Earnings call transcript: Schneider National Q2 2025 reports growth amid uncertainty

Schneider National Inc. (SNDR) reported its Q2 2025 earnings, showing a solid performance with enterprise revenues (excluding fuel surcharge) reaching $1.3 billion, a 10% increase year-over-year. The adjusted income from operations rose by 9% to $57 million, and the adjusted diluted earnings per share (EPS) came in at $0.21. According to InvestingPro data, the company maintains a FAIR financial health score of 2.22, with particularly strong cash flow metrics. The company’s trailing twelve-month revenue stands at $5.48 billion, with a gross profit margin of 16.8%. Despite the lack of forecast data, the company’s stock showed a modest increase of 1.63% to $22.13 by the market close, though it dipped slightly by 0.72% in aftermarket trading.

Key Takeaways

• Schneider National’s Q2 revenue grew by 10% year-over-year.
• Adjusted income from operations increased by 9%.
• The company is focusing on AI and emerging technologies to enhance brokerage operations.
• Strong growth in Mexico intermodal service, with volumes up 30% year-over-year.

Company Performance

Schneider National demonstrated resilience in Q2 2025, with a 10% year-over-year increase in enterprise revenues, excluding fuel surcharges. The company continues to expand its power-only segment, achieving record volumes for the sixth consecutive quarter. This growth is bolstered by strategic moves such as integrating Cowan Logistics into its operations and leveraging AI technologies.

Financial Highlights

• Revenue: $1.3 billion, up 10% year-over-year
• Adjusted income from operations: $57 million, a 9% increase year-over-year
• Adjusted diluted EPS: $0.21

Market Reaction

Schneider National’s stock closed at $22.13, up 1.63% from the previous day, reflecting investor confidence in the company’s performance. However, in aftermarket trading, the stock saw a slight decline of 0.72%, settling at $21.97. The stock remains within its 52-week range of $20.59 to $33.90. InvestingPro analysis indicates that analysts have set price targets ranging from $21 to $38, with 7 analysts recently revising their earnings expectations downward for the upcoming period. For deeper insights into SNDR’s valuation and growth potential, consider exploring the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

Outlook & Guidance

The company projects full-year 2025 EPS to range between $0.75 and $0.95. Schneider National anticipates a gradual market recovery, focusing on organic growth in its dedicated and intermodal segments. InvestingPro data shows the company has maintained profitability over the last twelve months, with analysts predicting continued profitability this year. The company’s revenue CAGR over the past 5 years stands at 2%, with an 8% revenue growth forecast for FY2025. The company expects low to mid-single-digit price renewals, with potential for improved earnings as market conditions stabilize.

Executive Commentary

CEO Mark Rourke emphasized the company’s strategic focus, stating, "We are restoring margins while positioning the business to maximize through-cycle returns." CFO Darrell Campbell highlighted the company’s resilience, noting, "Despite all the uncertainty that continues to linger, we have demonstrated the ability to grow earnings through that uncertainty."

Risks and Challenges

• Economic Uncertainty: The company expects continued economic volatility, which could impact demand.
• Regulatory Changes: Potential capacity tightening due to regulatory changes, such as English language proficiency requirements.
• Spot Market Exposure: Elevated exposure to the spot market may affect margins if rates decline.

Q&A

During the earnings call, analysts inquired about potential capacity tightening due to regulatory changes and the company’s stance on rail consolidation. Executives maintained a neutral stance on consolidation and explained margin challenges in the logistics segment, highlighting flexibility in adapting between spot and contract markets.

Full transcript - Schneider National Inc (SNDR) Q2 2025:

Conference Call Operator: Thank you for standing by and welcome to Schneider National Inc.’s second quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one.

: Thank you.

Conference Call Operator: I’d now like to turn the call over to Christine McGarvey, Vice President of Investor Relations. You may begin.

: Thank you, operator, and good morning everyone. Joining me on the call today are Mark Rourke, President and Chief Executive Officer, Darrell Campbell, Executive Vice President and Chief Financial Officer, and Jim Filter, Executive Vice President and Group President of Transportation and Logistics. Earlier today, the company issued an earnings press release. This release and an investor presentation are available on the Investor Relations section of our website. Our call will include remarks about future expectations, forecast plans, and prospects for Schneider National Inc. These constitute forward-looking statements for the purposes of the safe harbor provisions under applicable federal securities laws. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations.

