SNDR

C.H. Robinson Worldwide CHRW has a stronger fundamental case after a solid second-quarter earnings beat, improving profitability and continued shareholder returns. The stock’s sharp three-month pullback may draw investor attention, especially as earnings and margins move higher. Still, the setup is not clearly compelling. CHRW trades at a premium to industry and sector benchmarks, carries rising debt and has only limited upside to the stated price target. C.H. Robinson reported second-quarter 2026 earnings of $1.61 per share, up 24.8% year over year. The result topped the Zacks Consensus Estimate of $1.53 by 5.2%. Revenues rose 19.3% year over year to $4.93 billion and exceeded the consensus mark of $4.42 billion by 11.7%. Higher pricing across truckload, LTL, air and ocean services supported the top-line gain. Profitability improved faster than adjusted gross profit. Adjusted gross profits increased 6.5% year over year to $738.0 million, while adjusted income from operations advanced 19.5% to $263.2 million. Adjusted operating margin expanded 360 basis points to 34.7%. That improvement came even as operating expenses rose 1% to $482.2 million, showing that cost optimization and productivity gains helped offset higher incentive compensation tied to strong operating performance. The company’s earnings presentation also highlights the operating model behind the margin improvement. CHRW said it is using Lean principles and custom-built AI tools to streamline processes, reduce waste, decouple headcount growth from volume growth and drive operating leverage. Valuation limits the bull case. CHRW trades at 20.79X forward 12-month earnings, above 15.33X for the Zacks sub-industry and 14.62X for the broader transportation sector. It is also slightly above the S&P 500’s 20.34X multiple. The stock is not far from its own historical norm either. Over the past five years, CHRW’s forward P/E has ranged from 11.49X to 33.46X, with a median of 20.98X. That makes the current multiple look fair to full rather than clearly discounted. The stated $151 price target compares with a reported share price of $143.83. That implies positive but limited appreciation potential. The narrow spread matters because investors are being asked to pay near a historical median multiple while still relying on continued earnings execution. Shares have plunged 18% over the past three months, but they remain up 17.1% over the past year, so the pullback does not automatically make the stock cheap. The balance sheet adds caution. CHRW ended the second quarter with $154.59 million in cash and cash equivalents, while long-term debt stood at $1.68 billion. Cash-flow trends also weakened. Cash generated from operations fell to $35.9 million from $227.1 million in the year-ago quarter, mainly because higher freight rates drove a negative working-capital swing. Shareholder returns remain a positive offset. In the second quarter, CHRW returned $301.3 million to shareholders, including $226 million of share repurchases and $75.3 million of dividends. However, higher leverage and working-capital demands reduce financial flexibility despite solid earnings. Apart from CHRW, other stocks like Schneider National, Inc. (SNDR) and Expeditors EXPD from the similar industry have also been consistently rewarding their shareholders. C.H. Robinson Worldwide, Inc. dividend-yield-ttm | C.H. Robinson Worldwide, Inc. Quote The bottom line: C.H. Robinson’s earnings beat, margin expansion and capital returns support investor interest, especially after the stock’s recent pullback. But the valuation, debt load and limited price-target upside argue against an aggressive stance. CHRW carries a Zacks Rank #3 (Hold), which supports patience. Its Growth, Momentum and VGM Score of B are constructive, but the C Value Score aligns with a stock trading near its historical median multiple and above industry valuation benchmarks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report Expeditors International of Washington, Inc. (EXPD) : 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

In the second quarter of 2026, Schneider National, Inc. reported higher sales of US$1,568.7 million and net income of US$49.7 million, with basic and diluted earnings per share from continuing operations of US$0.28, all up from the same period a year earlier. Alongside these improved results, Schneider was highlighted with a top Zacks Rank and favorable growth metrics, underscoring how recent earnings have aligned with increasingly positive analyst expectations. With stronger quarterly earnings and a top Zacks Rank now on the table, we'll examine how this shapes Schneider National's investment narrative. Uncover the next big thing with 19 elite penny stocks that balance risk and reward. To own Schneider National, you need to believe its multimodal network and technology investments can translate improving freight conditions into more consistent earnings, despite exposure to volatile spot pricing and cost inflation. The latest quarter’s stronger sales and higher net income support the near term earnings catalyst, but they do not remove the key risk that prolonged pricing pressure or rising equipment and insurance costs could still weigh on margins. The most relevant recent development here is Schneider’s second quarter 2026 earnings release, which showed sales of US$1,568.7 million and net income of US$49.7 million, both higher than a year earlier. This improvement, alongside a top Zacks Rank, sits squarely in the context of analysts focusing on earnings quality and growth potential as primary catalysts, even as concerns remain about freight cycles and structural shifts toward more asset light competitors. But against this progress, investors still need to be mindful of Schneider’s exposure to persistent pricing pressure and rising operating costs... Read the full narrative on Schneider National (it's free!) Schneider National's narrative projects $6.9 billion revenue and $485.3 million earnings by 2029. This requires 6.6% yearly revenue growth and a $387.4 million earnings increase from $97.9 million today. Uncover how Schneider National's forecasts yield a $36.57 fair value, in line with its current price. Some of the most optimistic analysts were already assuming earnings could reach about US$567.1 million by 2029, far above consensus, while also warning that rising equipment and accident related costs might erode margins; after this latest earnings beat, you can see how views on Schneider’s upside and vulnerabilities might widen further. Explore 3 other fair value estimates on Schneider National - why the stock might be worth over 3x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Schneider National research is our analysis highlighting 2 key rewards that could impact your investment decision. Our free Schneider National research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Schneider National's overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Explore 25 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. The future of work is here. Discover the 39 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. 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]

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Schneider National (SNDR) attracted fresh attention after reporting second quarter 2026 results, with sales of US$1,568.7 million and net income of US$49.7 million, along with an update on its ongoing share repurchase activity. See our latest analysis for Schneider National. Schneider National’s recent earnings release comes after a strong run in the stock, with the year to date share price return of 32.52% and 1 year total shareholder return of 43.57% pointing to building momentum despite some shorter term pullbacks. If Schneider National’s recent move has you looking for other transport and infrastructure related ideas, this is a good moment to check out 36 power grid technology and infrastructure stocks Schneider National’s earnings and long run returns give one story about the business, while the sharp share price move hints at changing sentiment. Is the current valuation still grounded in fundamentals, or is it now pricing in a different narrative? Schneider National last closed at $35.74 compared with a narrative fair value estimate of $36.57. That small gap is where the current debate starts. Read the complete narrative. Want to see what sits behind that efficiency push and margin rebuild story? The narrative leans on a specific growth path for revenue, profitability and future earnings multiples. The exact mix of volume recovery, margin lift and discount rate assumptions may surprise you. Result: Fair Value of $36.57 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Schneider National still faces real pressure if freight demand softens again or if inflation in equipment and insurance costs squeezes margins more than expected. Find out about the key risks to this Schneider National narrative. The mix of optimism and caution around Schneider National is clear. This may be a good time to review the data yourself and decide how it fits your own thesis. To see what investors are focusing on, take a closer look at the 2 key rewards Do not stop with Schneider National. Use this moment to broaden your watchlist with stocks that match the kind of risk and return profile you actually want. Supercharge your hunt for potential bargains by checking companies that currently look mispriced using the 49 high quality undervalued stocks. Target more resilient income opportunities by scanning for firms that qualify as 9 dividend fortresses. Spot opportunities that the crowd might be missing by reviewing the screener containing 20 high quality undiscovered gems. 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, Inc. (SNDR) reported second-quarter 2026 adjusted earnings of 29 cents per share, beating the Zacks Consensus Estimate of 22 cents by 31.8%. Earnings rose 38.1% from 21 cents per share in the year-ago quarter. Operating revenues increased 10.4% year over year to $1.57 billion and topped the consensus estimate of $1.51 billion by 4%. Disciplined revenue management, cost reductions and productivity gains supported the quarter. Truckload revenue per truck per week improved 5% to $4,162. Apart from better-than-expected results, Schneider has also raised its 2026 guidance.Management raised its full-year 2026 adjusted earnings guidance to 90 cents-$1.10 per share from 70 cents-$1.00. The Zacks Consensus Estimate is currently pegged at $1.02. The outlook assumes an effective tax rate of approximately 24%. Net capital expenditures are now expected to be between $350 million and $400 million, down from the prior range of $400 million-$450 million. Management cited lower planned spending on trailing equipment. Schneider expects continued capacity rationalization to support freight conditions, though its outlook incorporates a range of demand and driver-capacity outcomes for the second half. Schneider National, Inc. price-consensus-eps-surprise-chart | Schneider National, Inc. Quote Income from operations rose 30% year over year to $71.4 million. Adjusted income from operations increased 29% year over year to $73.2 million, reflecting stronger execution across the enterprise. The adjusted operating ratio improved 110 basis points to 94.5%. Adjusted EBITDA rose 8% year over year to $180 million, while adjusted net income climbed 36% to $51 million. Truckload revenues, excluding fuel surcharge, increased 1% year over year to $627.6 million. Improved Network pricing and productivity more than offset lower Dedicated volume. Total average trucks declined to 11,762 from 12,224 a year earlier. Dedicated revenues fell to $430.9 million from $440.4 million, while Network revenues increased to $196.6 million from $181.9 million. Network revenue per truck per week jumped to $4,421 from $3,821, highlighting stronger pricing and asset productivity. Truckload income from operations rose 28% year over year to $51.4 million. The improvement reflected better Network pricing and productivity, fuel surcharge recovery, equipment utilization and higher gains on equipment sales. These benefits were partly offset by increased purchased transportation and maintenance costs. The segment operating ratio improved 180 basis points to 91.8%, indicating a meaningful reduction in operating costs as a percentage of revenues. Intermodal revenues, excluding fuel surcharge, declined 1% year over year to $262 million. Revenue per order decreased 2% year over year to $2,394, mainly due to a shorter length of haul, while orders edged up to 108,461 from 108,218. Intermodal income from operations increased 14% year over year to $18.4 million. Fuel surcharge recovery, volume growth and higher gains on equipment sales outweighed increased purchased transportation costs. The operating ratio improved 90 basis points to 93%. Logistics revenues, excluding fuel surcharge, increased 11% year over year to $376.1 million. Higher revenue per order drove the gain, though lower brokerage volume limited the upside. Segment income from operations surged 53% year over year to $12.1 million. Higher net revenue per order and cost actions more than offset increased purchased transportation expense and weaker brokerage volume. The operating ratio improved 90 basis points to 96.8%. Schneider exited the second quarter with cash and cash equivalents of $292.7 million compared with $227.8 million at the end of the prior quarter. Long-term debt was $385.6 million at the end of the reported quarter compared with $388.1 million at the end of the prior quarter. SNDR generated $171.4 million of cash from operations in the reported quarter. Net capital expenditures were $83.5 million. Second-quarter free cash flow was $87.9 million, down from $123 million a year ago as net capital expenditures increased. The company repurchased 0.2 million Class B shares for $5.2 million under its $150 million authorization. It also returned $34.6 million to shareholders through dividends in the first half of 2026. Currently, Schneider sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability. Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand. United Airlines Holdings, Inc. (UAL)reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads. 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 Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:30 p.m. ET 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's Second 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. 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. This 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 lines 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. 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. Hello, everyone. Thank you for joining the Schneider National call today. I will start by offering my perspective on the freight cycle and how we are positioning the enterprise for success in this dynamic market. I will then turn it over to Darrell for his commentary on second quarter results, capital deployment, and our full-year earnings per share guidance. After that, we'll open up the call for questions. Looking at our performance in the quarter, we believe we are seeing the initial benefits of the actions we took to structurally improve the enterprise and position us to quickly and effectively capitalize on better market fundamentals. This includes effective revenue management, enhancements to asset efficiency and productivity, execution on our $40 million cost savings program, and our differentiated multimodal model. We continue to see meaningful opportunity ahead. We want to thank our associates, especially our professional drivers, for their hard work, which helped drive earnings to more than double sequentially, representing the strongest quarter-over-quarter improvement in the last decade. Many cycle indicators that showed signs of life in the first quarter gained momentum through the second quarter. Spot rates are already testing prior cycle highs, turndowns remain elevated, and utilization has increased meaningfully. Underlying demand trends were largely stable with some modest seasonal activity. As a result, we believe the market improvement to date has been supply-led. Regulatory action and enforcement on non-compliant supply, including in areas such as non-domicile CDL usage, English language proficiency, illegal cabotage, entry-level driver training, and ELD tampering all gained traction through the second quarter. Supply attrition has been faster than we initially expected and is removing the most irrational capacity from the marketplace. We would now categorize the market as driver-constrained. The long-haul driver population in the U.S. sits well below long-term averages and near the lowest levels seen over the last decade. However, we believe roughly half of the non-compliant capacity is left, with the remaining impacted supply expected to exit through next year. Against that backdrop, we believe we are only in the early stages of rate recovery and are maintaining a discerning approach to customer allocation events. We are balancing customer commitments with the need for rates that will support our strong service, recoup multiple years of significant cost inflation, and drive returns back to a level that is supportive of growth. Importantly, spot rates now exceed contract rates at a level that has historically preceded more meaningful contract rate improvement. While the pace of supply attrition is supporting price increases, it is also creating challenges in driver recruiting and retention, which is putting upward pressure on the cost of capacity. We remain an employer of choice. We will be disciplined in investments to add capacity, focusing on where we see clear demand, strong productivity, and returns that meet our expectations. We have aligned our pay structure to reward our hardest-working drivers to support retention while surgically reinforcing recruiting efforts, including growing the number of recruiters, expanding our AI capabilities, and enhancing starting driver pay in the most constrained geographies. Altogether, our second quarter results underscore the importance of price and productivity. Changing supply conditions are most acute in the over-the-road segment of the market, where irrational capacity has persisted. This, in turn, is creating the strongest initial opportunities in our network and logistics solutions. We have responded rapidly. In the second quarter, these segments captured premium opportunities as we supported customers through a quickly tightening marketplace. We expect dedicated and intermodal to see increasing benefit as we move further into the up cycle through contract renewals and freight allocation events. This flexibility is the benefit of operating a scaled, sophisticated, multimodal portfolio. Digging into our business segments in more detail. In truckload, we more than doubled earnings sequentially on 2% revenue growth, only possible through the organization's hard work on executing price, productivity, and cost reductions. Network price grew high single digits year-over-year in the quarter. We are quickly leveraging all our tools to