Knight-Swift Transportation’s second quarter results were driven by a combination of ongoing softness in freight demand and the company’s response to volatile trade dynamics. Management attributed the stable revenue performance to a flexible over-the-road network, disciplined cost reductions, and margin improvement, particularly in the Truckload segment. CEO Adam Miller noted that while the anticipated surge in import-driven freight did not materialize, the company’s ability to adapt its fleet and contain costs prevented a deeper revenue decline. The growing contribution from the U.S. Xpress brand and a steady expansion of the less-than-truckload (LTL) network also supported the quarter’s results.
Is now the time to buy KNX? Find out in our full research report (it’s free).
Knight-Swift Transportation (KNX) Q2 CY2025 Highlights:
- Revenue: $1.86 billion vs analyst estimates of $1.87 billion (flat year on year, in line)
- Adjusted EPS: $0.35 vs analyst estimates of $0.33 (5.1% beat)
- Adjusted EBITDA: $280.3 million vs analyst estimates of $281.1 million (15.1% margin, in line)
- Adjusted EPS guidance for Q3 CY2025 is $0.39 at the midpoint, above analyst estimates of $0.38
- Operating Margin: 3.9%, in line with the same quarter last year
- Sales Volumes fell 2.9% year on year (38.8% in the same quarter last year)
- Market Capitalization: $7.03 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Knight-Swift Transportation’s Q2 Earnings Call
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Chris Wetherbee (Wells Fargo) asked about supply-demand equilibrium and the impact of inventory overhangs. CEO Adam Miller noted ongoing capacity exit from the market, but said demand remains stable, making forecasting difficult in the near term.
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Daniel Imbro (Stephens) requested clarity on mid-cycle Truckload margins. Miller emphasized disciplined cost control and flexibility, expecting margins to normalize as demand improves. CFO Andrew Hess highlighted Knight-Swift’s enhanced position for large-scale one-way service.
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Ken Hoexter (Bank of America) asked about LTL share gains and margin normalization. Miller explained that recent expansion and integration efforts have created cost headwinds, but ongoing initiatives aim to optimize the network and restore margins.
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Richa Harnain (Deutsche Bank) inquired about further cost savings in Truckload. Hess detailed the company’s use of lean management, proactive safety practices, and technology to drive additional fixed and variable cost reductions.
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Ariel Rosa (Citigroup) questioned the impact of brokers and price transparency. Miller said digital tools and third-party data have increased market efficiency, accelerating cycles but not fundamentally altering Knight-Swift’s margin potential.
Catalysts in Upcoming Quarters
Looking to the remainder of the year, the StockStory team will monitor (1) Knight-Swift’s progress in realizing LTL margin improvement through technology and network optimization, (2) the pace of incremental cost savings from automation and cross-segment fleet management, and (3) signs of freight volume recovery or tightening capacity, especially in peak season discussions with customers. Execution in these areas will be critical for future earnings growth.
Knight-Swift Transportation currently trades at $43.36, down from $45.66 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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