Knight-Swift Posts Q1 Net Loss as Market Conditions Improve

About 70% Knight-Swift's fleet is deployed in one-way or over-the-road services, CEO Adam Miller says. (Knight-Swift Transportation)

Knight-Swift Transportation Holdings experienced improving conditions throughout the first quarter amid a reduction in invalid capacity, the company reported April 22.

The Phoenix-based truckload motor carrier posted a net loss attributable to itself of $1.32 million, or negative 1 cent per diluted share, for the three months ending March 31. That compared with a gain of $30.6 million, or 19 cents, during the same time the previous year. Total revenue increased 1.4% to $1.85 billion from $1.82 billion.

The results were impacted by an adverse arbitration ruling of $18 million and an adverse decision on $4.1 million in value-added tax reimbursements in Mexico. They also included about $12 million due to volume and cost headwinds from weather and fuel costs. Adjusted net income decreased 68.6% to $14.3 million from $45.4 million.

Despite the net loss, management said the quarter marked a turning point, with underlying freight fundamentals strengthening as excess and invalid capacity began to exit the market.

“There are now more reasons to be optimistic about our industry than we have seen in over four years,” Knight-Swift CEO Adam Miller said during a call with investors. “Roughly 70% of our fleet is deployed in one-way or over-the-road services. It is true the one-way market has been the most difficult place to be over the past three years-plus as this market has felt the brunt of the influx of capacity.”

That tightening backdrop has been reinforced by federal enforcement changes that Knight-Swift executives say are already removing capacity from the market and benefiting large one-way operators.

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Miller 

The Federal Motor Carrier Safety Administration started imposing strict requirements for noncitizens to obtain commercial driver licenses or permits late last year, and the agency also has cracked down on training schools that provide invalid licenses.

Miller noted that these efforts are having an impact on the market, especially one-way truckload.

“The market that was the hardest hit over the past few years is now benefiting the most from the removal of capacity,” Miller said. “The market has progressed to a point where even small changes can cause disruption, and we saw evidence of that during the first quarter as the severe weather in January led to acute tightness and an elevated spot market almost overnight.”

Knight-Swift leveraged its one-way and over-the-road capacity at scale to help customers recover from the storms. But tightness in the truckload market continued to build after the industry recovered from those winter conditions. This was largely due to declining capacity, but the company has seen indications of improving demand emerge.

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“Broad truckload market indicators show improving trends for load tenders, tender rejections and spot pricing,” Miller said. “Our business is experiencing even stronger levels on these metrics, as our leading presence in the one-way market grows increasingly valuable to shippers. Late in the first quarter, we began to see the outcomes from early first-quarter bids.”

Miller added that these bids showed volumes generally holding steady or growing while achieving mid-single-digit percentage rate increases. He noted this is better than last year at this time, when bids targeting slightly lower price increases often led to lower volumes.

“As the market improves, recruiting and retaining quality drivers have and will become more challenging,” Miller said. “We believe we have an advantage with our terminal network and academies to source and develop drivers.”

Revenue by Segment

• Truckload: Virtually unchanged, declining 0.3% to $1.05 billion. Operating income declined 16.9% to $37.1 million from $44.6 million. The report highlighted a rapidly evolving market as freight-market tightness became more evident. It also showed most segment operating fundamentals improved throughout the first quarter as severe weather subsided.
• Less-than-truckload: Increased 2.6% to $313.1 million from $305.3 million a year earlier, but the segment posted an operating loss of $3.57 million compared with operating income of $12.7 million. Shipment volumes followed generally muted seasonal patterns before improving late in the quarter.
• Logistics: Decreased 9.9% to $127.6 million from $141.6 million. Operating income declined 29.6% to $3.62 million from $5.14 million. A reduction in industry capacity drove up purchased transportation costs and compressed gross margins.
• ntermodal: Increased 2.7% to $93.6 million from $91.1 million in the 2025 period, but the unit posted an operating loss of $1.42 million compared with an income of $1.81 million. This was driven by an increase in revenue per load and load count that offset headwinds from winter weather. The report noted load count and revenue per load improved throughout the quarter.

Knight-Swift ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.