Schneider National, Inc. (SNDR) fourth-quarter 2024 earnings per share (EPS) of 20 cents met the Zacks Consensus Estimate and improved 25% from the year-ago quarter’s levels.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Operating revenues of $1.33 billion missed the Zacks Consensus Estimate of $1.38 billion and fell 2.4% year over year. Revenues (excluding fuel surcharge) increased 1% year over year to $1.20 billion.Income from operations (adjusted) grew 38% from the prior-year quar ...

2 FOURTH QUARTER 2024 Investor Presentation INNOVATIVE – RESILIENT – DRIVEN • BUSINESS OVERVIEW • STRATEGY • CAPITAL ALLOCATION • TECHNOLOGY AND INNOVATION • PEOPLE AND VALUES • SECULAR TRENDS • INVEST WITH SNDR • CURRENT RESULTS AND OUTLOOK • SNDR ACQUISITION OF COWAN SYSTEMS, LLC • APPENDIX BUSINESS OVERVIEW Presentation highlights * * Mark Rourke Darrell Campbell Jim Filter 4 • Chief Executive Officer and President since 2019, previously serving as Executive Vice President and Chief Operating Officer. • ...

Core Insights - Schneider National reported $1.34 billion in revenue for Q4 2024, a year-over-year decline of 2.4%, with an EPS of $0.20 compared to $0.16 a year ago, indicating a slight improvement in earnings despite revenue decline [1] - The revenue fell short of the Zacks Consensus Estimate of $1.38 billion by 3.26%, while the EPS met the consensus estimate [1] Financial Performance Metrics - The operating ratio for the consolidated segment was reported at 96.8%, slightly worse than the estimated 96.3% [4] - The intermodal operating ratio was 93.8%, better than the estimated 94.4% [4] - The truckload operating ratio was 96.5%, compared to the average estimate of 95.2% [4] - The logistics operating ratio was 97.4%, slightly worse than the estimated 97.1% [4] Revenue Breakdown - Fuel surcharge revenue was $133.40 million, down 24.6% year-over-year, and below the average estimate of $146.98 million [4] - Inter-segment eliminations revenue was -$43.30 million, worse than the estimated -$35.45 million, but showed a 1.9% improvement year-over-year [4] - Logistics revenue was $323.90 million, below the average estimate of $331.54 million, reflecting a 5.3% decline year-over-year [4] - Other revenue was $88.80 million, slightly below the estimated $94.55 million, but showed a 5.8% increase year-over-year [4] - Excluding fuel surcharge, total revenue was $1.21 billion, below the average estimate of $1.25 billion, but represented a 0.9% year-over-year increase [4] - Intermodal revenue was $276.20 million, exceeding the average estimate of $271.74 million, with a year-over-year increase of 6% [4] - Truckload revenue was $560.10 million, slightly above the average estimate of $558.06 million, reflecting a 1.7% year-over-year increase [4] - Excluding fuel surcharge, network revenue was $185.10 million, below the estimated $207.73 million, showing an 11.9% decline year-over-year [4] Stock Performance - Schneider National's shares returned +1.7% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Schneider National reported quarterly earnings of $0.20 per share, matching the Zacks Consensus Estimate, and an increase from $0.16 per share a year ago [1] - The company posted revenues of $1.34 billion for the quarter, missing the Zacks Consensus Estimate by 3.26%, and a decrease from $1.37 billion year-over-year [2] - Over the last four quarters, Schneider National has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates [2][6] Market Comparison - Since the beginning of the year, Schneider National shares have increased by approximately 1.7%, while the S&P 500 has gained 2.7% [3] - The current Zacks Rank for Schneider National is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $1.51 billion, and for the current fiscal year, it is $1.14 on revenues of $6.29 billion [7] - The outlook for the Transportation - Services industry, where Schneider National operates, is currently in the bottom 44% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Operating revenues for Q4 2024 were $1.339 billion, a decrease of 2% from $1.372 billion in Q4 2023[5] - Income from operations increased by 35% to $42.4 million in Q4 2024, compared to $31.3 million in Q4 2023[6] - Adjusted diluted earnings per share rose by 25% to $0.20 in Q4 2024, up from $0.16 in Q4 2023[5] - Net income for the year ended December 31, 2024, was $117.0 million, down 51.0% from $238.5 million in 2023[25] - The Truckload segment generated revenues of $560.1 million in Q4 2024, an increase of 1.3% from $550.7 million in Q4 2023[31] - Intermodal segment revenues for Q4 2024 were $276.2 million, up 5.4% from $260.6 million in Q4 2023[31] - Logistics segment revenues decreased to $323.9 million in Q4 2024 from $342.1 million in Q4 2023, a decline of 5.0%[31] - Revenues (excluding fuel surcharge) for Q4 2024 were $1,205.7 million, a 0.8% increase from $1,194.8 million in Q4 2023[52] - Adjusted net income for Q4 2024 was $34.5 million, compared to $28.4 million in Q4 2023, reflecting a 21.5% increase[61] - Adjusted EBITDA for Q4 2024 was $152.2 million, an increase from $131.6 million in Q4 2023, representing a 15.6% growth[63] - Free cash flow for Q4 2024 was $93.8 million, significantly higher than $48.4 million in Q4 2023[65] - Free cash flow for 2024 increased by $199.6 million compared to the same period in 2023[9] - Full year 2025 adjusted diluted earnings per share guidance is set at $0.90 - $1.20[17] Operational Metrics - The acquisition of Cowan Systems contributed to Dedicated business representing 70% of the Truckload segment as of year-end 2024[3] - Intermodal revenues increased by 6% to $276.2 million in Q4 2024, driven by a 3% growth in volume and higher revenue per order[13] - The average number of trucks in the Truckload segment was 10,919 for Q4 2024, slightly down from 10,942 in Q4 2023[37] - The operating ratio for the Truckload segment improved to 96.5% in Q4 2024 from 96.6% in Q4 2023[37] - Adjusted operating ratio improved to 96.3% in Q4 2024 from 97.3% in Q4 2023[59] - The company recorded total operating expenses of $1,296.7 million in Q4 2024, down from $1,340.4 million in Q4 2023[59] - Total operating expenses for the year ended December 31, 2024, were $5,125.3 million, a decrease of 1.5% from $5,202.5 million in 2023[25] Strategic Initiatives and Challenges - The company expects continued growth in revenues and profitability driven by operational efficiencies and market demand[68] - The company incurred acquisition-related costs of $1.4 million in Q4 2024, reflecting ongoing strategic expansion efforts[55] - The Company faces risks related to inflation both in the U.S. and globally, which could impact operational performance[69] - There are economic and business risks inherent in the truckload and transportation industry, including freight cycles and competitive pricing pressures[69] - The Company is challenged by cyclical driver shortages affecting truck capacity management and yield strategies[69] - Key customer and supply arrangements are critical, with potential disruptions from external factors such as natural disasters and pandemics[69] - The Company relies on owner-operators for a portion of its truck fleet, which poses risks in attracting and retaining qualified drivers[69] - Fluctuations in fuel prices and the ability to recover fuel costs through surcharge programs are significant concerns[69] - The Company must navigate changes in laws and regulations that impact its operations, including environmental and tax regulations[69] - There are risks associated with financial markets that could affect the Company's ability to service debt and fund capital expenditures[69] - The trucking industry experiences negative seasonal patterns during slower shipping periods, particularly in winter months[69] - The Company is exposed to cybersecurity risks and potential systems disruptions that could impact operations[69] Dividend Information - The company declared dividends of $0.095 per share for Q4 2024, an increase from $0.09 per share in Q4 2023[25]

