0001692063-25-000054
SEC filingQ2 2025 net income rose 2% YoY to $36.0M, driven by Truckload and Intermodal gains, partially offset by higher interest expense.
For the three months ended June 30, 2025, Schneider National reported operating revenues of $1,420.5 million, an 8% increase from $1,316.7 million in the same period of 2024. Net income rose 2% to $36.0 million from $35.3 million, driven by a $4.0 million increase in income from operations and a $0.3 million decrease in income tax provision, partially offset by a $3.6 million increase in other expenses (primarily higher interest expense). Adjusted net income increased 3% to $37.4 million. The enterprise operating ratio remained flat at 96.1% on both a GAAP and adjusted basis. Free cash flow improved to $123.0 million from $112.9 million, benefiting from lower net capital expenditures ($52.5 million vs. $69.7 million).
Truckload: Revenues (excluding fuel surcharge) increased 15% to $622.2 million, driven by a 23% increase in Dedicated volume (largely from the Cowan acquisition) and higher rates in both Dedicated and Network. Network volume declined 6%. Segment income from operations rose 31% to $40.1 million, with the operating ratio improving to 93.6% from 94.3%. Higher driver and office wages, equipment costs, and insurance premiums (all partly from Cowan) partially offset the revenue gains.
Intermodal: Revenues (excluding fuel surcharge) increased 5% to $265.1 million on 5% volume growth. Income from operations rose 10% to $16.1 million, with the operating ratio improving to 93.9% from 94.2%, aided by lower rail-related costs.
Logistics: Revenues (excluding fuel surcharge) increased 7% to $339.6 million, primarily from the Cowan acquisition, partially offset by lower brokerage volume and revenue per order. Income from operations declined 29% to $7.9 million, and the operating ratio weakened to 97.7% from 96.5%, reflecting the brokerage headwinds.
The MD&A does not provide explicit forward guidance. Management highlights that the Cowan acquisition continues to contribute to Truckload and Logistics growth, while Network and brokerage volumes face headwinds. The company maintains a strong liquidity position with $283.6 million available under its credit facilities and expects cash from operations and credit facilities to meet foreseeable requirements. The annual goodwill impairment test will be performed as of October 31, 2025.
For the six months ended June 30, 2025, net cash provided by operating activities was $267.2 million, compared to $280.2 million in the prior-year period, a decline of 4.6%. Net income was $62.1 million, resulting in a cash flow from operations to net income ratio of 4.3x, indicating strong cash conversion. The primary non-cash add-backs were depreciation and amortization of $225.9 million and share-based compensation of $9.2 million. Working capital was a net use of cash of $41.1 million, driven by increases in other assets ($23.8 million) and decreases in payables ($22.5 million), partially offset by a $7.9 million decrease in receivables.
Capital expenditures (capex) totaled $198.4 million ($183.5 million for transportation equipment and $14.9 million for other property and equipment), partially offset by $48.8 million in proceeds from asset sales. Net capex was $149.6 million. Free cash flow (operating cash flow less net capex) was approximately $117.6 million. The company returned $42.0 million to shareholders through dividends ($33.7 million) and share repurchases ($8.3 million), representing a 35.7% payout of free cash flow.
Investing activities also included $31.6 million in purchases of lease equipment and $13.0 million in investments in notes receivable. Financing activities included $100.0 million in proceeds from long-term debt and $97.0 million in debt repayments. The company ended the period with $160.7 million in cash and cash equivalents, up from $117.6 million at the beginning of the period.