extract price, including historically high spot exposure, advanced freight selection and acceptance technology, and a growing number of mini bids, among others. Spot rates became increasingly accretive through the quarter, and June saw levels of contribution that were on par with March of 2021. Network price renewals also accelerated with average price increases in the quarter of double digits, which we achieved while also improving incumbent retention. Tractor count was impacted by driver availability, but we were able to more than offset the reduction with improved productivity, which grew high single digits year-over-year. The asset efficiency gains we have made are now being compounded by better freight selection, and we actively managed truck count in the quarter to reduce unseated tractors. Turning to our dedicated business, we saw modest year-over-year price improvement in the quarter, supported by our self-help actions on portfolio quality. We remain disciplined in adding durable, dedicated solutions with returns in our targeted ranges, as that discipline is what drives earnings resiliency through the entire cycle. Proactively addressing pricing now is allowing us to get ahead of the increased cost of capacity and position the portfolio for higher quality growth. As we highlighted on our last call, these actions are creating some near-term churn. While productivity gains also contributed to the year-over-year tractor count decline, they helped drive margins higher in the quarter. Dedicated remains a key pillar of our long-term growth strategy, and the consistency and resiliency of earnings is a feature, not a defect. We continue to advance our sales initiatives with more than 500 new trucks sold year-to-date in 2026. We believe constrained driver supply, inflationary pressure in areas such as insurance, and emerging liability concerns all support long-term dedicated growth. We are also increasingly confident in our focus on specialty equipment where our retention remains highest. At the same time, the benefit of our diverse portfolio of solutions is that it gives us flexibility to meet customer needs as they evolve. As cycle conditions shift, network will be most responsive to market improvement, especially in an upcycle that remains primarily driven by supply attrition in the over-the-road segment of the market. As a result, in the near term, we may shift some capacity into our network configuration. However, we do expect Dedicated to benefit as those conditions translate through contract renewals and customer allocation decisions. As improvement accelerates, we will have the line of sight and capability to quickly return that capacity to capture these opportunities. This is the multimodal strategy working as intended. In Intermodal, second quarter results underscore the efforts we have made and continue to make to prioritize profitable growth. Over-the-road conversion opportunities expanded in the quarter, but as expected, drayage has become the primary constraint. Realizing nine consecutive quarters of volume growth, we remain disciplined in the second quarter. We elected not to chase growth that would have required expensive third-party dray when pricing was not yet supportive of the incremental cost. We are growing in areas where returns are commensurate with our service and cost, as evidenced by the strong growth in Mexico and in the East, where there are the most significant over-the-road conversion opportunities, and we have clear differentiation. Altogether, the segment delivered earnings growth despite some revenue pressure, reflecting our differentiators in lanes and service, containers and chassis asset control, effective network and revenue management, and the optimization of third-party costs. Looking forward, we have seen success with select targeted investments in company dray capacity, which added up through the quarter. At the same time, pricing renewals accelerated in Intermodal. Importantly, we are seeing even stronger out-of-cycle increases, a signal that the market is beginning to turn faster. We expect these efforts to gain traction through the third quarter, positioning us to profitably capitalize on the trifecta of over-the-road conversion tailwinds as we move forward, including elevated fuel costs, rising truckload prices, and strong rail service. We are pleased with our performance in this allocation season, which we expect to translate into volume growth in the second half. In Logistics, we extend the momentum from the first quarter, delivering double-digit year-over-year growth in both revenue and earnings. Brokerage net revenue per order improved both year-over-year and sequentially, supported by revenue management and premium project business. While we are addressing out-of-market contractual pricing, we are also leaning into expanded spot opportunities. Our spot exposure increased year-over-year and sequentially. Revenue management actions were amplified by productivity initiatives, especially those supported by our ongoing technology investment and leadership in agentic AI solutions. The projects that began the first quarter extended through much of the second quarter, though have now largely concluded. We expect the expertise we have built into these new verticals to remain a meaningful growth driver for Logistics, even as the project-based nature of the work may create some quarter-to-quarter variability. Altogether, we are encouraged by how the business has responded to the early innings of supply normalization and market improvement. Darrell will provide more detail on our earnings expectations shortly. We are confident that 2026 will be a year of meaningful earnings growth, supported by an improving rate backdrop and our enhanced ability to drive operating leverage. With that, I'll hand the call over to Darrell to discuss our results and guidance in more detail. Darrell? Darrell Campbell: Thank you, Jim, and good afternoon, everyone. I'll review our enterprise and segment financial results for the second quarter and provide insights into our full-year 2026 earnings per share and net CapEx guidance. Summaries of our financial results and guidance can be found in our investor presentation, available on the investor relations section of our website. Starting with the second quarter results, enterprise revenues, excluding fuel surcharge, were $1.3 billion, up 4% compared to a year ago. Adjusted income from operations was $73 million, a 29% increase year-over-year. Enterprise adjusted operating ratio improved 110 basis points compared to second quarter 2025. Adjusted diluted earnings per share for the second quarter was $0.29, compared to $0.21 for second quarter of 2025. Earnings grew year-over-year across each of our business segments, supported by continued progress on the strategic initiatives Jim outlined earlier and execution against our $40 million cost savings target, where we remain on track. We're seeing meaningful progress from our ongoing technology initiatives, which are helping automate and streamline workflows, reduce headcounts, improve driver productivity, and lower third-party spend. From a segment perspective, truckload revenues, excluding fuel surcharge, were $628 million in the second quarter, up 1% year-over-year. This growth was driven by improvements in revenue per truck per week, which grew 5% year-over-year, and more than offset lower truck count, which have been impacted by a more constrained driver environment. Network revenues, excluding fuel surcharge, grew 8% year-over-year, driven by productivity and price, with revenue per truck per week up 16% year-over-year. Dedicated revenue per truck per week was up modestly year-over-year, reflecting ongoing portfolio upgrade actions. Truckload operating income was $51 million, a 28% increase year-over-year. Operating Ratio was 91.8%, an improvement of 180 basis points compared to last year. This marks the strongest profitability for our truckload segment since the second quarter of 2023. Earnings were positively impacted by our revenue management efforts that were supported by an improved truckload backdrop. We're also seeing the benefits from our cost savings program, where we're gaining traction in areas such as headcount and trailing asset efficiency. Intermodal revenues, excluding fuel surcharge, were $262 million for the second quarter, down 1% year-over-year. Revenue per order declined 2%, reflecting mix changes that drove a lower length of haul. Volumes grew modestly year-over-year, marking the ninth consecutive quarter of order growth. Intermodal operating income was $18 million, a 14% increase compared to the same period last year, and a strong sequential improvement supported by headcount actions and gains in tractor asset efficiency. Operating Ratio was 93%, 90 basis points improved compared to last year. Logistics revenue, excluding fuel surcharge, totaled $376 million in the second quarter, up 11% from the same period a year ago. We saw improvement in price, supported in part by opportunistic premium project business. Logistics income from operations was $12 million, up $4 million year-over-year. Operating Ratio was 96.8%, an improvement of 90 basis points from last year due to top-line growth noted earlier and effective management of net revenue per order, including capitalizing on spot opportunities. Productivity gains, including those from reduced headcounts and power-only trailer efficiency improvements, also contributed to strong performance. Turning to our balance sheet and capital allocation. Net CapEx in the quarter was $84 million compared to $53 million last year, primarily reflecting our efforts to improve the age of tractor fleet. As a result, free cash flow declined $35 million year-over-year in the quarter. Year to date, we have delivered nearly $35 million back to our shareholders in the form of dividends. Looking forward, our strategic priorities for capital are unchanged, and we remain focused on disciplined deployment, including supporting organic growth that's aligned with our areas of differentiation, accretive M&A, and robust shareholder returns. The strength of our balance sheet allows us to be nimble and execute on all three. As of June 30th, we had $397 million in debt and lease obligations and $293 million in cash and cash equivalents. As a result, our net debt leverage was 0.2x at the end of the quarter. For 2026, we're revising our net CapEx guidance to the range of $350 million-$400 million, down from $400 million-$450 million. As noted earlier, our plan continues to reflect the use of CapEx to improve our age of fleet. The reduction from our previous outlook is driven by a lower need for trailing equipment and consistent with our ongoing focus on asset efficiency. Our areas of investment will continue to support growth across intermodal, especially dray capacity, and in dedicated, particularly in specialty equipment. We're raising our 2026 earnings per share guidance to $0.90-$1.10 from our previous range of $0.70-$1.00. Our guidance assumes an effective tax rate of approximately 24%. Second quarter results reinforce our confidence that the actions we've taken to lower cost to serve, enhance productivity, and prepare for this upcycle are delivering meaningful operating leverage. Based on our year-to-date performance, we're raising the top and bottom end of the full-year earnings per share guidance to reflect the progress we're seeing across the business. Our outlook continues to assume that supply attrition remains supportive of freight conditions for the balance of the year and that we continue to make progress against our $40 million cost savings target. At the same time, our guidance incorporates a range of outcomes for demand and the availability of driver capacity in the second half of the year. Demand has tracked largely in line with our base case to date. Looking forward, stronger demand could drive additional upside, while softer demand may moderate some of the benefits from supply rationalization. As we think about the remainder of 2026, we're bringing momentum from contract implementations and successful allocation events. It's important to note that we're anticipating the loss of a large dedicated customer, which will be more evident in the second half of the year. Additionally, our business mix has evolved over the past several years, including the addition of three dedicated acquisitions and a greater exposure to food and beverage and home improvement end markets. As a result, seasonal demand is typically stronger in the second quarter than in the third. Altogether, we expect earnings to grow meaningfully year-over-year at every point in our updated guidance range. I'll turn the call over to Jim for closing remarks. Jim? Jim Filter: Thanks, Darrell. Before we open the call for questions, I want to reinforce why we're encouraged by the direction of the business. We are a stronger, more efficient company than we were in the last upcycle, with a more resilient, dedicated solution, differentiated internal service, and scalable capacity across network and logistics. These improvements are being further supported by technology innovation, our cost savings program, and a proven acquisition playbook. Second quarter results show that the actions we have taken to structurally improve the enterprise are working. The freight backdrop is improving, capacity rationalization is progressing, and pricing momentum is building. Across the portfolio, we are seeing benefits from revenue management actions, productivity gains, a lower cost to serve, and a multimodal platform that helps us methodically capture opportunities. While uncertainty remains, particularly around demand and driver capacity, our confidence in the earnings trajectory has strengthened. We are maintaining a strong balance sheet, investing where we see clear returns, and continuing to execute against an unchanged strategy, earn customer loyalty through consistent execution, grow profitably where we create differentiation, improve on our low-cost operating model, and maintain disciplined capital allocation. With that, we will open the call for questions. Operator: Go ahead. Jordan Alliger: Yeah. Hi. Yeah, I was wondering, obviously the supply side has been the big factor here. I was wondering if you have a little more color on what you're hearing, seeing from your customer base, their thoughts on perhaps demand looking ahead, and maybe a little bit on the fleet. Interesting on perhaps moving some more trucks into network. Can you maybe talk about your thoughts for fleet growth as we look ahead over the next year or so? Thanks. Jim Filter: Yeah. Thanks, Jordan. I think you've got a few questions in there for us to start. Let me just start with what we're hearing from customers related to demand and what we're seeing really macro there, and then, I'll touch a little bit on what we're thinking about here for fleet growth as well. First of all, as it relates to demand is playing out largely as expected. Underlying demand is largely stable. We saw a little bit of seasonal activity in the quarter related to both summer holidays and the World Cup. Our customers that are in areas like food and beverage definitely saw a little bit of a lift up. Looking forward, what we're hearing is the consumer has been resilient through all the macro noise that's been going out there, but there are some risks that are not completely behind us. There's inflationary pressure, primarily due to higher energy costs. Interest rates are continuing to weigh on some of the key end markets in places like housing, and that's why we're really focused on a broad portfolio of customers that provides us a bit of a cushion here. The reality of the market that we're in here, though, is that this is really being driven by supply. Even with just a little bit of a ripple in demand, it was enough to make a market move here. There's just no excess supply, and our customers recognize that the market has changed, that there isn't excess supply out there, and if there's any disruption, it'll result in a really rapid change in the market because there's no way to absorb the shocks. That being said, as we're looking at our fleet, the way we're looking at it, we're excited about the supply exiting, the driver market tightening. In Dedicated, we already highlighted that we're continuing to see strong sales at 500 year to date, offset by a little bit of churn in the near term. At the same time, this is a great opportunity for us to be able to continue and restore profitability in that area. As it relates to the network. We haven't been satisfied with our performance on network, and we know we need to restore some margins there. That's our first priority before we start to look at growing that driver fleet again. Jordan Alliger: Thank you. Jim Filter: Okay. You bet. Bascome Majors: If we look at the public data that we can follow, 2Q was a sea of frenetic activity and spot rates and tender rejection rates escalating at pretty much unprecedented levels, despite the stable demand drop you talked about. Since then, at least in the data we can follow, it's been kind of sideways and maybe even walked back a bit. I just want you guys' perspective from looking at your own internal metrics, whether it's turndown rates or what you're hearing from customers. Is the market leveling out and even cooling off a bit, or is this just the sign of seasonality that's kind of consolidating after a pretty challenging period? Thank you. Jim Filter: Thanks, Bascome. We looked at this very similar last year. I think we had the same discussion that when you get late into July, you see spot rates change a little bit. I would say this really mirrors what we saw a year ago, so very similar seasonality here. It hasn't changed what we're seeing out there in the marketplace. It's not just spot rates aren't the only way that we're able to extract price. It's one of those areas, and even though it's moving sideways, we would still say spot rates are still about 15% higher than contract price. That enables us to have a number of ways to go out there and extract price. The number one area, obviously, is through normal allocation events. Outside those events, we're seeing post-allocation opportunities that are growing. We're also improving price through freight selection. Even though spot is moving a little bit sideways, still positive opportunities there. Our customers are increasingly realizing that this is not a temporary situation when you see a little bit of a sideways movement here. We've been really comfortable staying with elevated spot exposure because there's that 15% delta between spot and contract. We continue to think we're still in the early innings of a rate recovery with overall its elevated spot exposure, and we'll keep that elevated spot exposure until the book closes between the gap between spot and contract. Bascome Majors: Thank you for that. Just to follow up on one point. Jim Filter: Bascome, I think we're missing you here. Ravi Shanker: Great. Thanks. Good afternoon, everyone. Jim, just on IM, obviously, you're a significant player in both asset-based trucking as well as IM, and we're seeing significant