Core Viewpoint - Schneider National, Inc. is enhancing its operations through the strategic acquisition of Cowan Systems for nearly $390 million, which is expected to strengthen its position in the dedicated transportation sector [1][5]. Group 1: Acquisition Details - Schneider has agreed to purchase Cowan Systems and related entities for a cash price of almost $390 million, with an additional agreement to acquire certain real estate assets for approximately $31 million [1][2]. - The acquisition will be financed using existing cash and borrowings from a new $400 million delayed draw term credit facility [2]. - The deal is expected to close in the fourth quarter of 2024, pending customary closing conditions [3]. Group 2: Operational Impact - Cowan Systems will function as a wholly owned subsidiary of Schneider, similar to previous acquisitions like Midwest Logistics Systems and M&M Transport Services [4]. - The acquisition is projected to be accretive to Schneider's earnings per share within the first year, excluding anticipated synergies [5]. - With the addition of Cowan Systems, Schneider will operate over 8,400 Dedicated tractors, representing nearly 70% of its Truckload fleet, enhancing its status as a leading dedicated provider in the transportation industry [5]. Group 3: Strategic Vision - Schneider's president and CEO, Mark Rourke, emphasized that this acquisition aligns with the company's long-term vision of customer-centric Dedicated solutions as a cornerstone of its Truckload segment [6].