The company urges investors to review the risks and uncertainties discussed in our SEC filings, including but not limited to our most recent annual report on our Form 10-K and those risks identified in today’s earnings release. All forward-looking statements are made as of the date of this call, and Schneider National Inc. disclaims any duty to update such statements except as required by law. In addition, pursuant to Regulation G, a reconciliation of any non-GAAP financial measures referenced during today’s call can be found in our earnings release and investor presentation, which includes reconciliations to the most directly comparable GAAP measures. Now I’d like to turn the call over to our CEO, Mark Rourke.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thank you, Christine, and hello everyone. Thank you for joining the Schneider call today. I want to welcome Christine to the Schneider team and look forward to her contributions as we go forward. For our prepared remarks, I will start by providing an update on our commitment to drive ongoing structural improvements in our business. First, we are restoring margins while positioning the business to maximize through-cycle returns. Second, we are leaning into our areas of differentiation to create our own growth opportunities. Third, we are compounding organic growth with accretive M&A. Within that context, I will share my perspective on the freight market as well as the positioning and performance across our multimodal platform. Darrell will then provide a financial overview of the second quarter results and share our updated 2025 earnings per share and net capital expenditure guidance. We will then take your questions.

I will begin our efforts to restore margins and maximize through-cycle returns. Second quarter benefited from the cumulative effects of our actions we have taken to lift our business through a challenging backdrop and importantly demonstrate our ability to capitalize on the modest seasonality that did materialize through strong operating leverage. We are approaching this several ways: through a disciplined and purposeful customer freight allocation process, by containing costs across the enterprise, and by executing on initiatives to improve the resiliency of our truckload earnings. Regarding customer allocations, we remain disciplined throughout the second quarter, focused on serving our customers effectively and doing so profitably. We are now roughly 34% through the contractual renewal period both in truckload network and intermodal. We remain on track to deliver low to mid single-digit % increases in our truckload network pricing renewals.

While intermodal pricing has remained stable as expected within network, we continue to believe maintaining rate discipline is the right course of action given that rates do not adequately reflect our costs and service levels. As a result, our spot exposure remains elevated to historical norms. That said, we believe second quarter results underpin the importance of extracting contract rate increases. Our team has successfully capitalized on pockets of market strength as they have emerged, leading to sequential and year-over-year low single-digit improvement in revenue per truck per week. While elevated spot exposure was a pricing mix headwind in the quarter, it positions us for greater operating leverage when the market turns, whether through rising spot rates or increased capacity to secure accretive contract rates in dedicated. Pricing improved for the third consecutive quarter as we remain disciplined on both renewals and new business wins.

In intermodal, pricing has been in line with our expectations. We are further encouraged by the positive trends we are seeing in customer allocations and win rates, the latter of which are at a level not seen since 2022, and I will elaborate on that shortly. These gains are driven by our focus on areas we have real differentiation, enabling us to deliver meaningful value to our customers while remaining steadfast in our focus on sustainable operating earnings growth. Next, we remain focused on containing costs across the enterprise, continuing to execute on our established cost reduction target of over $40 million. This includes synergies from recently acquired Cowan Systems, with full run rate benefits anticipated in 2026. The remainder of targeted savings is largely driven by efficiency actions.

We believe these efforts will not only help sustain performance to the extent this challenging environment persists, but they also position us to accelerate earnings as conditions improve. Finally, we’re improving the earnings resilience of the truckload segment. Dedicated now represents about 70% of our truckload fleet, a materially higher percentage than several years ago, driven by organic growth and supported by our 3 acquisitions to date. As noted on our first quarter call, we anticipated some churn in the second and third quarters. While a portion of this churn materialized earlier than expected, it was largely in line with our projections. Importantly, the team offset the vast majority of this churn with new business wins, keeping fleet count consistent with the first quarter.

