Knight-Swift Q4 EPS Misses by $0.05, Income Falls 66% on $52.9M Impairment
Knight-Swift posted Q4 adjusted EPS of $0.31 versus $0.36 expected and $1.9 billion revenue (–0.4% y/y), as operating income plunged 66% to $26.5 million after $52.9 million Abilene impairment charges. The truckload segment’s operating ratio worsened 70 bps to 92.9% with revenue ex-fuel down 2.4%, while Q1 EPS guidance of $0.28–$0.32 signals cautious outlook.
1. Q4 Earnings and Revenue Performance
Knight-Swift reported fourth-quarter adjusted earnings per share of $0.31, missing the consensus estimate of $0.36 and down from $0.36 a year earlier. Total revenue was $1.9 billion, in line with analyst forecasts but down 0.4% year over year. Consolidated operating income plunged 66.1% to $26.5 million, primarily driven by $52.9 million in non-cash impairment charges related to the integration of the Abilene truckload brand into Swift operations.
2. Truckload Segment Weakness
The truckload division, which accounts for the largest share of Knight-Swift’s business, saw revenue excluding fuel surcharges decline 2.4% year over year as loaded miles fell 3.3%. The adjusted operating ratio for the segment deteriorated by 70 basis points to 92.9%, reflecting continued pricing pressure and rising operating costs in the highly competitive truckload market.
3. 2026 Outlook and Capital Expenditures
For the first quarter of 2026, Knight-Swift forecasts adjusted earnings per share between $0.28 and $0.32, projecting a slight revenue decline in the truckload segment with margins remaining relatively stable versus the prior year. Full-year net cash capital expenditures are expected to total between $625 million and $675 million, as the company balances fleet renewal with ongoing network integration efforts.