rotation from TL to IM at the moment. Do you get the sense that this is sort of a permanent structural move, or do you think this is kind of opportunistic for the moment, given that volumes aren't there yet, TL pricing is high, and share might shift back to TL? Do you think this is the new normal for IM? Jim Filter: Yeah. Thanks, Ravi. Appreciate the question here. Definitely, you're absolutely right. We're seeing that trifecta of opportunities here between fuel. We're seeing the impact with underlying truckload rates. Also, I think what's structurally different right now is the rail service. It's giving us an opportunity to get into more opportunities, and customers are seeing those benefits. I think the other part is, as you look at where our growth is coming, we now have 17 consecutive quarters of growth in Mexico. Customers have wanted to make a change there for a long time, and it really took that change of us operating with the CPKC to unlock that. We're also growing the local east with over-the-road conversion. Partly, that's being driven by what you're seeing with truckload rates with fuel, also the service is really good, and customers are understanding that. They also, when they make that change to use Schneider and local east, believe part of the reason why they're doing that is because of our multimodal strategy. They know that we have other capacity options, whether it's with one of our trucks or it's using one of our logistics solutions to make sure that we have them covered through it. Yes, I do believe that we have opportunities to continue to grow. This has been two years, nine quarters of growth. We've been able to grow through some relatively weak times. Ravi Shanker: That's helpful. Maybe as a follow-up here, I'm sorry if I missed the detail here, but I think you mentioned a large upcoming dedicated loss. Can you shed some more light on that? Just maybe quantify how much an impact could be so we know what the net guide increase looked like, and also maybe some color around that loss. Jim Filter: Yeah. Overall, Ravi, a way to think about that's contemplated and what we're expecting going forward and Dedicated, like we said earlier, it's designed to be more consistent and resilient. Over the four-year down cycle, Dedicated has remained remarkably resilient. At the same time, performance isn't where it needs to be. As the conditions are improving, that is giving us the opportunity to proactively address the bottom-performing agreements in the portfolio and reallocate those resources towards higher-performing opportunities. Obviously, as a byproduct of those actions, it can create some near-term churn, which is what we've been experiencing the last couple of quarters. Our focus here is the revenue per truck per week improvement. It's our priority, at this point in the cycle, expect you're going to start seeing more pronounced improvement in that metric going forward because of the momentum we're seeing in contract renewals and productivity actions. After we've worked through these, there's an opportunity to begin growing with deals that are durable. Feel really good about our ability to go out there and sell trucks in this area. That's giving us the confidence to restore margins. Darrell Campbell: Ravi, this is Darrell. The only thing I'll add is our pipeline is robust, right? One of the reasons that we have a pipeline is it can absorb shocks. The reason why we kind of highlight that on the call or in our prepared remarks is really that in the third quarter, it's going to be more evident as we implement some of those wins. Ravi Shanker: Understood. Thanks very much. Jim Filter: Welcome. Jonathan Chappell: Thank you. Good afternoon. Jim, a little surprising. Jim Filter: Hi, Jonathan. Jonathan Chappell: to see logistics EBIT almost doubling sequentially up over 50% year-over-year in a quarter where it feels like most logistics companies were squeezed by a parabolic move in spot pricing. Is this Schneider's specific cost? Is this your power-only model? Is there something special that went into this in a quarter where it seemed to be one of the worst laggards for most peers? Jim Filter: Yeah. Thanks for the question. We talked a little bit about this last quarter because we were already seeing some of the benefits in logistics come through last quarter. Once again, it's shining through. We're no different than the rest of the industry. In the second quarter, we still had some impact from rising third-party carrier costs that weighed on our contract rate of business, including power-only, which you mentioned. There's just been really strong execution on the premium project business. We had that in the first quarter. We developed trust with our customer, and that created additional wins in the second quarter. It wasn't just the project business. We continued focusing on our revenue management efforts to address net revenue pressures, including leading into our spot opportunities. We had to address some out-of-market contract rates. At this point, right now we're about 60/40 contract versus I'm sorry, 60/40 spot versus contract a year ago. Historically, we run at about 50/50. It's not just all of those commercial actions. There's some cost actions here. We've been working on developing AI, especially in this area. Those tech investments have resulted in our frontline productivity improving 17% year-over-year in the second quarter, which is also enabling great results here. It's really all the way through, from commercial activity, how we're managing revenue management, and then how we're executing the loads. Jonathan Chappell: Got it. Just quickly, you specifically called out gains on equipment sales in both the truckload and the intermodal EBIT in the press release. It feels like those might have been a bit more outside the normal. Is there any way to quantify that, especially as it helps us kind of consider the 2Q to 3Q bridge? Darrell Campbell: Yep. This is Darrell. In the second quarter, we did see a bit more in terms of gain on sale. We did see pricing improvements in terms of those sales, and we did also sell more units. Nothing that's that material, there's definitely a step up from the first quarter to the second quarter. For the remainder of the year, we do expect some robustness in the market to remain as it relates to the price. Jonathan Chappell: Got it. Thank you. Jim Filter: Welcome. Bruce Chan: Yeah, thanks. Good afternoon, everyone. Maybe just a question here on the intermodal revenue per order pressure. Jim, I think you talked about the mix impact there, which makes a lot of sense with the local conversion. Wanted to maybe get a sense for what core yields look like there. I know you generally don't comment on what the number looks like by region, just maybe directionally, how should we think about that yield trajectory on the shorter haul versus the longer haul lanes? Thank you. Jim Filter: Yeah. Thanks, Bruce. You're right, we don't comment on pricing by region here, but I can give you some color that I think will be helpful to help you think about this going forward. You're right. In the second quarter, the rate per order impacts were really just a matter of length of haul and mix because our contract renewals have been increasing each of the last four quarters. We had expected that intermodal would lag truckload, but we are seeing tightness now in the drayage market. Really, we've been talking about this for quite a while, that the catalyst in intermodal to move price is that drayage market. Our contract renewals were low single digits in the second quarter, now we're trending towards mid-single digits, which is what we really need to be able to invest in growing dray or utilizing third-party capacity, which is at a higher price point than company drivers. What we are focused on here is getting to a price point where we could start to accept more loads. As we're getting to that pricing that we're beginning to see, that's going to enable us to start growing, not just in the East and Mexico, but really throughout all of our markets. Bruce Chan: Great. Super helpful. Thanks, Jim. Jim Filter: Yeah. Great. Ken Hoexter: Great. Good afternoon, Jim and team, and Darrell. Jim, congrats, first of all, on your first call leading here. We've also gotten the driver ads in Westchester. It's clearly working. Looking at your guide and your outlook. Jim Filter: Thanks, Ken. Ken Hoexter: Yeah. My wife looks at me every time they come on the radio. Looking at your guide and your outlook, thoughts on progress, Darrell? I don't know if you can walk through. I know you don't do quarterly forecasting. Is 2Q the strongest? Is fuel going to aid more into 3Q? I don't know if there's delay real-time, if you want to talk about that. You threw out thoughts on driver pay. Is there anything we should think about cost coming into play? Just maybe give us some parameters as you raise the range. Thanks. Darrell Campbell: Yeah, sure. Thank you. You hit on a lot of the things that we're considering. I think, let's just start with framing the guide. We've said that the guide will assume that we have more supply attrition, right? We said that in January, we said that three months ago. We're continuing to expect supply to exit the market. We've also talked about all the things that are within our control, including our cost savings initiatives, our productivity actions, our revenue management actions. With two quarters behind us, we're seeing the signs of all of those efforts come to fruition. We've also seen driver capacity exiting faster than we initially thought. Year-over-year, all of our segments grew, which is remarkable. We're taking up the bottom end and the top end of our guidance based on all those facts. It's not only the year-over-year growth that we've seen. We've seen very strong sequential growth. Quarter-over-quarter, from the first quarter to the second quarter, we saw a doubling of our earnings, and that does not happen by accident, right? Those are all the things that are within our control with a little bit of help from the market. As we go into the second half of the year, we're bringing all that momentum that we've seen, not only as it relates to price. Logistics, for example, and network, those are the areas where most of the irrational capacity came in, and that's where we're seeing it come out the fastest. We're seeing the more ready impact in terms of pricing there. In areas such as dedicated and intermodal, which are more contract based, we expect there to be a benefit in the second half as a result of all that. We have two quarters left in the year. We're thinking about things that are balancing that optimism, and I think you hit on some of them. As capacity has exited the market, which is good for price, there are certainly constraints on driver capacity, right? In terms of our scenarios, we're putting in scenarios as it relates to driver cost and availability, and we've talked about demand, right? Demand being a swing factor. We think that's particularly important as it relates to peak and what happens in the fourth quarter. Obviously, we have a lot of confidence that based on our preparedness, we're ready to execute if and when that freight becomes available. You asked the question as it relates to momentum and progress throughout the year. In my opening remarks, I talked about seasonality. Our business has evolved over time. We've made three very significant acquisitions over the last five years. With that, comes a shift in the portfolio. We talked about exposure to food and beverage end markets, home improvement end markets, and that's driving more seasonality into the second quarter as opposed to the third. We've seen that over the past several years, and that's something that we kind of expect to continue going forward. There's some other things that are unique in our guide going forward. There was a question on logistics and the performance of our logistics business relative to the market. We've been very focused on developing our areas of strength in terms of specialty project business. That came through in the first half of the year, very evident in the second quarter. We think that in the third quarter, even though we're going to have some project business, it's not going to be as pronounced as it was in the second quarter for logistics. We did talk about the loss of the large dedicated customer, which will also impact what the third quarter looks like. All those things are in the mix in terms of how we develop a guide for the rest of the year. Ken Hoexter: Great. Very helpful. Thanks, Darrell. If I just follow up, you mentioned in the prepared remarks, moving trucks back and forth. I think it was from dedicated to network, if I've got that right. Maybe can you talk scale, capacity, time frame? I don't know, any kind of parameters you can put on that to see if we can scale that in our models. Thanks. Jim Filter: Yeah. The way that we're thinking about that, Ken, is where we have the best market opportunities. That's the value of having this multimodal approach, is that we're able to move drivers from one opportunity to another. It's not that I'm being evasive, there's just, we're going to take that opportunity as it plays out. Right now, what we're seeing with price in the market would suggest that there's just going to be more opportunities there in network that we might want to move some trucks over. Ken Hoexter: Understood. Thanks, Jim. Thanks, Darrell. Jim Filter: You bet. Brian Ossenbeck: All right. Thanks for taking the question. Hey, Jim, start with you. Can you just clarify the comment on the dray drivers? It sounded like you're getting to the point where maybe pricing is support enough to be able to expand capacity or maybe fill in some of the gaps you might have in the network or want to add to the network. Maybe you can clarify those comments for me. It also sounded like you're getting more out of cycle bids, rather allocations in intermodal, if I heard you correctly. If you can put some context around that, it'd be helpful, like give absolute terms, how to compare it, or maybe it's better compared to a prior cycle in terms of what strength or activity you're seeing there. Jim Filter: Yeah. Thanks, Brian. Just to start on our dray capacity and what we're seeing is, we had opportunities to grow much faster if we had wanted to in the quarter, but we remain disciplined and specifically because we want to look at some of the opportunities that were coming in, were non-committed freight that would have driven our network out of balance or required third-party capacity. Even though we would have moved more freight, it would not have been accretive. At the same time, we want to be able to take advantage of these opportunities. We're leaning in to grow our dray capacity. We've already had some success here. Most of that growth in our dray capacity occurred at the end of the quarter, and we're continuing to grow that capacity now that we're seeing some improvement in market rates. That's the second part, is going back to customers, because they understand they need to be able to fund our ability to grow capacity or to be able to use third-party capacity, we're seeing both of those take place right now. It gives us some confidence that we can continue to grow from there. You're right. Customers, when they're seeing some turndown activities, they're willing to sit down and have some discussions, and that's where we're seeing some out-of-cycle activity. Brian Ossenbeck: Understood. Here's a quick follow-up to Jim Filter: Sure Brian Ossenbeck: comments on the B-1 and the cabotage. It seems like there's some pretty significant activity. Have you seen that translate to any sort of opportunity in your network? Thanks. Jim Filter: Yeah, absolutely. Brian, as we think about what's going on with capacity, let me just take a step back before I jump in to specifically cabotage, that this has been a matter of public safety. If you go back to, since 2016, the number of trucks involved in injury crashes has increased 18%. At the same time, companies like Schneider have been investing in safety and reducing accident frequency, yet crashes are growing because not all companies are following these existing regulations. You mentioned cabotage, and we're starting to see some impact there. You can see it on specific lanes because we've all seen the data that there's approximately 30,000 drivers whose visas were revoked, not enabling them to even cross the border and commit cabotage. That has an impact. Same thing with a number of other activities. Non-domiciled drivers, the entry level driver training is starting to be impacted. While cabotage was much faster than we expected, non-CDL drivers was much faster than we expected. There's still about half of the capacity we're expecting to leave hasn't been impacted yet. We know that capacity is exited because even that real modest increase in seasonal demand triggered a market correction here in the quarter. When we look forward, we know that there's still about a third of the non-domiciled drivers remaining that we would expect to be removed. The first two-thirds came off faster than we anticipated. If Dalilah's Law is enacted, we could see that capacity exit abruptly. Now we have the end of the broker preemption. That may remove some carriers with unsatisfactory conditional ratings. That's a few percent of capacity. ELD enforcement is another action that I'd say is largely in front of us. It's also the one that I believe would have the biggest impact on public safety because there's a lot of ELDs out there that were improperly certified. With those, tampering is a feature, not a bug, and they're using offshore back office staffs that enable and coerce drivers to exceed the 11-hour rules. The current highway bills is seeking to address that as well. When you take not just what's behind us, but what's in front of us, it's going to be a dramatic change, and this also changed the top of the funnel. It's structurally different than what it was in the past. Capacity won't grow as fast as it did after the pandemic, and that's why this recovery could last longer than other recoveries. Brian Ossenbeck: All right. Thanks, Jim. Appreciate the perspectives. Jim Filter: You bet. Thanks, Brian. Tom Wadewitz: Yeah, good afternoon. You had pretty strong growth in revenue per truck per week in network. I'm just wondering, do you think how big a move can you see in 3Q, or did you already saw a good move, I would assume you didn't get everything repriced, so there's more to go. Just maybe a high-level thought how much further gain we could see revenue per truck per week in 3Q and network. In Dedicated, I know obviously it's a different business with multi-year contract, how might we think about the relationship across the cycle? If network rates were to go up 15%-20% across two years, pretty strong cycle, would that translate to half of that gain in Dedicated? How would you think maybe about that relationship, just so we can contemplate what to put in the model as you look out in Dedicated? Thank you. Jim Filter: Thanks, Tom, for those questions. Let me just start with the Network revenue per truck per