Schneider National (SNDR) Q1 2026 profit slips as free cash flow improves
Filing Impact
Filing Sentiment
Form Type
10-Q
Schneider National posted relatively flat operating revenues of $1,398.5M for the quarter ended March 31, 2026, compared with $1,401.8M a year earlier. Net income declined to $20.4M from $26.1M, and diluted earnings per share fell to $0.12 from $0.15.
Revenues excluding fuel surcharge slipped to $1,243.1M, reflecting lower Logistics brokerage volume and reduced Intermodal revenue per order, partly offset by stronger Truckload pricing and higher fuel surcharge revenue driven by fuel costs. Income from operations decreased to $33.4M, with higher maintenance and fuel expenses and lower gains on equipment sales weighing on margins.
Adjusted metrics also softened: adjusted income from operations was $35.1M, adjusted net income $21.7M, and adjusted EBITDA $143.6M. Free cash flow improved to $48.1M, supported by lower capital spending, while the balance sheet remained strong with $265.1M in cash, equivalents, and marketable securities and $399.2M of total debt.
Positive
- None.
Negative
- None.
Insights
Margins and earnings compressed despite stable revenue, but cash generation and liquidity stayed solid.
Schneider National held operating revenues roughly flat at $1,398.5M, yet net income dropped about one-fifth to $20.4M. The key pressure points were lower Logistics brokerage volume, softer Intermodal revenue per order, and higher maintenance and fuel expenses, which pushed operating income down to $33.4M.
Non-GAAP performance moved similarly, with adjusted income from operations at $35.1M and adjusted EBITDA at $143.6M. However, free cash flow swung to a positive $48.1M from a use of cash previously, mainly because transportation equipment capex fell sharply.
Leverage and liquidity remain manageable: cash, equivalents, and marketable securities totaled $265.1M against $399.2M of debt, and the company had $331.7M of combined capacity under its revolver and receivables facility as of March 31, 2026. Subsequent filings may detail how quickly segment margins recover as demand and pricing evolve across Truckload, Intermodal, and Logistics.
Key Figures
Operating revenues: $1,398.5M
Net income: $20.4M
Diluted EPS: $0.12/share
+5 more
8 metrics
Operating revenues
$1,398.5M
Three months ended March 31, 2026
Net income
$20.4M
Three months ended March 31, 2026
Diluted EPS
$0.12/share
Three months ended March 31, 2026
Adjusted EBITDA
$143.6M
Three months ended March 31, 2026
Free cash flow
$48.1M
Three months ended March 31, 2026
Truckload revenue ex-fuel
$618.0M
Segment revenues excluding fuel surcharge, Q1 2026
Total debt
$399.2M
As of March 31, 2026
Cash and marketable securities
$265.1M
As of March 31, 2026
Key Terms
revenues (excluding fuel surcharge), adjusted operating ratio, adjusted EBITDA, sales-type leases, +1 more
5 terms
revenues (excluding fuel surcharge) financial
"We define “revenues (excluding fuel surcharge)” as operating revenues less fuel surcharge revenues"
adjusted operating ratio financial
"We define “adjusted operating ratio” as adjusted total operating expenses, net of fuel surcharge revenues, divided by revenues"
Adjusted operating ratio measures the share of a company’s revenue that goes to run its core business after removing one-time items or non-recurring costs, calculated as operating expenses divided by operating revenue with certain adjustments. For investors it shows underlying operational efficiency — like a household tracking regular bills as a percentage of income — where a lower adjusted operating ratio means the business keeps more revenue as profit.
adjusted EBITDA financial
"We define “adjusted EBITDA” as net income adjusted to exclude net interest expense, provision for income taxes, depreciation and amortization"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
sales-type leases financial
"We finance various types of transportation-related equipment for independent third parties under lease contracts, which are generally for one to three years and are accounted for as sales-type leases"
Term SOFR financial
"variable rate interest payments due quarterly based on the Term SOFR"
Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.
Earnings Snapshot
Operating revenues: $1,398.5M
Q1 2026
Operating revenues
$1,398.5M
Net income
$20.4M
Diluted EPS
$0.12
Adjusted EBITDA
$143.6M
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________________________________________
FORM 10-Q
___________________________________________________________________________
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended March 31, 2026
OR
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission File Number: 001-38054
_____________________________________________________________________________
(Exact Name of Registrant as Specified in Its Charter)
_____________________________________________________________________________
| (State of Incorporation) | (IRS Employer Identification No.) | |||||||||||||||||||
| (Address of Registrant’s Principal Executive Offices and Zip Code) | ||||||||||||||||||||
(920 ) 592-2000
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☒ | Accelerated filer | ☐ | ||||||||||||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
| Emerging growth company | ||||||||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Table of Contents
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
As of April 24, 2026, the registrant had 83,029,500 shares of Class A common stock, no par value, outstanding and 92,094,808 shares of Class B common stock, no par value, outstanding.
Table of Contents
SCHNEIDER NATIONAL, INC.
QUARTERLY REPORT ON FORM 10-Q
For the Quarter Ended March 31, 2026
TABLE OF CONTENTS
| Page | ||||||||||||||
Cautionary Note Regarding Forward-Looking Statements | 1 | |||||||||||||
PART I. FINANCIAL INFORMATION | ||||||||||||||
| ITEM 1. | Financial Statements | 2 | ||||||||||||
Consolidated Statements of Comprehensive Income (Unaudited) | 2 | |||||||||||||
Consolidated Balance Sheets (Unaudited) | 3 | |||||||||||||
Consolidated Statements of Cash Flows (Unaudited) | 4 | |||||||||||||
Consolidated Statements of Shareholders’ Equity (Unaudited) | 5 | |||||||||||||
Notes to Consolidated Financial Statements (Unaudited) | 6 | |||||||||||||
| Page | ||||||||||||||
| Note 1 | General | 6 | ||||||||||||
| Note 2 | Revenue Recognition | 7 | ||||||||||||
| Note 3 | Fair Value | 7 | ||||||||||||
| Note 4 | Investments | 8 | ||||||||||||
| Note 5 | Goodwill and Other Intangible Assets | 9 | ||||||||||||
| Note 6 | Debt and Credit Facilities | 10 | ||||||||||||
| Note 7 | Leases | 10 | ||||||||||||
| Note 8 | Income Taxes | 12 | ||||||||||||
| Note 9 | Common Equity | 12 | ||||||||||||
| Note 10 | Share-Based Compensation | 13 | ||||||||||||
| Note 11 | Commitments and Contingencies | 13 | ||||||||||||
| Note 12 | Segment Reporting | 14 | ||||||||||||
| ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | ||||||||||||
| ITEM 3. | Quantitative and Qualitative Disclosures about Market Risk | 26 | ||||||||||||
| ITEM 4. | Controls and Procedures | 26 | ||||||||||||
PART II. OTHER INFORMATION | ||||||||||||||
| ITEM 1. | Legal Proceedings | 27 | ||||||||||||
| ITEM 1A. | Risk Factors | 27 | ||||||||||||
| ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 27 | ||||||||||||
| ITEM 3. | Defaults Upon Senior Securities | 27 | ||||||||||||
| ITEM 4. | Mine Safety Disclosures | 27 | ||||||||||||
| ITEM 5. | Other Information | 27 | ||||||||||||
| ITEM 6. | Exhibits | 28 | ||||||||||||
Signature | 29 | |||||||||||||
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GLOSSARY OF TERMS
| 3PL | Provider of outsourced logistics services. In logistics and supply chain management, it means a third-party provider to whom elements of the company’s inventory management, distribution, order fulfillment, warehousing, or supply chain management services have been outsourced. | ||||
| ASC | Accounting Standards Codification | ||||
| ASU | Accounting Standards Update | ||||
| Board | Board of Directors | ||||
| ChemDirect | Fortem Invenio, Inc. | ||||
| CODM | Chief Operating Decision Maker | ||||
| Cowan | Cowan Systems, LLC; Cowan Transport Holdings, LLC; and Cowan Equipment Leasing, LLC | ||||
| EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortization | ||||
| FASB | Financial Accounting Standards Board | ||||
| GAAP | United States Generally Accepted Accounting Principles | ||||
| KPI | Key Performance Indicator | ||||
| M&M | M&M Transport Services, LLC | ||||
| MLS | Midwest Logistics Systems, Ltd. and affiliated entities holding assets comprising substantially all of its business | ||||
| MLSI | Mastery Logistics Systems, Inc. | ||||
| PSU | Performance-based Restricted Stock Unit | ||||
| RSU | Restricted Stock Unit | ||||
| rTSR | Relative Total Shareholder Return | ||||
| SEC | United States Securities and Exchange Commission | ||||
| Term SOFR | The CME Term SOFR Reference Rate administered by CME Group Benchmark Administration Limited | ||||
| TuSimple | TuSimple Holdings, Inc. (formerly TuSimple (Cayman) Limited) | ||||
| U.S. | United States | ||||
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current expectations, beliefs, plans, or forecasts with respect to, among other things, future events and financial performance and trends in the business and industry. The words “may,” “will,” “could,” “should,” “would,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “prospects,” “potential,” “budget,” “forecast,” “continue,” “predict,” “seek,” “objective,” “goal,” “guidance,” “outlook,” “effort,” “target,” and similar words, expressions, terms, and phrases, generally identify forward-looking statements, which speak only as of the date the statements were made. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks, and uncertainties. Readers are cautioned that a forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement.
The risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: unfavorable economic and market conditions, including inflation, tariffs, and trade disputes; our ability to successfully manage operational challenges and disruptions, as well as related federal, state, and local government responses arising from future pandemics; economic and business risks inherent in the truckload and transportation industry, including competitive pressures pertaining to pricing, capacity, and service; our ability to effectively manage truck capacity brought about by cyclical driver shortages and successfully execute our yield management strategies; our ability to maintain key customer and supply arrangements, including dedicated arrangements, and to manage disruption of our business due to factors outside of our control, such as natural disasters, acts of war or terrorism, disease outbreaks, or pandemics; volatility in the market valuation of our investments in strategic partners and technologies; our ability to manage and effectively implement our growth and diversification strategies and cost saving initiatives; our dependence on our reputation and the Schneider brand and the potential for adverse publicity, damage to our reputation, and the loss of brand equity; risks related to demand for our service offerings; risks associated with the loss of a significant customer or customers; capital investments that fail to match customer demand or for which we cannot obtain adequate funding; fluctuations in the price or availability of fuel, the volume and terms of diesel fuel purchase agreements, our ability to recover fuel costs through our fuel surcharge programs, and potential changes in customer preferences (e.g. truckload vs. intermodal services) driven by diesel fuel prices; fluctuations in the value and demand for our used Class 8 heavy-duty tractors and trailers; our ability to attract and retain qualified drivers, owner-operators, and third-party carriers in sufficient numbers to support our service offerings; our dependence on railroads in the operation of our intermodal business; changes in the outsourcing practices of our third-party logistics customers; difficulty in obtaining fuel, equipment, goods, and services from our vendors and suppliers; variability in insurance and claims expenses and the risks of insuring claims through our captive insurance company; the impact of laws and regulations that apply to our business, including those that relate to the environment, taxes, associates, owner-operators, and our captive insurance company; changes to those laws and regulations; and the increased costs of compliance with existing or future federal, state, and local regulations; political, economic, and other risks from cross-border operations and operations in multiple countries; risks associated with financial, credit, and equity markets, including our ability to service indebtedness and fund capital expenditures and strategic initiatives; negative seasonal patterns generally experienced in the trucking industry during traditionally slower shipping periods and winter months; risks associated with severe weather and similar events; significant systems disruptions, including those caused by cybersecurity events and firmware defects; exposure to claims and lawsuits in the ordinary course of business; our ability to adapt to new technologies and new participants in the truckload and transportation industry; and those risks and uncertainties discussed in (1) our most recently filed Annual Report on Form 10-K in (a) Part I, Item 1A. “Risk Factors,” (b) Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and (c) Part II, Item 8. “Financial Statements and Supplementary Data: Note 13, Commitments and Contingencies,” (2) this Quarterly Report on Form 10-Q in (a) Part I, Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” (b) Part I, Item 1. “Financial Statements: Note 11, Commitments and Contingencies,” and (c) Part II, Item 1A. “Risk Factors,” and (3) other factors discussed in filings with the SEC by the Company. The Company undertakes no obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances which may occur after the date of this Report.
WHERE TO FIND MORE INFORMATION
The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information that the Company files electronically with the SEC. These documents are also available to the public from commercial document retrieval services and at the “Investors” section of our website at www.schneider.com. Information disclosed or available on our website shall not be deemed incorporated into, or to be a part of, this Report.
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Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SCHNEIDER NATIONAL, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(in millions, except per share data)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Operating revenues | $ | $ | |||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Purchased transportation | |||||||||||||||||||||||
| Salaries, wages, and benefits | |||||||||||||||||||||||
| Fuel and fuel taxes | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Operating supplies and expenses—net | |||||||||||||||||||||||
| Insurance and related expenses | |||||||||||||||||||||||
| Other general expenses | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| Income from operations | |||||||||||||||||||||||
| Other expenses (income): | |||||||||||||||||||||||
| Interest income | ( | ( | |||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Other expenses—net | |||||||||||||||||||||||
| Total other expenses—net | |||||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Provision for income taxes | |||||||||||||||||||||||
| Net income | |||||||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Foreign currency translation adjustment—net | ( | ||||||||||||||||||||||
| Net unrealized (losses) gains on marketable securities—net of tax | ( | ||||||||||||||||||||||
| Total other comprehensive (loss) income—net | ( | ||||||||||||||||||||||
| Comprehensive income | $ | $ | |||||||||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic earnings per share | $ | $ | |||||||||||||||||||||
| Weighted average diluted shares outstanding | |||||||||||||||||||||||
| Diluted earnings per share | $ | $ | |||||||||||||||||||||
See notes to consolidated financial statements (unaudited).
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SCHNEIDER NATIONAL, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except share data)
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | |||||||||||
| Current Assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Marketable securities | |||||||||||
Trade accounts receivable—net of allowance of $ | |||||||||||
| Other receivables | |||||||||||
Current portion of lease receivables—net of allowance of $ | |||||||||||
| Inventories—net | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Total current assets | |||||||||||
| Noncurrent Assets: | |||||||||||
| Property and equipment: | |||||||||||
| Transportation equipment | |||||||||||
| Land, buildings, and improvements | |||||||||||
| Other property and equipment | |||||||||||
| Total property and equipment | |||||||||||
| Less accumulated depreciation | |||||||||||
| Net property and equipment | |||||||||||
| Lease receivables | |||||||||||
| Internal use software and other noncurrent assets | |||||||||||
| Goodwill | |||||||||||
| Total noncurrent assets | |||||||||||
| Total Assets | $ | $ | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||
| Current Liabilities: | |||||||||||
| Trade accounts payable | $ | $ | |||||||||
| Accrued salaries, wages, and benefits | |||||||||||
| Claims accruals—current | |||||||||||
| Current maturities of debt and finance lease obligations | |||||||||||
| Other current liabilities | |||||||||||
| Total current liabilities | |||||||||||
| Noncurrent Liabilities: | |||||||||||
| Long-term debt and finance lease obligations | |||||||||||
| Claims accruals—noncurrent | |||||||||||
| Deferred income taxes | |||||||||||
| Other noncurrent liabilities | |||||||||||
| Total noncurrent liabilities | |||||||||||
| Total Liabilities | |||||||||||
Commitments and Contingencies (Note 11) | |||||||||||
Shareholders’ Equity: | |||||||||||
Preferred shares, | |||||||||||
Class A common shares, | |||||||||||
Class B common shares, | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Total Shareholders’ Equity | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | $ | |||||||||
See notes to consolidated financial statements (unaudited).
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SCHNEIDER NATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating Activities: | |||||||||||
| Net income | $ | $ | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Gains on sales of property and equipment—net | ( | ( | |||||||||
| Proceeds from lease receipts | |||||||||||
| Deferred income taxes | ( | ||||||||||
| Long-term incentive and share-based compensation expense | |||||||||||
| Loss on investments in equity securities—net | |||||||||||
| Other noncash items—net | ( | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Receivables | ( | ( | |||||||||
| Other assets | ( | ( | |||||||||
| Claims reserves and receivables—net | ( | ||||||||||
| Payables | |||||||||||
| Other liabilities | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| Investing Activities: | |||||||||||
| Purchases of transportation equipment | ( | ( | |||||||||
| Purchases of other property and equipment | ( | ( | |||||||||
| Proceeds from sale of property and equipment | |||||||||||
| Proceeds from sale of off-lease inventory | |||||||||||
| Purchases of lease equipment | ( | ||||||||||
| Proceeds from marketable securities | |||||||||||
| Investments in equity securities and equity method investment | ( | ( | |||||||||
| Investments in notes receivable | ( | ||||||||||
| Net cash used in investing activities | ( | ( | |||||||||
| Financing Activities: | |||||||||||
| Proceeds under revolving credit agreements | |||||||||||
| Proceeds from long-term debt | |||||||||||
| Payments of debt and finance lease obligations | ( | ( | |||||||||
| Dividends paid | ( | ( | |||||||||
| Repurchases of common stock | ( | ( | |||||||||
| Other financing activities | ( | ( | |||||||||
| Net cash (used in) provided by financing activities | ( | ||||||||||
| Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
| Cash and Cash Equivalents: | |||||||||||
| Beginning of period | |||||||||||
| End of period | $ | $ | |||||||||
| Additional Cash Flow Information: | |||||||||||
| Noncash investing and financing activity: | |||||||||||
| Transportation and lease equipment purchases in accounts payable | $ | $ | |||||||||
| Dividends declared but not yet paid | |||||||||||
| Cash paid during the period for: | |||||||||||
| Interest | |||||||||||
| Income taxes—net of refunds | |||||||||||
See notes to consolidated financial statements (unaudited).
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SCHNEIDER NATIONAL, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)
(in millions, except per share data)
| Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | |||||||||||||||||||||||||||||||||
| Balance—December 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | ( | ( | ||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||||||||||||||||||||
| Dividends declared at $ | ( | ( | ||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | ( | ( | ||||||||||||||||||||||||||||||||||||
| Shares withheld for employee taxes | ( | ( | ||||||||||||||||||||||||||||||||||||
| Balance—March 31, 2026 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
| Balance—December 31, 2024 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
| Net income | ||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||||||||||||||||||
| Share-based compensation expense | ||||||||||||||||||||||||||||||||||||||
| Dividends declared at $ | ( | ( | ||||||||||||||||||||||||||||||||||||
| Repurchases of common stock | ( | ( | ||||||||||||||||||||||||||||||||||||
| Shares withheld for employee taxes | ( | ( | ||||||||||||||||||||||||||||||||||||
| Balance—March 31, 2025 | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||
See notes to consolidated financial statements (unaudited).
