First look: Union Pacific earnings

Union Pacific Corp. today reported 2025 second quarter net income of $1.9 billion, or $3.15 per diluted share, up from net income of $1.7 billion, or $2.74 per diluted share in the year-ago quarter.

The most recent quarter included a deferred tax benefit of $115 million, partially offset by a crew staffing agreement of $55 million, the Omaha-based carrier said in a release.

Adjusted net income was $1.8 billion, up from $1.7 billion in 2024.

The company (NYSE: UNP) on Thursday also confirmed that it is in advanced merger talks with Norfolk Southern (NYSE: NSC) that if successful would create the first transcontinental railroad.

“We are delivering on our strategy and our second quarter results demonstrate our commitment to leading the industry as we set new standards for safety, service, and operational excellence,” said Jim Vena, Union Pacific chief executive, in the release. “The foundation is built, we are growing with our customers, and we have strong momentum as we continue to maximize the value of our great franchise.”

Quarterly operating revenue of $6.2 billion grew 2% on higher freight volume and pricing partially offset by reduced fuel surcharge, business mix, and lower other revenue. Freight revenue excluding fuel surcharge grew 6%.

The operating ratio was 59%, an improvement of 100 basis points. Adjusted operating ratio was 58.1%, an improvement of 230 basis points.

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Find more articles by Stuart Chirls here.

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CSX profits fall on lower revenue, higher costs

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Steves & Sons to launch autonomous trucking pilot with Bot Auto

Bot Auto autonomous truck with a trailer

Autonomous trucking company Bot Auto and Steves & Sons, a leader in door manufacturing and millwork, have announced a strategic partnership to utilize autonomous trucks to haul freight. The collaboration was made possible through J.B. Hunt Transport, its managed logistics provider. Bot Auto is an autonomous trucking company focused on revolutionizing freight logistics through Level 4 (L4) autonomous driving technology.

The partnership represents a major leap forward as shippers look to use technology solutions like autonomous trucks to modernize the millwork supply chain. The autonomous trucks are expected to enhance Steves & Sons’ supply chain reliability and scalability as the company continues in its customer service and on-time delivery goals.

“We’re proud to be working with J.B. Hunt and Bot Auto to drive innovation and stay at the forefront of technology,” said Scott Lovett, chief operating officer at Steves & Sons, in a press release. “This collaboration is about more than improving logistics—it’s about reimagining how our industry operates to meet the evolving needs of our customers and communities.”

The pilot program will incorporate autonomous trucks into Steves & Sons’ managed logistics around plant-to-customer transfers while improving its existing logistical planning and execution. J.B. Hunt will advise Steves & Sons in integrating the autonomous trucks into its existing transportation solution.

The autonomous routes will initially be focused in Texas, to and from the cities of San Antonio, Dallas and Houston.

J.B. Hunt is the leading provider of Steves & Sons’ managed logistics service. What initially began as a private fleet conversion in 2019 grew into a managed transportation solution that incorporates brokerage, truckload, LTL, international and last-mile delivery services.

“This is not just a technical upgrade—it’s a cultural shift,” Lovett added. “We’re investing in the future of American manufacturing by building smarter, safer, and more adaptive supply chain systems that support our employees, our partners, and the customers we serve.”

Union Pacific and Norfolk Southern confirm advanced merger talks

Union Pacific and Norfolk Southern confirmed this morning that they are engaged in advanced merger discussions that would create the first U.S. transcontinental railroad.

“There can be no assurances as to whether an agreement for a transaction will be reached or as to the terms of any such transaction,” the railroads said.

UP (NYSE: UNP) and NS (NYSE: NSC) said they do not intend to make additional comments or provide an update unless they determine that disclosure is required or otherwise appropriate.

UP Chief Executive Jim Vena said he would decline to take questions about a potential merger during the railroad’s earnings call this morning. But he did say the railroad industry cannot stand still.

