Question · Q3 2025
Rachel Harnane (Deutsche Bank) asked for clarification on the LTL segment's Q4 demand and margin guidance, noting expected sequential degradation despite strong Q3 results, and sought an update on the long-term synergy potential between Knight-Swift's truckload and LTL operations.
Answer
CEO Adam Miller acknowledged early Q4 LTL softness and the conservative margin guidance, attributing it to typical seasonal slowdowns, especially in December, and ongoing cost management efforts. He highlighted encouraging bid season discussions for late Q1/Q2 2026. Miller elaborated on TL/LTL synergies, including leveraging empty lanes and internalizing purchase transportation, emphasizing early innings of system-enabled collaboration. CFO Andrew Hess detailed Q3 LTL margin improvements from insourcing purchase transportation, reduced headcount, and technology implementation in pickup and delivery, noting these structural cost improvements are expected to continue, with Q4 margins primarily impacted by volume sensitivity.