0001692063-25-000068
SEC filingRevenue growth from Cowan acquisition and volume gains offset by margin compression from higher insurance and interest costs.
For the three months ended September 30, 2025, Schneider National reported operating revenues of $1.45 billion, a 10% increase year-over-year, driven primarily by the Cowan acquisition and volume growth across all segments. Revenues excluding fuel surcharge rose 10.4% to $1.30 billion. However, income from operations declined 18% to $35.3 million, and net income fell 37% to $19.4 million. The operating ratio (GAAP) worsened to 97.6% from 96.7%, while the adjusted operating ratio deteriorated to 97.0% from 96.2%. Key cost pressures included a 65% surge in insurance and related expenses ($23.7 million), a 16% increase in salaries, wages, and benefits ($54.8 million), and an 11% rise in depreciation and amortization ($11.0 million). Interest expense increased $5.9 million due to higher debt from the Cowan acquisition and judgment-related interest. The effective tax rate rose to 26.5% from 22.1%, further pressuring net income.
Truckload: Revenues (ex-fuel surcharge) increased 17% to $624.5 million, with Dedicated volume up 22% (largely from Cowan) and higher rates in both Dedicated and Network. Income from operations fell 16% to $19.8 million as higher driver wages, insurance costs, and equipment depreciation offset revenue gains. The segment operating ratio worsened to 96.8% from 95.5%.
Intermodal: Revenues (ex-fuel surcharge) rose 6% to $281.4 million on 10% volume growth, partially offset by a 2% decline in revenue per order. Income from operations increased 7% to $16.8 million, with the operating ratio improving slightly to 94.0% from 94.1%.
Logistics: Revenues (ex-fuel surcharge) increased 6% to $332.1 million, driven by the Cowan acquisition, but brokerage volume (excluding Cowan) declined. Income from operations fell 16% to $6.4 million due to higher wages and lower brokerage volume. The operating ratio worsened to 98.1% from 97.6%.
Other: Loss from operations increased to $7.7 million from $3.9 million, driven by higher insurance expense from prior year claims development.
Management did not provide specific forward guidance. The company highlighted its strong balance sheet and $276.9 million of available capacity under its credit facilities. Key strategic priorities include integrating the Cowan acquisition, optimizing capital allocation across market cycles, and pursuing disciplined acquisitions. The company noted that its business is seasonal, with revenues typically lowest in Q1 and highest in Q4. Operating expenses are expected to remain elevated in winter months. The annual goodwill impairment test will be performed as of October 31, 2025. No material changes to contractual obligations were reported.
Cash and cash equivalents increased to $194.1M from $117.6M at year-end 2024. Total debt (including finance leases) stood at $522.2M, down from $526.8M, with shareholders' equity of $3,021.0M. The cash position provides ample liquidity.
The only disclosed purchase commitment is $24.1M for transportation equipment as of September 30, 2025. No other material contractual obligations were noted.
Truckload generated $730.4M revenue (up 16.9% YoY) with operating margin 2.7%. Intermodal had $327.9M revenue (up 5.9%) with margin 5.1%. Logistics posted $333.6M revenue (up 5.8%) with margin 1.9%. The decline in operating income versus prior year reflects higher costs and insurance expenses.
Operating cash flow (CFO) of $451.4M exceeded net income of $81.5M by a wide margin, indicating strong non-cash adjustments (depreciation $338.8M) and healthy cash conversion. However, CFO declined 7.2% year-over-year from $486.6M, driven largely by a significant unfavorable swing in receivables (from +$71.0M in 2024 to -$1.8M in 2025) and lower payables/liabilities growth. Capital expenditures (capex) decreased slightly to $336.6M from $355.9M, with transportation equipment purchases of $311.5M. Free cash flow (not explicitly stated) would approximate CFO minus capex, or roughly $114.8M, comfortably covering dividends ($50.3M) and share repurchases ($8.3M). Financing activities included net debt reduction from proceeds and repayments. Overall, cash generation remains solid but faces headwinds from working capital normalization.