Schneider National, Inc. (SNDR) fourth-quarter 2024 earnings per share (EPS) of 20 cents met the Zacks Consensus Estimate and improved 25% from the year-ago quarter’s levels.

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Operating revenues of $1.33 billion missed the Zacks Consensus Estimate of $1.38 billion and fell 2.4% year over year. Revenues (excluding fuel surcharge) increased 1% year over year to $1.20 billion.

Income from operations (adjusted) grew 38% from the prior-year quarter’s level to $45 million.

SNDR’s Q4 Segmental Highlights

Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $560.1 million, up 2% year over year owing to the acquisition of Cowan Systems, dedicated organic new business growth, and a higher Network rate per total mile, partially offset by lower Network volumes. Truckload revenue per truck per week was $4,100, up 1.1% year over year, as both Network and Dedicated revenue per truck per week improved year over year.

Truckload income from operations was $19.8 million in the fourth quarter of 2024, up 5% year over year. This is driven by dedicated organic new business growth and the acquisition of Cowan Systems, partially offset by increased insurance expenses. Truckload operating ratio was 96.5% in the fourth quarter of 2024 compared with 96.6% in the year-ago quarter.

Intermodal revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $276.2 million, up 6% year over year, owing to volume growth of 3% and higher revenue per order. Revenue per order was $2,536, up 2% year over year, partially due to changes in freight mix, which impacted the length of haul.

Intermodal income from operations for the fourth quarter of 2024 was $17.2 million, up 177% year over year. Apart from volume growth and increased revenue per order, internal cost actions, network optimization, and improved dray productivity contributed to the increase in earnings. Intermodal operating ratio fell to 93.8% from 97.6% in the year-ago quarter.

Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $323.9 million, down 5% year over year. This was due to lower brokerage revenue per order and volumes, which were down 6% and 5%, respectively, year over year, partially offset by the Cowan Systems acquisition.

Logistics income from operations for the fourth quarter of 2024 was $8.5 million, up 39% year over year. This was driven by higher brokerage net revenue per order and the Cowan Systems acquisition, partially offset by the lower brokerage volume noted above. Logistics operating ratio fell to 97.4% from 98.2% in the year-ago quarter.

Liquidity & Cash Flow

Schneider exited the fourth quarter with cash and cash equivalents of $117.6 million compared with $179 million at the end of the prior quarter. Long-term debt was $420.8 million at the end of the reported quarter compared with $124.7 million at the end of the prior quarter.

SNDR generated $199.5 million of cash from operations in the fourth quarter. Free cash flow totaled $93.8 million in the reported quarter. Net capital expenditures were $105.7 million.

In February 2023, SNDR announced the approval of a $150.0 million stock repurchase program. As of Dec. 31, 2024, SNDR had repurchased 3.8 million Class B shares for a total of $95.5 million under the program.

In October 2024, SNDR’s board of directors declared a $0.095 dividend payable to shareholders of record as of Dec. 13, 2024, which was paid on Jan. 8, 2025. Also, on Jan. 27, 2025, SNDR’s board of directors declared a $0.095 dividend payable to shareholders of record as of March 14, which is expected to be paid on April 9, 2025.

During 2024, SNDR had returned $66.6 million in the form of dividends to shareholders year to date.

SNDR’s 2025 Outlook

Schneider anticipates 2025 adjusted EPS in the range of 0.90-$1.20. The Zacks Consensus Estimate of $1.13 lies within the guidance.

Darrell Campbell, executive vice president and chief financial officer of Schneider, stated, “We anticipate continued improvement in freight market conditions in 2025, leading to revenue and earnings growth with enhanced margins and asset returns progressing throughout the year.”

The company expects net capital expenditures in the range of $400-450 million, which consists of replacement capital and growth capital for Dedicated and Intermodal. Our estimate is pegged at $330.2 million.

Full-year effective tax rate is expected to be 23%-24%.

SNDR’s Zacks Rank

Currently, Schneider carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q4 Performances of Other Transportation Companies

Delta Air Lines DAL reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.

DAL’srevenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.

J.B. Hunt Transport Services (JBHT) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.  

JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.

JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.

Alaska Air Group, Inc. (ALK) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.

ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.

ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.

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