of transportation equipment | | | (136.6 | ) | | | (128.0 | ) | | | (290.3 | ) | | | (311.5 | ) Purchases of other property and equipment | | | (5.2 | ) | | | (10.2 | ) | | | (42.0 | ) | | | (25.1 | ) Proceeds from sale of property and equipment | | | 61.4 | | | | 30.1 | | | | 123.6 | | | | 78.9 | Net capital expenditures | | | (80.4 | ) | | | (108.1 | ) | | | (208.7 | ) | | | (257.7 | ) | | | | | | | | Free cash flow | | $ | 58.5 | | | $ | 76.1 | | | $ | 194.5 | | | $ | 193.7 | Adjusted diluted earnings per share (1) | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | 2025 | | | 2026 | | | 2025 Diluted earnings per share | | $ | 0.28 | | $ | 0.11 | | $ | 0.68 | | $ | 0.46 Non-GAAP adjustments, tax effected | | | 0.01 | | | 0.01 | | | 0.02 | | | 0.03 Adjusted diluted earnings per share | | $ | 0.29 | | $ | 0.12 | | $ | 0.70 | | $ | 0.49 (1) | | Table may not sum due to rounding. Special Note Regarding Forward-Looking Statements This earnings release contains forward-looking statements, within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current expectations, beliefs, plans, or forecasts with respect to, among other things, future events and financial performance and trends in the business and industry. The words "may," "will," "could," "should," "would," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "prospects," "potential," "budget," "forecast," "continue," "predict," "seek," "objective," "goal," "guidance," "outlook," "effort," "target," and similar words, expressions, terms, and phrases among others, generally identify forward-looking statements, which speak only as of the date the statements were made. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties. Readers are cautioned that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. The statements in this news release are based on currently available information and the current expectations, forecasts, and assumptions of the Company's management concerning risks and uncertainties that could cause actual outcomes or results to differ materially from those outcomes or results that are projected, anticipated, or implied in these statements. Such risks and uncertainties include, among others, those discussed in Part I, Item 1A, "Risk Factors," of the Company's most recently filed Annual Report on Form 10-K, subsequent Reports on Form 10-Q and 8-K, and other filings we make with the U.S. Securities and Exchange Commission. In addition to any such risks, uncertainties, and other factors discussed elsewhere herein, risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied by the forward-looking statements include, but are not limited to: unfavorable economic and market conditions, including inflation; tariff volatility or trade disputes resulting in increasing input costs; our ability to successfully manage operational challenges and disruptions, as well as related federal, state, and local government responses arising from future pandemics; economic and business risks inherent in the truckload and transportation industry, including competitive pressures pertaining to pricing, capacity, and service; our ability to effectively manage truck capacity brought about by cyclical driver shortages and successfully execute our yield management strategies; our ability to maintain key customer and supply arrangements (including dedicated arrangements) and to manage disruption of our business due to factors outside of our control, such as natural disasters, acts of war or terrorism, disease outbreaks, or pandemics; volatility in the market valuation of our investments in strategic partners and technologies; our ability to manage and effectively implement our growth and diversification strategies and cost saving initiatives; our dependence on our reputation and the Schneider brand and the potential for adverse publicity, damage to our reputation, and the loss of brand equity; risks related to demand for our service offerings; risks associated with the loss of a significant customer or customers; capital investments that fail to match customer demand or for which we cannot obtain adequate funding; fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase agreements, our ability to recover fuel costs through our fuel surcharge programs, and potential changes in customer preferences (e.g. truckload vs. intermodal services) driven by diesel fuel prices; fluctuations in the value and demand for our used Class 8 heavy-duty tractors and trailers; our ability to attract and retain qualified drivers, owner-operators, and third-party carriers in sufficient numbers to support our service offerings; our dependence on railroads in the operation of our intermodal business; changes in the outsourcing practices of our third-party logistics customers; difficulty in obtaining fuel, equipment, goods, and services from our vendors and suppliers; variability in insurance and claims expenses and the risks of insuring claims through our captive insurance company; the impact of laws and regulations that apply to our business, including those that relate to the environment, taxes, associates, owner-operators, and our captive insurance company; changes to those laws and regulations and the increased costs of compliance with existing or future federal, state, and local regulations; political, economic, and other risks from cross-border