week. The 16% growth year-over-year, really strong performance, and that's why Network has just always been a part of our multimodal approach, even though we weren't pleased of the performance during the down cycle. We didn't sit around during the downturn and wait for the market to improvement. Our improvements were primarily on productivity and cost, and those were all being masked by price. Now that price is starting to move, I think it's just more apparent of what we've been working on. Now that we're getting price, we're just ready more than ever to take advantage of a cycle shift, and you're starting to see that in the second quarter. Let me just talk about some of those factors here. We don't get price just through allocation events. We're seeing that through elevated spot exposure, many bids, freight acceptance, that's why we're already seeing high single-digit price improvement hit this business. Also productivity is also a high single-digit improvement, and that's being driven by a combination of asset efficiency, removing unseated tractors, and then higher driver utilization from both freight selection and then optimization. The cost reductions that we've been talking about across this entire enterprise for multiple years, this is the first time that you're able to look at a business and say, "Oh, I can see that coming through the business." We're always optimizing for earnings and, in tougher markets, you just have more leverage with productivity and cost. Now as the market turns, we have opportunities across not just productivity and cost, but also price, and that's where that leverage is starting to come through. In terms of price between Network and Dedicated, it's a little bit difficult. There isn't necessarily a number you can map to be able to say, "Well, this is going to change during this cycle," because I think it would have been different. We're going to be focused on having margins in Dedicated that are going to be resilient. You sign a contract for multiple years, and we're looking to look for a price that's going to be fair for both sides and be durable. That is the plan now. I'd say over the last couple of years, especially you got later into the cycle, there was a little bit of pressure on Dedicated, and some of those contracts are the ones that needed to be renewed. Thanks, Tom. Tom Wadewitz: Maybe just on timing, when do you think we'll start to see the strength in revenue per truck, effectively in price show up? Is that start to show up in 3Q, or there's a little longer lag on it? Jim Filter: Yeah, I think, in Dedicated, we're expecting that we should start seeing improvement in revenue per truck per week in Dedicated immediately, here already in third quarter. Tom Wadewitz: Yeah. Okay. Thank you. Jim Filter: All right. Thanks, Tom. Chris Wetherbee: Yeah, hey. Thanks. Good afternoon, guys. Darrell, I guess just maybe to be a little bit more direct, you said a lot about the third quarter and the difference between 3Q and 2Q seasonality. I guess I'm just a little confused. I want to make sure I understand. Can 3Q earnings or however you want to sort of measure the profitability of the business be higher than 2Q, or should we assume that 2Q is higher than 3Q? Darrell Campbell: Yeah. Good question, and I guess, unsurprising. We tried to give a little bit more color, to clarify, we don't guide by quarter, but just trying to be helpful. I think the seasonality point was just to underpin some of the thoughts that we've seen. If you just look at history over the last five years and how our seasonality has shifted. Just wanted to make the point that, given the transformation of our business, typically in the recent past, more seasonality has shifted into the second quarter. We also talked about just the dynamic of the logistics specialty project business and the loss of the dedicated customer. With all that said, where I did lead off is that we're seeing a lot of momentum going into the second half of the year. All the things that I mentioned as it relates to capacity exiting the market and the impact on price, you've seen what price and productivity together can do, just even in network as an example. We do expect that momentum carries forward. Jim mentioned the gap between contract and spot. We do believe that not only in network and logistics, but also in dedicated and in modal, we are going to get the benefit of price, and that's also going to come through in the second half. Right? It's not as if we don't think that there's improvement. Actually, at every point in our guide, if you look on a year-over-year basis, we do expect to see improvement in our segments. Chris Wetherbee: Okay. Appreciate the clarification there. Maybe just the bigger picture one here, as we're thinking about some of the dynamics going on with drivers and in particular, what's happening here in a post Montgomery world around the brokerage businesses. I guess, can you maybe sort of refresh us on how you guys think about carrier vetting? Have you made any changes post Montgomery? The way you think about it probably going to be maybe on the higher tier of carrier vetting discipline in the industry. Just want to get a sense of some thoughts around that and how it might impact available capacity and how you see sort of the potential opportunity for you in logistics going forward. Jim Filter: Yeah. Thanks, Chris. I'll start by talking about the capacity impacts, then I'll dive in a little bit into our brokerage business. You're right, I think it's likely to further constrain capacity from a couple aspects. First, there's many brokers that are likely to avoid carriers that have conditional or unsatisfactory ratings from the FMCSA. That's probably a few percent of the market, and while the drivers might go to work for another carrier, it's likely that they're going to be held to a higher safety standard. Even transfers to a new company potentially reduces capacity. You have brokers like Schneider that have some standards that go beyond a carrier safety rating. Within Schneider, we only qualify approximately 60% of the carriers that apply. Now, don't interpret that as 40% of the carriers on the road are unsafe. Some of these carriers are chameleon carriers, so we might disqualify them many times, and there are also carriers that are safe but lack enough time in the industry to meet our standards. I also believe this creates an opportunity for our logistics segment. We're already seeing some shippers that are pivoting away from the small or medium-sized brokers, and there are some shippers that are requiring minimum insurance levels that are well out of reach for most pure-play brokers, and even for some small asset-based companies. Our position, the standards that we put in, we implemented these several years ago, and we've moved our carrier count from 60,000 to less than 14,000 carriers. We did that primarily under the vein of improving cargo security, but many of the filters that we apply to cargo security also apply to safety. Overall, I think this is an opportunity for Schneider, but I also believe that litigation is a risk to supply chains. We're investing heavily in safety training, technology, compliance, and it's resulting in reducing accident frequency, but accidents still happen. We believe that companies that do the right thing should be held accountable based on the facts and not exposed to disproportionate outcomes driven by the current litigation environment. That's why we believe tort reform is really important, not to avoid responsibility, but to ensure that the outcomes are fair, they're predictable, and aligned with actual conduct. Believe that this is a big impact to the overall industry. Chris Wetherbee: Helpful perspective. Appreciate it. Thank you. Jim Filter: Yeah. Thank you. Scott Group: Hey, thanks. Two questions. We're at the hour, I'll just lump them into one. You talked about, Jim, the trifecta for intermodal conversion. Volumes were flat in the quarter. Where you think the growth goes? Darrell, there's been a lot of talk about the seasonality of the mix of the business, like 2Q, 3Q. Maybe more importantly, does the changing mix of the business change ultimately where the annual margins can go? Meaning if this was an 85, 86 OR last cycle, does that change because you have more dedicated or more food and beverage, or does that not change it? Is this just a seasonal shift within quarters? Jim Filter: Yeah, Scott, I'll start and then Darrell will jump in on the long-term margin questions here. First of all, on Intermodal volumes, I think I talked a little bit about this earlier. We could have grown double-digits if we wanted to, but we wouldn't have made any more money. That's why we're a little bit more discerning about which orders we're accepting. You're able to do that when you've grown nine consecutive quarters, and we've had some really big growth in certain areas. That we said we don't have to go out there and take every single opportunity. Now that we are starting to grow that dray capacity, we're getting price that will enable us to use some third-party in certain area. We set up our peak season programs with shippers very early on because we're seeing those opportunities as well. That enables us to use third-party a little bit more today. We expect that there's opportunities to start growing really in high single-digits. Darrell? Darrell Campbell: Yeah. This is Darrell. The seasonality commentary was really just the frame, the guide, right? It doesn't change anything that we think about our business in the long-term. Actually, the actions that we've taken have been purposeful. We purposely targeted the three targets that we acquired over the last few years, and we knew what came with that, and we welcomed what came with that. We've been taking actions to structurally improve the business during the downturn, right? We've not been wasting time. The dedicated portfolio. Our Truckload is more dedicated, skewed. Jim talked about our differentiation in Intermodal. In Network and Logistics, we've invested in being scalable and flexible. We've been investing in technology. All of those things make us stronger today as we're coming out of the downturn, and we're already seeing that, right? If you just look at our year-over-year improvement, you look at our sequential improvement in earnings, it's all a result of all the things that we've done. When we think about our long-term margin targets, Truckload 12%-16%, Intermodal 10%-14%, Logistics 3%-5%, those are meant to be in normal market conditions, right? We think everybody would acknowledge, Scott, that we have not been in a normal situation. As capacity has exited, we're seeing the benefit, and we're seeing it initially in those segments of our business that were most impacted. We expect to see improvement across the board, including in our contract rated businesses. The pricing improvement that we saw in Logistics and Network, I think that's just the beginning. Jim talked about where we are in terms of all the capacity actions that are being taken. When we sit here today at the end of the second quarter, truckload margin is already 8%. Intermodal is at 7%. Logistics is already within our long-term ranges. We have line of sight to get to our longer term margin ranges. The evidence of all the actions that we've taken prove that. Scott Group: All right. Thank you. Jim Filter: Thank you, Scott. All right. We appreciate everybody joining the call today. Have a great day. Operator: 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 $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% 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 August 3, 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) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Schneider National, Inc.? Here are five stocks we like better. Schneider National reported a stronger second quarter: Adjusted EPS rose to $0.29 from $0.21, adjusted operating income increased 29% to $73 million, and revenue excluding fuel surcharges grew 4% to $1.3 billion. Results benefited from pricing improvements, productivity gains and better asset efficiency. Freight conditions are improving, particularly in truckload: Management characterized the market as driver-constrained, with spot rates testing prior-cycle highs and contract-rate recovery still in its early stages. Truckload operating income rose 28% and its operating ratio improved to 91.8%. The company raised its 2026 outlook while lowering planned capital spending: Adjusted EPS guidance increased to $0.90-$1.10 from $0.70-$1.00, while the net capital-expenditure forecast fell to $350 million-$400 million from $400 million-$450 million. XPO Keeps Reaching New Highs: Markets Love the Stock Schneider National (NYSE:SNDR) reported higher second-quarter earnings and raised its full-year 2026 outlook, citing improving freight-market conditions, pricing gains, productivity initiatives and progress on a $40 million cost-savings program. Adjusted diluted earnings per share rose to $0.29 from $0.21 a year earlier, while adjusted income from operations increased 29% to $73 million. Revenue excluding fuel surcharge grew 4% year over year to $1.3 billion. The company’s adjusted operating ratio improved by 110 basis points from the second quarter of 2025. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now President and Chief Executive Officer Jim Filter said the company is beginning to see the benefits of actions intended to improve revenue management, asset efficiency and costs. He described the freight recovery as primarily supply-driven, with regulatory enforcement and attrition removing noncompliant capacity from the market. “We would now categorize the market as driver-constrained,” Filter said, adding that spot rates were testing prior-cycle highs and remained above contract rates. He said Schneider believes it is still in the early stages of contract-rate recovery, although the pace of supply attrition has also increased pressure on driver recruiting, retention and capacity costs. → Microsoft Just Flipped the AI Spending Narrative Overnight Truckload revenue excluding fuel surcharge increased 1% year over year to $628 million. Revenue per truck per week rose 5%, more than offsetting a lower truck count associated with constrained driver availability. Within truckload, network revenue excluding fuel surcharge grew 8%, and revenue per truck per week increased 16%. Filter said network pricing rose by high single digits year over year, while average network price renewals reached double-digit increases during the quarter. The company also reported high-single-digit productivity growth, aided by improved freight selection, asset efficiency and efforts to reduce unseated tractors. → Carrier Earnings Could Send the Stock to a New All-Time High Truckload operating income rose 28% to $51 million, while the segment’s operating ratio improved 180 basis points to 91.8%. Campbell said this represented the truckload segment’s strongest profitability since the second quarter of 2023. Filter said Schneider may shift some capacity toward its network operations in the near term as market opportunities emerge, but said restoring network margins remains the company’s first priority before pursuing driver-fleet growth. Dedicated pricing improved modestly from a year earlier as Schneider continued to upgrade its portfolio and address lower-performing agreements. Filter said these actions have created some near-term customer churn, and Campbell said the company expects the loss of a large dedicated customer to become more apparent in the second half of the year. Still, Schneider sold more than 500 new dedicated trucks year to date and said its sales pipeline remains robust. Management expects dedicated revenue per truck per week to begin improving in the third quarter as contract renewals and productivity actions take effect. Intermodal revenue excluding fuel surcharge declined 1% to $262 million, as revenue per order fell 2% due to a shorter average length of haul and mix changes. Volumes grew modestly, marking the ninth consecutive quarter of order growth. Intermodal operating income increased 14% to $18 million, and the operating ratio improved 90 basis points to 93%. Filter said Schneider declined some intermodal freight opportunities that would have required costly third-party drayage without sufficient pricing. The company is expanding company dray capacity selectively and has seen accelerating pricing renewals, including stronger out-of-cycle increases. Management expects volume growth in the second half, supported by over-the-road conversion opportunities, higher truckload prices, elevated fuel costs and rail service. Logistics revenue excluding fuel surcharge rose 11% to $376 million, while income from operations increased by $4 million to $12 million. The logistics operating ratio improved 90 basis points to 96.8%. Filter attributed the gains to premium project business, revenue management, greater spot-market exposure and productivity gains from technology investments. He said frontline productivity in logistics improved 17% year over year during the quarter. However, management noted that project-based business that contributed to first-half results is expected to be less pronounced in the third quarter. Schneider raised its full-year adjusted earnings-per-share guidance to a range of $0.90 to $1.10, from a previous range of $0.70 to $1.00. The outlook assumes an effective tax rate of about 24% and continued supply attrition that supports freight conditions through the rest of the year. Campbell said the guidance incorporates different scenarios for demand and driver availability. Demand has tracked largely in line with the company’s base case, he said, while stronger demand could create further upside and weaker demand could reduce some benefits from supply rationalization. The company reduced its 2026 net capital-expenditure forecast to $350 million to $400 million from $400 million to $450 million. The reduction reflects lower anticipated needs for trailing equipment, Campbell said, while investment plans continue to include tractor-fleet modernization, intermodal drayage capacity and specialty equipment for dedicated operations. Second-quarter net capital expenditures were $84 million, compared with $53 million a year earlier. Schneider returned nearly $35 million to shareholders through dividends year to date. As of June 30, the company had $397 million of debt and lease obligations, $293 million in cash and cash equivalents, and net debt leverage of 0.2 times. Filter said Schneider remains focused on disciplined capital deployment, including organic growth, acquisitions and shareholder returns. He said the company sees its multimodal operations, technology investments and cost structure as positioning it to capture further benefits if freight-market conditions continue to improve. Schneider National, Inc is a leading provider of transportation and logistics services in North America. The company offers a full spectrum of solutions, including truckload transportation, intermodal services and dedicated logistics. Through these offerings, Schneider supports the movement of goods ranging from dry van freight to refrigerated and flatbed shipments, while also providing customized supply chain management and warehousing capabilities. Founded in 1935 by Al Schneider as a single-truck operation in Green Bay, Wisconsin, the company has grown into one of the industry's most recognized carriers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Schneider National Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue (excl. fuel surcharge): $1.3 billion, up 4% year-over-year. Adjusted Income from Operations: $73 million, a 29% increase year-over-year. Adjusted Operating Ratio: Improved 110 basis points compared to Q2 2025. Adjusted Diluted EPS: $0.29, compared to $0.21 in Q2 2025. Truckload Revenue (excl. fuel surcharge): $628 million, up 1% year-over-year. Truckload Operating Income: $51 million, a 28% increase year-over-year. Truckload Operating Ratio: 91.8%, an improvement of 180 basis points year-over-year. Intermodal Revenue (excl. fuel surcharge): $262 million, down 1% year-over-year. Intermodal Operating Income: $18 million, a 14% increase year-over-year. Intermodal Operating Ratio: 93%, 90 basis points improved year-over-year. Logistics Revenue (excl. fuel surcharge): $376 million, up 11% year-over-year. Logistics Income from Operations: $12 million, up $4 million year-over-year. Logistics Operating Ratio: 96.8%, an improvement of 90 basis points year-over-year. Net CapEx: $84 million in the quarter, compared to $53 million last year. Free Cash Flow: Declined $35 million year-over-year in the quarter. Net Debt Leverage: 0.2 times at the end of the quarter. 