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Schneider National, Inc. (SNDR)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered modest top-line growth and continued operating improvement: operating revenues rose to $1.4205B (+8% YoY) and adjusted EBITDA reached $166.3M (+9% YoY), while adjusted diluted EPS was $0.21 (flat YoY) and operating ratio held at 96.1% .
  • Versus S&P Global consensus, Schneider posted a small beat on adjusted EPS ($0.21 vs $0.202*) and revenue ($1.4205B vs $1.4102B*); EBITDA was slightly above estimates ($166.3M vs $165.9M*) .
  • Guidance: FY25 adjusted EPS range was narrowed to $0.75–$0.95 (from $0.75–$1.00); net CapEx was maintained at $325–$375M; tax rate assumption remains 23–24% .
  • Strategic and operational catalysts: Truckload earnings up 31% YoY (OR improved 70 bps), Intermodal volume up 5% YoY with OR improvement, and continued momentum on Mexico cross-border lanes via CPKC (up to three days faster transits, 99.98% security) that supports volume and win rates .

What Went Well and What Went Wrong

What Went Well

  • Truckload profitability improved: income from operations rose to $40.1M (+31% YoY) with OR improvement to 93.6% (−70 bps), driven by Cowan Systems and better revenue per truck per week .
  • Intermodal volume and leverage: revenues ex fuel surcharge reached $265.1M (+5% YoY), operating income $16.1M (+10% YoY), aided by lower purchased transportation and network optimization; OR improved to 93.9% (−30 bps) .
  • Strategic Mexico corridor strength: Schneider cites service advantages with CPKC (one to three days faster than competitors; 99.98% security), underpinning wins and volume growth in Q2 (Mexico volumes +30% YoY on the call) .

What Went Wrong

  • Logistics margin pressure: income from operations fell to $7.9M (−29% YoY) and OR worsened to 97.7% (−120 bps), as brokerage volume and revenue per order declined despite Cowan contribution .
  • Elevated cost headwinds: industry accident claims inflation and equipment-related cost pressures persisted; management trimmed the high end of EPS guidance partly due to trade policy uncertainty and spot rate retreat in July .
  • Network exposure to spot remained high; rates “non-compensatory,” requiring continued pricing discipline and leaving network margins sensitive to spot movements until recovery strengthens .

Financial Results

Enterprise results – sequential and YoY

MetricQ4 2024 (oldest)Q1 2025Q2 2025 (newest)
Operating Revenues ($USD Billions)$1.3391 $1.4018 $1.4205
Revenues ex Fuel Surcharge ($USD Billions)$1.2057 $1.2583 $1.2820
Income from Operations ($USD Millions)$42.4 $42.1 $55.0
Adjusted Income from Operations ($USD Millions)$45.0 $44.2 $56.8
Operating Ratio (%)96.8% 97.0% 96.1%
Adjusted Operating Ratio (%)96.3% 96.5% 95.6%
Net Income ($USD Millions)$32.6 $26.1 $36.0
Adjusted Net Income ($USD Millions)$34.5 $27.7 $37.4
Adjusted EBITDA ($USD Millions)$152.2 $154.8 $166.3
Diluted EPS ($USD)$0.18 $0.15 $0.20
Adjusted Diluted EPS ($USD)$0.20 $0.16 $0.21

Q2 2025 actual vs prior year (Q2 2024)

MetricQ2 2025Q2 2024Change
Operating Revenues ($USD Billions)$1.4205 $1.3167 +8%
Revenues ex Fuel Surcharge ($USD Billions)$1.2820 $1.1679 +10%
Income from Operations ($USD Millions)$55.0 $51.0 +8%
Adjusted Income from Operations ($USD Millions)$56.8 $52.3 +9%
Operating Ratio (%)96.1% 96.1% (10) bps
Adjusted Operating Ratio (%)95.6% 95.5% (10) bps
Net Income ($USD Millions)$36.0 $35.3 +2%
Adjusted Net Income ($USD Millions)$37.4 $36.3 +3%
Adjusted EBITDA ($USD Millions)$166.3 $152.9 +9%
Diluted EPS ($USD)$0.20 $0.20 —%
Adjusted Diluted EPS ($USD)$0.21 $0.21 —%

Actual vs S&P Global Wall Street consensus (Q2 2025)

MetricConsensusActual
Adjusted/Primary EPS ($USD)0.202*0.21
Revenue ($USD Billions)1.4102*1.4205
EBITDA ($USD Millions)165.9*166.3
Values retrieved from S&P Global.*

Segment breakdown (Q2 2025 vs Q2 2024)

SegmentRevenues ex Fuel ($USD Millions) Q2 2024Revenues ex Fuel ($USD Millions) Q2 2025Op. Income ($USD Millions) Q2 2024Op. Income ($USD Millions) Q2 2025
Truckload$540.3 $622.2 $30.7 $40.1
Intermodal$253.1 $265.1 $14.6 $16.1
Logistics$318.8 $339.6 $11.2 $7.9
Other$95.6 $96.8 $(5.5) $(9.1)
Fuel Surcharge$148.8 $138.5 ——
Inter-segment Eliminations$(39.9) $(41.7) ——

Selected KPIs (Q2 2025 vs Q2 2024)