operations and operations in multiple countries; risks associated with financial, credit, and equity markets, including our ability to service indebtedness and fund capital expenditures and strategic initiatives; negative seasonal patterns generally experienced in the trucking industry during traditionally slower shipping periods and winter months; risks associated with severe weather and similar events; significant systems disruptions, including those caused by cybersecurity events and firmware defects; exposure to claims and lawsuits in the ordinary course of business; our ability to adapt to technological advancements impacting the trucking industry, including artificial intelligence, automated vehicles, and other technologies that improve cash flow, deliver the visibility customers expect, and maximize asset utilization. The Company undertakes no obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances which may occur after the date of this earnings release. View source version on businesswire.com: https://www.businesswire.com/news/home/20261028819863/en/ Contacts Christyne McGarvey, Vice President of Investor Relations and Corporate Finance 920-357-SNDR [email protected]

FedEx Freight FDXF is scheduled to release results for the four-month transition period ended Sept. 30, 2026, on Oct. 29, after market close. The company exits the September-end transition period amid improving demand trends, stronger pricing execution and benefits from operational efficiencies. Higher yields, a fully staffed dedicated sales force and improving shipment trends are likely to have supported revenues and profitability during the period. The Zacks Consensus Estimate for FDXF's September-end 2026 period earnings has been revised downwards by 30.65% over the past 60 days to $1.38 per share. Meanwhile, the Zacks Consensus Estimate for 2026 revenues is pegged at $9.08 billion, indicating a decline of 0.16% from 2025 actuals. FedEx Freight Holding Company Inc. price-consensus-eps-surprise-chart | FedEx Freight Holding Company Inc. Quote Improving Demand Trends: FedEx Freight entered the period with signs of stabilization in LTL demand. Management expected shipment declines to narrow progressively, supported by improving manufacturing indicators, truckload trends and sequentially better demand conditions. Higher Yield to Aid Revenues: Pricing is likely to have remained a major growth driver. Management expected most of the transition-period revenue growth to come from higher yield, supported by elevated fuel prices, stronger pricing execution and more focused sales efforts. Higher yield was expected to contribute roughly 200 basis points to the adjusted operating margin. Sales Force Expansion: FedEx Freight's dedicated LTL sales organization is likely to have supported customer wins and revenue quality. The sales force was fully staffed entering the period, with management highlighting increasing customer engagement and opportunities across small and medium-sized businesses, healthcare, retail, data centers and grocery. Operational Efficiencies: Network productivity and better asset utilization may have aided profitability. Management expected roughly 80 basis points of benefit from efficiencies and other cost improvements during the transition period. The company also indicated that it had ample driver, equipment and facility capacity to accommodate improving demand without significant incremental investment. Notably, FedEx Freight expected roughly 60% of transition-period revenue growth, 75% of adjusted operating income and 80% of adjusted EPS to be generated during the four months ended Sept. 30, reflecting favorable seasonality and timing. Our proven model predicts an earnings beat for FedEx Freight this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. FDXF has an Earnings ESP of +5.07% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are some other-top ranked stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle. Schneider National SNDR has an Earnings ESP of +3.58% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. SNDR is scheduled to report third-quarter 2026 earnings on Oct. 29. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained flat at 29 cents per share over the past 60 days. SNDR's earnings beat the Zacks Consensus Estimate in two of the preceding four quarters (missing twice in the remaining two), with the average miss being 10.1%. XPO, Inc. XPO has an Earnings ESP of +0.67% and a Zacks Rank #2 at present. The company is scheduled to report third-quarter 2026 earnings on Oct. 29. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained flat at $1.56 per share over the past 60 days. XPO's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 12.33%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report FedEx Freight Holding Company Inc. (FDXF) : Free Stock Analysis Report XPO, Inc. (XPO) : Free Stock Analysis Report Schneider National, Inc. (SNDR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Schneider National has rewarded shareholders over the past year, yet the recent pullback in the share price raises a sharper question about what current earnings really justify. After that kind of run, investors may want to consider whether they are looking at a durable earnings story or simply a richer price tag on the same profit base. - The stock is up 33.0% over the past year, which puts more weight on whether the current valuation still lines up with the earnings power of the business. - The trucking and logistics model relies heavily on how efficiently Schneider National converts freight demand into operating profit, which can affect both near term margins and the level of earnings investors are implicitly paying for today. - Your read on Schneider National is one view; the desks covering it have another. See what analysts think Schneider National's shares could be worth. For investors, the debate is whether Schneider National's current share price is adequately supported by its earnings profile. For context while you evaluate Schneider National alongside its current earnings, it can help to compare it with other transport related businesses screened on 43 power grid technology and infrastructure stocks P/E works reasonably well for Schneider National because earnings are a key yardstick for asset heavy transport operators. On that measure, the stock trades on a P/E of 46.7x, which is well above the broader Transportation group on 30.9x and also higher than the peer set at 74.9x on average. That puts a lot of emphasis on how durable you think Schneider National's current profit base is relative to other freight carriers. A tailored fair value framework, which adjusts the multiple you might expect for this business given its risk profile and financial characteristics, suggests a lower P/E would be more in line with those fundamentals. Since the actual 46.7x sits above that blended yardstick, you are paying a premium earnings tag for the shares compared with what that model implies, even before digging into balance sheet strength, capital intensity and freight cycle exposure. Explore the numbers behind Schneider National's P/E valuation. Narratives on Schneider National pick up where this valuation question leaves off. They spell out what would need to happen to freight volumes, margins and earnings for the shares to look meaningfully higher or lower than today's price, and they sit on Simply Wall St's Community page. Each one treats fair value as a specific thesis about the business that you can watch over time, rather than a single frozen snapshot. One of the top community narratives on Schneider National: 17% undervalued "Continued investment in technology and AI driven tools across Schneider National's logistics, driver support and recruiting operations points to further operating expense efficiency…" Discover why this Narrative puts Schneider National at 17% undervalued. Current earnings and multiples show what Schneider National is priced for today, but analyst projections a few years out can reveal a very different earnings path that you may want to compare with this snapshot. Explore where analysts expect Schneider National to be in a few years. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SNDR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Schneider National (SNDR) reported $1.59 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 9.2%. EPS of $0.29 for the same period compares to $0.12 a year ago. The reported revenue represents a surprise of +0.09% over the Zacks Consensus Estimate of $1.58 billion. With the consensus EPS estimate being $0.29, the company has not delivered EPS surprise. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Schneider National performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Operating Ratio - Consolidated: 96.1% compared to the 95.1% average estimate based on five analysts. - Intermodal - Operating Ratio: 92.1% compared to the 92.4% average estimate based on four analysts. - Truckload - Operating Ratio: 93% versus the four-analyst average estimate of 92.4%. - Logistics - Operating Ratio: 100% compared to the 96.7% average estimate based on four analysts. - Revenues- Fuel surcharge: $240.2 million compared to the $220.11 million average estimate based on five analysts. The reported number represents a change of +57.3% year over year. - Revenues- Intermodal: $287.7 million versus $293.03 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +2.2% change. - Revenues- Logistics: $372.5 million compared to the $355.41 million average estimate based on four analysts. The reported number represents a change of +12.2% year over year. - Revenues- Other: $109 million compared to the $124.87 million average estimate based on four analysts. The reported number represents a change of -7.5% year over year. - Revenues- Inter-segment eliminations: $-48.9 million versus $-55.82 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -12.8% change. - Revenues (excluding fuel surcharge)- Total Truckload: $624.8 million versus $1.37 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -51.9% change. - Revenues- Truckload: $624.8 million versus $639.97 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.1% change. - Revenues (excluding fuel surcharge)- Network: $196.5 million compared to the $209.95 million average estimate based on two analysts. The reported number represents a change of +4.9% year over year. View all Key Company Metrics for Schneider National here>>> Shares of Schneider National have returned -6.7% over the past month versus the Zacks S&P 500 composite's +0.