Any timeline on a merger would begin with a pre-notification ahead of a formal filing with the Surface Transportation Board. It’s expected that the review process could last more than a year before a decision is rendered.

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Related coverage:

CSX profits fall on lower revenue, higher costs

First look: Weaker coal, carloads hit CSX earnings

As merger talk heats up, deep bench will advise rail regulator

Analysis: What a Union Pacific – Norfolk Southern merger would look like

Railfreight gains in latest week

The Association of American Railroads said U.S. rail traffic for the week ending July 19 saw a notable uptick in both carloads and intermodal units compared to the same period a year ago.

Total U.S. weekly rail traffic reached 506,882 carloads and intermodal units, a 5.6% increase y/y.

Carloads numbered 229,739, marking a 7.3% percent rise. All carload commodity groups experienced increases, with significant gains seen in coal, which rose by 4,496 carloads to 62,270. Grain followed closely, with an increase of 4,284 carloads to 21,541, while metallic ores and metals climbed by 1,781 carloads to 21,220. These figures reflect a broad-based recovery in industrial demand and agricultural output, key sectors directly influencing rail traffic volumes.

Alongside the rise in carloads, U.S. weekly intermodal volume also saw an upturn, with 277,143 containers and trailers processed, a 4.3% increase y/y.

For the first 29 weeks of 2025, cumulative volume was 6,363,575 carloads, up 2.7% y/y. Intermodal totaled 7,771,228 units, up 5%. Total combined U.S. traffic was 14,134,803 carloads and intermodal units, an increase of 3.9% y/y.

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Find more articles by Stuart Chirls here.

Related coverage:

First look: Union Pacific earnings

Union Pacific and Norfolk Southern confirm advanced merger talks

CSX profits fall on lower revenue, higher costs

First look: Weaker coal, carloads hit CSX earnings

First look: Ryder makes more money in second quarter, but revenue growth is minimal

Ryder Systems (NYSE: R) made more money in the second quarter than in the corresponding three months from 2025, but revenue growth was slow. The company announced its earnings Thursday morning.

Earnings per share on a GAAP basis were up 11% from a year ago, rising to $3.15/share. Comparable non-GAAP earnings were $3.32, also up 11%. Ryder, in its earnings release, attributed the increase to “higher contractual earnings and share repurchases.”

But total revenue barely budged, down slightly to $1.47 billion from $1.48 billion a year earlier. Operating revenue rose 1% to $1.29 billion.

After a few quarters of low used vehicle sales, sales rebounded to 6,200. While that was down from 6,000 a year ago, sequentially it was significantly higher than the prior three quarters, when the sales were 4,700, 4,700 and 5,100, respectively.

Pricers from used vehicle sales, both tractors and trucks, were down 17% from the second quarter of 2024. Ryder does not disclose an average price.

Ryder’s forecast for full 2025 is for revenue growth of 1%. But it also sees GAAP EPS of $12.15-$12.60. After six months, GAAP EPS stood at $5.44.

The slow growth in revenue was reflected in two of the operating segments. Fleet Management Solutions, which operates Ryder’s flagship rental activities, saw its total revenue drop 1%. Supply Chain Solutions, its contract logistics arm, had an increase of 2%. Dedicated Transportation, which provides dedicated trucking and transportation services, saw its revenue drop 5%.

While Fleet Management had a 6% decline in earnings before income taxes, Supply Chain Solutions rose 16%. Dedicated’s earnings before income taxes were up 1%.

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Intangles partners with StanRTA to modernize transit fleet with AI analytics

Stanislaus Regional Transit Authority bus

AI-powered fleet management solutions provider Intangles recently established a strategic partnership with Stanislaus Regional Transit Authority (StanRTA) to modernize fleet operations across its transit services. The collaboration aims to address long-standing challenges in reliability, maintenance planning and energy optimization through advanced analytics and real-time diagnostics.