Looking forward, we will continue to see the impact of this churn in the short term, but we expect gross wins to pick up, supported by the strength of our pipeline. Some of this growth will be offset by continued improvements in tractor productivity, resulting in highly efficient revenue growth. Overall, though, we anticipate sequential growth in our net fleet count for the remainder of the year. Meanwhile, we saw an increase of 70 owner operators compared to the first quarter, marking the first instance of net growth since the second quarter of 2023. We were also able to net up over 200 company drivers in network without increasing truck count, demonstrating our ability to act opportunistically near the bottom of the cycle and reflecting the impact of our productivity initiatives around drivers per tractor.

Truckload earnings improved nearly 60% sequentially and over 30% year over year, underscoring the strong operating leverage inherent in the business and the progress we’ve made in restoring margins. The long-term strategy of shifting the business toward dedicated and variable cost capacity and network will help to improve the resilience of our earnings stream through cycles. In the near term, we see ample opportunity to grow network operating earnings without having to grow truck count or deploy significant capital. Our second area of structural improvement is to lean into our areas of differentiation to drive growth ahead of what the market sends our way. In fact, many of our forward indicators such as dedicated pipeline, intermodal win rates, and new customer growth are all matching or exceeding levels that we have seen when the market was magnitude stronger.

That is due in large part to our multimodal portfolio, which allows us to meet shipper demand and utilize our areas of strength to capture available volume even in a tepid environment. For example, shippers’ continued preference for asset-based offerings is supporting network and power-only demand, offsetting the impact of our traditional brokerage volumes. In fact, power-only set an all-time high for second quarter volumes, growing year over year for the sixth consecutive quarter. In dedicated, our pipeline is at a point that has historically translated into fleet growth. In subsequent quarters, we continue to leverage the strategic differentiators unique across our four dedicated brands with a focus on specialty equipment offerings where we see ample runway for growth and retention rates that are 300 to 400 basis points higher than standard equipment. In intermodal, we understand that the changing rail landscape will be of interest to all participants.

We have strong rail relationships and we look forward to the continued engagement in creating additional value for our customers. Historically, we have demonstrated our ability to adapt to changing dynamics in the underlying intermodal landscape by leaning into the unique elements of our service, namely our asset-based dray, chassis, and container offering. For example, through our relationship with the CPKC, Schneider National Inc. is the intermodal provider of choice in Mexico, offering service that is one to three days faster than the competitors, an advantage that is clearly resonating with shippers. Mexico was a key driver of our second quarter volume growth, which rose 30% year over year. Looking forward, we see strong momentum in Mexico. Specifically, we are benefiting from being in our second allocation season with the CPKC, with a full year of service performance behind us to sell into.

The momentum is broad-based and year to date, win rates on our most accretive lanes are trending at nearly double last year’s levels. Pricing recovery remains a key lever to returning to our long-term targets. However, our ability to create these enterprise growth opportunities is helping our results today, and the benefits of this approach become more evident. In a stronger market environment, we will be able to convert in many instances historically large pipeline and be increasingly selective with the freight that we take on.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Third.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Finally, in addition to our organic growth, our recent acquisitions, including our largest, Cowan Systems, contributed to income from operations growth this quarter. We are pleased with their performance, and we continue to evaluate how we best unlock additional value from these strong brands. Starting in October, Cowan Logistics will be integrated into Schneider Logistics to leverage our enterprise tools and eliminate redundancies, an effort we expect will drive improved margins in this segment. Switching now to perspectives on the market, we expect the economic uncertainty that characterized the second quarter to persist into the back half of the year, with trade policy continuing to evolve. In addition, the timing and impact of regulatory enforcement, such as requirements around English language proficiency and the use of B1 drivers, along with the recent legislative developments, remain unclear.

Even so, we believe the most likely path forward is for the freight environment to continue its movement toward recovery, with capacity continuing to exit the market at a slow but steady drumbeat. We are seeing the effects of this progress in driver recruiting, which saw pockets of strength during the quarter, likely reflecting a flight to quality among drivers. Declining capacity, in conjunction with some seasonal demand patterns, continues to drive the market closer to equilibrium. While customer reactions and strategies have varied, we have seen a growing number express some concern about capacity and, as a result, are funneling more freight our way. Altogether, we believe strong execution on our efforts to drive structural improvement in our financial returns, deliver above-market organic growth, and accretive M&A will drive earnings higher in 2025.