2026 Net CapEx Guidance: Revised to $350 million to $400 million, down from $400 million to $450 million. 2026 EPS Guidance: Raised to $0.90 to $1.10 from $0.70 to $1.00. Warning! GuruFocus has detected 11 Warning Signs with SNDR. Is SNDR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Earnings more than doubled sequentially, marking the strongest quarter-over-quarter improvement in the last decade. Truckload segment operating income increased 28% year-over-year, with network revenue per truck per week up 16%. Logistics segment delivered double-digit year-over-year growth in both revenue and earnings, with operating ratio improving 90 basis points. Intermodal achieved its ninth consecutive quarter of volume growth, with operating income up 14% year-over-year. The company raised its full-year 2026 EPS guidance to $0.90-$1.10, reflecting confidence in continued momentum. Driver availability remains a constraint, impacting tractor count and increasing the cost of capacity. Dedicated segment faces near-term churn and the anticipated loss of a large customer, which will be more evident in the second half of the year. Intermodal revenue per order declined 2% due to mix changes, and growth was limited by drayage capacity constraints. Free cash flow declined $35 million year-over-year in the quarter due to higher net CapEx. Demand remains uncertain, with risks from inflationary pressures and interest rates weighing on key end markets. Q: Can you provide more color on what you're hearing from customers regarding demand and your thoughts on fleet growth over the next year?A: Jim Filter (CEO): Underlying demand is largely stable with some seasonal activity from summer holidays and the World Cup. The consumer has been resilient, but risks remain from inflationary pressures and interest rates weighing on housing. The market is being driven by supply, and customers recognize there is no excess supply, meaning any disruption will cause rapid market changes. Regarding fleet, we're prioritizing restoring margins in the network before growing the driver fleet, while Dedicated continues to see strong sales with 500 new trucks sold year-to-date. Q: Public data shows spot rates and tender rejections escalated rapidly in 2Q but have since moved sideways. Is the market leveling out or cooling off?A: Jim Filter (CEO): This mirrors what we saw last year with similar seasonality. Spot rates are still about 15% higher than contract rates, which enables us to extract price through multiple avenues beyond just spot. We're seeing post-allocation opportunities growing, and customers increasingly realize this is not a temporary situation. We're comfortable keeping elevated spot exposure until the gap between spot and contract closes, and we believe we're still in the early innings of rate recovery. Q: Are you seeing a permanent structural shift from truckload to intermodal, or is this opportunistic given current pricing dynamics?A: Jim Filter (CEO): We're seeing a trifecta of opportunities from fuel costs, rising truckload rates, and strong rail service. The rail service is structurally different now, allowing us to access more opportunities. We've had 17 consecutive quarters of growth in Mexico, unlocked by our CPKC partnership, and strong growth in the East with over-the-road conversion. Customers choose us because of our multimodal strategy, knowing we have other capacity options. We've grown through nine consecutive quarters even in weak times, so we believe there are continued opportunities. Q: Can you shed more light on the large Dedicated customer loss and quantify the impact?A: Jim Filter (CEO) and Darrell Campbell (CFO): The loss is contemplated in our guidance. Dedicated has remained resilient through the down cycle, but performance isn't where it needs to be. Improving conditions give us the opportunity to proactively address underperforming agreements and reallocate resources to higher-performing opportunities, creating near-term churn. Our focus is on revenue per truck per week improvement, and we expect more pronounced improvement going forward. Darrell added that our pipeline is robust and can absorb shocks, but the loss will be more evident in the third quarter as we implement wins. Q: Logistics EBIT nearly doubled sequentially, up over 50% year-over-year, while most logistics companies were squeezed. What drove this performance?A: Jim Filter (CEO): We still had some impact from rising third-party carrier costs on contract-rated business, but there was strong execution on premium project business that created additional wins. We focused revenue management efforts on addressing net revenue pressures and leaned into spot opportunities, shifting to about 60-40 spot versus contract compared to our historical 50-50. Our technology investments in AI improved frontline productivity by 17% year-over-year, enabling better execution across commercial activity, revenue management, and load execution. Q: Can you quantify the gains on equipment sales in Truckload and Intermodal EBIT?A: Darrell Campbell (CFO): In the second quarter, we saw a bit more in terms of gain on sale with pricing improvements and more units sold. It's not material, but there was a step-up from the first quarter to the second quarter. We expect the market to remain robust for the remainder of the year. Q: Can you provide direction on Intermodal yield trajectory given the mix impact from shorter-haul lanes?A: Jim Filter (CEO): The rate per order impacts in the second quarter were a matter of length of haul and mix, as contract renewals have been increasing each of the last four quarters. We're seeing tightness in the drayage market, which is the catalyst for Intermodal pricing. Contract renewals were low single digits in the second quarter, trending toward mid-single digits, which is what we need to invest in growing dray or utilizing third-party capacity. As we reach that pricing, we can start growing not just in the East and Mexico, but throughout all markets. Q: Can you walk through the parameters as you raise the guidance range, including thoughts on seasonality and cost pressures?A: Darrell Campbell (CFO): The guide assumes more supply attrition, and we're seeing signs of our cost savings, productivity, and revenue management efforts coming to fruition. Driver capacity is exiting faster than expected, and all segments grew year-over-year. We saw a doubling of earnings sequentially, which doesn't happen by accident. For the second half, we expect benefits in Dedicated and Intermodal as they're more contract-based. We're balancing optimism with scenarios around driver cost and availability and demand as swing factors. Our business mix has shifted with acquisitions, creating more seasonality in the second quarter than the third. The Logistics specialty project business won't be as pronounced in the third quarter, and the Dedicated customer loss will also impact the third quarter. Q: Can you clarify the comments on dray drivers and out-of-cycle bids in Intermodal?A: Jim Filter (CEO): We had opportunities to grow much faster but remained disciplined, as some opportunities were noncommitted freight that would have driven the network out of balance or required expensive third-party capacity. We're leaning into growing our dray capacity, with most growth occurring at the end of the quarter. We're seeing improvement in market rates, and customers understand they need to fund our ability to grow capacity or use third-party capacity. We're seeing out-of-cycle activity as customers experience turndowns and are willing to have discussions. Q: Have the regulatory actions on cabotage and non-compliant capacity translated to opportunities in your network?A: Jim Filter (CEO): Absolutely. This is a matter of public safety, and we're seeing impacts from various regulatory actions. Approximately 30,000 drivers had visas revoked, impacting cabotage. Non-domiciled CDL and entry-level driver training are also being impacted. About half of the capacity we expect to leave hasn't been impacted yet, and we know capacity has exited because even modest seasonal demand triggered a market correction. Looking forward, about one-third of non-domiciled drivers remain, and Lilah's Law For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:30 p.m. ET 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's Second 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. 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. This 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 lines 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. 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. Hello, everyone. Thank you for joining the Schneider National call today. I will start by offering my perspective on the freight cycle and how we are positioning the enterprise for success in this dynamic market. I will then turn it over to Darrell for his commentary on second quarter results, capital deployment, and our full-year earnings per share guidance. After that, we'll open up the call for questions. Looking at our performance in the quarter, we believe we are seeing the initial benefits of the actions we took to structurally improve the enterprise and position us to quickly and effectively capitalize on better market fundamentals. This includes effective revenue management, enhancements to asset efficiency and productivity, execution on our $40 million cost savings program, and our differentiated multimodal model. We continue to see meaningful opportunity ahead. We want to thank our associates, especially our professional drivers, for their hard work, which helped drive earnings to more than double sequentially, representing the strongest quarter-over-quarter improvement in the last decade. Many cycle indicators that showed signs of life in the first quarter gained momentum through the second quarter. Spot rates are already testing prior cycle highs, turndowns remain elevated, and utilization has increased meaningfully. Underlying demand trends were largely stable with some modest seasonal activity. As a result, we believe the market improvement to date has been supply-led. Regulatory action and enforcement on non-compliant supply, including in areas such as non-domicile CDL usage, English language proficiency, illegal cabotage, entry-level driver training, and ELD tampering all gained traction through the second quarter. Supply attrition has been faster than we initially expected and is removing the most irrational capacity from the marketplace. We would now categorize the market as driver-constrained. The long-haul driver population in the U.S. sits well below long-term averages and near the lowest levels seen over the last decade. However, we believe roughly half of the non-compliant capacity is left, with the remaining impacted supply expected to exit through next year. Against that backdrop, we believe we are only in the early stages of rate recovery and are maintaining a discerning approach to customer allocation events. We are balancing customer commitments with the need for rates that will support our strong service, recoup multiple years of significant cost inflation, and drive returns back to a level that is supportive of growth. Importantly, spot rates now exceed contract rates at a level that has historically preceded more meaningful contract rate improvement. While the pace of supply attrition is supporting price increases, it is also creating challenges in driver recruiting and retention, which is putting upward pressure on the cost of capacity. We remain an employer of choice. We will be disciplined in investments to add capacity, focusing on where we see clear demand, strong productivity, and returns that meet our expectations. We have aligned our pay structure to reward our hardest-working drivers to support retention while surgically reinforcing recruiting efforts, including growing the number of recruiters, expanding our AI capabilities, and enhancing starting driver pay in the most constrained geographies. Altogether, our second quarter results underscore the importance of price and productivity. Changing supply conditions are most acute in the over-the-road segment of the market, where irrational capacity has persisted. This, in turn, is creating the strongest initial opportunities in our network and logistics solutions. We have responded rapidly. In the second quarter, these segments captured premium opportunities as we supported customers through a quickly tightening marketplace. We expect dedicated and intermodal to see increasing benefit as we move further into the up cycle through contract renewals and freight allocation events. This flexibility is the benefit of operating a scaled, sophisticated, multimodal portfolio. Digging into our business segments in more detail. In truckload, we more than doubled earnings sequentially on 2% revenue growth, only possible through the organization's hard work on executing price, productivity, and cost reductions. Network price grew high single digits year-over-year in the quarter. We are quickly leveraging all our tools to extract price, including historically high spot exposure, advanced freight selection and acceptance technology, and a growing number of mini bids, among others. Spot rates became increasingly accretive through the quarter, and June saw levels of contribution that were on par with March of 2021. Network price renewals also accelerated with average price increases in the quarter of double digits, which we achieved while also improving incumbent retention. Tractor count was impacted by driver availability, but we were able to more than offset the reduction with improved productivity, which grew high single digits year-over-year. The asset efficiency gains we have made are now being compounded by better freight selection, and we actively managed truck count in the quarter to reduce unseated tractors. Turning to our dedicated business, we saw modest year-over-year price improvement in the quarter, supported by our self-help actions on portfolio quality. We remain disciplined in adding durable, dedicated solutions with returns in our targeted ranges, as that discipline is what drives earnings resiliency through the entire cycle. Proactively addressing pricing now is allowing us to get ahead of the increased cost of capacity and position the portfolio for higher quality growth. As we highlighted on our last call, these actions are creating some near-term churn. While productivity gains also contributed to the year-over-year tractor count decline, they helped drive margins higher in the quarter. Dedicated remains a key pillar of our long-term growth strategy, and the consistency and resiliency of earnings is a feature, not a defect. We continue to advance our sales initiatives with more than 500 new trucks sold year-to-date in 2026. We believe constrained driver supply, inflationary pressure in areas such as insurance, and emerging liability concerns all support long-term dedicated growth. We are also increasingly confident in our focus on specialty equipment where our retention remains highest. At the same time, the benefit of our diverse portfolio of solutions is that it gives us flexibility to meet customer needs as they evolve. As cycle conditions shift, network will be most responsive to market improvement, especially in an upcycle that remains primarily driven by supply attrition in the over-the-road segment of the market. As a result, in the near term, we may shift some capacity into our network configuration. However, we do expect Dedicated to benefit as those conditions translate through contract renewals and customer allocation decisions. As improvement accelerates, we will have the line of sight and capability to quickly return that capacity to capture these opportunities. This is the multimodal strategy working as intended. In Intermodal, second quarter results underscore the efforts we have made and continue to make to prioritize profitable growth. Over-the-road conversion opportunities expanded in the quarter, but as expected, drayage has become the primary constraint. Realizing nine consecutive quarters of volume growth, we remain disciplined in the second quarter. We elected not to chase growth that would have required expensive third-party dray when pricing was not yet supportive of the incremental cost. We are growing in areas where returns are commensurate with our service and cost, as evidenced by the strong growth in Mexico and in the East, where there are the most significant over-the-road conversion opportunities, and we have clear differentiation. Altogether, the segment delivered earnings growth despite some revenue pressure, reflecting our differentiators in lanes and service, containers and chassis asset control, effective network and revenue management, and the optimization of third-party costs. Looking forward, we have seen success with select targeted investments in company dray capacity, which added up through the quarter. At the same time, pricing renewals accelerated in Intermodal. Importantly, we are seeing even stronger out-of-cycle increases, a signal that the market is beginning to turn faster. We expect these efforts to gain traction through the third quarter, positioning us to profitably capitalize on the trifecta of over-the-road conversion tailwinds as we move forward, including elevated fuel costs, rising truckload prices, and strong rail service. We are pleased with our performance in this allocation season, which we expect to translate into volume growth in the second half. In Logistics, we extend the momentum from the first quarter, delivering