KNX earnings analysis
What we found in KNX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Knight-Swift’s Q2 recovery was led by Truckload pricing and utilization, with revenue rising 12.6% year over year to $2.096 billion and GAAP EPS rising to $0.26 from $0.21. Operating margin expanded to 5.0% from 3.9%, while Intermodal turned profitable, though Logistics margins compressed and All Other recorded a loss from severance and receivables-securitization costs. Management describes a more constructive freight backdrop and expects further Q3 Truckload margin improvement, but first-half GAAP net income declined 35.5% to $41.9 million due to claims and acquisition-related charges.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and earnings accelerated
- Q2 revenue rose $233.8 million, or 12.6%, year over year to $2.096 billion. GAAP diluted EPS increased to $0.26 from $0.21, while adjusted EPS increased to $0.63 from $0.35.
- Operating leverage improved materially
- Consolidated operating income increased $32.2 million to $104.9 million, lifting operating margin to 5.0% from 3.9% and improving the operating ratio by 110 bps to 95.0%. Adjusted operating ratio improved 240 bps to 91.4%.
- Truckload pricing drove profit recovery
- Truckload operating income nearly doubled to $89.1 million from $45.4 million. Revenue per loaded mile excluding fuel surcharge increased 5.5%, and the adjusted operating ratio improved 360 bps to 91.0%.
- Intermodal returned to profitability
- Intermodal revenue increased 34.9% to $113.4 million, supported by a 19.6% load-count increase and 12.8% higher revenue per load; the segment turned profitable with $0.7 million of operating income versus a $3.4 million loss.
- Cash generation strengthened
- Year-to-date operating cash flow rose $124.4 million to $450.4 million and free cash flow was $190.4 million after $380.7 million of property-and-equipment purchases. Capex represented 18.0% of year-to-date revenue.
- Liquidity remains ample
- Liquidity totaled $1.672 billion, including $186.1 million of unrestricted cash and $1.485 billion of revolver availability. Management states it does not foresee material liquidity constraints or debt-covenant issues.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Convertible-note liquidity and dilution risk
- The new 2031 Notes-related risk disclosures highlight refinancing, conversion, and repurchase exposure. The company had $1.47 billion carrying value of 1.00% convertible notes due 2031 and $2.4 billion of debt and finance-lease obligations at June 30, 2026.
- Logistics margin compression
- Logistics profitability weakened despite revenue growth: brokerage gross margin fell 350 bps year over year to 15.4%, and segment operating income declined 31.0% to $3.8 million as higher carrier costs pressured purchased transportation.
- Cost inflation and claims volatility
- Claims, fuel, and tax-related costs remain elevated. Insurance and claims expense increased $14.9 million year over year to $100.2 million, Q2 diesel averaged $5.33 per gallon versus $3.56, and the effective tax rate rose to 34.1% from 29.2%.
- One-time charges reduced GAAP conversion
- Non-core and acquisition-related charges weighed on GAAP earnings: Q2 included an $18.2 million severance charge, a $22.8 million U.S. Xpress purchase-price-obligation mark-to-market expense, and an $8.2 million increase in a pre-acquisition U.S. Xpress tax assessment estimate.
- LTL claims charge hurt first-half earnings
- LTL year-to-date operating income fell 41.7% to $18.1 million, principally reflecting $18.0 million of adverse claims development tied primarily to an arbitration ruling on a 2022 claim. Its year-to-date adjusted operating ratio deteriorated 210 bps to 95.7%.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.26
- Operating margin
- 5.0%
- Segment
- Truckload: revenue $1.347 billion, up 11.0% year over year; operating income $89.1 million, up 96.3%.
- Segment
- LTL: revenue $420.1 million, up 8.6% year over year; operating income $21.7 million, up 18.1%.
- Segment
- Logistics: revenue $139.7 million, up 8.9% year over year; operating income $3.8 million, down 31.0%.
- Segment
- Intermodal: revenue $113.4 million, up 34.9% year over year; operating income $0.7 million versus a $3.4 million loss.
- Segment
- All Other: revenue $105.6 million, up 41.8% year over year; operating loss $10.4 million versus $6.7 million income.
What they said about what is next.
The 10-Q does not restate numeric EPS or consolidated revenue guidance. Q3 outlook calls for Truckload revenue excluding fuel surcharge up mid-single digits year over year and adjusted operating ratio improving 650-750 bps; LTL revenue excluding fuel surcharge up low-single digits and an adjusted operating ratio in the low 90s. Full-year 2026 net cash capex remains expected at $600 million-$650 million; Q3 adjusted tax rate is expected at 25.5%-26.5%.
The filing reads about the same as the one before it.
What came before.
- 10-Q · April 29, 2026
- Knight-Swift reported Q1 2026 revenue of $1.85 billion, a slight increase of 1.4% year-over-year, but fell short of analyst expectations, resulting in an adjusted EPS of $0.09 against a consensus estimate of $0.22. The…
- 10-K · February 19, 2026
- Knight‑Swift positions itself as a diversified, scale‑driven North American freight platform (Truckload, LTL, Logistics, Intermodal) focused on margin leadership through organic growth, technology and M&A. In 2025 the…
- 10-Q · October 29, 2025
- Knight‑Swift reported Q3 revenue of $1,927,057,000, up $50,381,000 (≈2.7%) versus Q3 2024, but operating income compressed to $50,326,000 (2.61% margin) from $81,420,000 (4.34% margin) a year ago. Diluted EPS fell to…
- 10-Q · October 30, 2024
- Knight‑Swift reported Q3 revenue of $1,876,676,000 and diluted EPS of $0.19. Operating income was essentially flat at $81,420,000 but net income and EPS declined materially versus the prior-year quarter, while the…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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