KPIQ2 2024Q2 2025
Truckload Revenue per Truck per Week ($)$3,933 $3,964
Dedicated Avg Trucks (units)6,683 8,518
Network Avg Trucks (units)3,982 3,706
Truckload Operating Ratio (%)94.3% 93.6%
Intermodal Orders (units)103,088 108,218
Intermodal Revenue per Order ($)$2,446 $2,443
Intermodal Operating Ratio (%)94.2% 93.9%
Logistics Operating Ratio (%)96.5% 97.7%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted diluted EPSFY 2025$0.75–$1.00 $0.75–$0.95 Lowered high end by $0.05
Net Capital ExpendituresFY 2025$325–$375M $325–$375M Maintained
Effective Tax Rate (assumption)FY 202523–24% 23–24% Maintained
Quarterly DividendQ3 2025 payable Oct-9$0.095/share (Apr 2025 declaration) $0.095/share (Jul 28 declaration) Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Pricing discipline in Truckload NetworkLow-to-mid single-digit price renewals; discipline, walking away from low-return volumes Rates remain non-compensatory; continued discipline; elevated spot exposure positions for leverage in recovery Improving but cautious
Intermodal growth & Mexico corridorVolume growth and revenue/order up; wins expected to offset trade impacts; USMCA-compliant cross-border mix Mexico volumes +30% YoY; win rates near double last year on accretive lanes; OR improvement continues Accelerating
Cost containment & productivityTarget >$40M cost reductions; digital/AI productivity; variable costs managed tightly Structural savings contributing; actions on unbilled miles, driver/tractor ratios, ramp friction costs Ongoing execution
Tariffs/macro uncertaintyGuidance tempered; trade policy scenarios incorporated; import “pull-ahead” risk Trimmed high-end EPS; spot retreated post-July 4; multiple macro/regulatory scenarios considered Persistent overhang
Regulatory enforcement (English proficiency/B1)Noted industry compliance dynamics [—]Potential meaningful capacity exit via enforcement; carriers self-regulating with language tests Tightening capacity
Logistics mix & Power OnlyProfitability improvement; Power Only growing mid-single digits Power Only at all-time high Q2 volumes; brokerage softness pressuring OR Mixed: asset-based strong, brokerage soft

Management Commentary

  • CEO framing of strategy: “We are restoring margins… leaning into our areas of differentiation… and compounding organic growth with accretive M&A.”
  • On Truckload resilience: “Dedicated now represents about 70% of our truckload fleet… truckload earnings improved nearly 60% sequentially and over 30% year over year.”
  • Intermodal positioning: “Schneider… is the intermodal provider of choice in Mexico, offering service that is one to three days faster than the competitors… momentum is broad-based and… win rates… nearly double last year's levels.”
  • CFO on guidance: “Our updated 2025 full year adjusted diluted EPS guidance is $0.75–$0.95, which assumes an effective tax rate of 23–24%… Net CapEx remains $325–$375M.”
  • Operational savings: “We’re gaining traction on… structural cost savings targets… actions include reducing unbilled miles, improving tractor to driver ratios, and targeted headcount actions.”

Q&A Highlights

  • Margin path in Truckload: Dedicated resilient and at low end of long-term targets; network recovery depends primarily on price improvements through renewals and eventual spot lift .
  • Capacity dynamics: Enforcement on English proficiency and potential B1 changes could meaningfully reduce capacity; carriers self-regulating with language tests .
  • Peak season setup: Intermodal peak surcharges in place earlier than typical; higher spot exposure enables quick pivot if peak shifts later into Q4 .
  • Logistics profitability: Power Only strong through-cycle; brokerage softness persists, with AI tools and integration of Cowan Logistics aimed at margin improvement .

Estimates Context

  • Q2 2025 beats: Adjusted/Primary EPS $0.21 vs $0.202*; Revenue $1.4205B vs $1.4102B*; EBITDA $166.3M vs $165.9M* .
  • Implications: Small beats reflect disciplined pricing, Truckload leverage, intermodal optimization; high spot exposure and tariff/regulatory uncertainty temper the FY25 outlook, lowering the high-end EPS range .
    Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Sequential Truckload margin improvement and YoY profitability gains signal early traction in structural levers; continued rate discipline and productivity actions should support further improvement as spot normalizes .
  • Intermodal growth is durable, with Mexico corridor differentiation (faster transits, high security) underpinning wins and volume leverage even with flat pricing; OR improvement suggests operating leverage remains intact .
  • Logistics mix shift toward asset-based solutions (Power Only) is positive, but brokerage softness keeps segment OR elevated; integration of Cowan Logistics into Schneider Logistics (from October) targets margin uplift .
  • Guidance narrowed (EPS $0.75–$0.95) on macro/trade-policy uncertainty and post-holiday spot retreat; execution on cost savings and asset efficiency provides downside protection (CapEx flexibility to low end) .
  • Regulatory enforcement (English proficiency/B1) may tighten capacity through H2, potentially aiding pricing recovery; Schneider’s scale and compliance posture could be an advantage .
  • Balance sheet remains solid: $526.2M total debt and leases, $160.7M cash; net debt leverage improved to 0.6x post $50M revolver repayment, supporting optionality in growth and M&A .
  • Near-term trading: modest consensus beats and Mexico momentum are supportive, but stock reaction likely hinges on evidence of sustained spot recovery, further network margin gains, and clarity on tariffs/regulatory timing .