Schneider Reports Revenue and Earnings Growth in Q1
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Schneider reported year-over-year increases in revenue and earnings during the first quarter of 2025, the company said May 1.
The Green Bay, Wis.-based truckload motor carrier posted net income of $26.1 million, or 15 cents a diluted share, for the three months ending March 31. That compared with $18.5 million, 10 cents, during the same time the previous year. Total operating revenue increased 6% to $1.4 billion from $1.32 billion.
“Our first-quarter results were in line with our expectations, despite weather impacts and growing economic uncertainty,” Schneider CEO Mark Rourke said during a call with investors. “Each of our primary segments grew revenue, earnings and margins year over year.”
Schneider is in the midst of a structural improvement plan centered on four key areas: optimizing capital allocation across growth drivers, containing costs across all expense categories, and improving both the customer freight allocation process and customer experience.
“We are focused on the areas we control while maximizing our strategic differentiators,” Rourke said. “Within our locus of control is containing costs, maintaining price discipline and outperforming our competition commercially. Our strategic differentiators are unique across our four dedicated brands of Schneider, Midwest Logistics Systems, M&M Transport and now the lightweight equipment solution powerhouse, Cowan Systems.”
Truckload revenue for the quarter increased 14% to $613.7 million from $538.1 million, driven by the acquisition of Cowan Systems and improved revenue per truck per week. The gains were partially offset by lower network volume. Truckload revenue per truck per week increased 3% to $3,953, as both network and dedicated operations saw revenue per truck per week rise due to improved rate per mile. Income from operations in the segment rose 68% to $25.1 million from $14.9 million.
Intermodal segment revenue increased 5% to $260.4 million from $247.2 million, primarily from volume growth and improved revenue per order that received a boost from increased rate per mile. Income from operations increased 97% to $13.8 million from $7 million. The jump was lifted by volume growth and improved revenue per order, and by decreased rail-related costs from enhanced network optimization and cost containment actions.
Logistics segment revenue for Q1 rose 2% to $332 million from $324.9 million. The results were driven by the Cowan acquisition, but were partially offset by lower brokerage revenue per order and volume. Logistics income from operations increased 50% to $8.1 million from $5.4 million, primarily from net revenue management that was partially offset by lower brokerage volume.
“Our asset-based company dray chassis and container intermodal offering combined with our strong rail relationships with CSX, Union Pacific and CPKC creates reliable and valued solutions for intermodal shippers,” Rourke said. “Plus, our consistently profitable logistics offering enabled by our freight power platform and market-leading power-only capability remains a meaningful asset-light strategic contributor to the enterprise.”
The overall results landed close to expectations from investment analysts on Wall Street, who had been looking for EPS of 14 cents and quarterly revenue of $1.44 billion, according to Zacks Consensus Estimate.
TD Cowen analyst Jason Seidl in a report noted that Schneider’s Q1 results landed above his estimates as over-the-road revenue and initial margins proved resilient despite poor freight conditions. Still, he trimmed his guidance in response to potential supply chain constraints that loom amid global trade issues and waning consumer resilience.
“Near-term [key performance indicators] are expected to come under pressure going forward as dedicated [business] experiences churn,” Seidl wrote of the company’s outlook. “Confidence on defending margin in the face of churn is encouraging given the typical differential in mature vs new business in dedicated. While the near-term faces pressures, [management] acknowledged a [truckload] bull case in the form of an air pocket-related capacity exodus.”
Schneider ranks No. 9 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 18 on the TT Top 100 list of the largest logistics companies. It also ranks No. 47 on the TT Top 50 global freight companies list.
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