double-digit year-over-year growth in both revenue and earnings. Brokerage net revenue per order improved both year-over-year and sequentially, supported by revenue management and premium project business. While we are addressing out-of-market contractual pricing, we are also leaning into expanded spot opportunities. Our spot exposure increased year-over-year and sequentially. Revenue management actions were amplified by productivity initiatives, especially those supported by our ongoing technology investment and leadership in agentic AI solutions. The projects that began the first quarter extended through much of the second quarter, though have now largely concluded. We expect the expertise we have built into these new verticals to remain a meaningful growth driver for Logistics, even as the project-based nature of the work may create some quarter-to-quarter variability. Altogether, we are encouraged by how the business has responded to the early innings of supply normalization and market improvement. Darrell will provide more detail on our earnings expectations shortly. We are confident that 2026 will be a year of meaningful earnings growth, supported by an improving rate backdrop and our enhanced ability to drive operating leverage. With that, I'll hand the call over to Darrell to discuss our results and guidance in more detail. Darrell? Darrell Campbell: Thank you, Jim, and good afternoon, everyone. I'll review our enterprise and segment financial results for the second quarter and provide insights into our full-year 2026 earnings per share and net CapEx guidance. Summaries of our financial results and guidance can be found in our investor presentation, available on the investor relations section of our website. Starting with the second quarter results, enterprise revenues, excluding fuel surcharge, were $1.3 billion, up 4% compared to a year ago. Adjusted income from operations was $73 million, a 29% increase year-over-year. Enterprise adjusted operating ratio improved 110 basis points compared to second quarter 2025. Adjusted diluted earnings per share for the second quarter was $0.29, compared to $0.21 for second quarter of 2025. Earnings grew year-over-year across each of our business segments, supported by continued progress on the strategic initiatives Jim outlined earlier and execution against our $40 million cost savings target, where we remain on track. We're seeing meaningful progress from our ongoing technology initiatives, which are helping automate and streamline workflows, reduce headcounts, improve driver productivity, and lower third-party spend. From a segment perspective, truckload revenues, excluding fuel surcharge, were $628 million in the second quarter, up 1% year-over-year. This growth was driven by improvements in revenue per truck per week, which grew 5% year-over-year, and more than offset lower truck count, which have been impacted by a more constrained driver environment. Network revenues, excluding fuel surcharge, grew 8% year-over-year, driven by productivity and price, with revenue per truck per week up 16% year-over-year. Dedicated revenue per truck per week was up modestly year-over-year, reflecting ongoing portfolio upgrade actions. Truckload operating income was $51 million, a 28% increase year-over-year. Operating Ratio was 91.8%, an improvement of 180 basis points compared to last year. This marks the strongest profitability for our truckload segment since the second quarter of 2023. Earnings were positively impacted by our revenue management efforts that were supported by an improved truckload backdrop. We're also seeing the benefits from our cost savings program, where we're gaining traction in areas such as headcount and trailing asset efficiency. Intermodal revenues, excluding fuel surcharge, were $262 million for the second quarter, down 1% year-over-year. Revenue per order declined 2%, reflecting mix changes that drove a lower length of haul. Volumes grew modestly year-over-year, marking the ninth consecutive quarter of order growth. Intermodal operating income was $18 million, a 14% increase compared to the same period last year, and a strong sequential improvement supported by headcount actions and gains in tractor asset efficiency. Operating Ratio was 93%, 90 basis points improved compared to last year. Logistics revenue, excluding fuel surcharge, totaled $376 million in the second quarter, up 11% from the same period a year ago. We saw improvement in price, supported in part by opportunistic premium project business. Logistics income from operations was $12 million, up $4 million year-over-year. Operating Ratio was 96.8%, an improvement of 90 basis points from last year due to top-line growth noted earlier and effective management of net revenue per order, including capitalizing on spot opportunities. Productivity gains, including those from reduced headcounts and power-only trailer efficiency improvements, also contributed to strong performance. Turning to our balance sheet and capital allocation. Net CapEx in the quarter was $84 million compared to $53 million last year, primarily reflecting our efforts to improve the age of tractor fleet. As a result, free cash flow declined $35 million year-over-year in the quarter. Year to date, we have delivered nearly $35 million back to our shareholders in the form of dividends. Looking forward, our strategic priorities for capital are unchanged, and we remain focused on disciplined deployment, including supporting organic growth that's aligned with our areas of differentiation, accretive M&A, and robust shareholder returns. The strength of our balance sheet allows us to be nimble and execute on all three. As of June 30th, we had $397 million in debt and lease obligations and $293 million in cash and cash equivalents. As a result, our net debt leverage was 0.2x at the end of the quarter. For 2026, we're revising our net CapEx guidance to the range of $350 million-$400 million, down from $400 million-$450 million. As noted earlier, our plan continues to reflect the use of CapEx to improve our age of fleet. The reduction from our previous outlook is driven by a lower need for trailing equipment and consistent with our ongoing focus on asset efficiency. Our areas of investment will continue to support growth across intermodal, especially dray capacity, and in dedicated, particularly in specialty equipment. We're raising our 2026 earnings per share guidance to $0.90-$1.10 from our previous range of $0.70-$1.00. Our guidance assumes an effective tax rate of approximately 24%. Second quarter results reinforce our confidence that the actions we've taken to lower cost to serve, enhance productivity, and prepare for this upcycle are delivering meaningful operating leverage. Based on our year-to-date performance, we're raising the top and bottom end of the full-year earnings per share guidance to reflect the progress we're seeing across the business. Our outlook continues to assume that supply attrition remains supportive of freight conditions for the balance of the year and that we continue to make progress against our $40 million cost savings target. At the same time, our guidance incorporates a range of outcomes for demand and the availability of driver capacity in the second half of the year. Demand has tracked largely in line with our base case to date. Looking forward, stronger demand could drive additional upside, while softer demand may moderate some of the benefits from supply rationalization. As we think about the remainder of 2026, we're bringing momentum from contract implementations and successful allocation events. It's important to note that we're anticipating the loss of a large dedicated customer, which will be more evident in the second half of the year. Additionally, our business mix has evolved over the past several years, including the addition of three dedicated acquisitions and a greater exposure to food and beverage and home improvement end markets. As a result, seasonal demand is typically stronger in the second quarter than in the third. Altogether, we expect earnings to grow meaningfully year-over-year at every point in our updated guidance range. I'll turn the call over to Jim for closing remarks. Jim? Jim Filter: Thanks, Darrell. Before we open the call for questions, I want to reinforce why we're encouraged by the direction of the business. We are a stronger, more efficient company than we were in the last upcycle, with a more resilient, dedicated solution, differentiated internal service, and scalable capacity across network and logistics. These improvements are being further supported by technology innovation, our cost savings program, and a proven acquisition playbook. Second quarter results show that the actions we have taken to structurally improve the enterprise are working. The freight backdrop is improving, capacity rationalization is progressing, and pricing momentum is building. Across the portfolio, we are seeing benefits from revenue management actions, productivity gains, a lower cost to serve, and a multimodal platform that helps us methodically capture opportunities. While uncertainty remains, particularly around demand and driver capacity, our confidence in the earnings trajectory has strengthened. We are maintaining a strong balance sheet, investing where we see clear returns, and continuing to execute against an unchanged strategy, earn customer loyalty through consistent execution, grow profitably where we create differentiation, improve on our low-cost operating model, and maintain disciplined capital allocation. With that, we will open the call for questions. Operator: Go ahead. Jordan Alliger: Yeah. Hi. Yeah, I was wondering, obviously the supply side has been the big factor here. I was wondering if you have a little more color on what you're hearing, seeing from your customer base, their thoughts on perhaps demand looking ahead, and maybe a little bit on the fleet. Interesting on perhaps moving some more trucks into network. Can you maybe talk about your thoughts for fleet growth as we look ahead over the next year or so? Thanks. Jim Filter: Yeah. Thanks, Jordan. I think you've got a few questions in there for us to start. Let me just start with what we're hearing from customers related to demand and what we're seeing really macro there, and then, I'll touch a little bit on what we're thinking about here for fleet growth as well. First of all, as it relates to demand is playing out largely as expected. Underlying demand is largely stable. We saw a little bit of seasonal activity in the quarter related to both summer holidays and the World Cup. Our customers that are in areas like food and beverage definitely saw a little bit of a lift up. Looking forward, what we're hearing is the consumer has been resilient through all the macro noise that's been going out there, but there are some risks that are not completely behind us. There's inflationary pressure, primarily due to higher energy costs. Interest rates are continuing to weigh on some of the key end markets in places like housing, and that's why we're really focused on a broad portfolio of customers that provides us a bit of a cushion here. The reality of the market that we're in here, though, is that this is really being driven by supply. Even with just a little bit of a ripple in demand, it was enough to make a market move here. There's just no excess supply, and our customers recognize that the market has changed, that there isn't excess supply out there, and if there's any disruption, it'll result in a really rapid change in the market because there's no way to absorb the shocks. That being said, as we're looking at our fleet, the way we're looking at it, we're excited about the supply exiting, the driver market tightening. In Dedicated, we already highlighted that we're continuing to see strong sales at 500 year to date, offset by a little bit of churn in the near term. At the same time, this is a great opportunity for us to be able to continue and restore profitability in that area. As it relates to the network. We haven't been satisfied with our performance on network, and we know we need to restore some margins there. That's our first priority before we start to look at growing that driver fleet again. Jordan Alliger: Thank you. Jim Filter: Okay. You bet. Bascome Majors: If we look at the public data that we can follow, 2Q was a sea of frenetic activity and spot rates and tender rejection rates escalating at pretty much unprecedented levels, despite the stable demand drop you talked about. Since then, at least in the data we can follow, it's been kind of sideways and maybe even walked back a bit. I just want you guys' perspective from looking at your own internal metrics, whether it's turndown rates or what you're hearing from customers. Is the market leveling out and even cooling off a bit, or is this just the sign of seasonality that's kind of consolidating after a pretty challenging period? Thank you. Jim Filter: Thanks, Bascome. We looked at this very similar last year. I think we had the same discussion that when you get late into July, you see spot rates change a little bit. I would say this really mirrors what we saw a year ago, so very similar seasonality here. It hasn't changed what we're seeing out there in the marketplace. It's not just spot rates aren't the only way that we're able to extract price. It's one of those areas, and even though it's moving sideways, we would still say spot rates are still about 15% higher than contract price. That enables us to have a number of ways to go out there and extract price. The number one area, obviously, is through normal allocation events. Outside those events, we're seeing post-allocation opportunities that are growing. We're also improving price through freight selection. Even though spot is moving a little bit sideways, still positive opportunities there. Our customers are increasingly realizing that this is not a temporary situation when you see a little bit of a sideways movement here. We've been really comfortable staying with elevated spot exposure because there's that 15% delta between spot and contract. We continue to think we're still in the early innings of a rate recovery with overall its elevated spot exposure, and we'll keep that elevated spot exposure until the book closes between the gap between spot and contract. Bascome Majors: Thank you for that. Just to follow up on one point. Jim Filter: Bascome, I think we're missing you here. Ravi Shanker: Great. Thanks. Good afternoon, everyone. Jim, just on IM, obviously, you're a significant player in both asset-based trucking as well as IM, and we're seeing significant rotation from TL to IM at the moment. Do you get the sense that this is sort of a permanent structural move, or do you think this is kind of opportunistic for the moment, given that volumes aren't there yet, TL pricing is high, and share might shift back to TL? Do you think this is the new normal for IM? Jim Filter: Yeah. Thanks, Ravi. Appreciate the question here. Definitely, you're absolutely right. We're seeing that trifecta of opportunities here between fuel. We're seeing the impact with underlying truckload rates. Also, I think what's structurally different right now is the rail service. It's giving us an opportunity to get into more opportunities, and customers are seeing those benefits. I think the other part is, as you look at where our growth is coming, we now have 17 consecutive quarters of growth in Mexico. Customers have wanted to make a change there for a long time, and it really took that change of us operating with the CPKC to unlock that. We're also growing the local east with over-the-road conversion. Partly, that's being driven by what you're seeing with truckload rates with fuel, also the service is really good, and customers are understanding that. They also, when they make that change to use Schneider and local east, believe part of the reason why they're doing that is because of our multimodal strategy. They know that we have other capacity options, whether it's with one of our trucks or it's using one of our logistics solutions to make sure that we have them covered through it. Yes, I do believe that we have opportunities to continue to grow. This has been two years, nine quarters of growth. We've been able to grow through some relatively weak times. Ravi Shanker: That's helpful. Maybe as a follow-up here, I'm sorry if I missed the detail here, but I think you mentioned a large upcoming dedicated loss. Can you shed some more light on that? Just maybe quantify how much an impact could be so we know what the net guide increase looked like, and also maybe some color around that loss. Jim Filter: Yeah. Overall, Ravi, a way to think about that's contemplated and what we're expecting going forward and Dedicated, like we said earlier, it's designed to be more consistent and resilient. Over the four-year down cycle, Dedicated has remained remarkably resilient. At the same time, performance isn't where it needs to be. As the conditions are improving, that is giving us the opportunity to proactively address the bottom-performing agreements in the portfolio and reallocate those resources towards higher-performing opportunities. Obviously, as a byproduct of those actions, it can create some near-term churn, which is what we've been experiencing the last couple of quarters. Our focus here is the revenue per truck per week improvement. It's our priority, at this point in the cycle, expect you're going to start seeing more pronounced improvement in that metric going forward because of the momentum we're seeing in contract renewals and productivity actions. After we've worked through these, there's an opportunity to begin growing with deals that are durable. Feel really good about our ability to go out there and sell trucks in this area. That's giving us the confidence to restore margins. Darrell Campbell: Ravi, this is Darrell. The only thing I'll add is our pipeline is robust, right? One of the reasons that we have a pipeline is it can absorb shocks. The reason why we kind of highlight that on the call or in our prepared remarks is really that in the third quarter, it's going to be more evident as we implement some of those wins. Ravi Shanker: Understood. Thanks very much. Jim Filter: Welcome. Jonathan Chappell: Thank you. Good afternoon. Jim, a little surprising. Jim Filter: Hi, Jonathan. Jonathan Chappell: to see logistics EBIT almost doubling sequentially up over 50% year-over-year in a quarter where it feels like most logistics companies were squeezed by a parabolic move in spot pricing. Is this Schneider's specific cost? Is this your power-only model? Is there something special that went into this in a quarter where it seemed to be one of the worst laggards for most peers? Jim Filter: Yeah. Thanks for the question. We talked a little bit about this last quarter because we were already seeing some of the benefits in logistics come through last quarter. Once again, it's shining through. We're no different than the rest of the industry. In the second quarter, we still had some impact from rising third-party carrier costs that weighed on our contract rate