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SCHNEIDER NATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
1. GENERAL
Nature of Operations
Principles of Consolidation and Basis of Presentation
The accompanying unaudited interim consolidated financial statements have been prepared in conformity with GAAP and the rules and regulations of the SEC applicable to quarterly reports on Form 10-Q. Therefore, these consolidated financial statements and footnotes do not include all disclosures required by GAAP for annual financial statements and should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025. Financial results for an interim period are not necessarily indicative of the results for a full year. All intercompany transactions have been eliminated in consolidation.
In the opinion of management, these statements reflect all adjustments (consisting only of normal, recurring adjustments) necessary for the fair presentation of our financial results for the interim periods presented.
New Accounting Pronouncements
On November 4, 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40). This standard expands required disclosures for certain costs and expenses included within each relevant expense caption presented on the face of the income statement. Adoption of this standard will require incremental disclosures but is not expected to have a material effect on our consolidated financial statements. This standard is effective for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. We plan to adopt this standard in fiscal year 2027.
On September 18, 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40). This standard modernizes the accounting for internal use software by eliminating references to prescriptive and sequential software development stages. Under the new guidance, entities will be required to begin capitalizing internal-use software costs when management has authorized and committed to funding the software project and the probable-to-complete recognition threshold has been met. The standard is effective for annual reporting periods beginning after December 15, 2027, and for interim periods within those annual periods, with early adoption permitted. The standard may be applied prospectively, retrospectively, or using a modified transition approach. We are currently evaluating the impact of this standard on our consolidated financial statements and plan to adopt the guidance in fiscal year 2028.
On December 4, 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832) - Accounting for Government Grants Received by Business Entities. This standard establishes authoritative U.S. GAAP for the recognition, measurement, and presentation of government grants. Prior to the issuance of this ASU, business entities generally analogized to the guidance in International Accounting Standards 20. Under the new guidance, entities are required to recognize grants using either the deferred income approach or the cost accumulation approach. Under the deferred income approach, grant income is recognized over the period in which the related expenses that the grant is intended to compensate are recognized. The standard is effective for annual reporting periods beginning after December 15, 2028, with early adoption permitted. We do not believe this standard will have a material effect on our consolidated financial statements and expect to adopt the guidance in fiscal year 2029.
On December 8, 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270) - Narrow-Scope Improvements. This guidance is intended to improve the navigability and clarity of Topic 270 and adds a requirement for entities to disclose material events occurring after the end of the most recent annual reporting period. This standard is effective for annual reporting periods beginning after December 15, 2027, with early adoption permitted. We do not believe this standard will have a material effect on our consolidated financial statements and plan to adopt the guidance in fiscal year 2028.
On December 17, 2025, the FASB issued ASU 2025-12, Codification Improvements. This guidance makes minor amendments to various Accounting Standards Codification topics to clarify, correct, or otherwise improve existing guidance. The ASU is effective for interim and annual reporting periods beginning after December 15, 2026, with early adoption permitted. We do not expect adoption of this ASU to have a material effect on our consolidated financial statements. We plan to adopt the standard in fiscal year 2027.
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2. REVENUE RECOGNITION
Disaggregated Revenues
The majority of our revenues are related to transportation and have similar characteristics. The following table summarizes our revenues by type of service.
| Three Months Ended March 31, | ||||||||||||||||||||||||||
Disaggregated Revenues (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Transportation | $ | $ | ||||||||||||||||||||||||
| Logistics management | ||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||
| Total operating revenues | $ | $ | ||||||||||||||||||||||||
Quantitative Disclosure
The following table provides information about transactions and the expected timing of revenue recognition related to remaining fixed performance obligations for contracts with original terms greater than one year, as of the date shown.
Remaining Performance Obligations (in millions) | March 31, 2026 | |||||||
| Expected to be recognized within one year | ||||||||
| Transportation | $ | |||||||
| Logistics management | ||||||||
| Expected to be recognized after one year | ||||||||
| Transportation | ||||||||
| Logistics management | ||||||||
| Total | $ | |||||||
This disclosure excludes performance obligations that are part of a contract with an original expected duration of one year or less. It also excludes expected consideration related to performance obligations for which the Company elects to recognize revenue in the amount to which it has a right to invoice (e.g., usage-based pricing terms).
Information related to contract balances associated with our contracts with customers as of the dates shown is as follows:
Contract Balances (in millions) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Other current assets—Contract assets | $ | $ | ||||||||||||
We generally receive payment within 40 days of performing our obligations under customer contracts. Contract assets in the table above relate to revenue in transit at the end of the reporting period. We had no
3. FAIR VALUE
Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability. Inputs to valuation techniques used to measure fair value fall into three broad levels (Levels 1, 2, and 3) as follows:
Level 1—Observable inputs that reflect quoted prices for identical assets or liabilities in active markets that we have the ability to access at the measurement date.
Level 2—Observable inputs, other than quoted prices included in Level 1, for the asset or liability or prices for similar assets and liabilities.
Level 3—Unobservable inputs reflecting the reporting entity’s estimates of the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
The table below sets forth the Company’s financial assets that are measured at fair value on a recurring, monthly basis in accordance with ASC 820.
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| Fair Value | ||||||||||||||||||||
| (in millions) | Level in Fair Value Hierarchy | March 31, 2026 | December 31, 2025 | |||||||||||||||||
Equity investment in TuSimple (1) | 1 | $ | $ | |||||||||||||||||
Marketable securities (2) | 2 | |||||||||||||||||||
(1)Our equity investment in TuSimple is classified as Level 1 in the fair value hierarchy as shares of TuSimple’s Class A common stock are traded on an Over the Counter (“OTC”) market. See Note 4, Investments, for additional information.
(2)Marketable securities are classified as Level 2 in the fair value hierarchy as they are valued based on quoted prices for similar assets in active markets or quoted prices for identical or similar assets in markets that are not active. See Note 4, Investments, for additional information.
The fair value of the Company’s unsecured senior notes was $50.5 million and $51.7 million as of March 31, 2026 and December 31, 2025, respectively. The carrying value of the Company’s unsecured senior notes was $50.0
The recorded values of cash, trade accounts receivable, lease receivables, trade accounts payable, and amounts outstanding under revolving credit agreements and the delayed-draw term loan facility approximate fair values.
4. INVESTMENTS
Marketable Securities
Our marketable securities are classified as available-for-sale and carried at fair value in current assets on the consolidated balance sheets. While our intent is to hold our securities to maturity, sudden changes in the market or our liquidity needs may cause us to sell certain securities in advance of their maturity date.
Any unrealized gains and losses, net of tax, are included as a component of accumulated other comprehensive income on the consolidated balance sheets, unless we determine that the amortized cost basis is not recoverable. If we determine that the amortized cost basis of the impaired security is not recoverable, we recognize the credit loss by increasing the allowance for those losses. We did no
The following table presents the remaining maturities and values of our marketable securities as of the dates shown.
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||
| (in millions, except maturities in months) | Remaining Maturities | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||||||||||||||||||||
| U.S. treasury and government agencies | 7 to 59 months | $ | $ | $ | $ | |||||||||||||||||||||||||||
| Corporate debt securities | 12 to 85 months | |||||||||||||||||||||||||||||||
| State and municipal bonds | 1 to 151 months | |||||||||||||||||||||||||||||||
| Total marketable securities | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Equity Investments without Readily Determinable Fair Values
The Company’s primary strategic equity investments without readily determinable fair values include Platform Science, Inc., a provider of telematics and fleet management tools, and MLSI, a transportation technology development company. The Company previously had an investment in ChemDirect, a business-to-business digital marketplace for the chemical industry. In February 2025, ChemDirect’s Board approved the dissolution of the company, and we recorded a $4.9 million loss in other expense—net on the consolidated statements of comprehensive income for the three months ended March 31, 2025.
During the first quarter of 2025, the Company funded a $13.0 million short term note receivable for MLSI which bore interest at 7.5%. In May 2025, the note receivable, plus accrued interest of $0.4 million, was converted to shares of preferred stock totaling $13.4 million in a noncash transaction.
These investments are accounted for under ASC 321, Investments - Equity Securities, using the measurement alternative. Their combined values as of March 31, 2026 and December 31, 2025 were $137.3
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In addition to our investment in MLSI, we hold a $10.0 million note receivable from MLSI as of March 31, 2026 which was funded during the first quarter of 2023, is subject to interest over its term, and matures in March 2030. As of March 31, 2026 and December 31, 2025, the balances, including accrued interest, were $12.4 million and $12.2 million, respectively. We also hold a $2.5 million note receivable from Platform Science, Inc. as of March 31, 2026 which was executed and funded during the second quarter of 2024, is subject to interest over its term, and matures in March 2027. As of March 31, 2026 and December 31, 2025, the balances, including accrued interest, were $2.9 million and $2.8 million, respectively.
The following table summarizes the activity related to these equity investments during the periods presented.
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
Upward adjustments (1) | $ | $ | ||||||||||||||||||||||||
| Downward adjustments | ||||||||||||||||||||||||||
(1) Our updated investment value in 2025 related to Platform Science, Inc. and was determined using a combination of the discounted cash flow and guideline public company methods.
Equity Investments with Readily Determinable Fair Values
In 2021, the Company purchased a $5.0 million non-controlling interest in TuSimple, a Chinese autonomous trucking start-up. Upon completion of its initial public offering in April 2021, our investment in TuSimple was converted into Class A common shares and is being accounted for under ASC 321, Investments - Equity Securities. Our net investment and activity were not material for the three months ended March 31, 2026 and 2025, nor at December 31, 2025. See Note 3, Fair Value, for additional information on the fair value of our investment in TuSimple.
