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Schneider National(SNDR) - 2024 Q4 - Annual Results
SNDRSchneider National(SNDR)2025-01-30 14:01

Financial Performance - Operating revenues for Q4 2024 were 1.339billion,adecreaseof21.339 billion, a decrease of 2% from 1.372 billion in Q4 2023[5] - Income from operations increased by 35% to 42.4millioninQ42024,comparedto42.4 million in Q4 2024, compared to 31.3 million in Q4 2023[6] - Adjusted diluted earnings per share rose by 25% to 0.20inQ42024,upfrom0.20 in Q4 2024, up from 0.16 in Q4 2023[5] - Net income for the year ended December 31, 2024, was 117.0million,down51.0117.0 million, down 51.0% from 238.5 million in 2023[25] - The Truckload segment generated revenues of 560.1millioninQ42024,anincreaseof1.3560.1 million in Q4 2024, an increase of 1.3% from 550.7 million in Q4 2023[31] - Intermodal segment revenues for Q4 2024 were 276.2million,up5.4276.2 million, up 5.4% from 260.6 million in Q4 2023[31] - Logistics segment revenues decreased to 323.9millioninQ42024from323.9 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 1,205.7million,a0.81,205.7 million, a 0.8% increase from 1,194.8 million in Q4 2023[52] - Adjusted net income for Q4 2024 was 34.5million,comparedto34.5 million, compared to 28.4 million in Q4 2023, reflecting a 21.5% increase[61] - Adjusted EBITDA for Q4 2024 was 152.2million,anincreasefrom152.2 million, an increase from 131.6 million in Q4 2023, representing a 15.6% growth[63] - Free cash flow for Q4 2024 was 93.8million,significantlyhigherthan93.8 million, significantly higher than 48.4 million in Q4 2023[65] - Free cash flow for 2024 increased by 199.6millioncomparedtothesameperiodin2023[9]−Fullyear2025adjusteddilutedearningspershareguidanceissetat199.6 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]OperationalMetrics−TheacquisitionofCowanSystemscontributedtoDedicatedbusinessrepresenting701.20[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 1,296.7millioninQ42024,downfrom1,296.7 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 5,125.3million,adecreaseof1.55,125.3 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 1.4millioninQ42024,reflectingongoingstrategicexpansionefforts[55]−TheCompanyfacesrisksrelatedtoinflationbothintheU.S.andglobally,whichcouldimpactoperationalperformance[69]−Thereareeconomicandbusinessrisksinherentinthetruckloadandtransportationindustry,includingfreightcyclesandcompetitivepricingpressures[69]−TheCompanyischallengedbycyclicaldrivershortagesaffectingtruckcapacitymanagementandyieldstrategies[69]−Keycustomerandsupplyarrangementsarecritical,withpotentialdisruptionsfromexternalfactorssuchasnaturaldisastersandpandemics[69]−TheCompanyreliesonowner−operatorsforaportionofitstruckfleet,whichposesrisksinattractingandretainingqualifieddrivers[69]−Fluctuationsinfuelpricesandtheabilitytorecoverfuelcoststhroughsurchargeprogramsaresignificantconcerns[69]−TheCompanymustnavigatechangesinlawsandregulationsthatimpactitsoperations,includingenvironmentalandtaxregulations[69]−TherearerisksassociatedwithfinancialmarketsthatcouldaffecttheCompany′sabilitytoservicedebtandfundcapitalexpenditures[69]−Thetruckingindustryexperiencesnegativeseasonalpatternsduringslowershippingperiods,particularlyinwintermonths[69]−TheCompanyisexposedtocybersecurityrisksandpotentialsystemsdisruptionsthatcouldimpactoperations[69]DividendInformation−Thecompanydeclareddividendsof1.4 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]