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PHOENIX - Knight-Swift Transportation Holdings Inc. (NYSE:KNX), the nation’s largest full-truckload carrier with a market capitalization of $7.05 billion and annual revenues exceeding $7.4 billion, announced Tuesday its support for the proposed merger between Union Pacific Railroad and Norfolk Southern Corporation. According to InvestingPro data, the company maintains a Fair financial health score, positioning it as a significant voice in the transportation sector.
The company stated that the potential combination would create the first truly coast-to-coast railroad in the United States, connecting Western and Eastern rail networks. According to the transportation firm, this would enable seamless single-line service across the country.
Knight-Swift indicated that the merger could benefit intermodal transportation by eliminating handoff delays that occur when freight must interchange between separate railroads. The company noted that this could lead to shorter transit times and simplified logistics for its intermodal customers.
"This is a significant breakthrough in U.S. freight transportation," said Adam Miller, CEO of Knight-Swift Transportation, in a press release statement. "By knitting together a coast-to-coast rail network, Union Pacific and Norfolk Southern are creating new efficiencies that will benefit everyone."
The trucking company, which operates thousands of trucks and intermodal containers and maintains a healthy 24.14% gross profit margin, suggested that the unified rail system would allow better integration of trucking with rail on cross-country shipments. Despite challenging market conditions reflected in its -16.59% year-to-date return, Knight-Swift continues to focus on operational efficiency.
Knight-Swift mentioned plans to leverage the merged railroad to offer customers new coast-to-coast services that combine rail efficiency with trucking flexibility. The company anticipates more shippers may embrace intermodal options as service becomes simpler and transit times improve.
The announcement comes as the proposed railroad merger faces regulatory review. Knight-Swift’s endorsement represents support from a major player in the freight transportation industry that utilizes both trucking and rail services. InvestingPro analysis indicates the company is currently trading near its Fair Value, with additional insights available in the comprehensive Pro Research Report, which provides detailed analysis of Knight-Swift’s market position and growth prospects among 1,400+ top US stocks.
In other recent news, Knight-Swift Transportation Holdings Inc. reported impressive second-quarter 2025 results, with adjusted earnings per share reaching $0.35. This figure surpassed both Stifel’s estimate of $0.32 and the consensus forecast of $0.33. The company’s Truckload segment, including legacy operations and U.S. Xpress, showed robust performance due to effective cost containment and utilization strategies. Benchmark has reiterated its Buy rating on Knight Transportation, maintaining a price target of $55, citing the company’s strong market positioning. Stifel also adjusted its price target to $47, up from $46, while keeping a Hold rating on the stock. Additionally, Knight-Swift declared a quarterly cash dividend of $0.18 per share, payable to stockholders in September 2025. In regulatory news, Secretary of State Marco Rubio announced a halt to the issuance of worker visas for commercial truck drivers, which may impact trucking stocks. These developments highlight key factors for investors to consider regarding Knight-Swift’s ongoing performance and market environment.
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