Equity Method Investment
In the second quarter of 2023, the Company invested $5.0 million consisting primarily of internal use software and cash in exchange for a 50 % non-controlling ownership interest in Scope 23 LLC, a technology company that designs supply chain and logistics solutions to help companies manage their carbon emissions. The Company accounts for this investment under ASC 323, Investments - Equity Method and Joint Ventures.
For the three months ended March 31, 2026 and 2025, activity was not material. The carrying value of our investment was $4.2 million and $4.1 million as of March 31, 2026 and December 31, 2025, respectively.
All of our equity investments and notes receivable are included in internal use software and other noncurrent assets on the consolidated balance sheets. Gains or losses on our equity investments are recognized within other expenses—net on the consolidated statements of comprehensive income.
5. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill represents the excess of the purchase price of acquisitions over the fair value of the identifiable net assets acquired. Our goodwill balance as of March 31, 2026 and December 31, 2025 was $337.4 323.2 14.2
As of March 31, 2026 and December 31, 2025, our Truckload segment had accumulated goodwill impairment charges of $34.6
The identifiable, finite-lived intangible assets listed below are included in internal use software and other noncurrent assets on the consolidated balance sheets and relate to the acquisitions of Cowan, MLS, and M&M.
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||
| (in millions) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||
| Customer relationships | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Trademarks | ||||||||||||||||||||||||||||||||||||||
| Non-compete agreements | ||||||||||||||||||||||||||||||||||||||
| Total intangible assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
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Amortization expense for intangible assets was $1.7 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively.
Estimated future amortization expense related to intangible assets is as follows:
| (in millions) | March 31, 2026 | |||||||
| Remaining 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| 2031 and thereafter | ||||||||
| Total | $ | |||||||
6. DEBT AND CREDIT FACILITIES
As of March 31, 2026 and December 31, 2025, debt included the following:
| (in millions) | March 31, 2026 | December 31, 2025 | ||||||||||||
Unsecured senior notes: principal matures August | $ | $ | ||||||||||||
Delayed-draw term loan facility: matures November 2029; variable rate interest payments due quarterly based on the Term SOFR; weighted-average interest rate of | ||||||||||||||
| Total debt and credit facilities | ||||||||||||||
| Current maturities | ( | ( | ||||||||||||
| Debt issuance costs | ( | ( | ||||||||||||
| Long-term debt | $ | $ | ||||||||||||
Our Revolving Credit Agreement (the “2022 Credit Facility”) provides borrowing capacity of $250.0 million and allows us to request an additional increase in total commitment by up to $150.0 million, for a total potential commitment of $400.0 million through November 2027. There were no 100.0 million sublimit for the issuance of letters of credit. Standby letters of credit outstanding under this facility totaled $0.4
Our Receivables Purchase Agreement (the “2024 Receivables Purchase Agreement”) allows borrowings against qualifying trade receivables up to $200.0 million through May 2027. There were no 150.0 million sublimit for the issuance of letters of credit. Standby letters of credit outstanding under the agreement totaled $117.9 million and $102.9 million as of March 31, 2026 and December 31, 2025, respectively, and were primarily related to certain insurance obligations.
Our delayed-draw term loan facility was fully drawn as of the first quarter in 2025. Borrowings under the facility are unsecured and bear interest, at the election of the Company for each borrowing, based on either the Term SOFR or the ABR (“Alternate Base Rate”), and mature in November 2029. Quarterly principal payments equal to 0.625% of the outstanding balance began in September 2025 and will continue through maturity.
7. LEASES
As Lessee
We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating and finance leases include transportation, office, yard, warehouse, and other equipment, in addition to truck washes. Most leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment.
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In conjunction with our acquisition of M&M, the Company entered into nine related party leases. The leases are for the use of shop, warehouse, office, and drop yard locations throughout the country. As of March 31, 2026, seven of these leases have been renewed and extend through 2029, while the remaining two leases are scheduled to expire later in 2026. The related lease payments are not material.
Additional information related to our leases is as follows:
| Three Months Ended March 31, | ||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||
| Operating cash flows for operating leases | $ | $ | ||||||||||||
| Operating cash flows for finance leases | ||||||||||||||
| Financing cash flows for finance leases | ||||||||||||||
| Right-of-use assets obtained in exchange for new lease liabilities | ||||||||||||||
| Operating leases | $ | $ | ||||||||||||
As of March 31, 2026, we had two leases that were signed but not yet commenced totaling $3.5 million. They will commence in the second and third quarters of 2026 and have a term of two and four years , respectively.
As Lessor
We finance various types of transportation-related equipment for independent third parties under lease contracts, which are generally for one to three years and are accounted for as sales-type leases with fully guaranteed residual values. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.
As of March 31, 2026 and December 31, 2025, investments in lease receivables were as follows:
| (in millions) | March 31, 2026 | December 31, 2025 | ||||||||||||
| Future minimum payments to be received on leases | $ | $ | ||||||||||||
| Guaranteed residual lease values | ||||||||||||||
| Total minimum lease payments to be received | ||||||||||||||
| Unearned income | ( | ( | ||||||||||||
| Net investment in leases | $ | $ | ||||||||||||
Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed.
Our net investment in leases with any portion past due as of March 31, 2026 was $41.8 million, which includes both current and future lease payments. Lease payments on our lease receivables are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of March 31, 2026, our lease payments past due were $2.2 million.
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The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Revenue | $ | $ | ||||||||||||||||||||||||
| Cost of goods sold | ( | ( | ||||||||||||||||||||||||
| Operating profit | $ | $ | ||||||||||||||||||||||||
| Interest income on lease receivables | $ | $ | ||||||||||||||||||||||||
8. INCOME TAXES
9. COMMON EQUITY
Earnings Per Share
The following table sets forth the computation of basic and diluted earnings per share for the three months ended March 31, 2026 and 2025, respectively.
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions, except per share data) | 2026 | 2025 | ||||||||||||||||||||||||
| Numerator: | ||||||||||||||||||||||||||
| Net income available to common shareholders | $ | $ | ||||||||||||||||||||||||
| Denominator: | ||||||||||||||||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||||||||||||
| Dilutive effect of share-based awards and options outstanding | ||||||||||||||||||||||||||
Weighted average diluted common shares outstanding (1) | ||||||||||||||||||||||||||
Basic earnings per common share (2) | $ | $ | ||||||||||||||||||||||||
Diluted earnings per common share (2) | ||||||||||||||||||||||||||
(1)Weighted average diluted common shares outstanding may not sum due to rounding.
(2)Earnings per share were calculated on full precision amounts.
Share-based awards and options excluded from the calculation of diluted earnings per share due to having an anti-dilutive effect for the three months ended March 31, 2026 and 2025 were not
Common Shares Outstanding
As of March 31, 2026 and December 31, 2025, we had 83,029,500
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Changes to our Class B common shares outstanding for the three months ended March 31, 2026 and 2025 are as follows:
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Outstanding at beginning of period | ||||||||||||||||||||||||||
| Repurchases of common stock | ( | ( | ||||||||||||||||||||||||
| Share issuances | ||||||||||||||||||||||||||
| Shares withheld for employee taxes | ( | ( | ||||||||||||||||||||||||
| Outstanding at end of period | ||||||||||||||||||||||||||
In January 2026, our Board approved a share repurchase program under which the Company is authorized to repurchase up to $150.0 million of its Class A and/or Class B common shares. As of March 31, 2026, the Company had repurchased $5.2 million of its Class B common shares under the share repurchase program.
Subsequent Event - Dividends Declared
In April 2026, the Board declared a quarterly cash dividend for the second fiscal quarter of 2026 in the amount of $0.10
10. SHARE-BASED COMPENSATION
We grant various equity-based awards relating to Class B common stock to employees under our 2017 Omnibus Incentive Plan. These awards have historically consisted of restricted shares, RSUs, performance-based restricted shares (“performance shares”), PSUs, and non-qualified stock options. Performance shares and PSUs granted are earned based on attainment of threshold performance of earnings and return on capital targets, in addition to a multiplier applied based on rTSR against peers over the performance period.
Share-based compensation expense was $4.1 million and $4.6 million for the three months ended March 31, 2026 and 2025, respectively. We recognize share-based compensation expense over the awards’ vesting period. As of March 31, 2026, we had $31.9 million of pre-tax unrecognized compensation cost related to outstanding share-based compensation awards expected to be recognized over a weighted average period of 2.1 years.
Equity-based awards granted during the first quarter of 2026 had a grant date fair value of $20.7 million and are included in the table below. RSUs granted in 2026 vest ratably over a period of three years . No restricted shares, performance shares, or non-qualified stock options were granted during the first quarter of 2026.
| 2026 Grants | Number of Awards Granted | Weighted Average Grant Date Fair Value | ||||||||||||
| RSUs | $ | |||||||||||||
| PSUs | ||||||||||||||
| Total grants | ||||||||||||||
The Monte-Carlo valuation model is used by the Company to determine the grant date fair value of PSUs, while the Company uses its stock price on the grant date as the fair value assigned to RSUs.
11. COMMITMENTS AND CONTINGENCIES
In the ordinary course of conducting our business, we become involved in certain legal matters and investigations including liability claims, taxes other than income taxes, contract disputes, employment, and other litigation matters. We accrue for anticipated costs to resolve matters that are probable and estimable. We believe the outcomes of these matters will not have a material impact on our business or our consolidated financial statements.