Core Insights - Scope23 is a newly launched technology company aimed at providing accurate measurement and management of carbon emissions for shippers and transportation service providers [1] - The company focuses on creating an action platform that utilizes actual shipment-level data and AI to support companies in achieving decarbonization goals [2] Company Overview - Scope23 was founded by veterans from the transportation industry and is based in Chicago [1][5] - The company has received initial funding from Schneider National, Inc. and Pilot Company [3] Product Offering - Scope23's flagship product, GreenSight, captures detailed data points related to shipping, such as origins, destinations, and fueling options, and provides actionable recommendations [3][4] - The platform aims to operationalize carbon accounting into existing transportation and purchasing procedures, enhancing visibility and decision-making for shippers and carriers [3][5] Market Context - A survey by Boston Consulting Group indicates that 87% of leaders see AI as a valuable tool for combating climate change, with the potential to mitigate 5-10% of global GHG emissions by 2030 [3] - The market for sustainability tools in transportation is rapidly evolving, with increasing commitments from shippers and carriers to reduce carbon emissions [5] Strategic Partnerships - Scope23 has secured commitments from the majority of PepsiCo's third-party transportation fleet partners to provide comprehensive shipment-level data, enhancing its dataset [4] - The collaboration with PepsiCo aims to integrate Scope23's solutions across various teams to meet sustainability goals [3][4]

Financial Performance - Operating revenues for Q3 2024 were $1,315.7 million, a decrease of 2.8% compared to $1,352.0 million in Q3 2023[96] - Revenues excluding fuel surcharge for Q3 2024 were $1,177.6 million, slightly down from $1,179.4 million in Q3 2023[97] - Income from operations for Q3 2024 was $43.1 million, down from $46.7 million in Q3 2023, reflecting a decrease of 7.7%[96] - Adjusted income from operations for Q3 2024 was $44.3 million, compared to $47.6 million in Q3 2023, indicating a decline of 6.9%[99] - Net income for Q3 2024 was $30.6 million, down from $35.6 million in Q3 2023, representing a decrease of 13.9%[96] - Adjusted net income for Q3 2024 was $31.5 million, compared to $36.3 million in Q3 2023, a decline of 13.2%[96] - Total operating expenses for Q3 2024 were $1,272.6 million, a decrease of approximately 2.5% from $1,305.3 million in Q3 2023[1] - Enterprise operating revenues decreased by $36.3 million, approximately 3%, in Q3 2024 compared to Q3 2023[8] - Enterprise net income decreased by $126.7 million, approximately 60%, in the nine months ended September 30, 2024 compared to the same period in 2023[127] - Enterprise operating revenues decreased by $175.8 million, approximately 4%, in the nine months ended September 30, 2024 compared to the same period in 2023[129] - Enterprise income from operations decreased by $142.3 million, approximately 54%, in the nine months ended September 30, 2024 compared to the same period in 2023[130] Cash Flow and Capital Expenditures - Free cash flow for Q3 2024 was $113.4 million, significantly higher than $52.7 million in Q3 2023, an increase of 115.6%[96] - Cash flow from operations for Q3 2024 was $206.4 million, up from $182.9 million in Q3 2023, an increase of 12.7%[96] - Net cash provided by operating activities increased by $0.5 million to $486.6 million in the nine months ended September 30, 2024, compared to $486.1 million in 2023[155] - Net cash used in investing activities decreased by $489.7 million, approximately 63%, in the first nine months of 2024 compared to the same period in 2023[157] - Net capital expenditures decreased by $153.7 million to $274.6 million in the first nine months of 2024, primarily due to a $172.5 million decrease in purchases of transportation equipment[158] - Total cash, cash equivalents, and marketable securities increased to $231.6 million as of September 30, 2024, compared to $159.6 million as of December 31, 2023[153] - Total debt decreased to $263.7 million as of September 30, 2024, down from $302.1 million as of December 31, 2023[153] Operational Metrics - The adjusted operating ratio for Q3 2024 was 96.2%, slightly higher than 96.0% in Q3 2023[96] - The operating ratio for Q3 2024 was 96.7%, compared to 96.5% in Q3 2023[1] - The effective income tax rate for Q3 2024 was 22.1%, down from 22.8% in Q3 2023[13] - The effective income tax rate was 24.0% for the nine months ended September 30, 2024, compared to 24.2% for the same period in 2023[134] - The operating ratio for the Intermodal segment increased to 95.1% in the nine months ended September 30, 2024, compared to 91.8% in 2023[144] Revenue Breakdown - Dedicated segment revenues (excluding fuel surcharge) increased to $347.5 million in Q3 2024 from $324.9 million in Q3 2023, a growth of approximately 6.3%[120] - Network segment revenues (excluding fuel surcharge) decreased to $185.2 million in Q3 2024 from $210.1 million in Q3 2023, a decline of approximately 11.9%[120] - Total Truckload revenues (excluding fuel surcharge) decreased to $532.2 million in Q3 2024 from $535.3 million in Q3 2023, a decrease of approximately 0.6%[120] - Intermodal revenues (excluding fuel surcharge) increased by $1.7 million, approximately 1%, in Q3 2024 compared to Q3 2023, driven by increased volume and revenue per order[123] - Logistics revenues (excluding fuel surcharge) decreased by $12.3 million, approximately 4%, in Q3 2024 compared to Q3 2023, primarily due to a decrease in brokerage revenue per order[125] - Dedicated revenues (excluding fuel surcharge) increased to $1,035.3 million in the nine months ended September 30, 2024, up from $930.7 million in 2023, representing an increase of approximately 11.2%[141] - Intermodal revenues (excluding fuel surcharge) decreased by $25.1 million, approximately 3%, in the nine months ended September 30, 2024, driven by a 5% decrease in revenue per order[144] - Logistics revenues (excluding fuel surcharge) decreased by $94.2 million, approximately 9%, in the nine months ended September 30, 2024, primarily due to decreases in revenue per order and volume[148] Other Expenses - Total other expenses increased by $3.2 million in Q3 2024 compared to Q3 2023, primarily due to a pre-tax net gain on equity investments recorded in 2023[13] - Adjusted EBITDA for Q3 2024 was $143.8 million, slightly down from $145.5 million in Q3 2023[4] - Purchased transportation costs decreased by $49.0 million, or 9%, quarter over quarter due to reduced owner-operator capacity[12]