StanRTA was selected as an ideal partner for several strategic reasons, according to Aman Singh, co-founder and head of analytics at Intangles.

In an email to FreightWaves, Singh said: “First and foremost, it was their openness to embracing AI-driven insights. When I first met the team in Modesto, what stood out was their willingness to trust that AI could ‘see’ and interpret engine behavior much like an experienced mechanic would.”

Prior to the partnership, StanRTA dealt with many operational blind spots, such as relying on paper reports and intermittent driver feedback. The agency had limited visibility into its fleet health, with issues often escalating before intervention was possible.

When implementing predictive analytics in fleet operations, Singh noted, one of the biggest misconceptions agencies have is the belief that AI and machine learning cannot match the experience of seasoned technicians.

Singh said the AI isn’t meant to replace human intuition, but many agencies overlook that when AI is trained to focus on specific vehicle systems like the engine or powertrain, it can be very accurate at a scale.

“The real advantage of predictive analytics lies in its ability to process real-time data across the entire fleet—something that even the most skilled mechanic simply can’t do at scale. No one can manually monitor runtime data from, say, 150 vehicles operating simultaneously across a city like Modesto. But AI can,” Singh said.

Following the implementation, StanRTA has experienced a 15% to 20% reduction in unscheduled service events while identifying numerous component issues before they caused major disruptions.

“Intangles revealed inefficiencies we did not realize were happening—significant fuel loss from prolonged idling, injector problems on key commuter routes, and failures in systems like turbo boost and throttle response,” said Adam Barth, CEO of StanRTA, in a press release. “With real-time diagnostics, we can now identify and respond to vehicle performance issues before they become costly failures.”

Additional results from the partnership include a 6% to 8% improvement in fuel economy in targeted corridors and active mitigation of high-idle areas using geo-visualization tools. The platform analyzes multi-controller data across engine, transmission, aftertreatment and electrical systems to detect patterns and deliver alerts ahead of failures.

“At Intangles, we build for fleets where uptime and precision matter most,” said Anup Patil, co-founder and CEO of Intangles. “StanRTA is using predictive AI as a strategic tool—to reduce operational risk, improve energy efficiency and extend asset life. This is what the future of fleet management looks like.”

As StanRTA prepares to expand with hydrogen-powered vehicles, Intangles plans to extend its analytics capabilities to alternative powertrains, creating opportunities for new AI models including transmission behavior, DEF tracking and ambient-aware performance insights. The added features will support regulatory compliance and long-term cost efficiency.

At the end of the day, the technology is not meant to replace the human element but rather to augment it. “Ultimately, our AI-driven technology does not replace technicians—it empowers them. By catching issues early, we help fleets avoid costly breakdowns and extend asset life. Agencies that adopt this approach often see significant savings over time—not just in maintenance costs, but in asset availability and operational efficiency,” Singh said.

What Every Small Carrier Should Know Before Their First DOT Audit

Let’s not sugarcoat it—your first DOT audit is a test, and most small carriers walk in unprepared. Not because they don’t care, but because they don’t know what to expect. They assume having insurance, a truck, and a few loads under their belt means they’re good. But when FMCSA comes knocking, it’s not about how many miles you’ve run—it’s about how well you’ve built the foundation of your business.

And if you’re reading this thinking “we’ll figure it out when the time comes,” that mindset is the fastest way to fail.

This article breaks down what every small carrier needs to know before that first DOT audit—so you don’t lose everything you’ve worked for over missing paperwork, sloppy logs, or systems you never set up in the first place.

What the DOT Is Really Looking For

A DOT audit isn’t just about whether you have a DOT number and a truck that moves. It’s a full-blown review of your operation. They’re not just checking boxes—they’re trying to determine if you’re actually running a safe and compliant business.

The DOT wants to see:

How you manage risk
How you document safety
How you train, coach, and oversee your drivers
And most importantly, whether you can prove it all on paper

That last part is where most carriers get caught. It’s not enough to do the right thing—you have to show that you did it, when you did it, and how you did it. If it’s not documented, it didn’t happen.