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We record liabilities for claims against the Company based on our best estimate of expected losses. Claims lodged against the Company generally arise out of its trucking, intermodal, and logistics operations and consist primarily of personal injury, unpaid wages and benefits, workers’ compensation, property damage, and cargo claims. For certain claims, we maintain excess liability insurance with licensed insurance carriers for liability in excess of amounts we self-insure, which serves to largely offset the Company’s liability associated with these claims, with the exception of wage and benefit claims for which we self-insure. We review our accruals periodically to ensure that the aggregate amounts of our accruals are appropriate at any period after consideration of available insurance coverage. Although we expect our claims accruals will continue to vary based on future developments, assuming that we are able to continue to obtain and maintain excess liability insurance coverage for such claims, we do not anticipate that such accruals will, in any period, materially impact our operating results.
As of March 31, 2026, our firm commitments to purchase transportation equipment totaled $111.2 million.
12. SEGMENT REPORTING
We have three reportable segments – Truckload, Intermodal, and Logistics – which are based primarily on the services each segment provides.
The CODM reviews revenues for each segment without the inclusion of fuel surcharge revenues. For segment purposes, any fuel surcharge revenues earned are recorded as a reduction of the segment’s fuel expenses. Income from operations at the segment level reflects the measure presented to the CODM for each segment.
Separate balance sheets are not prepared by segment, and as a result, assets are not separately identifiable by segment. All transactions between reportable segments are eliminated in consolidation.
Substantially all of our revenues and assets were generated or located within the U.S.
The following tables summarize our segment information. Inter-segment revenues within Other include revenues from insurance premiums charged to other segments for workers’ compensation, auto, and other types of insurance. Inter-segment revenues included in Other revenues below were $29.7 million and $23.0 million for the three months ended March 31, 2026 and 2025, respectively.
| Segment Revenues and Expenses | Three Months Ended March 31, 2026 | |||||||||||||||||||||||||
(in millions) | Truckload | Intermodal | Logistics | Total | ||||||||||||||||||||||
| Revenues (excluding fuel surcharge) | $ | $ | $ | $ | ||||||||||||||||||||||
| Fuel surcharge revenues | ||||||||||||||||||||||||||
| Segment operating revenues | ||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||
| Elimination of inter-segment revenues | ( | |||||||||||||||||||||||||
| Elimination of inter-segment fuel surcharge revenues | ( | |||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||
| Salaries, wages, and benefits | ||||||||||||||||||||||||||
| Purchased transportation, fuel, and fuel taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Operating supplies and expenses-net | ||||||||||||||||||||||||||
Other segment expenses(1) | ||||||||||||||||||||||||||
| Segment income from operations | $ | $ | $ | |||||||||||||||||||||||
| Corporate and other loss from operations—net | ( | |||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||
| Total other expenses—net | ||||||||||||||||||||||||||
| Income before income taxes | $ | |||||||||||||||||||||||||
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| Segment Revenues and Expenses | Three Months Ended March 31, 2025 | |||||||||||||||||||||||||
(in millions) | Truckload | Intermodal | Logistics | Total | ||||||||||||||||||||||
| Revenues (excluding fuel surcharge) | $ | $ | $ | $ | ||||||||||||||||||||||
| Fuel surcharge revenues | ||||||||||||||||||||||||||
| Segment operating revenues | ||||||||||||||||||||||||||
| Other revenues | ||||||||||||||||||||||||||
| Elimination of inter-segment revenues | ( | |||||||||||||||||||||||||
| Elimination of inter-segment fuel surcharge revenues | ( | |||||||||||||||||||||||||
| Operating revenues | ||||||||||||||||||||||||||
| Salaries, wages, and benefits | ||||||||||||||||||||||||||
| Purchased transportation, fuel, and fuel taxes | ||||||||||||||||||||||||||
| Depreciation and amortization | ||||||||||||||||||||||||||
| Operating supplies and expenses-net | ||||||||||||||||||||||||||
Other segment expenses(1) | ||||||||||||||||||||||||||
| Segment income from operations | $ | $ | $ | |||||||||||||||||||||||
| Corporate and other loss from operations—net | ( | |||||||||||||||||||||||||
| Income from operations | ||||||||||||||||||||||||||
| Total other expenses—net | ||||||||||||||||||||||||||
| Income before income taxes | $ | |||||||||||||||||||||||||
(1)For each reportable segment, other segment expenses include insurance and related expenses and other general expenses.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the accompanying consolidated financial statements and related notes and our Annual Report on Form 10-K for the year ended December 31, 2025.
INTRODUCTION
Company Overview
We are a transportation and logistics services company providing a comprehensive, multimodal portfolio of truckload, intermodal, and logistics solutions. Our diversified portfolio of complementary service offerings enables us to serve our customers’ varied transportation needs while allocating capital in a manner designed to maximize returns across market cycles and economic conditions. We continuously monitor our performance and prevailing market conditions to ensure appropriate deployment of capital and resources to support business growth and optimize returns across our reportable segments. Our strong balance sheet, scalable platform, and experienced management and operations teams support our acquisition strategy, which focuses on acquiring high-quality businesses that meet our disciplined selection criteria, enhance our service offerings, and broaden our customer base.
Our truckload services include over-the-road freight transportation utilizing dry van, bulk, temperature-controlled, and flat-bed trailers under network or dedicated configurations. Freight is transported and delivered by our company-employed drivers operating company-owned equipment, as well as by owner-operators utilizing company-owned trailers. These services are provided through long-haul or regional operations and include customized solutions for high-value and time-sensitive freight throughout North America.
Our intermodal services consist of door-to-door container on flat car transportation utilizing a combination of rail and drayage services in coordination with our rail provider partners. Our intermodal operations primarily use company-owned containers, chassis, and trucks, with most drayage services performed by company drivers, supplemented by third-party drayage capacity.
Our logistics services are asset-light and include freight brokerage (both traditional brokerage and Power Only services, which leverage our nationwide company-owned trailer pools to match third-party capacity with customer demand), supply chain solutions (including 3PL), warehousing, and import/export services. These offerings provide value-added transportation and supply-chain solutions utilizing a combination of company-owned assets and third-party capacity, supported by our trailing assets, to manage and move customer freight efficiently.
Our success depends on our ability to effectively balance our transportation network and efficiently manage resources across our truckload, intermodal, and logistics operations. Resource requirements vary based on customer demand, which may be impacted by seasonal patterns and general economic conditions. We believe our disciplined freight selection and ability to adapt to changes in customer transportation needs allow us to efficiently deploy resources and make capital investments in trucks, trailers, containers, and chassis, or to secure qualified third-party capacity at competitive rates.
Consistent with industry trends, our business exhibits seasonality across each of our reportable segments. Revenues are typically lowest in the first quarter and highest in the fourth quarter. Operating expenses tend to be higher in the winter months due primarily to colder weather, which increases maintenance costs and fuel consumption associated with increased idle time.
RESULTS OF OPERATIONS
Non-GAAP Financial Measures
In this section of our report, we present the following non-GAAP financial measures: (1) revenues (excluding fuel surcharge), (2) adjusted income from operations, (3) adjusted total operating expenses, net of fuel surcharge revenues, (4) adjusted operating ratio, (5) adjusted net income, (6) adjusted EBITDA, and (7) free cash flow. We also provide reconciliations of these measures to the most directly comparable financial measures calculated and presented in accordance with GAAP.
Management believes the use of each of these non-GAAP measures assists investors in understanding our business by (1) removing the impact of items from our operating results that, in our opinion, do not reflect our core operating performance, (2) providing investors with the same information our management uses internally to assess our core operating performance, and (3) presenting comparable financial results between periods. In addition, in the case of revenues (excluding fuel surcharge) and adjusted total operating expenses, net of fuel surcharge revenues, we believe these measures are useful to investors because they isolate volume, price, and cost changes directly related to industry demand and the way we operate our business from the external factor of fluctuating fuel prices and the programs we have in place to manage such fluctuations. Fuel-related costs and
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their impact on our industry are important to our results of operations, but they are often independent of other, more relevant factors affecting our results of operations and our industry. Free cash flow is used as a measure to assess overall liquidity and does not represent residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt.
Although we believe these non-GAAP measures are useful to investors, they have limitations as analytical tools and may not be comparable to similar measures disclosed by other companies. You should not consider the non-GAAP measures in this report in isolation or as substitutes for, or alternatives to, analysis of our results as reported under GAAP. The exclusion of unusual or infrequent items or other adjustments reflected in the non-GAAP measures should not be construed as an inference that our future results will not be affected by unusual or infrequent items or other items similar to such adjustments. Our management compensates for these limitations by relying primarily on our GAAP results in addition to using the non-GAAP measures.
Enterprise Summary
The following table includes key GAAP and non-GAAP financial measures for the consolidated enterprise. Adjustments to arrive at non-GAAP measures are made at the enterprise level, with the exception of fuel surcharge revenues, which are not included in segment revenues.
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions, except ratios) | 2026 | 2025 | ||||||||||||||||||||||||
| Operating revenues | $ | 1,398.5 | $ | 1,401.8 | ||||||||||||||||||||||
Revenues (excluding fuel surcharge) (1) | 1,243.1 | 1,258.3 | ||||||||||||||||||||||||
| Income from operations | 33.4 | 42.1 | ||||||||||||||||||||||||
Adjusted income from operations (2) | 35.1 | 44.2 | ||||||||||||||||||||||||
| Operating ratio | 97.6 | % | 97.0 | % | ||||||||||||||||||||||
Adjusted total operating expenses, net of fuel surcharge revenues (3) | $ | 1,208.0 | $ | 1,214.1 | ||||||||||||||||||||||
Adjusted operating ratio (4) | 97.2 | % | 96.5 | % | ||||||||||||||||||||||
| Net income | $ | 20.4 | $ | 26.1 | ||||||||||||||||||||||
Adjusted net income (5) | 21.7 | 27.7 | ||||||||||||||||||||||||
Adjusted EBITDA (6) | 143.6 | 154.8 | ||||||||||||||||||||||||
| Cash flow from operations | 92.9 | 91.7 | ||||||||||||||||||||||||
Free cash flow (7) | 48.1 | (5.4) | ||||||||||||||||||||||||
(1)We define “revenues (excluding fuel surcharge)” as operating revenues less fuel surcharge revenues, which are excluded from revenues at the segment level. Below is a reconciliation of operating revenues, the most closely comparable GAAP financial measure, to revenues (excluding fuel surcharge).
