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Schneider National Inc . (NYSE:SNDR) shares jumped 8.2% in premarket trading after the transportation and logistics company presented its second-quarter 2025 results on July 31, showcasing revenue growth across all segments and continued progress in its strategic transformation toward dedicated contracts and intermodal services.
Quarterly Performance Highlights
Schneider delivered solid financial results in Q2 2025, with revenues excluding fuel surcharge of $1.3 billion, representing the second-highest quarterly revenue in company history. The company reported a 9% improvement in adjusted income from operations year-over-year, with an adjusted operating ratio of 95.6%.
"We are pleased with our second quarter results, which demonstrate the resilience of our multimodal platform and the progress we’ve made in reshaping our portfolio," said Mark Rourke, President and CEO of Schneider National, in the quarterly presentation.
As shown in the following financial results summary:
The company’s enterprise-wide performance showed improvement across multiple metrics, with Intermodal and Logistics segments now contributing 49% to segment revenues. Free cash flow increased by $10.1 million compared to the prior year, and the company maintained a strong balance sheet with net leverage of 0.6x.
Strategic Transformation
Schneider has strategically transformed its business model since its IPO in 2017, significantly increasing the percentage of dedicated contracts within its Truckload segment while growing the contribution from Intermodal and Logistics operations. This shift has helped the company build more resilient revenue streams and reduce customer concentration.
The following chart illustrates how Schneider has reshaped its multimodal portfolio:
The company’s customer base has also become more diverse, with the top 10 customers now representing 24% of revenues compared to 30% in 2017. Schneider serves a wide range of end markets, with retail, food and beverage, and automotive sectors comprising significant portions of its business.
Segment Performance
Schneider’s Truckload segment showed particularly strong results in Q2, with revenues excluding fuel surcharge increasing 15% and income from operations rising 31%. The segment achieved an operating ratio of 93.6%, reflecting improved efficiency. Notably, dedicated contracts now represent 70% of the Truckload fleet, up from 33% in 2017, providing more stable revenue streams.
The Intermodal segment also performed well, with revenues excluding fuel surcharge increasing 5% and income from operations growing 10%. The segment posted an operating ratio of 93.9% and continues to benefit from strategic rail partnerships with CSX (NASDAQ:CSX), Union Pacific (NYSE:UNP), and CPKC.
While the Logistics segment saw 7% growth in revenues excluding fuel surcharge, income from operations decreased 29%, resulting in an operating ratio of 97.7%. Despite this challenge, the segment continues to leverage Schneider’s FreightPower platform and extensive carrier network to drive growth.
Financial Outlook & Guidance
Looking ahead, Schneider maintains a positive outlook for the remainder of 2025, with adjusted diluted earnings expected to range between $0.75 and $0.95 per share. Net capital expenditures are projected at $325-$375 million.
"Our strong balance sheet and disciplined capital allocation approach position us well to navigate market conditions while continuing to invest in strategic growth initiatives," said Darrell Campbell, Executive Vice President and CFO.
The company’s financial performance has remained solid over time, with consistent free cash flow generation and prudent management of capital expenditures. Schneider has maintained low net debt leverage, giving it flexibility to pursue growth opportunities and return capital to shareholders through dividends and share repurchases.
Schneider has demonstrated its commitment to shareholder returns through consistent dividend payments, which have increased 90% since the company’s IPO in 2017. Additionally, the company announced a $150 million share repurchase program in February 2023, with approximately $46.1 million remaining authorization as of June 30, 2025.
Company Scale and Operations
Schneider operates one of North America’s largest transportation and logistics networks, with impressive operational scale that provides competitive advantages in the market. The company moves 9.1 million freight miles per day and manages $2.4 billion in third-party freight annually.
This scale, combined with Schneider’s strategic focus on multimodal services and technology investments, positions the company to capitalize on market opportunities while navigating challenges in the transportation sector. With its transformation toward dedicated contracts and intermodal services largely complete, Schneider appears well-positioned to deliver on its long-term margin targets across all segments.
Full presentation:
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