The 6 Core Areas You’ll Be Audited On

FMCSA outlines six core areas during your new entrant safety audit. Here’s what they are—and what small carriers need to have in place for each one:

1. Driver Qualification Files (DQFs)

This is where most new carriers stumble. Every driver needs a full file that includes:

Driver’s license copy
Medical card
Pre-employment drug test results
MVR (Motor Vehicle Record)
Safety Performance History requests
Employment verification

If your file is missing even one of these items, it’s a violation. Multiply that across multiple drivers, and now you’re in trouble.

2. Hours of Service (HOS) Compliance

FMCSA wants to see how you’re tracking hours—and that you’re following the rules. Whether you’re running an ELD or using paper logs, they need to match up with dispatch records, fuel receipts, and trip documents.

Small carriers often forget that false logs are considered intentional violations. That’s not a fine. That’s a pattern of non-compliance. And it only takes a few to get flagged.

3. Vehicle Maintenance Files

You must maintain a file for every unit in your fleet, including:

Periodic inspections (annual)
Repair and maintenance records
Driver Vehicle Inspection Reports (DVIRs)
Proof of defects corrected

DOT doesn’t care how new your truck is. If you don’t have a written record of maintenance, your file’s incomplete. And that’s a red flag.

4. Controlled Substances and Alcohol Testing

If you’re running CDL drivers, this part will be under a microscope. FMCSA wants to know:

Are you enrolled in a DOT-compliant random testing program?
Did you complete a pre-employment drug test before dispatching the driver?
Are you keeping test results and refusal records?

Carriers that skip this—thinking “we’re just a small operation”—are the first to get hit hard in audits.

5. Insurance and Accident Register

You must have valid liability and cargo insurance with BMC filings in place, but that’s the bare minimum. You also need to maintain an accident register documenting:

Date and location of each crash
Number of injuries or fatalities
Hazardous materials spills (if any)

Even if you’ve never had a crash, you need to show a system is in place.

6. Safety Management Controls

This is the big one. FMCSA wants to know how you’re managing safety across your operation. That means:

Written policies
Safety training records
Hiring standards
Disciplinary actions

Too many small carriers have “verbal” policies and think that’s good enough. It’s not. If it’s not written and consistent, it doesn’t hold up in an audit.

What Happens If You Fail the Audit?

If you fail your DOT audit, you’re given a corrective action plan (CAP). You have a limited time to fix the issues and resubmit documentation. If you don’t comply, your DOT authority gets revoked. That means no operating legally, no running loads, and no revenue.

Here’s the part no one talks about: even if you “fix” your file later, that initial audit failure stays on record. Brokers see it. Shippers see it. Insurance carriers see it. It affects your ability to grow and negotiate rates going forward.

How to Prepare Like a Pro (Even If You’re Just Starting Out)

Whether you’re a one-truck operation or a five-truck fleet, here’s how to get audit-ready:

1. Build a Binder System

Every section of your compliance program should be organized and easy to access—DQFs, maintenance, HOS, drug testing, accident register. Don’t rely on email folders and thumb drives. Paper backup still matters.

2. Perform Internal Audits

Don’t wait for the DOT to find your gaps. Review your files quarterly. Cross-check logs, compare dispatch times, and verify driver documentation. Find your own flaws before the feds do.

3. Train Your Drivers

Don’t assume drivers understand HOS rules or what to do during inspections. Build a driver orientation. Train them on proper recordkeeping and safety protocol. Hold them accountable with written acknowledgment.

4. Use the Right Partners

Make sure your drug testing consortium is FMCSA-compliant. Use an ELD provider that gives clean, accessible reports. Partner with an insurance agent who knows DOT audits—not just policy numbers.

