Question · Q3 2025
Ariel Luis Rosa (Citigroup Inc.) inquired about the progress of Knight-Swift's cost-cutting initiatives across all segments, seeking clarity on the extent to which these efforts are already impacting results and their potential to drive future margin improvement independent of rate changes.
Answer
CFO Andrew Hess detailed a multi-pronged approach to cost management, emphasizing significant and permanent reductions in fixed costs (equipment, G&A, overhead) through analytical equipment lifecycle management, asset utilization improvements, and lean/technology initiatives. He also addressed variable costs like driver pay, maintenance, insurance, and fuel, highlighting strategies for each, including improved DOT crash performance. Hess stated that while efforts have been earnest for the past year, it still feels like early stages, with significant technology-enabled efficiencies largely ahead, expected to impact the business more substantially in 2026. CEO Adam Miller added that intermodal cost improvements include chassis investments and network balancing.