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Schneider National, Inc. (SNDR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Investor focus around Schneider National (SNDR) has sharpened as the transporter heads into an earnings announcement, and its board has also confirmed a regular quarterly cash dividend of US$0.10 per share on both share classes. In the short term, Schneider National's share price has come under pressure, with declines of 4.5% over one day and 13.0% over 90 days. However, the year-to-date share price return of 10.2% and 1-year total shareholder return of 33.0% point to momentum built over a longer horizon as investors weigh upcoming earnings and the confirmed dividend against earlier optimism. Compare Schneider National's setup ahead of earnings with a curated group of transport and logistics stocks showing similar momentum using our 26 high quality undervalued stocks. Schneider National has already delivered a strong 1-year total return and a fresh pullback into this earnings print. The key tension now is simple: Is most of the upside already priced in, or is the recent weakness setting up more room ahead as the valuation case stacks up? On Simply Wall St's most followed storyline for Schneider National, a fair value of $35.86 sits above the last close of $29.71. This puts the upcoming earnings release in the context of a stock already framed as trading at a discount by that narrative. Disciplined capital allocation that includes low net leverage of 0.2x, net CapEx largely focused on fleet replacement in the US$350 million to US$400 million range for 2026, consistent dividends and buybacks, and a track record of accretive Dedicated acquisitions, provides Schneider National with capacity to pursue further earnings accretive M&A and targeted investments that can support revenue growth and cash flow. See why 6 investors see Schneider National as 17% undervalued. Result: Fair Value of $35.86 (UNDERVALUED) Still, freight demand setbacks or renewed cost spikes in areas like fuel and driver hiring could quickly undercut the Schneider National efficiency and margin narrative. Find out about the key risks to this Schneider National narrative. The fair value narrative presents Schneider National as heavily undervalued, yet its current P/E of 46.7x tells a more cautious story. That ratio is higher than both the US Transportation industry on 32.6x and an estimated fair ratio of 32.2x, which implies meaningful valuation risk if sentiment cools. At the same time, the stock trades below a peer average P/E of 74.9x, so relative to close comparables the premium looks less extreme. The gap between 46.7x and the 32.2x fair ratio still raises a practical question for investors: is this multiple a sign of conviction around Schneider National's growth forecasts, or a margin of error you would want to shrink before committing fresh capital? See what the numbers say about this price — find out in our valuation breakdown. If the mixed message around Schneider National has you unsure, dig into the data yourself and evaluate the optimism that others see. To understand what investors are focused on, start with our breakdown of 3 key rewards. You do not need to stop at Schneider National. If you want a broader watchlist before the next move, use these screeners to surface fresh candidates. - Target stability first and cut portfolio stress by focusing on companies with resilient finances using our 32 resilient stocks with low risk scores. - Hunt for quality at a sensible entry point by scanning stocks that combine fundamentals with attractive pricing through the 26 high quality undervalued stocks. - Spot resilient business models with healthy payouts by filtering opportunities via the 6 dividend fortresses. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SNDR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Transportation company Schneider (NYSE:SNDR) will be announcing earnings results this Thursday after market hours. Here's what you need to know. Schneider beat analysts' revenue expectations last quarter, reporting revenues of $1.57 billion, up 10.4% year on year. It was a stunning quarter for the company, with full-year EPS guidance exceeding analysts' expectations and a beat of analysts' EPS estimates. Is Schneider a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Schneider's revenue to grow 8.3% year on year, slowing from the 10.4% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Schneider has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Schneider's peers in the ground transportation segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ryder delivered year-on-year revenue growth of 8.3%, beating analysts' expectations by 1.2%, and Knight-Swift Transportation reported revenues up 14.2%, topping estimates by 1.4%. Ryder traded up 12.7% following the results while Knight-Swift Transportation was down 1.1%. Read our full analysis of Ryder's results here and Knight-Swift Transportation's results here. In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the ground transportation stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Schneider is down 1.6% during the same time and is heading into earnings with an average analyst price target of $35.86 (compared to the current share price of $31.09). WHILE YOU'RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You've probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.