Schneider National NYSE: SNDR executives struck a candid tone on the company’s fourth-quarter 2025 earnings call, acknowledging results that fell short of expectations as freight demand weakened sharply late in the year and weather disruption compounded operational challenges. Management emphasized, however, that the company is seeing early signs of supply-driven market normalization and believes structural cost actions, portfolio shifts, and ongoing strategic initiatives position it to benefit as conditions improve.
Fourth-quarter results missed expectations amid a “truncated” peak
CEO Mark Rourke said the fourth quarter did not develop as management expected. After October conditions supported the company’s prior view of finishing 2025 at about $0.70 of earnings per share, November and much of December were “materially more challenged,” driven by a “very truncated peak season” and poor Midwest weather. CFO Darrell Campbell said demand turned sluggish in November as shippers worked down inventories, creating a meaningful volume shortfall versus expectations, with weather further pressuring volumes and operations.
Revenues excluding fuel surcharge were $1.3 billion, up 4% year-over-year. Adjusted income from operations was $38 million, down 15%, and adjusted diluted EPS was $0.13 versus $0.20 a year ago.
Management also cited several compounding items in the quarter, including extended and unplanned auto production shutdowns at certain customers (particularly impacting Dedicated), higher third-party capacity costs in Logistics, and elevated healthcare costs.
Segment performance: Truckload improved, Network still unprofitable
Truckload revenue excluding fuel surcharge was $610 million, up 9% year-over-year. Truckload operating income rose 16% to $23 million, with an operating ratio of 96.2%, an improvement of 30 basis points from the prior year. Campbell said Network remained unprofitable, though the company saw modest year-over-year improvement as cost and productivity actions partially offset softer conditions and higher healthcare costs.
Management described several initiatives aimed at restoring Network profitability, including improving equipment ratios, rationalizing non-driver headcount, and increasing billed miles per tractor. Rourke noted that as the market improved in December, Schneider saw momentum in both productivity and realized price.
Within Dedicated, operating income improved year-over-year, helped by having an additional two months of Cowan Systems’ results versus 2024. However, executives said Dedicated volumes were pressured by the unplanned auto shutdowns. Rourke attributed a counter-seasonal decline in Dedicated revenue per truck per week to the shutdowns, along with the cost impact of three larger Dedicated startups and recruiting-related pressures. Campbell added that elevated healthcare costs were concentrated in Truckload, largely within Dedicated. The company said elevated churn moderated in the fourth quarter and that startups increased as new business wins remained elevated compared to the first half of the year. Schneider finished 2025 with about 950 trucks sold, while total fleet count was roughly flat quarter-over-quarter as productivity helped support implementations with existing equipment.
Intermodal and Logistics: volume gains and margin pressure
Intermodal revenue excluding fuel surcharge was $268 million, down 3% year-over-year. The company reported volume growth of 3%, more than offset by mix-related declines in revenue per order. Despite tougher comparisons tied to last year’s tariff-related pull-forward activity, Schneider said Intermodal volumes grew for the seventh consecutive quarter and outperformed the broader market, led by Mexico volumes that were up more than 50% year-over-year.
Intermodal operating income increased 5% to $18 million and operating ratio improved 50 basis points to 93.3%, which management attributed to conversion on volume growth and the benefit of cost initiatives. In the Q&A, executives noted that Intermodal contract renewals were flat last year, and that fourth-quarter yield pressure was largely mix-driven (including more backhaul) and fewer premium opportunities due to the earlier and shorter peak season.
Logistics revenue excluding fuel surcharge was $329 million, up 2% year-over-year, driven by the Cowan acquisition and higher gross revenue per order amid continued volume pressure. Logistics operating income fell to $3 million from $9 million a year ago, with operating ratio rising 180 basis points to 99.2%. Campbell said a December spike in spot rates also drove a disproportionate increase in purchased transportation costs—particularly in geographies such as California—compressing net revenue per order on contract-rated business, including Power Only, even as the company leveraged its spot exposure to serve higher spot-rated freight.
Cost savings, balance sheet, capital allocation, and 2026 outlook
Schneider said it achieved its targeted $40 million cost savings program in 2025, including synergies from the Cowan acquisition, and expects an additional $40 million of cost savings in 2026. Rourke said the company reduced non-driver headcount by 7% (primarily in the second half of 2025) and plans further structural improvements, including tighter equipment ratios and more insourcing of third-party spend such as maintenance and drayage. He also highlighted continued rollout of “agentic AI” across service offerings and support functions, citing early benefits in service levels and cost-to-serve.
On the balance sheet, Schneider ended 2025 with $403 million in debt and lease obligations and $202 million in cash and cash equivalents. Net debt leverage was 0.3x, down from 0.5x at the end of the third quarter, after a $120 million debt paydown. Campbell said the company’s balance sheet provides flexibility for additional accretive acquisitions while maintaining an investment-grade profile.
Capital allocation updates included:
- $17 million in dividends paid in the fourth quarter and $67 million for the year
- Approximately 284,000 shares repurchased during the quarter
- A new $150 million share repurchase authorization approved Jan. 26, 2026, to be used over three years; under the prior program, 4.4 million shares were repurchased for $110 million
- 2025 net CapEx of $289 million (below the roughly $300 million guidance due to timing)
- 2026 net CapEx guidance of $400 million to $450 million, described as primarily replacement spending to address an “aged fleet,” with fleet count expected to remain flat
For 2026, Schneider guided to adjusted EPS of $0.70 to $1.00, assuming an effective tax rate of about 24%. Campbell said the company expects supply-driven improvement and benefits from the incremental cost savings to build through 2026, with a stronger second half. The midpoint of guidance assumes demand consistent with the first half of 2025—seasonal but without acceleration—while the low end assumes modest softening (especially among consumers) and the high end reflects a slight pickup in economic activity.
Management repeatedly pointed to supply rationalization as a key driver of eventual cycle improvement, citing regulatory enforcement and actions involving non-domiciled CDLs, English language proficiency, and driver’s school certifications. Rourke said the company expects the effects to be measured in quarters, not months, and believes capacity attrition could be more impactful than the 2017 electronic logging mandate. Executives also said Schneider closed 2025 with contract price renewals within expected ranges and intends to “lean into price” as part of restoring rates toward longer-term earnings targets.
Leadership transition announced
Rourke said he will become Executive Chairman of the Board effective July 1, 2026, and Jim Filter—currently EVP and Group President of Transportation and Logistics—will be appointed President and CEO. Filter told investors the company’s actions during the downturn have strengthened its foundation and that Schneider remains disciplined and “well-aligned to capture the upside of a recovering cycle.”
About Schneider National NYSE: SNDR
Schneider National, Inc is a leading provider of transportation and logistics services in North America. The company offers a full spectrum of solutions, including truckload transportation, intermodal services and dedicated logistics. Through these offerings, Schneider supports the movement of goods ranging from dry van freight to refrigerated and flatbed shipments, while also providing customized supply chain management and warehousing capabilities.
Founded in 1935 by Al Schneider as a single-truck operation in Green Bay, Wisconsin, the company has grown into one of the industry's most recognized carriers.
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