Management from Schneider National said Thursday it is still contemplating how a Union Pacific–Norfolk Southern merger could impact its $1 billion-plus intermodal offering.
Schneider moved from the BNSF Railway (NYSE: BRK.B) to the UP for Western rail service in 2023. The same year, it inked a deal for North-South service with the CPKC (NYSE: CP).
UP’s (NYSE: UNP) $85 billion bid for Norfolk Southern (NYSE: NSC) would create a transcontinental railroad, likely redrawing North America’s intermodal trade lanes. But not all parties potentially impacted by the deal are ready to pick sides yet.
“We’re pro-competition and we’re pro-customer, and to the degree that any of this helps us achieve those, then that’s kind of where we’ll come down,” Schneider President and CEO Mark Rourke told analysts on a Thursday call. “We don’t have enough information at this time to take an official position.”
Schneider (NYSE: SNDR) reported second-quarter adjusted earnings per share of 21 cents on Thursday before the market opened. The result was 1 cent ahead of analysts’ expectations and level with the year-ago quarter. Consolidated revenue of $1.42 billion was 8% higher y/y and slightly ahead of consensus.
(The adjusted EPS number excluded 1 cent per share in acquisition-related amortization expenses.)
The company trimmed the top end of its full-year 2025 EPS guidance by 5 cents to a new range of 75 cents to 95 cents. The new guide bracketed the consensus estimate of 84 cents at the time of the print. Schneider generated EPS of 69 cents last year.
(Schneider’s initial 2025 outlook contemplated EPS of 90 cents to $1.20).
Q2 produces modest improvements
Revenue in the company’s truckload segment increased 15% y/y to $622 million as average trucks in service stepped 15% higher and revenue per truck per week was up slightly. The y/y revenue increase was driven by the December acquisition of Cowan Systems.
The dedicated fleet saw no change in revenue per truck per week while the one-way fleet reported a 1% increase in the metric. Combined, the TL unit again saw low- to mid-single-digit rate increases in the quarter.
The TL unit’s operating ratio improved 70 basis points y/y to 93.6%. Utilization improvement initiatives and an enterprise-wide cost reduction program totaling $40 million helped drive the result. Also, a modest increase in gains on equipment sales was a tailwind in the period.
Intermodal revenue increased 5% y/y to $265 million. Loads were up by a similar percentage while revenue per load was flat. The company is roughly 75% through its bid season and rates accompanying volume awards have largely been flat. However, peak season surcharges have already been implemented (roughly six to eight weeks early) at most of its large accounts.
The segment reported a 93.9% OR, which was 30 bps better y/y. Average turns per container improved 6% y/y.
Schneider’s logistics segment saw a 7% y/y revenue increase to $340 million. Both lower volumes and yields partially offset the increase from the Cowan acquisition. The unit reported a 97.7% OR, 120 bps worse y/y.
Cowan’s brokerage business will be rolled under the Schneider Logistics banner in October.
Shares of SNDR were off 0.4% at 12:14 p.m. EDT on Thursday compared to the S&P 500, which was up 0.6%.
Freight Fraud Symposium
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
Double brokering. AI deepfakes. Identity theft. Freight fraud is an existential threat to the industry. Get ahead of it.
Rock & Roll Hall of Fame • Cleveland, OH Register NowPast the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post Office • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now