5. Document Everything

Did your driver take safety training? Write it down and get a signature. Did you repair a tire after a pre-trip? Log it. DOT doesn’t care if you did the work—they care if you can prove it happened.

Final Word

Your first DOT audit isn’t about passing—it’s about proving you take this business seriously. FMCSA is testing whether your company is built to last or just another authority number with a truck and a logo.

If you’re sloppy now, the audit will expose it. If you’re buttoned up, it shows. The difference is preparation.

So don’t treat compliance like a task you get around to later. Treat it like the foundation your business sits on. Because in trucking, it’s not just about moving freight—it’s about staying legal, staying safe, and staying in business.

And your first audit? That’s the moment you prove you belong.

CSX profits fall on lower revenue, higher costs

CSX’s second-quarter profits slumped as unfavorable changes in traffic mix drove a revenue decline and costs rose amid congestion and detours related to a pair of main line outages.

But executives said they were encouraged by the pace of the railroad’s (NASDAQ: CSX) operational recovery during the quarter, which produced improvements in on-time performance.

“We are proud of how our network performance has bounced back from the challenges of the first quarter,” Chief Executive Joe Hinrichs told investors and analysts on the railroad’s earnings call Wednesday.

The railroad’s operating income declined 11%, to $1.28 billion, as revenue decreased 3%, to $3.57 billion. Earnings per share declined 10%, to 44 cents. CSX’s operating ratio, including its trucking operations, was 64.1, a 3.2-point increase from a year ago as expenses rose 2%.

Overall quarterly volume was flat. Intermodal was up 2%, merchandise declined 2%, and coal volume increased 1%.

International intermodal volume grew during the quarter, while domestic volume was stable. In the merchandise segment, growth in metals, minerals, and agricultural shipments were not enough to offset declines in automotive, forest products, chemicals, and fertilizer traffic.

“Many of the industrial markets we serve continue to face challenges with uncertainty around tariffs, trade, interest rates, and the overall direction of the economy,” Chief Commercial Officer Kevin Boone said.

CSX still expects overall volume growth this year thanks to dozens of industrial development projects coming on line and conversion of freight from highway to intermodal, Boone said.

CSX also is encouraged by the progress of its new Southeast Mexico Express interline intermodal service launched with Canadian Pacific Kansas City in December via their new interchange at Myrtlewood, Ala., on the former Meridian & Bigbee short line.

The Howard Street Tunnel clearance project remains on schedule toward completion early in the fourth quarter, while related bridge clearance work in Baltimore is on pace for completion in the second quarter of 2026. The tunnel will reopen when work is complete, allowing CSX to end daily detours around Baltimore.

The tunnel and bridge clearance work will open up the carrier’s I-95 corridor for double-stack intermodal service for the first time and allow Baltimore-Midwest stack traffic to take the direct route via the former Baltimore & Ohio main line, rather than the current roundabout routing via Selkirk, N.Y., on the former New York Central Water Level Route.

Work to reopen the hurricane-damaged Blue Ridge Subdivision – the former Clinchfield Railroad in rugged western North Carolina and eastern Tennessee – is expected to be completed on schedule in the fourth quarter, as well.

“We are very pleased with the progress that has been made at our Howard Street Tunnel and Blue Ridge rebuild projects. We expect completion in the fourth quarter, which will remove two key constraints from our network,” Hinrichs said. “Finishing these two projects will open back up two of our four north-south routes, and … we’re excited about removing the last impediment to double stack intermodal on the I-95 corridor.”

A string of harsh weather, combined with the main line outages, led to congestion after the Feb. 1 shutdown of the Howard Street Tunnel.

CSX’s operations accelerated as the quarter went on, with average train speed increasing 8% from April through June and dwell declining by 18%. The number of cars online — a key congestion metric — declined 10% as the quarter progressed.

“Our recovery is a true testament to the hard work and dedication of every railroader at CSX,” Chief Operating Officer Mike Cory said.