(2)We define “adjusted income from operations” as income from operations adjusted to exclude certain items that do not reflect our core operating performance. Below is a reconciliation of income from operations, the most directly comparable GAAP measure, to adjusted income from operations. The items excluded for the periods presented are described in the table and notes below.
(3)We define “adjusted total operating expenses, net of fuel surcharge revenues” as total operating expenses adjusted to exclude fuel surcharge revenues and certain expenses that do not reflect our core operating performance. The excluded expenses for the periods presented are described below under our explanation of “adjusted income from operations.”
(4)We define “adjusted operating ratio” as adjusted total operating expenses, net of fuel surcharge revenues, divided by revenues (excluding fuel surcharge). A reconciliation of operating ratio, the most directly comparable GAAP measure, to adjusted operating ratio is provided below. The items excluded for the periods presented are described below under our explanation of “adjusted income from operations.”
(5)We define “adjusted net income” as net income adjusted to exclude certain items that do not reflect our core operating performance. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted net income is provided below. The items excluded for the periods presented are described below under our explanation of “adjusted income from operations.”
(6)We define “adjusted EBITDA” as net income adjusted to exclude net interest expense, provision for income taxes, depreciation and amortization, and certain items that do not reflect our core operating performance. A reconciliation of net income, the most directly comparable GAAP measure, to adjusted EBITDA is provided below.
(7)We define “free cash flow” as net cash provided by operating activities less net cash used for capital expenditures. A reconciliation of net cash provided by operating activities, the most directly comparable GAAP measure, to free cash flow is provided below.
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Revenues (excluding fuel surcharge)
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Operating revenues | $ | 1,398.5 | $ | 1,401.8 | ||||||||||||||||||||||
| Less: Fuel surcharge revenues | 155.4 | 143.5 | ||||||||||||||||||||||||
| Revenues (excluding fuel surcharge) | $ | 1,243.1 | $ | 1,258.3 | ||||||||||||||||||||||
Adjusted income from operations
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Income from operations | $ | 33.4 | $ | 42.1 | ||||||||||||||||||||||
Acquisition-related costs (1) | — | 0.2 | ||||||||||||||||||||||||
Intangible asset amortization (2) | 1.7 | 1.9 | ||||||||||||||||||||||||
| Adjusted income from operations | $ | 35.1 | $ | 44.2 | ||||||||||||||||||||||
(1)Advisory, legal, and accounting costs related to the acquisition of Cowan.
(2)Amortization expense related to intangible assets acquired through recent business acquisitions. Although intangible assets contribute to our revenue generation, the amortization of intangible assets does not directly relate to transportation services provided to our customers.
Adjusted operating ratio
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions, except ratios) | 2026 | 2025 | ||||||||||||||||||||||||
| GAAP Presentation | ||||||||||||||||||||||||||
| Operating revenues | $ | 1,398.5 | $ | 1,401.8 | ||||||||||||||||||||||
| Total operating expenses | 1,365.1 | 1,359.7 | ||||||||||||||||||||||||
| Income from operations | $ | 33.4 | $ | 42.1 | ||||||||||||||||||||||
Operating ratio (1) | 97.6 | % | 97.0 | % | ||||||||||||||||||||||
| Non-GAAP Presentation | ||||||||||||||||||||||||||
| Operating revenues | $ | 1,398.5 | $ | 1,401.8 | ||||||||||||||||||||||
| Less: Fuel surcharge revenues | 155.4 | 143.5 | ||||||||||||||||||||||||
| Revenues (excluding fuel surcharge) | $ | 1,243.1 | $ | 1,258.3 | ||||||||||||||||||||||
| Total operating expenses | $ | 1,365.1 | $ | 1,359.7 | ||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||
| Fuel surcharge revenues | (155.4) | (143.5) | ||||||||||||||||||||||||
| Acquisition-related costs | — | (0.2) | ||||||||||||||||||||||||
| Intangible asset amortization | (1.7) | (1.9) | ||||||||||||||||||||||||
Adjusted total operating expenses, net of fuel surcharge revenues (2) | $ | 1,208.0 | $ | 1,214.1 | ||||||||||||||||||||||
Adjusted operating ratio (3) | 97.2 | % | 96.5 | % | ||||||||||||||||||||||
(1) Calculated as total operating expenses divided by operating revenues.
(2) Adjusted total operating expenses, net of fuel surcharge revenues are defined as total operating expenses, adjusted to exclude fuel surcharge revenues and certain expenses that do not reflect our core operating performance.
(3) Calculated as adjusted total operating expenses, net of fuel surcharge revenues divided by revenues (excluding fuel surcharge).
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Adjusted net income
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Net income | $ | 20.4 | $ | 26.1 | ||||||||||||||||||||||
| Acquisition-related costs | — | 0.2 | ||||||||||||||||||||||||
| Intangible asset amortization | 1.7 | 1.9 | ||||||||||||||||||||||||
Income tax effect of non-GAAP adjustments (1) | (0.4) | (0.5) | ||||||||||||||||||||||||
| Adjusted net income | $ | 21.7 | $ | 27.7 | ||||||||||||||||||||||
(1)Our estimated tax rate on non-GAAP items is determined annually using the applicable consolidated federal and state effective tax rate, modified to remove the impact of tax credits and adjustments that are not applicable to the specific items. Due to differences in the tax treatment of items excluded from non-GAAP income, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP items may differ from our GAAP tax rate and from our actual tax liabilities.
Adjusted EBITDA
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Net income | $ | 20.4 | $ | 26.1 | ||||||||||||||||||||||
| Interest expense, net | 5.5 | 6.2 | ||||||||||||||||||||||||
| Provision for income taxes | 6.8 | 8.7 | ||||||||||||||||||||||||
| Depreciation and amortization | 110.9 | 113.6 | ||||||||||||||||||||||||
| Acquisition-related costs | — | 0.2 | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 143.6 | $ | 154.8 | ||||||||||||||||||||||
Free cash flow
| Three Months Ended March 31, | ||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | ||||||||||||||||||||||||
| Net cash provided by operating activities | $ | 92.9 | $ | 91.7 | ||||||||||||||||||||||
| Purchases of transportation equipment | (40.9) | (114.4) | ||||||||||||||||||||||||
| Purchases of other property and equipment | (27.0) | (6.8) | ||||||||||||||||||||||||
| Proceeds from sale of property and equipment | 23.1 | 24.1 | ||||||||||||||||||||||||
| Net capital expenditures | (44.8) | (97.1) | ||||||||||||||||||||||||
| Free cash flow | $ | 48.1 | $ | (5.4) | ||||||||||||||||||||||
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Enterprise Results Summary
Enterprise net income decreased $5.7 million, approximately 22%, in the first quarter of 2026 compared to the same period in 2025, primarily due to an $8.7 million decrease in income from operations. This decrease was partially offset by a $1.9 million reduction in the provision for income taxes and a $1.1 million decrease in other expenses, driven by lower interest expense.
Adjusted net income decreased $6.0 million, approximately 22%, for the same reasons discussed above.
Components of Enterprise Net Income
Enterprise Revenues
Enterprise operating revenues decreased $3.3 million in the first quarter of 2026 compared to the same period in 2025.
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Factors contributing to the decrease included:
•a $19.7 million decline in Logistics segment revenues (excluding fuel surcharge) driven by decreased brokerage volume; and
•a $6.9 million decrease in Intermodal revenues (excluding fuel surcharge) due to lower revenue per order, reflecting shorter length of haul;
These decreases were partially offset by:
•an $11.9 million increase in fuel surcharge revenues related to higher fuel prices in 2026;
•a $4.3 million increase in Truckload segment revenues (excluding fuel surcharge), driven by higher revenue per truck per week within Network.
Enterprise revenues (excluding fuel surcharge) decreased $15.2 million, for the same reasons discussed above, excluding fuel surcharge revenue.
Enterprise Income from Operations and Operating Ratio
Enterprise income from operations decreased $8.7 million, approximately 21%, in the first quarter of 2026 compared to the same period in 2025. The decrease was primarily attributable to lower Logistics brokerage volume, reduced Intermodal rate per mile, and higher maintenance costs. These impacts were partially offset by lower purchased transportation and salaries and wages resulting from costs-containment actions, improved Network productivity, and higher Network rate per billed mile and Dedicated rate per total mile.
Adjusted income from operations decreased $9.1 million, approximately 21%.
Enterprise operating ratio (operating expenses as a percentage of operating revenues) increased on both a GAAP and adjusted basis when compared to the first quarter of 2025, for the same reasons listed above.
Enterprise Operating Expenses
Key operating expense fluctuations quarter over quarter are described below.
•Purchased transportation decreased $7.8 million, or 2%, driven by lower third-party purchased transportation within Logistics due to reduced volume, partially offset by higher owner-operator purchased transportation costs within Truckload associated with increased Network price.
•Salaries, wages, and benefits decreased $4.7 million, or 1%, primarily due to reduced salaries and wages resulting from headcount actions, partially offset by higher workers’ compensation and benefit costs.
•Fuel and fuel taxes for company trucks increased $12.8 million, or 12%, driven by a higher cost per gallon. A significant portion of fuel costs are recovered through our fuel surcharge programs.