of business, including power-only, which you mentioned. There's just been really strong execution on the premium project business. We had that in the first quarter. We developed trust with our customer, and that created additional wins in the second quarter. It wasn't just the project business. We continued focusing on our revenue management efforts to address net revenue pressures, including leading into our spot opportunities. We had to address some out-of-market contract rates. At this point, right now we're about 60/40 contract versus I'm sorry, 60/40 spot versus contract a year ago. Historically, we run at about 50/50. It's not just all of those commercial actions. There's some cost actions here. We've been working on developing AI, especially in this area. Those tech investments have resulted in our frontline productivity improving 17% year-over-year in the second quarter, which is also enabling great results here. It's really all the way through, from commercial activity, how we're managing revenue management, and then how we're executing the loads. Jonathan Chappell: Got it. Just quickly, you specifically called out gains on equipment sales in both the truckload and the intermodal EBIT in the press release. It feels like those might have been a bit more outside the normal. Is there any way to quantify that, especially as it helps us kind of consider the 2Q to 3Q bridge? Darrell Campbell: Yep. This is Darrell. In the second quarter, we did see a bit more in terms of gain on sale. We did see pricing improvements in terms of those sales, and we did also sell more units. Nothing that's that material, there's definitely a step up from the first quarter to the second quarter. For the remainder of the year, we do expect some robustness in the market to remain as it relates to the price. Jonathan Chappell: Got it. Thank you. Jim Filter: Welcome. Bruce Chan: Yeah, thanks. Good afternoon, everyone. Maybe just a question here on the intermodal revenue per order pressure. Jim, I think you talked about the mix impact there, which makes a lot of sense with the local conversion. Wanted to maybe get a sense for what core yields look like there. I know you generally don't comment on what the number looks like by region, just maybe directionally, how should we think about that yield trajectory on the shorter haul versus the longer haul lanes? Thank you. Jim Filter: Yeah. Thanks, Bruce. You're right, we don't comment on pricing by region here, but I can give you some color that I think will be helpful to help you think about this going forward. You're right. In the second quarter, the rate per order impacts were really just a matter of length of haul and mix because our contract renewals have been increasing each of the last four quarters. We had expected that intermodal would lag truckload, but we are seeing tightness now in the drayage market. Really, we've been talking about this for quite a while, that the catalyst in intermodal to move price is that drayage market. Our contract renewals were low single digits in the second quarter, now we're trending towards mid-single digits, which is what we really need to be able to invest in growing dray or utilizing third-party capacity, which is at a higher price point than company drivers. What we are focused on here is getting to a price point where we could start to accept more loads. As we're getting to that pricing that we're beginning to see, that's going to enable us to start growing, not just in the East and Mexico, but really throughout all of our markets. Bruce Chan: Great. Super helpful. Thanks, Jim. Jim Filter: Yeah. Great. Ken Hoexter: Great. Good afternoon, Jim and team, and Darrell. Jim, congrats, first of all, on your first call leading here. We've also gotten the driver ads in Westchester. It's clearly working. Looking at your guide and your outlook. Jim Filter: Thanks, Ken. Ken Hoexter: Yeah. My wife looks at me every time they come on the radio. Looking at your guide and your outlook, thoughts on progress, Darrell? I don't know if you can walk through. I know you don't do quarterly forecasting. Is 2Q the strongest? Is fuel going to aid more into 3Q? I don't know if there's delay real-time, if you want to talk about that. You threw out thoughts on driver pay. Is there anything we should think about cost coming into play? Just maybe give us some parameters as you raise the range. Thanks. Darrell Campbell: Yeah, sure. Thank you. You hit on a lot of the things that we're considering. I think, let's just start with framing the guide. We've said that the guide will assume that we have more supply attrition, right? We said that in January, we said that three months ago. We're continuing to expect supply to exit the market. We've also talked about all the things that are within our control, including our cost savings initiatives, our productivity actions, our revenue management actions. With two quarters behind us, we're seeing the signs of all of those efforts come to fruition. We've also seen driver capacity exiting faster than we initially thought. Year-over-year, all of our segments grew, which is remarkable. We're taking up the bottom end and the top end of our guidance based on all those facts. It's not only the year-over-year growth that we've seen. We've seen very strong sequential growth. Quarter-over-quarter, from the first quarter to the second quarter, we saw a doubling of our earnings, and that does not happen by accident, right? Those are all the things that are within our control with a little bit of help from the market. As we go into the second half of the year, we're bringing all that momentum that we've seen, not only as it relates to price. Logistics, for example, and network, those are the areas where most of the irrational capacity came in, and that's where we're seeing it come out the fastest. We're seeing the more ready impact in terms of pricing there. In areas such as dedicated and intermodal, which are more contract based, we expect there to be a benefit in the second half as a result of all that. We have two quarters left in the year. We're thinking about things that are balancing that optimism, and I think you hit on some of them. As capacity has exited the market, which is good for price, there are certainly constraints on driver capacity, right? In terms of our scenarios, we're putting in scenarios as it relates to driver cost and availability, and we've talked about demand, right? Demand being a swing factor. We think that's particularly important as it relates to peak and what happens in the fourth quarter. Obviously, we have a lot of confidence that based on our preparedness, we're ready to execute if and when that freight becomes available. You asked the question as it relates to momentum and progress throughout the year. In my opening remarks, I talked about seasonality. Our business has evolved over time. We've made three very significant acquisitions over the last five years. With that, comes a shift in the portfolio. We talked about exposure to food and beverage end markets, home improvement end markets, and that's driving more seasonality into the second quarter as opposed to the third. We've seen that over the past several years, and that's something that we kind of expect to continue going forward. There's some other things that are unique in our guide going forward. There was a question on logistics and the performance of our logistics business relative to the market. We've been very focused on developing our areas of strength in terms of specialty project business. That came through in the first half of the year, very evident in the second quarter. We think that in the third quarter, even though we're going to have some project business, it's not going to be as pronounced as it was in the second quarter for logistics. We did talk about the loss of the large dedicated customer, which will also impact what the third quarter looks like. All those things are in the mix in terms of how we develop a guide for the rest of the year. Ken Hoexter: Great. Very helpful. Thanks, Darrell. If I just follow up, you mentioned in the prepared remarks, moving trucks back and forth. I think it was from dedicated to network, if I've got that right. Maybe can you talk scale, capacity, time frame? I don't know, any kind of parameters you can put on that to see if we can scale that in our models. Thanks. Jim Filter: Yeah. The way that we're thinking about that, Ken, is where we have the best market opportunities. That's the value of having this multimodal approach, is that we're able to move drivers from one opportunity to another. It's not that I'm being evasive, there's just, we're going to take that opportunity as it plays out. Right now, what we're seeing with price in the market would suggest that there's just going to be more opportunities there in network that we might want to move some trucks over. Ken Hoexter: Understood. Thanks, Jim. Thanks, Darrell. Jim Filter: You bet. Brian Ossenbeck: All right. Thanks for taking the question. Hey, Jim, start with you. Can you just clarify the comment on the dray drivers? It sounded like you're getting to the point where maybe pricing is support enough to be able to expand capacity or maybe fill in some of the gaps you might have in the network or want to add to the network. Maybe you can clarify those comments for me. It also sounded like you're getting more out of cycle bids, rather allocations in intermodal, if I heard you correctly. If you can put some context around that, it'd be helpful, like give absolute terms, how to compare it, or maybe it's better compared to a prior cycle in terms of what strength or activity you're seeing there. Jim Filter: Yeah. Thanks, Brian. Just to start on our dray capacity and what we're seeing is, we had opportunities to grow much faster if we had wanted to in the quarter, but we remain disciplined and specifically because we want to look at some of the opportunities that were coming in, were non-committed freight that would have driven our network out of balance or required third-party capacity. Even though we would have moved more freight, it would not have been accretive. At the same time, we want to be able to take advantage of these opportunities. We're leaning in to grow our dray capacity. We've already had some success here. Most of that growth in our dray capacity occurred at the end of the quarter, and we're continuing to grow that capacity now that we're seeing some improvement in market rates. That's the second part, is going back to customers, because they understand they need to be able to fund our ability to grow capacity or to be able to use third-party capacity, we're seeing both of those take place right now. It gives us some confidence that we can continue to grow from there. You're right. Customers, when they're seeing some turndown activities, they're willing to sit down and have some discussions, and that's where we're seeing some out-of-cycle activity. Brian Ossenbeck: Understood. Here's a quick follow-up to Jim Filter: Sure Brian Ossenbeck: comments on the B-1 and the cabotage. It seems like there's some pretty significant activity. Have you seen that translate to any sort of opportunity in your network? Thanks. Jim Filter: Yeah, absolutely. Brian, as we think about what's going on with capacity, let me just take a step back before I jump in to specifically cabotage, that this has been a matter of public safety. If you go back to, since 2016, the number of trucks involved in injury crashes has increased 18%. At the same time, companies like Schneider have been investing in safety and reducing accident frequency, yet crashes are growing because not all companies are following these existing regulations. You mentioned cabotage, and we're starting to see some impact there. You can see it on specific lanes because we've all seen the data that there's approximately 30,000 drivers whose visas were revoked, not enabling them to even cross the border and commit cabotage. That has an impact. Same thing with a number of other activities. Non-domiciled drivers, the entry level driver training is starting to be impacted. While cabotage was much faster than we expected, non-CDL drivers was much faster than we expected. There's still about half of the capacity we're expecting to leave hasn't been impacted yet. We know that capacity is exited because even that real modest increase in seasonal demand triggered a market correction here in the quarter. When we look forward, we know that there's still about a third of the non-domiciled drivers remaining that we would expect to be removed. The first two-thirds came off faster than we anticipated. If Dalilah's Law is enacted, we could see that capacity exit abruptly. Now we have the end of the broker preemption. That may remove some carriers with unsatisfactory conditional ratings. That's a few percent of capacity. ELD enforcement is another action that I'd say is largely in front of us. It's also the one that I believe would have the biggest impact on public safety because there's a lot of ELDs out there that were improperly certified. With those, tampering is a feature, not a bug, and they're using offshore back office staffs that enable and coerce drivers to exceed the 11-hour rules. The current highway bills is seeking to address that as well. When you take not just what's behind us, but what's in front of us, it's going to be a dramatic change, and this also changed the top of the funnel. It's structurally different than what it was in the past. Capacity won't grow as fast as it did after the pandemic, and that's why this recovery could last longer than other recoveries. Brian Ossenbeck: All right. Thanks, Jim. Appreciate the perspectives. Jim Filter: You bet. Thanks, Brian. Tom Wadewitz: Yeah, good afternoon. You had pretty strong growth in revenue per truck per week in network. I'm just wondering, do you think how big a move can you see in 3Q, or did you already saw a good move, I would assume you didn't get everything repriced, so there's more to go. Just maybe a high-level thought how much further gain we could see revenue per truck per week in 3Q and network. In Dedicated, I know obviously it's a different business with multi-year contract, how might we think about the relationship across the cycle? If network rates were to go up 15%-20% across two years, pretty strong cycle, would that translate to half of that gain in Dedicated? How would you think maybe about that relationship, just so we can contemplate what to put in the model as you look out in Dedicated? Thank you. Jim Filter: Thanks, Tom, for those questions. Let me just start with the Network revenue per truck per week. The 16% growth year-over-year, really strong performance, and that's why Network has just always been a part of our multimodal approach, even though we weren't pleased of the performance during the down cycle. We didn't sit around during the downturn and wait for the market to improvement. Our improvements were primarily on productivity and cost, and those were all being masked by price. Now that price is starting to move, I think it's just more apparent of what we've been working on. Now that we're getting price, we're just ready more than ever to take advantage of a cycle shift, and you're starting to see that in the second quarter. Let me just talk about some of those factors here. We don't get price just through allocation events. We're seeing that through elevated spot exposure, many bids, freight acceptance, that's why we're already seeing high single-digit price improvement hit this business. Also productivity is also a high single-digit improvement, and that's being driven by a combination of asset efficiency, removing unseated tractors, and then higher driver utilization from both freight selection and then optimization. The cost reductions that we've been talking about across this entire enterprise for multiple years, this is the first time that you're able to look at a business and say, "Oh, I can see that coming through the business." We're always optimizing for earnings and, in tougher markets, you just have more leverage with productivity and cost. Now as the market turns, we have opportunities across not just productivity and cost, but also price, and that's where that leverage is starting to come through. In terms of price between Network and Dedicated, it's a little bit difficult. There isn't necessarily a number you can map to be able to say, "Well, this is going to change during this cycle," because I think it would have been different. We're going to be focused on having margins in Dedicated that are going to be resilient. You sign a contract for multiple years, and we're looking to look for a price that's going to be fair for both sides and be durable. That is the plan now. I'd say over the last couple of years, especially you got later into the cycle, there was a little bit of pressure on Dedicated, and some of those contracts are the ones that needed to be renewed. Thanks, Tom. Tom Wadewitz: Maybe just on timing, when do you think we'll start to see the strength in revenue per truck, effectively in price show up? Is that start to show up in 3Q, or there's a little longer lag on it? Jim Filter: Yeah, I think, in Dedicated, we're expecting that we should start seeing improvement in revenue per truck per week in Dedicated immediately, here already in third quarter. Tom Wadewitz: Yeah. Okay. Thank you. Jim Filter: All right. Thanks, Tom. Chris Wetherbee: Yeah, hey. Thanks. Good afternoon, guys. Darrell, I guess just maybe to be a little bit more direct, you said a lot about the third quarter and the difference between 3Q and 2Q seasonality. I guess I'm just a little confused. I want to make sure I understand. Can 3Q earnings or however you want to sort of measure the profitability of the business be higher than 2Q, or should we assume that 2Q is higher than 3Q? Darrell Campbell: Yeah. Good question, and I guess, unsurprising. We tried to give a little bit more color, to clarify, we don't guide by quarter, but just trying to be helpful. I think the seasonality point was just to underpin some of the thoughts that we've seen. If you just look at history over the last five years and how our seasonality has shifted. Just wanted to make the point that, given the transformation of our business, typically in the recent past, more seasonality has shifted into the second quarter. We also talked about just the dynamic of the logistics specialty project business and the loss of the dedicated customer. With all that said, where I did lead off is that we're seeing a lot of momentum going into the second half of the year. All the things that I mentioned as it relates to capacity exiting the market and the impact on price, you've seen what price and productivity together can do, just even in network as an example. We do expect that momentum carries forward. Jim mentioned the gap between contract and spot. We do believe that not only in network and logistics, but also in dedicated and in modal, we are going to get the benefit of price, and that's also going to come through in the second half. Right? It's not as if we don't think that there's improvement. Actually, at