Knight-Swift reported GAAP operating income that fell by $51.5 million year over year in the quarter, driven largely by $52.9 million of non-cash impairment charges tied to the integration of the Abilene truckload brand into Swift. Revenue excluding fuel surcharge declined modestly versus the prior year, while adjusted operating income slipped 5.3% as overall truckload and LTL demand softened compared with Q4 2024. The consolidated adjusted operating ratio widened by 70 basis points on a legacy-brand basis and improved at U.S. Xpress by 430 basis points to the mid-90s, reflecting higher seasonal project participation following its 2023 acquisition.

In the truckload segment, loaded miles fell 3.3%, driving a 2.4% decline in revenue excluding fuel surcharge, though revenue per loaded mile rose 0.7% year over year and 1.4% sequentially. Abilene’s fleet had contracted to around 300 trucks prior to its merger, and management expects the consolidation to deliver cost savings and improved network utilization. The LTL network grew revenue excluding fuel surcharge by 7%, supported by a 5% rise in revenue per hundredweight and 2.1% shipment growth, despite moderating demand following the DHE acquisition. Adjusted operating income in LTL decreased 4.8%, and the adjusted operating ratio worsened by 60 basis points, as door count expanded 10% and one new service center was opened.

Logistics revenue declined 4.8% with volumes down 1% and revenue per load off by 4.1%, pressured by tighter third-party capacity and higher cargo theft, prompting stricter carrier qualification. Intermodal improved its adjusted operating ratio by 140 basis points to 100.1% on a 2.8% revenue per load increase, despite a 6% drop in load count. The all-other category saw revenue rise 17.7% and a $5.9 million year-over-year loss improvement, driven by warehousing and leasing growth. For Q1 2026, management forecasts adjusted EPS of $0.28 to $0.32, assuming stable conditions with a seasonal truckload slowdown and LTL recovery, and anticipates full-year capex of $625 million to $675 million.