Intermodal trip-plan compliance held steady at 90% compared to the first quarter but was down 4 points compared to a year ago. Merchandise trip-plan compliance of 75% was 6 points higher than the first quarter but 5 points lower than a year ago. Customer switch data of 94% was flat compared to last year’s second quarter and a 1-point improvement over the first quarter.

The on-time performance figures are not yet where CSX wants them, Cory says, but he expects ongoing improvement, particularly after the Howard Street and Blue Ridge projects wrap up and allow the railroad to end the related detours of up to 22 trains per day.

“While these projects unlock significant capacity for the entire network, we are also upgrading our capacity and throughput at our yard in Indianapolis, with the extension of the hump pullback,” Cory said of Avon Yard in Indiana, one of five hump yards on the system. “While this project is small in nature relative to the other two, it’ll give us the ability to hump more cars … at a very critical yard in our network.”

Despite the service issues, CSX’s customers gave the railroad the highest marks ever in a second-quarter internal survey, Boone said. And Hinrichs added regulators received zero complaints from shippers despite the impact of congestion.

Subscribe to FreightWaves’ Rail e-newsletter and get the latest insights on rail freight right in your inbox.

Related coverage:

First look: Weaker coal, carloads hit CSX earnings

As merger talk heats up, deep bench will advise rail regulator

Analysis: What a Union Pacific – Norfolk Southern merger would look like

BNSF aims to grow carload traffic with rail service upgrades

ATA’s push for teen truckers will make capacity glut worse

The trucking industry finds itself mired in one of the most protracted freight recessions on record, a predicament exacerbated by a flood of capacity that has outstripped demand. This surplus stems from an industry with negligible barriers to entry, where supply can readily overshoot, challenging the American Trucking Associations’ (ATA) persistent claim of a perpetual driver shortage. That narrative, however, merits scrutiny—not least because it may serve interests beyond those of the industry it purports to represent.

The ATA’s assertion of a driver shortage sends a misleading signal. It lures vulnerable workers and aspiring entrepreneurs into a market already saturated, with banks naively extending credit on the premise of guaranteed demand and pricing power—hallmarks of a classic shortage that, in trucking, are conspicuously absent. Seasoned operators know this well: neither element holds sway in today’s environment.

Halting the influx of new drivers, rather than fueling it through congressional programs and CDL mills, could stem the capacity glut. Yet the ATA persists, a stance that appears at odds with its members’ welfare.

Indeed, the ATA testified before the Senate Commerce Committee this week, urging lawmakers to lower the interstate driving age from 21 to 18. Such a move would further open the taps on new entrants, potentially swelling capacity even as the industry buckles under the weight of excess capacity.

Lowering the truck driver age to 18 would risk unleashing a torrent of new participants into an already oversupplied market, exacerbating the glut rather than alleviating it. Safety advocates warn of heightened accident rates among younger drivers, who are statistically more prone to distractions and crashes due to inexperience.

Economically, this influx could depress freight rates further, prolonging the recession for carriers already operating on razor-thin margins and making a bad situation worse. Active trucks have surged from 1.5 million in January 2017 to 2.1 million today, a 40% increase, largely driven by a steady stream of new drivers.

The ATA may thus reflect organizational incentives rather than its members’ needs. A trade association whose dues scale with the size of the market favor unchecked growth over its constituents’ profitability. Prioritizing policies that address oversupply, rather than encouraging more capacity through new entrants, could curb the excess and offer a path out of the current crisis. Until then, the ATA’s stance risks perpetuating a crisis it claims to address.

Knight-Swift’s belt tightening offsets soft demand

A red Knight sleeper cab pulling a white Knight trailer on a highway

Knight-Swift Transportation said it’s focused on cost control as it awaits a material inflection in demand. While management is “still cautious” it noted that customer conversations are a little more stable now that tariff concerns are easing.