Core Insights - Schneider National, Inc. reported disappointing third-quarter 2024 results, with earnings per share (EPS) of 18 cents missing the Zacks Consensus Estimate of 23 cents and declining 10% year-over-year [1][2] - Operating revenues of $1.31 billion fell short of the Zacks Consensus Estimate of $1.33 billion and decreased 2.6% year-over-year [2] Financial Performance - Adjusted operating income decreased 7% year-over-year to $44.3 million, with an adjusted operating ratio of 96.2%, down 20 basis points from the prior year [2] - Truckload revenues (excluding fuel surcharge) were $532.2 million, down 1% year-over-year, while truckload revenues per truck per week increased by 2% to $3,971 [3][4] - Intermodal revenues (excluding fuel surcharge) increased by 1% year-over-year to $264.7 million, with income from operations rising 41% to $15.7 million [4][5] - Logistics revenues (excluding fuel surcharge) fell 4% year-over-year to $313.7 million, with income from operations decreasing 11% to $7.6 million [5][6] Liquidity and Cash Flow - As of the end of the third quarter, the company had cash and cash equivalents of $179 million, up from $103.2 million in the prior quarter, and long-term debt of $124.7 million [7] - Cash generated from operations was $206.4 million, with free cash flow at $113.4 million and net capital expenditure of $93 million [7] Shareholder Returns - The company repurchased 3.8 million Class B shares for $95.5 million and returned $49.9 million in dividends to shareholders since the start of the year [8] 2024 Outlook - Schneider anticipates adjusted EPS for 2024 to be between 66-72 cents, down from a prior estimate of 80-90 cents, with the Zacks Consensus Estimate at 83 cents [9] - Expected net capital expenditure for 2024 is $330 million, revised from a previous range of $300-350 million [9]

Core Insights - Schneider National reported revenue of $1.32 billion for the quarter ended September 2024, a decrease of 2.7% year-over-year, with EPS at $0.18 compared to $0.20 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.33 billion by 1.19%, and the EPS was 21.74% below the consensus estimate of $0.23 [1] Financial Performance Metrics - The consolidated operating ratio was reported at 96.7%, higher than the estimated 95.5% [3] - The intermodal operating ratio was 94.1%, slightly better than the average estimate of 94.8% [3] - The truckload operating ratio was 95.5%, compared to the average estimate of 93.6% [3] - The logistics operating ratio was 97.6%, above the estimated 96.3% [3] Revenue Breakdown - Fuel surcharge revenue was $138.10 million, below the estimated $148.35 million, representing a 20% decrease year-over-year [3] - Inter-segment eliminations revenue was reported at -$38.20 million, worse than the estimated -$35.02 million, but showed a 64% year-over-year increase [3] - Logistics revenue was $313.70 million, slightly above the estimate of $310.64 million, reflecting a 3.8% decrease year-over-year [3] - Other revenues were $105.20 million, significantly above the estimate of $78.66 million, marking a 34.2% year-over-year increase [3] - Excluding fuel surcharge, revenues totaled $1.18 billion, slightly below the estimated $1.19 billion, with a 0.2% decrease year-over-year [3] - Intermodal revenue was $264.70 million, below the estimate of $276.57 million, with a 0.7% year-over-year increase [3] - Truckload revenue was $532.20 million, below the estimated $555.61 million, reflecting a 0.6% decrease year-over-year [3] - Excluding fuel surcharge, network revenue was $185.20 million, below the estimate of $212.77 million, with an 11.9% year-over-year decrease [3] Stock Performance - Schneider National's shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]