Let me now turn it over to Darrell for his insight on the second quarter and our guidance.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Darrell, thank you Mark, and good morning everyone. I’ll review our enterprise and segment financial results for the second quarter and provide insights in our updated full year 2025 EPS and net CapEx guidance. Summaries of our financial results and guidance can be found on pages 24 to 30 of our investor presentation available on our Investor Relations section of the website. Starting with the second quarter results, enterprise revenues excluding fuel surcharge were $1.3 billion, up 10% compared to a year ago. Adjusted income from operations was $57 million, a 9% increase year over year. Enterprise adjusted operating ratio was roughly in line with the second quarter of 2024. Adjusted diluted EPS for the second quarter was $0.21.

The disciplined actions we’ve taken on revenue management, cost containment, and productivity enabled year over year improvement in our enterprise income from operations for the third consecutive quarter, including double digit improvement in our asset-based solutions. Despite what remains a challenging market, we’re gaining traction on our previously announced structural cost savings targets with execution to date directly contributing to our second quarter performance. However, the industry continues to see inflation in key areas such as accident claims and equipment-related costs, and we remain focused on identifying additional savings opportunities to offset these pressures. From a segment perspective, truckload revenue excluding fuel surcharge was $622 million in the second quarter, up 15% year over year. This growth was primarily due to the Cowan Systems acquisition and modestly higher revenue per truck per week, partially offset by lower network volumes and dedicated churn.

Truckload operating income reached $40 million, a 31% increase year over year, reflecting the same revenue drivers as well as cost and productivity efforts. Operating ratio was 93.6%, an improvement of 70 basis points compared to last year and approximately 230 basis points better than the first quarter. Network margins improved sequentially by 150 basis points, supported by improved revenue per truck per week and ongoing actions to reduce variable input costs. These efforts include reducing unbilled miles, improving tractor to driver ratios, and implementing targeted headcount actions. Collectively, these initiatives drove double-digit sequential earnings growth in truckload despite revenue increasing just 1% quarter over quarter. Intermodal revenues excluding fuel surcharge were $265 million for Q2, up 5% year over year, driven entirely by volume growth as yields remained roughly flat. This marks the fifth consecutive quarter of year-over-year volume growth in the segment.

Intermodal operating income was $16 million, a 10% increase compared to the same period last year, reflecting solid operating leverage on volume growth as we continue to see the benefits from our network optimization and dray productivity, including ongoing efforts to fill empty lanes, reduce friction costs at the ramp, and improve freight mix. Operating ratio was 93.9%, an improvement of 30 basis points compared to second quarter 2024. Logistics revenue excluding fuel surcharge totaled $340 million in the second quarter, up 7% from the same period a year ago, driven by the Cowan Systems acquisition and continued growth in power-only volumes. This was partially offset by lower volumes in traditional brokerage as shippers continue to favor asset-based solutions. Logistics income from operations was $8 million, near first quarter levels but down 29% from last year’s high watermark.

Operating ratio was 97.7%, an increase of 120 basis points compared to prior year, primarily due to softness in brokerage volumes partially offset by productivity initiatives. Second quarter operating ratio was essentially flat. Sequentially, turning to capital allocation, we paid $17 million in dividends in the second quarter and $34 million year to date. Net CapEx was $150 million compared to $182 million last year due to reduced purchases of transportation equipment. Free cash flow increased approximately $10 million compared to the same period in 2024. We continue to expect net CapEx to be in the range of $325 million to $375 million for the full year. We’re monitoring economic and volume expectations as well as the effects of our asset productivity initiatives, and we have the ability to move to the low end of the range in a more subdued environment.

We also continue to monitor the impact of tariffs on the cost of equipment, and a range of scenarios is included in our guidance. Our priorities remain organic growth in dedicated and intermodal tractors and investing in technology to drive business insights and associate productivity. In the second quarter we began deploying free cash flow to reduce leverage, including a $50 million repayment of a revolving credit facility. As of June 30, 2025, we had $526 million in total debt and lease obligations and $161 million of cash and cash equivalents. Our net debt leverage was 0.6 times at the end of the quarter, an improvement from 0.8 times at the end of the first quarter. Moving to our updated full year 2025 earnings guidance, our adjusted earnings per share guidance for the full year 2025 is $0.75 to $0.95, which assumes an effective tax rate of 23% to 24%.

