Schneider National, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Operating revenues for the three months ended September 30, 2026, were $1.585 billion, a 9% increase from $1.452 billion in the same period in 2025.
• Income from operations was $62.1 million for the quarter, up 76% from $35.3 million in 2025; year-to-date income from operations was $166.9 million, up 26% from $132.4 million.
• Diluted earnings per share (EPS) were $0.28 for the quarter, compared to $0.11 in 2025; year-to-date diluted EPS was $0.68, up 48% from $0.46.
• Adjusted diluted EPS was $0.29 for the quarter, up 142% from $0.12 in 2025; year-to-date adjusted diluted EPS was $0.70, up 43% from $0.49.
• Adjusted income from operations was $63.8 million for the quarter, up 66% from $38.4 million in 2025; year-to-date adjusted income from operations was $172.1 million, up 23% from $139.4 million.
• Adjusted EBITDA was $168.8 million for the quarter, up 13% from $148.9 million in 2025; year-to-date adjusted EBITDA was $492.4 million, up 5% from $470.5 million.
• Net income was $49.5 million for the quarter, up 155% from $19.4 million in 2025; year-to-date net income was $119.6 million, up 47% from $81.5 million.
• The GAAP operating ratio was 96.1% for the quarter (improvement of 150 basis points from 97.6% in 2025) and 96.3% year-to-date (improvement of 60 basis points from 96.9%).
• The adjusted operating ratio was 95.3% for the quarter (improvement of 170 basis points from 97.0% in 2025) and 95.6% year-to-date (improvement of 80 basis points from 96.4%).
• Revenues excluding fuel surcharge were $1.345 billion for the quarter, up 3% from $1.299 billion in 2025.
• Adjusted total operating expenses, net of fuel surcharge revenue, were $1.281 billion for the quarter, up 2% from $1.261 billion in 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $403.2 million, down from $451.4 million in 2025.
• Net capital expenditures were $80.4 million for the quarter and $208.7 million year-to-date.
• Free cash flow was $58.5 million for the quarter and $194.5 million year-to-date, consistent with the prior year.
• As of September 30, 2026, total debt and finance lease obligations were $393.6 million, and cash and cash equivalents were $326.2 million.

Guidance and Future Outlook:

• Full year 2026 adjusted diluted EPS guidance has been raised to $1.00 - $1.10.
• Full year 2026 net capital expenditures guidance is $325 million - $350 million.
• The outlook anticipates continued contract rate recovery and further benefits from productivity and cost initiatives.
• Management notes that peak season demand and driver capacity remain important variables for the remainder of the year.
• The guidance assumes a full year effective tax rate of approximately 22%.

Business Segments and Product Lines:

• Truckload:
  • Revenues (excluding fuel surcharge) were $624.8 million, up $0.3 million from 2025.
  • Income from operations was $43.7 million, up 121% from $19.8 million in 2025.
  • Operating ratio improved to 93.0% from 96.8% in 2025.
  • Revenue per truck per week was $4,252, up 8% from $3,923 in 2025.
  • Performance was driven by improved Network price and productivity, acquisition-related cost synergies, higher gains on equipment sales, and improved utilization, partially offset by increased purchased transportation.
• Intermodal:
  • Revenues (excluding fuel surcharge) were $287.7 million, up 2% from $281.4 million in 2025.
  • Income from operations was $22.6 million, up 35% from $16.8 million in 2025.
  • Operating ratio improved to 92.1% from 94.0% in 2025.
  • Revenue per order increased 3% to $2,486, driven by price increases, partially offset by lower volume.
  • Performance was driven by favorable freight mix and revenue per order, partially offset by higher purchased transportation expenses.
• Logistics:
  • Revenues (excluding fuel surcharge) were $372.5 million, up 12% from $332.1 million in 2025.
  • Income from operations decreased 100% to $0 from $6.4 million in 2025.
  • Operating ratio increased to 100.0% from 98.1% in 2025.
  • Performance was impacted by higher purchased transportation costs and increased insurance expenses related to a specific prior year claim, partially offset by revenue impacts.

Market and Competitive Landscape:

• Schneider announced a new agreement with Norfolk Southern to differentiate its Intermodal offering, enhance service, and support profitable growth.
• The company utilizes a diversified multimodal platform to respond to evolving customer needs and freight flows.
• Management cited improving market conditions as a driver for converting market trends into stronger earnings and margins.

Risks and Challenges:

• Logistics results were negatively impacted by higher claim costs and increased insurance expenses related to a specific prior year claim.
• Truckload results were partially offset by increased purchased transportation costs.
• Intermodal results were partially offset by higher purchased transportation expenses.
• Forward-looking statements highlight risks including unfavorable economic conditions, inflation, tariff volatility, driver shortages, fuel price fluctuations, and potential disruptions from pandemics or severe weather.

Management Commentary and Tone:

• Jim Filter, President and CEO, stated that third-quarter performance demonstrates the strategy's success in converting improving market conditions into stronger earnings and margins.
• Filter highlighted disciplined revenue management, productivity gains, and cost reductions as drivers of improved operating leverage.
• Filter noted that Truckload earnings more than doubled year-over-year, reflecting the Network's return to profitability and progress on Dedicated portfolio actions.
• Darrell Campbell, Executive Vice President and CFO, stated that results underpin progress in structurally improving the business and delivering 66% growth in adjusted income from operations.
• The tone is confident regarding the company's ability to generate stronger earnings as freight market conditions improve.

Other Key Points:

• In January 2026, the Board approved a new $150.0 million share repurchase program; as of September 30, 2026, the company had repurchased 0.2 million Class B shares totaling $5.2 million.
• The Board declared a $0.10 dividend payable to shareholders of record as of September 11, 2026, paid on October 9, 2026.
• On October 26, 2026, the Board declared a $0.10 dividend payable to shareholders of record as of December 11, 2026, expected to be paid on January 12, 2027.
• The company returned $52.1 million in dividends to shareholders year-to-date as of September 30, 2026.
• Net capital expenditures decreased in the third quarter of 2026 compared to 2025, primarily due to increased proceeds from the sale of equipment.
• The company reported year-to-date free cash flow consistent with the prior year.