every point in our guide, if you look on a year-over-year basis, we do expect to see improvement in our segments. Chris Wetherbee: Okay. Appreciate the clarification there. Maybe just the bigger picture one here, as we're thinking about some of the dynamics going on with drivers and in particular, what's happening here in a post Montgomery world around the brokerage businesses. I guess, can you maybe sort of refresh us on how you guys think about carrier vetting? Have you made any changes post Montgomery? The way you think about it probably going to be maybe on the higher tier of carrier vetting discipline in the industry. Just want to get a sense of some thoughts around that and how it might impact available capacity and how you see sort of the potential opportunity for you in logistics going forward. Jim Filter: Yeah. Thanks, Chris. I'll start by talking about the capacity impacts, then I'll dive in a little bit into our brokerage business. You're right, I think it's likely to further constrain capacity from a couple aspects. First, there's many brokers that are likely to avoid carriers that have conditional or unsatisfactory ratings from the FMCSA. That's probably a few percent of the market, and while the drivers might go to work for another carrier, it's likely that they're going to be held to a higher safety standard. Even transfers to a new company potentially reduces capacity. You have brokers like Schneider that have some standards that go beyond a carrier safety rating. Within Schneider, we only qualify approximately 60% of the carriers that apply. Now, don't interpret that as 40% of the carriers on the road are unsafe. Some of these carriers are chameleon carriers, so we might disqualify them many times, and there are also carriers that are safe but lack enough time in the industry to meet our standards. I also believe this creates an opportunity for our logistics segment. We're already seeing some shippers that are pivoting away from the small or medium-sized brokers, and there are some shippers that are requiring minimum insurance levels that are well out of reach for most pure-play brokers, and even for some small asset-based companies. Our position, the standards that we put in, we implemented these several years ago, and we've moved our carrier count from 60,000 to less than 14,000 carriers. We did that primarily under the vein of improving cargo security, but many of the filters that we apply to cargo security also apply to safety. Overall, I think this is an opportunity for Schneider, but I also believe that litigation is a risk to supply chains. We're investing heavily in safety training, technology, compliance, and it's resulting in reducing accident frequency, but accidents still happen. We believe that companies that do the right thing should be held accountable based on the facts and not exposed to disproportionate outcomes driven by the current litigation environment. That's why we believe tort reform is really important, not to avoid responsibility, but to ensure that the outcomes are fair, they're predictable, and aligned with actual conduct. Believe that this is a big impact to the overall industry. Chris Wetherbee: Helpful perspective. Appreciate it. Thank you. Jim Filter: Yeah. Thank you. Scott Group: Hey, thanks. Two questions. We're at the hour, I'll just lump them into one. You talked about, Jim, the trifecta for intermodal conversion. Volumes were flat in the quarter. Where you think the growth goes? Darrell, there's been a lot of talk about the seasonality of the mix of the business, like 2Q, 3Q. Maybe more importantly, does the changing mix of the business change ultimately where the annual margins can go? Meaning if this was an 85, 86 OR last cycle, does that change because you have more dedicated or more food and beverage, or does that not change it? Is this just a seasonal shift within quarters? Jim Filter: Yeah, Scott, I'll start and then Darrell will jump in on the long-term margin questions here. First of all, on Intermodal volumes, I think I talked a little bit about this earlier. We could have grown double-digits if we wanted to, but we wouldn't have made any more money. That's why we're a little bit more discerning about which orders we're accepting. You're able to do that when you've grown nine consecutive quarters, and we've had some really big growth in certain areas. That we said we don't have to go out there and take every single opportunity. Now that we are starting to grow that dray capacity, we're getting price that will enable us to use some third-party in certain area. We set up our peak season programs with shippers very early on because we're seeing those opportunities as well. That enables us to use third-party a little bit more today. We expect that there's opportunities to start growing really in high single-digits. Darrell? Darrell Campbell: Yeah. This is Darrell. The seasonality commentary was really just the frame, the guide, right? It doesn't change anything that we think about our business in the long-term. Actually, the actions that we've taken have been purposeful. We purposely targeted the three targets that we acquired over the last few years, and we knew what came with that, and we welcomed what came with that. We've been taking actions to structurally improve the business during the downturn, right? We've not been wasting time. The dedicated portfolio. Our Truckload is more dedicated, skewed. Jim talked about our differentiation in Intermodal. In Network and Logistics, we've invested in being scalable and flexible. We've been investing in technology. All of those things make us stronger today as we're coming out of the downturn, and we're already seeing that, right? If you just look at our year-over-year improvement, you look at our sequential improvement in earnings, it's all a result of all the things that we've done. When we think about our long-term margin targets, Truckload 12%-16%, Intermodal 10%-14%, Logistics 3%-5%, those are meant to be in normal market conditions, right? We think everybody would acknowledge, Scott, that we have not been in a normal situation. As capacity has exited, we're seeing the benefit, and we're seeing it initially in those segments of our business that were most impacted. We expect to see improvement across the board, including in our contract rated businesses. The pricing improvement that we saw in Logistics and Network, I think that's just the beginning. Jim talked about where we are in terms of all the capacity actions that are being taken. When we sit here today at the end of the second quarter, truckload margin is already 8%. Intermodal is at 7%. Logistics is already within our long-term ranges. We have line of sight to get to our longer term margin ranges. The evidence of all the actions that we've taken prove that. Scott Group: All right. Thank you. Jim Filter: Thank you, Scott. All right. We appreciate everybody joining the call today. Have a great day. Operator: 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 $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% 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 July 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) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Schneider National (SNDR) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +31.82%. A quarter ago, it was expected that this trucking company would post earnings of $0.11 per share when it actually produced earnings of $0.12, delivering a surprise of +9.09%. 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 $1.57 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.02%. This compares to year-ago revenues of $1.42 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 32.9% since the beginning of the year versus the S&P 500's gain of 6.9%. While Schneider National has outperformed 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 favorable. 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 #2 (Buy) for the stock. So, the shares are expected to outperform 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 $0.25 on $1.55 billion in revenues for the coming quarter and $0.91 on $5.99 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 top 37% 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. Matson (MATX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 3. This ocean transportation and logistics services company is expected to post quarterly earnings of $3.74 per share in its upcoming report, which represents a year-over-year change of +28.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Matson's revenues are expected to be $906.81 million, up 9.2% 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 Matson, Inc. (MATX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Schneider National (SNDR) reported $1.57 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 10.4%. EPS of $0.29 for the same period compares to $0.21 a year ago. The reported revenue represents a surprise of +4.02% over the Zacks Consensus Estimate of $1.51 billion. With the consensus EPS estimate being $0.22, the EPS surprise was +31.82%. 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. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. 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: 95.4% versus 96.2% estimated by five analysts on average. Intermodal - Operating Ratio: 93% versus the four-analyst average estimate of 93.5%. Truckload - Operating Ratio: 91.8% versus 93.9% estimated by four analysts on average. Logistics - Operating Ratio: 96.8% versus the four-analyst average estimate of 97.7%. Revenues- Fuel surcharge: $240.4 million compared to the $185.53 million average estimate based on five analysts. The reported number represents a change of +73.6% year over year. Revenues- Intermodal: $262 million compared to the $267.66 million average estimate based on four analysts. The reported number represents a change of -1.2% year over year. Revenues- Logistics: $376.1 million compared to the $342.18 million average estimate based on four analysts. The reported number represents a change of +10.8% year over year. Revenues- Truckload: $627.6 million versus the four-analyst average estimate of $640.97 million. The reported number represents a year-over-year change of +0.9%. Revenues- Other: $103.7 million versus the four-analyst average estimate of $101.52 million. The reported number represents a year-over-year change of +7.1%. Revenues- Inter-segment eliminations: $-41.1 million compared to the $-42.66 million average estimate based on four analysts. The reported number represents a change of -1.4% year over year. Revenues (excluding fuel surcharge)- Dedicated: $430.9 million versus $450.79 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.2% change. Revenues (excluding fuel surcharge)- Network: $196.6 million compared to the $195.27 million average estimate based on two analysts. The reported number represents a change of +8.1% year over year. View all Key Company Metrics for Schneider National here>>> Shares of Schneider National have returned -3.1% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform 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

Operating Revenues $1.6 billion; $1.4 billion in 2025 Income from Operations $71.4 million; $55.0 million in 2025 Diluted Earnings per Share $0.28; $0.20 in 2025 Adjusted Diluted Earnings per Share $0.29; $0.21 in 2025 Full year 2026 Adjusted Diluted Earnings per Share guidance of $0.90 - $1.10 Full year 2026 Net Capital Expenditures guidance of $350 - $400 million GREEN BAY, Wis., July 30, 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 June 30, 2026. "In the second quarter, we delivered strong earnings improvement, driven by the combined impact of the disciplined revenue management, cost reduction, and productivity actions implemented over the past several years which enabled the enterprise to capitalize on improving market conditions," said Jim Filter, President and Chief Executive Officer of Schneider. "The positive impact of non-compliant capacity exiting the market has been realized more quickly than initially anticipated, and we remain confident that the enterprise will continue to deliver strong operating leverage." "We are seeing the strongest pricing improvement in the parts of our business where the industry is most capacity constrained. Looking forward, we expect the success of recent allocation events will build momentum in price," Filter continued. "As the market shifts, our multimodal approach enables us to remain nimble while advancing our strategic priorities, including earning customer loyalty through consistent execution, growing profitably where we create differentiation, improving on our low-cost operating model, and maintaining disciplined capital allocation." Results of Operations (unaudited) The following table summarizes the Company’s results of operations for the periods indicated. Enterprise Results Enterprise income from operations for the second quarter of 2026 was $71.4 million, an increase of $16.4 million, or 30%, compared to the same period in 2025. Diluted earnings per share were $0.28 and $0.20 in the second quarter of 2026 and 2025, respectively. Adjusted diluted earnings per share were $0.29 and $0.21 in the second quarter of 2026 and 2025, respectively. Cash Flow and Capitalization As of June 30, 2026, the Company had $396.5 million outstanding on total debt and finance lease obligations and cash and cash equivalents of $292.7 million. Net capital expenditures increased during the three months ended June 30, 2026, compared to the three months ended June 30, 2025, primarily due to increased purchases of transportation equipment. As a result, free cash flow decreased $35.1 million over the same period. In January 2026, the Company announced the approval of a new $150.0 million share repurchase program. As of June 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 January 2026, the Company’s Board of Directors declared a $0.10 dividend payable to shareholders of record as of June 12, 2026, which was paid on July 10, 2026. On July 27, 2026, the Company’s Board of Directors declared a $0.10 dividend payable to shareholders of record as of September 11, 2026, expected to be paid on October 9, 2026. As of June 30, 2026, the Company had returned $34.6 million in the form of dividends to shareholders year to date. Results of Operations – Reportable Segments Truckload Truckload revenues (excluding fuel surcharge) for the second quarter of 2026 were $627.6 million, an increase of $5.4 million, or 1%, compared to the same period in 2025. The increase was driven by improved Network price and productivity, partially offset by lower Dedicated volume. Truckload revenue per truck per week was $4,162, up $198, or 5%, compared to the same quarter of 2025, reflecting improvements in both Network and Dedicated. Truckload income from operations was $51.4 million in the second quarter of 2026, an increase of $11.3 million, or 28%, compared to the same period in 2025. The improvement was driven by improved Network price and productivity, fuel surcharge recovery, equipment utilization, and higher gains on sales of equipment, partially offset by increased purchased transportation and maintenance costs. Truckload operating ratio was 91.8% in the second quarter of 2026 compared to 93.6% in the second quarter of 2025, an improvement of 180 basis points. Intermodal Intermodal revenues (excluding fuel surcharge) for the second quarter of 2026 were $262.0 million, a decrease of $3.1 million, or 1%, compared to the same quarter in 2025. The decline was driven by a 2% decrease in revenue per order, reflecting shorter length of haul, partially offset by an increase in volume. Intermodal income from operations for the second quarter of 2026 was $18.4 million, an increase of $2.3 million, or 14%, compared to the same quarter in 2025. The increase was driven by fuel surcharge recovery, volume growth, and higher gains on sales of equipment. These favorable impacts were partially offset by higher purchased transportation. Intermodal operating ratio was 93.0% in the second quarter of 2026 compared to 93.9% in the same quarter in 2025, an improvement of 90 basis points. Logistics Logistics revenues (excluding fuel surcharge) for the second quarter of 2026 were $376.1 million, an increase of $36.5 million, or 11%, 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 second quarter of 2026 was $12.1 million, an increase of $4.2 million, or 53%, compared to the same quarter in 2025. The increase was driven by higher net revenue per order and cost actions, partially offset by higher purchased transportation expense and lower brokerage volume. Logistics operating ratio was 96.8% in the second quarter of 2026 compared to 97.7% in the second quarter of 2025, an improvement of 90 basis points. Business Outlook "Second quarter benefitted from an improved backdrop as the enterprise effectively executed on market opportunities. These results reinforce our confidence that the actions we have taken to lower our cost to serve and enhance productivity have prepared us to deliver meaningful year-over-year earnings growth," said Darrell Campbell, Executive Vice President and Chief Financial Officer of Schneider. "We continue to expect capacity rationalization to support freight conditions. At the same time, our guidance incorporates a range of outcomes as it relates to demand and driver capacity for the second half of the year." Campbell added, "Based on our second quarter results and these market expectations, our updated full year adjusted diluted earnings per share forecast is $0.90-$1.10, up from our prior guidance of $0.70-$1.00. Our guidance continues to assume a full year effective tax rate of approximately 24.0%. Our full year net capital expenditures are expected to be $350-400 million, compared to our previous expectations of $400-$450 million, primarily related to lower expenditures on trailing equipment." 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. Schneider National, Inc.Key Performance Indicators by Segment(unaudited) We monitor and analyze a number of KPIs in order to manage our business and evaluate our financial and operating performance. Truckload The 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. Intermodal The following table presents the KPIs for our Intermodal segment for the periods indicated. Logistics The following table presents the KPI for our Logistics segment for the periods indicated. 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). Adjusted income from operations We 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. Adjusted operating ratio We 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. Adjusted net income We 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. Adjusted EBITDA We 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. Free cash flow We define "free cash flow" as net cash provided by operating activities less net cash used for capital expenditures. Adjusted diluted earnings per share (1) 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/20260729694920/en/ Contacts Christyne McGarvey, Vice President of Investor Relations and Corporate [email protected]