As we review our revised full year outlook, we continue to consider a range of outcomes tied to trade policy and broader economic uncertainty, while also incorporating the potential impacts of fiscal and regulatory policy changes since our last update. We continue to believe that a steady march toward a more balanced market supported by some elements of seasonality and capacity attrition is the most likely path forward and what serves as a foundation of our guidance. In trimming the high end of our previous guidance, we’re incorporating a lack of resolution of trade policy uncertainty and the retreat in spot rates through July following the positive seasonal movement in May, neither of which are consistent with the highest end of our previous range.

Should a stronger market materialize from consumer resilience, early benefits of fiscal stimulus, and greater impacts from regulatory enforcement and capacity, we’re well positioned to capitalize on the improvement. We will do this through our network based offerings, particularly in light of our elevated spot exposure, productivity enhancements and latent capacity in intermodal. That said, we continue to operate in an uncertain environment, especially regarding the consumer outlook. At the same time, the industry continues to grapple with select areas of inflation such as equipment related costs and accident claims, the former of which stands to face inflationary impacts from tariffs and the latter remains challenging to predict but stubborn on net given the difficult litigation environment. A flatter second half weighed down by elevated inflation would align with the lower end of our guidance.

In terms of what this means for the most likely scenario for our segments or truckload network business, we expect to remain on a trajectory of low to mid single digit price renewals through the remainder of bid season. The degree to which spot rates remain a modest headwind or become a tailwind will depend on how market conditions evolve. From here, we expect volume trends to be supported by elements of positive seasonality, though likely below typical seasonal magnitude. Dedicated earnings are expected to remain resilient with prices in line with prior guidance and a pickup in organic growth. That said, the churn realized this quarter will continue to be evident in the second half of the year.

Given our focus on asset efficiency and opportunities we see to add volume without increasing tractor count, net tractor growth may be tempered, but this will be constructive to operating earnings growth for the intermodal segment. We continue to expect flat to slightly higher pricing for the remainder of the year. Additionally, we expect the momentum in our allocations and wins to drive above market growth, though the degree of absolute volume improvement will be market dependent. Our disciplined focus on operating earnings dollar growth through customer allocations is expected to drive solid operating leverage even without much benefit of price. Our logistics segment outlook reflects lower volumes in traditional brokerage. Given the ongoing shift toward more asset-based solutions such as power-only, we see strong potential for productivity initiatives to help support operating earnings, though we acknowledge they will be more evident as volume levels strengthen.

In closing, our confidence in unlocking the benefits of the actions within our control is bolstered by the momentum we’ve seen in our results in recent quarters. The extended down cycle has been challenging, but the actions we’re taking are enhancing our earnings power and positioning the business to benefit from our operating leverage as market conditions improve. With that, we’ll open the call for your questions.

Conference Call Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press Star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press Star one again. Your first question comes from the line of Daniel Imbro from Stephens. Your line is open.

Hey guys, this is Joe Enderlin on for Daniel. Thanks for taking the question. Looking into your long term, just looking to your long term truckload target of 12% to 16%, could you maybe break down the current dedicated versus network run rates, and then how close do you think you can get to that long term target? Assuming we continue along this trend of sub seasonal movements and spot rates through year end.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Thanks.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Great. Thanks, Joe. As we’ve indicated, we believe our dedicated business is and has been performing very resiliently, which is part and parcel to our strategy. We’ve also indicated that it is performing and at times achieving the low end of our long-term guidance. Where we have work to do and where we’re most price sensitive and price recovery sensitive centers around our network business. While we don’t publicly break down margin differentials, we’ve been fairly clear that we continue to look for opportunities and where our operating leverage really is to change results in a much faster cadence once we get some market lift relative to the pricing, and we’ve been leaning into that for several quarters. We maintain a great deal of discipline to get after that.

We will need some rate recovery in our network business, particularly to get back to our long-term target, and that’s really the place that we’ve been in for several quarters. It sits around our entire execution strategy right now.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: This is Darrell. The only thing I would add is that we’re encouraged by what we’ve been seeing over the past several quarters. Mark did mention that from a network perspective, price is the most important in terms of getting back to our longer term targets. For several quarters in a row, we’ve seen year over year pricing improvement. We’ve also seen pricing improvement in our dedicated space, which we know is more resilient. From an intermodal standpoint, volumes continue to increase year over year. We’ve seen five consecutive quarters. We’re trending in the direction of beginning to the lower end of our longer term targets. From a logistics standpoint, obviously we’re squarely within striking distance of that.

