0001692063-26-000025
SEC filingEnterprise revenue declined slightly, net income fell 22% due to cost pressures and lower brokerage volume.
In the first quarter of 2026, Schneider National reported operating revenues of $1,398.5 million, a slight decline of $3.3 million compared to $1,401.8 million in the same period of 2025. Net income decreased by $5.7 million, or approximately 22%, to $20.4 million, primarily due to an $8.7 million reduction in income from operations. This decline was partially offset by a $1.9 million decrease in the provision for income taxes and a $1.1 million reduction in other expenses (mainly lower interest expense). Adjusted net income also declined 22% to $21.7 million.
The operating ratio on a GAAP basis worsened to 97.6% from 97.0%, while the adjusted operating ratio increased to 97.2% from 96.5%, reflecting a 60 and 70 basis point margin decline, respectively.
Revenue excluding fuel surcharge fell $15.2 million to $1,243.1 million, driven by a $19.7 million decline in Logistics and a $6.9 million drop in Intermodal, partially offset by a $4.3 million increase in Truckload and an $11.9 million rise in fuel surcharge revenue.
On the expense side, purchased transportation decreased $7.8 million (2%) due to lower third-party logistics volume. Salaries, wages, and benefits fell $4.7 million (1%) from headcount actions. However, fuel costs increased sharply by $12.8 million (12%) on higher prices, and operating supplies and expenses rose $12.7 million (7%) due to higher maintenance and lower equipment gains. Depreciation and amortization declined $2.7 million (2%).
Truckload segment revenues (excluding fuel surcharge) grew 1% to $618.0 million, driven by a 3% increase in Network billed miles and rate improvements. Network revenue per truck per week rose 7.3% to $4,041, while Dedicated was essentially flat at $4,055. However, segment income from operations fell 20% to $20.2 million due to higher maintenance and fuel costs and lower gains on equipment sales. The segment operating ratio worsened to 96.7% from 95.9%.
Intermodal revenues (excluding fuel surcharge) decreased 3% to $253.5 million, with revenue per order down 4% to $2,366 on shorter length of haul, partially offset by a slight increase in orders (104,873 vs. 104,440). Income from operations fell 21% to $10.9 million, as lower revenue per order and higher maintenance costs outweighed volume growth, cost reductions in purchased transportation, and lower salaries and wages. The operating ratio increased to 95.7% from 94.7%.
Logistics revenues (excluding fuel surcharge) dropped 6% to $312.3 million due to lower brokerage volume, although revenue per order improved. Income from operations decreased 20% to $6.5 million, with the operating ratio rising to 97.9% from 97.6%. The decline was partially offset by higher net revenue per order and headcount reductions.
Other segment loss remained comparable year-over-year at $(4.2) million.
Management did not provide explicit forward guidance in the MD&A. The discussion highlighted continued focus on cost-containment actions, including headcount reductions and disciplined resource deployment. The company expects seasonality patterns to continue, with revenues typically lowest in the first quarter and highest in the fourth quarter. No material changes to contractual obligations or off-balance sheet arrangements were noted, and critical accounting estimates remain unchanged from the 2025 Form 10-K.
Net income of $20.4M was significantly lower than operating cash flow of $92.9M, reflecting strong non-cash add-backs (depreciation & amortization of $110.9M) and a net working capital outflow of $56.8M (driven by receivables and other assets). The cash conversion ratio (CFO/Net Income) was 4.6x, indicating high cash generation quality.
Capex intensity (capex as % of CFO) was 73.1%, down sharply from 132.2% in the prior year, as the company reduced transportation equipment purchases. Free cash flow (CFO minus capex) was $25.0M, covering dividends ($17.1M) and share repurchases ($5.2M) with a small surplus.
Anomalies: A large increase in receivables ($59.9M) and other assets ($47.1M) was partially offset by higher payables ($25.8M) and other liabilities ($17.6M). No one-time tax payments were noted; income taxes paid were minimal ($0.6M).