The Phoenix-based transportation and logistics provider reported second-quarter adjusted earnings per share of 35 cents, which was in line with management’s prior guidance (30 to 38 cents), 2 cents ahead of the consensus estimate and 11 cents higher year over year.

Consolidated revenue was 1% higher y/y at $1.86 billion (2% higher excluding fuel surcharges). An adjusted operating ratio (inverse of operating margin) of 93.8% was 80 basis points better y/y.

The adjusted EPS result excluded expenses tied to past acquisitions, asset impairments and severance costs. The number included gains on equipment sales of $11.7 million, a $5.7 million y/y increase, or a 3-cent tailwind. A lower tax rate in the period provided a 2-cent tailwind.

Table: Knight-Swift’s key performance indicators – Consolidated

Tractor utilization improves again, still waiting on demand

Knight-Swift’s (NYSE: KNX) truckload revenue fell 3% y/y to $1.07 billion as average tractors in service fell 7% but revenue per tractor was up 4%. Loaded miles per tractor improved 4%, largely due to the company’s tractor utilization initiatives, with revenue per loaded mile (excluding fuel) coming in flat y/y at $2.74.

This was the eighth consecutive quarter of y/y improvement in miles per tractor. Revenue per mile dipped 4 cents from the first quarter but management said the metric has improved modestly in recent weeks. Contractual rate increases again averaged low- to mid-single-digits.

The TL segment reported a 94.6% adjusted OR, 260 bps better y/y but only 100 bps improved from the seasonally weak first quarter. Turnaround efforts at U.S. Xpress drove 300 bps of margin improvement at that fleet.

Management expects modest sequential improvements in TL revenue and margin in the third quarter.

Table: Knight-Swift’s key performance indicators – TL

SONAR: National Truckload Index (linehaul only – NTIL) *for 2025 (blue shaded area), 2024 (green line) and 2023 (pink line)*. The NTIL is based on an average of booked spot dry van loads from 250,000 lanes. The NTIL is a seven-day moving average of linehaul spot rates excluding fuel. Spot rates remain slightly higher on a y/y comparison. *To learn more about SONAR, click here.*

LTL results suffer from front-loaded growth costs, but margins to improve in back half

The less-than-truckload unit reported a 28% y/y revenue increase to $338 million, largely due to the acquisition of Dependable Highway Express (DHE) nearly one year ago.

Shipments per day were up 22% with revenue per hundredweight, or yield, up 10% y/y (excluding fuel surcharges). The yield metric benefitted from a 3% decline in weight per shipment and a 14% increase in average length of haul. However, contractual rate negotiations produced mid- to high-single-digit increases in the period.

The LTL unit reported a 93.1% adjusted OR, which was 720 bps worse y/y. Knight-Swift cited DHE integration costs and startup expenses at new terminals as the headwinds. It opened three new terminals in the quarter and moved another facility. Door count is up 8% year to date (28% higher y/y in the quarter).

Management forecast 100 to 200 bps of sequential OR improvement and said a variety of cost initiatives and technology enhancements should allow it to buck the typical sequential trend of margin degradation in the second half of the year.

Table: Knight-Swift’s key performance indicators – LTL

Intermodal losses to narrow

Knight-Swift’s intermodal segment was unprofitable for a ninth consecutive quarter, reporting a 104.1% OR. Loads were off 12% y/y and revenue per load was down 2%. The company said it walked away from some business that had inferior pricing during the period.

The company expects a high-single-digit sequential increase to intermodal load counts in the third quarter given recent award activity. Cost reductions and a move to private chassis are expected to narrow the operating losses at the unit.

Knight-Swift guided adjusted EPS of 36 to 42 cents for the third quarter, which bracketed Yahoo Finance’s consensus estimate of 38 cents at the time of the print.

It didn’t provide a fourth-quarter outlook because of uncertainty around U.S. tariff policy.

Table: Knight-Swift’s key performance indicators – Logistics & Intermodal

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