Got it.

Thank you, guys. Just as a follow-up on the truckload side, there’s been debate about what peak will look like this year. I think some of the rails mentioned a pull forward into June and July. Others think peak is ahead of us. Just how do you think peak is developing and what’s baked into your guidance from a demand standpoint?

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah, thanks. This is Jim. There’s really a wide range of behaviors as we look at our customer base. There are some different factors taking some capacity out of the market as well. Depending on how customers played their hands as they went through allocations, they’re in a little bit different spot. As it relates to our intermodal business, we already have intermodal peak surcharges in place with most of our large customers, which is about six to eight weeks ahead of where we normally are in truckload. We’re starting to have those conversations, and we do have a higher percentage of our business, as Mark talked about, in the spot market than normal. That’s going to enable us to pivot quickly. That part of peak season happens a little bit later here in the year, more in fourth quarter.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Yeah, Joe, this is Mark. It’s difficult to quantify what is the pull forwards, what happened in the second quarter, what happened in the third quarter. We know there is certainly evidence of certain customers doing that, but we also experienced that in the second quarter, and we still had elements of seasonality play out at certain junctures of the quarter. We would anticipate and we would expect that despite certain strategies that may have pulled some freight forward, we will have those same opportunities, if not a little bit more elevated, in the second half of the year.

That’s helpful. Thank you, guys.

Conference Call Operator: Your next question comes from the line of Dan Moore from R.W. Baird. Your line is open.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Hey guys.

Conference Call Operator: Christine.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Hi, Dan. Welcome on board. Excited to work with you guys. Couple of questions back. Yeah, it’s good to be back.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Just to follow up, you.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: When I’m looking at the P&L here, there are a couple of line items that really stick out. Insurance, obviously, other general expense, salaries and wages. I know you guys are very focused on reducing costs. You have a number of internal initiatives targeting cost reductions. If we were to break down the opportunity set to get returns back to where you want them, back to where investors expect you to be long term, I think of a three-legged stool: rates, costs, and volume. Could you contextualize a little bit more around those three opportunity sets as you see them both in the near term and then the long term, and how much you feel like you need to get from each one of those—again, rates, costs, and volume—to secure a level of return that’s more in line with historical levels. Thank you for the time today.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: This is Darrell, so I’ll start. As it relates to our segments, there’s varying degrees of each one of those legs of the stool that’s required. From a network perspective, most of the recovery towards our long-term margins will be driven by price. As I said earlier, we’re encouraged by the direction of the pricing improvements in terms of contractual rate renewals that we can control for four quarters in a row. From a dedicated standpoint, that business is more resilient, less dependent on price, though price is important and there is upside as it relates to price, especially on the backhaul. From an intermodal standpoint, volume clearly is most important. We’ve seen even in the past several quarters our ability to drive earnings growth with minimal growth in terms of price.

From a logistics standpoint, again, volume and market conditions similar to network are where most of that benefit resides. We’ve been very thoughtful in terms of the actions that we’ve taken and the actions that we’ve taken to restore margin have been multi-pronged, controlling what we can in the freight allocation season as it relates to price. As you mentioned, there are a lot of cost initiatives that we’ve taken on. From our perspective, those cost initiatives are structural and sustainable, but very thoughtful. We’re making sure that things that we’re doing are positioning us for increased leverage on the upside. From a truckload perspective, we’re very focused on productivity and asset efficiency goals. We talked about reducing unbilled miles. We talked about a lot of the headcount actions that were taken.