•Depreciation and amortization decreased $2.7 million, or 2%, mainly due to lower trailer count and internal use software amortization.
•Operating supplies and expenses—net increased $12.7 million, or 7%, largely resulting from increased maintenance expenses, higher software costs, and lower gains on sale of equipment.
•Insurance and related expenses decreased $1.2 million, or 3%, driven by a decrease in claims severity, partially offset by increased premiums.
•Other general expenses decreased $3.7 million, or 11%, primarily reflecting lower professional service expenses resulting from cost-containment actions.
Total Other Expenses-Net
Total other expenses decreased $1.1 million in the first quarter of 2026 compared to the same period in 2025 mainly due to a decrease in interest expense of $0.8 million.
Income Tax Expense
Our provision for income taxes decreased $1.9 million, or 22%, in the first quarter of 2026 compared to the same period in 2025, primarily due to lower taxable income. The effective income tax rate was 25.0% for both the three months ended March 31, 2026 and 2025. Our provision for income taxes may fluctuate in future periods to the extent tax laws and regulations change.
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Revenues and Income (Loss) from Operations by Segment
The following tables summarize revenues and income (loss) from operations by segment.
| Three Months Ended March 31, | ||||||||||||||
Revenues by Segment (in millions) | 2026 | 2025 | ||||||||||||
| Truckload | $ | 618.0 | $ | 613.7 | ||||||||||
| Intermodal | 253.5 | 260.4 | ||||||||||||
| Logistics | 312.3 | 332.0 | ||||||||||||
| Other | 99.6 | 88.7 | ||||||||||||
| Fuel surcharge | 155.4 | 143.5 | ||||||||||||
| Inter-segment eliminations | (40.3) | (36.5) | ||||||||||||
| Operating revenues | $ | 1,398.5 | $ | 1,401.8 | ||||||||||
| Three Months Ended March 31, | ||||||||||||||
Income (Loss) from Operations by Segment (in millions) | 2026 | 2025 | ||||||||||||
| Truckload | $ | 20.2 | $ | 25.1 | ||||||||||
| Intermodal | 10.9 | 13.8 | ||||||||||||
| Logistics | 6.5 | 8.1 | ||||||||||||
| Other | (4.2) | (4.9) | ||||||||||||
| Income from operations | 33.4 | 42.1 | ||||||||||||
| Adjustments: | ||||||||||||||
| Acquisition-related costs | — | 0.2 | ||||||||||||
| Intangible asset amortization | 1.7 | 1.9 | ||||||||||||
| Adjusted income from operations | $ | 35.1 | $ | 44.2 | ||||||||||
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We monitor and analyze a number of KPIs to manage our business and evaluate our financial and operating performance.
Truckload
The following table presents our Truckload segment KPIs for the periods indicated and is consistent with how revenues and expenses are reported internally for segment purposes. Our Truckload segment is comprised of two operating units:
•Dedicated - Transportation services utilizing equipment dedicated to customers under long-term contracts.
•Network - Transportation services primarily consisting of one-way shipments.
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
Dedicated | ||||||||||||||
Revenues (excluding fuel surcharge) (1) | $ | 434.0 | $ | 435.5 | ||||||||||
Average trucks (2) (3) | 8,495 | 8,543 | ||||||||||||
Revenue per truck per week (4) | $ | 4,055 | $ | 4,034 | ||||||||||
Network | ||||||||||||||
Revenues (excluding fuel surcharge) (1) | $ | 185.3 | $ | 177.9 | ||||||||||
Average trucks (2) (3) | 3,639 | 3,736 | ||||||||||||
Revenue per truck per week (4) | $ | 4,041 | $ | 3,767 | ||||||||||
Total Truckload | ||||||||||||||
Revenues (excluding fuel surcharge) (5) | $ | 618.0 | $ | 613.7 | ||||||||||
Average trucks (2) (3) | 12,134 | 12,279 | ||||||||||||
Revenue per truck per week (4) | $ | 4,051 | $ | 3,953 | ||||||||||
Average company trucks (3) | 10,814 | 10,973 | ||||||||||||
Average owner-operator trucks (3) | 1,320 | 1,306 | ||||||||||||
Trailers (6) | 51,227 | 53,479 | ||||||||||||
Operating ratio (7) | 96.7 | % | 95.9 | % | ||||||||||
(1)Revenues (excluding fuel surcharge), in millions, exclude revenue in transit.
(2)Includes company and owner-operator trucks.
(3)Calculated based on beginning and end of month counts and represents the average number of trucks available to haul freight over the specified timeframe.
(4)Calculated excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes, using weighted workdays.
(5)Revenues (excluding fuel surcharge), in millions, include revenue in transit at the operating segment level and, therefore, amounts presented above do not sum to total.
(6)Includes entire fleet of owned trailers, including trailers with leasing arrangements between Truckload and Logistics.
(7)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.
Truckload revenues (excluding fuel surcharge) increased $4.3 million, approximately 1%, in the first quarter of 2026 compared to the same period in 2025, driven by a 3% increase in Network billed miles and higher rates per billed mile in Network and per total mile in Dedicated, partially offset by lower Dedicated volume.
Truckload income from operations decreased $4.9 million, approximately 20%, in the first quarter of 2026 compared to the same period in 2025, primarily due to higher maintenance and fuel costs, as well as lower gains on sale of equipment. These impacts were partially offset by improved Network productivity and price.
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Intermodal
The following table presents the KPIs for our Intermodal segment for the periods indicated.
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
Orders (1) | 104,873 | 104,440 | ||||||||||||
| Containers | 26,357 | 26,505 | ||||||||||||
| Trucks | 1,314 | 1,419 | ||||||||||||
Revenue per order (2) | $ | 2,366 | $ | 2,467 | ||||||||||
Operating ratio (3) | 95.7 | % | 94.7 | % | ||||||||||
(1)Based on delivered rail orders.
(2)Calculated using rail revenues excluding fuel surcharge and revenue in transit, consistent with how revenue is reported internally for segment purposes.
(3)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.
Intermodal revenues (excluding fuel surcharge) decreased $6.9 million, approximately 3%, in the first quarter of 2026 compared to the same period in 2025 primarily due to a 4% decline in revenue per order, partially offset by an increase in volume.
Intermodal income from operations decreased $2.9 million, approximately 21%, in the first quarter of 2026 compared to the same period in 2025, driven by lower revenue per order and higher maintenance costs. These impacts were partially offset by volume growth and reduced purchased transportation, salaries and wages related to headcount actions, and equipment costs.
Logistics
The following table presents the KPI for our Logistics segment for the periods indicated.
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
Operating ratio (1) | 97.9 | % | 97.6 | % | ||||||||||
(1)Calculated as segment operating expenses divided by segment revenues (excluding fuel surcharge) including revenue in transit and related expenses at the operating segment level.
Logistics revenues (excluding fuel surcharge) decreased $19.7 million, approximately 6%, in the first quarter of 2026 compared to the same period in 2025, primarily due to lower volume within our brokerage business, partially offset by higher revenue per order.
Logistics income from operations decreased $1.6 million, approximately 20%, in the first quarter of 2026 compared to the same period in 2025, driven by lower volume within brokerage. This decrease was partially offset by increased net revenue per order and lower salaries and wages, primarily reflecting headcount actions.
Other
Other loss from operations in the first quarter of 2026 was comparable to the same period in 2025.
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LIQUIDITY AND CAPITAL RESOURCES
Our primary uses of cash are working capital requirements, capital expenditures, lease equipment, dividend payments, share repurchases, and debt service requirements. Additionally, we may use cash for acquisitions and other investing and financing activities. Working capital is required principally to ensure we are able to run the business and have sufficient funds to satisfy maturing short-term debt and operational expenses. Our capital expenditures consist primarily of transportation equipment and information technology.
Historically, our primary source of liquidity has been cash flow from operations. In addition, we have a $250.0 million revolving credit facility maturing in November 2027 and a $200.0 million receivables purchase agreement maturing in May 2027, for which our combined available capacity as of March 31, 2026 was $331.7 million. Our revolving credit facility also allows us to request an additional increase in total commitment by up to $150.0 million. We anticipate that cash generated from operations, together with amounts available under our credit facilities, will be sufficient to meet our requirements for the foreseeable future. To the extent additional funds are necessary to meet our long-term liquidity needs as we continue to execute our business strategy, we anticipate that we will obtain these funds through additional borrowings, equity offerings, or a combination of these potential sources of liquidity. Our ability to fund future operating expenses and capital expenditures, as well as our ability to meet future debt service obligations or refinance our indebtedness, will depend on our future operating performance, which will be affected by general economic, financial, and other factors beyond our control.
The following table presents our cash and cash equivalents, marketable securities, and outstanding debt and finance lease obligations as of the dates shown.
| (in millions) | March 31, 2026 | December 31, 2025 | ||||||||||||||||||
| Cash and cash equivalents | $ | 227.8 | $ | 201.5 | ||||||||||||||||
| Marketable securities | 37.3 | 41.8 | ||||||||||||||||||
| Total cash, cash equivalents, and marketable securities | $ | 265.1 | $ | 243.3 | ||||||||||||||||
| Debt: | ||||||||||||||||||||
| Senior notes | $ | 50.0 | $ | 50.0 | ||||||||||||||||
| Delayed-draw term loan facility | 345.0 | 347.5 | ||||||||||||||||||
| Finance leases | 4.2 | 5.0 | ||||||||||||||||||
| Total debt | $ | 399.2 | $ | 402.5 | ||||||||||||||||
Debt
As of March 31, 2026, we were in compliance with all financial covenants under our credit agreements and the agreements governing our senior notes. See Note 6, Debt and Credit Facilities, for information about our financing arrangements.
