KNX · Knight-Swift Transportation Holdings Inc.

Knight-Swift reported a challenging first quarter 2026 with a GAAP net loss of $1.3 million and adjusted EPS of $0.09, significantly below the prior year's $0.28. The decline was primarily driven by three specific negative items: an estimated $0.05-0.06 per share impact from severe weather disruptions and sharply rising fuel prices, a $0.08 per share impact from adverse claims development in the LTL segment related to an unfavorable arbitration ruling on a 2022 claim, and a $0.02 per share impact from an adverse decision on VAT reimbursement in Mexico for prior tax years. These items collectively represented approximately $34-36 million in expenses. Despite these headwinds, consolidated revenue grew 1.4% to $1.85 billion, though revenue excluding fuel surcharge was essentially flat. The adjusted operating ratio deteriorated to 97.0% from 94.7% in the prior year quarter. Segment performance varied, with Truckload revenue excluding fuel surcharge essentially flat year-over-year and an adjusted operating ratio of 96.3%, LTL revenue excluding fuel surcharge growing 2.6% but with an adjusted operating ratio of 99.6% due to the claims development, Logistics revenue declining 9.9% with gross margin of 16.6%, and Intermodal revenue growing 2.7% with an adjusted operating ratio improvement to 101.5%. CEO Adam Miller noted that while the quarter had challenges, they were largely transitory and exposed market tightness that is accelerating the pricing environment. The company provided second quarter 2026 guidance for adjusted EPS in the range of $0.45 to $0.49, with expectations for revenue growth and margin improvements across segments, reflecting anticipated benefits from ongoing bid activity and market improvements.