Those actions have come through in our results, as you can see, year over year and sequentially significant earnings growth despite a softer spot market backdrop. From an intermodal standpoint, we’re also very focused on productivity actions around filling empty lanes. We’re seeing those come through the results. The actions that we’re taking are structural in nature, and that’s kind of the other leg of the stool. Mark, I’m not sure if there’s anything that you want to add there.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Yeah, just Dan, as you kind of look at that income statement, just a reminder, we have Cowan in our results this year, which we didn’t have in last year. Just at the absolute category level, you’ll see that flowing through. We’ve really been focused and we’ve done, I think, a reasonable job of keeping our variable contribution, our direct contribution dollars consistent and improving despite the market that isn’t quite yet giving us the lift that we believe is in front of us on both volume and price. We’re managing that at the variable contribution line, I think fairly effectively. That’s why I think we can really get some operating leverage once we do start to see some improvement in both price and volume. I think our incremental margins based on the work that we’ve done here position us favorably to do that now.

Proof’s in the pudding, and we’re focused on it and we have to demonstrate that to you and others, but that’s our complete focus.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah, this is Jim. Just one more thing to add that I don’t think we look at cost and volume as completely discrete items. A lot of the actions that we’ve taken have prepared us and are resulting in this improvement. Variable contribution really positions us well for when there is volume upturn, that we’ll see more in the cost improvement as well.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thanks again and good luck with it.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: The rest of you guys.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thank you.

Conference Call Operator: Your next question comes from the line of Ravi Shanker from Morgan Stanley. Your line is open.

Great, thanks. Hello, Mark, Darrell and Christine, a couple of questions here. How would you characterize the competitive environment in each of your segments? One way, truckload, intermodal, dedicated, logistics. Is there even an unthinkable scenario where the rate of change on truckload capacity is actually better than some of the other segments?

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Rate of change similar in that, just to make sure we capture what.

You’re wondering if capacity is exiting the truckload space when you potentially have more competitive actions in dedicated and intermodal, kind.

Maybe the rate of change on.

Capacity exits and truckload could even be.

Better than intermodal, dedicated, etc.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah, Robby, thanks for the question. This is Jim. I think you might be right. We are seeing some mid-sized competitors exiting the market. The other thing that we’re seeing right now with English language proficiency enforcement, we appreciate that we’re now enforcing the existing regulations, and we look at it as a slow bleed out, but on trend that has the opportunity to be a meaningful amount of capacity that’s exiting the market. I think the other thing that is not completely evident is that as we talk to our underlying carriers and our logistics business, we’re seeing carriers self-regulate both by removing drivers that don’t speak English, but also implementing language proficiency tests for new driver candidates similar to what Schneider does.

If you put those two things together, we’re talking about really a meaningful amount of capacity, and that doesn’t directly address B1 drivers as well, which we would still say that there’s an opportunity there, and if there were any changes, that would be perhaps not necessarily a slow bleed, but something that would be a more meaningful change.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Ravi, maybe as it relates to the competitive nature, we’ve noted some churn in dedicated and we’ve looked at that and studied what we’re really seeing there is in our standard equipment business. I think anytime you get into a market that has this much drag and duration on the down cycle, those parts of the portfolio are more vulnerable to other type solutions that customers may be looking for, opportunity to ratchet cost down at the expense perhaps of a service equation. That is not so much the competitive landscape at the dedicated, true dedicated level. That’s why we’re so focused across our four dedicated brands on the specialty equipment side. That doesn’t mean that it’s irrational competition in dedicated. It just means that there’s a different solution being pursued by a certain element of the customer base. That’s where we’ve seen our churn.

We also believe that that’s largely behind us and that our new business wins and our implementation, which has a little bit of drag in the short term, we also see that because we don’t have dislocated equipment that you have to get from the old to the new and that plays out in your revenue per truck per week metrics. We believe as we come out of the second quarter, we got a little bit of hangover on that in the third, but we’ll largely then start. We expect to start to see traction there in the dedicated numbers.

As we.

Kind of get farther into the year. As relates to Intermodal, we think obviously it’s a much different competitive dynamic based upon concentration and capability there with the players that can bring real scale to the market. Our biggest competition there is over the road truck. We also feel that we’re seeing great traction in really the volume first and third and generally pricing comes second as this typically plays between truck and Intermodal and the network side. Highly competitive.

Right.

We have decided to lean into our value, and in the short term, if that means putting more capacity into the spot market, it also gives us operating leverage. There is no place in our portfolio that has more operating leverage right now as we continue to focus on the things we’re doing on the self help, but also when the market gives us some lift, both price and volume, we can quickly and most quickly turn that into improved results. This is still probably in front of us a little bit, but we are going to see how we perform and how the market plays out in the second half of the year. I think we will be more constructive as we get into 2026.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Got it.