Cash Flows
The following table summarizes the changes to our net cash flows provided by (used in) operating, investing, and financing activities for the periods indicated.
| Three Months Ended March 31, | |||||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||
| Net cash provided by operating activities | $ | 92.9 | $ | 91.7 | |||||||||||||
| Net cash used in investing activities | (34.8) | (126.7) | |||||||||||||||
| Net cash (used in) provided by financing activities | (31.8) | 23.6 | |||||||||||||||
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Operating Activities
Net cash provided by operating activities increased $1.2 million in the first three months of 2026 compared to the same period in 2025. The increase was driven by lower cash used by working capital and higher net income adjusted for noncash items. Working capital changes primarily reflected movements in trade and tax receivables and prepaid and other assets, partially offset by changes in other liabilities related to the timing of wage accruals, higher payables balances, and changes in reserve balances.
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Investing Activities
Net cash used in investing activities decreased $91.9 million, approximately 73%, in the first three months of 2026 compared to the same period in 2025, primarily due to lower purchases of transportation and lease equipment and reduced funding of notes receivable. These decreases were partially offset by higher purchases of other property and equipment related to land acquisition.
The following table sets forth our net capital expenditures for the periods indicated.
| Three Months Ended March 31, | |||||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||
| Purchases of transportation equipment | $ | 40.9 | $ | 114.4 | |||||||||||||
| Purchases of other property and equipment | 27.0 | 6.8 | |||||||||||||||
| Proceeds from sale of property and equipment | (23.1) | (24.1) | |||||||||||||||
| Net capital expenditures | $ | 44.8 | $ | 97.1 | |||||||||||||
Net capital expenditures decreased $52.3 million in the first three months of 2026 compared to the same period in 2025, primarily due to a $73.5 million decrease in purchases of transportation equipment, partially offset by the purchase of land.
Financing Activities
Net cash used in financing activities increased $55.4 million, approximately 235%, in the first three months of 2026 compared to the same period in 2025. The increase was primarily driven by a $50.0 million reduction in borrowings under revolving credit arrangements and a $7.3 million decrease in net proceeds from debt and finance lease obligations, partially offset by a $3.1 million decrease in common stock repurchases due to lower share repurchase activity.
Other Considerations that Could Affect Our Results, Liquidity, or Capital Resources
Factors that Could Result in Goodwill Impairment
Goodwill is tested for impairment at least annually using the discounted cash flow, guideline public company, and guideline transaction methods, as applicable, to calculate the fair values of our reporting units. Key inputs used in the discounted cash flow approach include growth rates for sales and operating profit, perpetuity growth assumptions, and discount rates. Key inputs used in the guideline public company and guideline transaction methods include EBITDA valuation multiples of comparable companies and transactions. If interest rates rise or EBITDA valuation multiples of comparable companies and transactions decline, the calculated fair values of our reporting units will decrease, which could impact the results of our goodwill impairment tests.
We will perform our annual evaluation of goodwill for impairment as of October 31, 2026, with such analysis expected to be finalized during the fourth quarter. As part of our annual process of updating our goodwill impairment evaluation, we will assess the impact of current operating results and our resulting management actions to determine whether they have an impact on the long-term valuation of reporting units and the related recoverability of our goodwill.
Off-Balance Sheet Arrangements
As of March 31, 2026, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures, or capital resources.
Contractual Obligations
See the disclosure under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Contractual Obligations” in our Annual Report on Form 10-K for the year ended December 31, 2025 for our contractual obligations as of December 31, 2025. There were no material changes to our contractual obligations during the three months ended March 31, 2026.
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CRITICAL ACCOUNTING ESTIMATES
We have reviewed our critical accounting policies and considered whether new critical accounting estimates or other significant changes to our accounting policies require additional disclosures. We have determined that the disclosures made in our Annual Report on Form 10-K for the year ended December 31, 2025 remain current as there have been no significant changes.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our market risks have not changed significantly from the market risks discussed in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 as filed with the SEC on February 20, 2026.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, including our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended), as of the end of the period covered by this report. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.
Changes in Internal Control
There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is party to various lawsuits in the ordinary course of its business. For information relating to legal proceedings, see Note 11, Commitments and Contingencies, which is incorporated herein by reference.
ITEM 1A. RISK FACTORS
There have been no material changes from the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2025.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table sets forth information regarding the purchases of our equity securities made by or on behalf of us or any affiliated purchaser (as defined in Exchange Act Rule 10b-18) during the three months ended March 31, 2026.
| Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) (in millions) | ||||||||||||||||||||||
| January 1, 2026 - January 31, 2026 | — | $ | — | — | $ | 150.0 | ||||||||||||||||||||
| February 1, 2026 - February 28, 2026 | 220,735 | 28.65 | 10,000 | 149.7 | ||||||||||||||||||||||
| March 1, 2026 - March 31, 2026 | 202,208 | 24.34 | 202,208 | 144.8 | ||||||||||||||||||||||
| Total | 422,943 | 212,208 | ||||||||||||||||||||||||
(1)Of the 422,943 shares purchased during the three months ended March 31, 2026, 210,735 represent shares of common stock that employees surrendered to satisfy withholding taxes related to the vesting of restricted stock and restricted stock units.
(2)In January 2026, the Board approved a new three-year repurchase program, effective upon the expiration of the prior program. The new program authorized the Company to repurchase up to $150.0 million of its Class A and/or Class B common shares over the next three years. The program does not obligate the Company to repurchase a minimum number of shares and is intended to help offset the dilutive effect of equity grants to employees over time. Under this program, the Company may repurchase shares in privately negotiated and/or open market transactions. As of March 31, 2026, the Company had $144.8 million remaining available to repurchase.
Limitation Upon Payment of Dividends
The 2022 Credit Facility and the delayed-draw term loan facility include covenants limiting our ability to pay dividends or make distributions on our capital stock if a default exists under the 2022 Credit Facility or the delayed-draw term loan facility, as applicable, or would be caused by giving effect to such dividend.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
Rule 10b5-1 Trading Plans
During the three months ended March 31, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.
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ITEM 6. EXHIBITS
| Incorporated by Reference Herein | ||||||||||||||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | File No. | Filing Date | |||||||||||||||||||||||||||
| 3.1 | Amended and Restated Bylaws as of April 30, 2026 | 8-K | 3.1 | 001-38054 | 5/1/2026 | |||||||||||||||||||||||||||
| 10.1 | Schneider National, Inc. 2017 Omnibus Incentive Plan, as amended and restated | 8-K | 10.1 | 001-38054 | 5/1/2026 | |||||||||||||||||||||||||||
| 31.1* | Certification pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||||||||
| 31.2* | Certification pursuant to Rule 13a-14(a) or 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||||||||
| 32.1** | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||||||||
| 32.2** | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |||||||||||||||||||||||||||||||
| 101.INS* | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||||||||||||||
| 101.SCH* | XBRL Taxonomy Extension Schema Document | |||||||||||||||||||||||||||||||
| 101.CAL* | XBRL Taxonomy Calculation Linkbase Document | |||||||||||||||||||||||||||||||
| 101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||||||||||||||||||||||
| 101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document | |||||||||||||||||||||||||||||||
| 101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||||||||||||||
| 104* | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 formatted in Inline XBRL | |||||||||||||||||||||||||||||||
* Filed herewith.
** Furnished herewith.
+ Constitutes a management contract or compensatory plan or arrangement.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant, Schneider National, Inc., has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SCHNEIDER NATIONAL, INC. | ||||||||
| Date: | May 1, 2026 | /s/ Darrell G. Campbell | ||||||
| Darrell G. Campbell | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
| (Duly Authorized Officer and Principal Financial Officer) | ||||||||
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FAQ
How did Schneider National (SNDR) perform financially in Q1 2026?
Schneider National generated operating revenues of $1,398.5 million in Q1 2026, essentially flat year over year. Net income declined to $20.4 million from $26.1 million, and diluted earnings per share fell to $0.12 versus $0.15 in the prior-year quarter.
What happened to Schneider National (SNDR) earnings and margins in Q1 2026?
Earnings softened as income from operations fell to $33.4 million from $42.1 million. Adjusted income from operations declined to $35.1 million, and adjusted EBITDA was $143.6 million, reflecting higher maintenance and fuel costs and weaker Logistics and Intermodal performance.
How did Schneider National’s segments perform in Q1 2026?
Truckload revenues excluding fuel surcharge increased modestly to $618.0 million, helped by stronger pricing. Intermodal revenues excluding fuel surcharge slipped to $253.5 million, while Logistics revenues excluding fuel surcharge declined to $312.3 million, mainly from lower brokerage volume.
What was Schneider National’s free cash flow in Q1 2026?
Free cash flow improved significantly to $48.1 million in Q1 2026, compared with negative $5.4 million a year earlier. The improvement was driven primarily by lower purchases of transportation equipment, which reduced net capital expenditures despite stable operating cash flow.
What is Schneider National’s liquidity and debt position as of March 31, 2026?
As of March 31, 2026, Schneider held $227.8 million in cash and equivalents plus $37.3 million in marketable securities. Total debt was $399.2 million, and the company had $331.7 million of combined unused capacity under its revolving credit and receivables facilities.
Did Schneider National repurchase shares or pay dividends in Q1 2026?
Yes. Schneider repurchased $5.2 million of Class B common shares under a new $150.0 million program and paid dividends of $17.1 million. In April 2026, the board also declared a Q2 2026 dividend of $0.10 per share for Class A and Class B stock.