That is incredibly helpful. Maybe as a quick follow-up, can you remind us again just how nimble you can be pivoting between spot and contract and also dedicated as the cycle picks up?

Not asking you to share a secret.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: But just kind of broad strokes. Yeah, Ravi. I would give us very capable and high marks in our ability to pivot. Our tools, our technologies allow us to give real good and real direct pricing guidance and acceptance guidance. I also don’t discount the value that it has in dedicated because just about every one of our conditions we find some level to bring value back to the customer through backhaul and eliminating empty miles. We have more choice there at better price points. That is accretive not only to our solution to the customer, but it’s accretive to our bottom line in dedicated. We will move with extreme prejudice to go fast and pivot to where our capacity is being valued in the network.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Understood.

Thanks, gents and ladies, for your time.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thank you.

Conference Call Operator: Your next question comes from a line of Brian Ossenbeck from J.P. Morgan. Your line is open.

Hey, good morning. Thanks for taking the question. I just wanted to ask Mark. I want to ask if Mark, Mark, Jamie, been around for a few freight cycles and just your view on, you know, your initial.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Nice way to say we’re old on transcon.

I’m catching up pretty quick. I think the big question, you know, with the transcon on the board now.

What are your, what’s.

Your sort of initial take in terms of what that means from a growth and a partnership perspective? Long term intermodal growth I would assume has to be a selling point here. That would be on the plus side, but maybe for the long term, are there any things you’re a little more cautious or taking a harder look at? Obviously there’s a service disruption recently that affected your network is bad on your mind. Some perspectives as we all start to digest what might be the end game here.

Yeah, Brian, I think I’m tracking with your question there, and obviously with all the news and UP being one of our key underlying partners, I feel really good about where we stand with them. As you know, there’s a process to everything, and this has a very detailed process that we believe is likely to evolve as it moves through all the assessments that need to take place from here. As we think about our strategy and the intermodal network, details really matter.

Right.

It is detail dependent as how we think about these things. As we think about our intermodal strategy, we’re very cognizant that everything that we do has to be in the best interest of Schneider National Inc., has to be the best interest of our shareholders and our customers. From our view to achieve that, we’re always assessing new opportunities, new ways of doing business that bring value to the customer. I think we’ve demonstrated over the long haul here that we can adapt and we can bring new services. We’re so new and just a week into this, we really probably don’t have a lot to share, a lot to say at this point. This is places that we’re comfortable.

We have a very solid team. Jim Filter’s background and experience here throughout his career is to be paramount as we look at the playing field and look at the opportunities and position this intermodal product to thrive in the future.

Understood. Experience will definitely help maybe. Jim, just a quick follow-up. When you talk about peak season surcharges a little bit earlier than normal, I guess, was the comment. I don’t know what normal is anymore, but if you could put a little more context around that. Is that just earlier than normal just to kind of cover the uncertainty, or is there something more demand driven that we should read into there? Thanks.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah, thanks, Brian. Yes, it’s driven by demand when customers are starting to surge up. We’re seeing some of that surge right now. Our intent there is really to be able to manage our operations so that we’re putting costs where incremental cost is being incurred and to make sure that one or a small number of customers don’t completely disrupt our network. It’s really a matter to ensure that we’re maintaining efficiency in our business. We are starting to see that right now, and that’s why we want to make sure we have those in place.

Okay, thank you. Appreciate the time this morning.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thanks, Brian.

Conference Call Operator: Your next question comes from a line of Tom Wadowitz from UBS. Your line is open.

Good morning. I had two kind of numbers questions, just quick ones, and then I had a more strategic one. Darrell, what was the impact of gain on sale in truckload in Q2, and what was the impact of gain on sale in truckload in Q2? I think on the other operating line the loss was a bit higher. I am just wondering how to forecast that maybe for Q3 and Q4. I have the more strategic one for Mark and Jim. Thanks.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Sure.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: It seems like a multiple.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Again, Tom, this is Darrell. As a reminder, in the first quarter we did mention that we saw some improvement, different proceeds on sale of equipment. In the first half of the year there’s probably $3 million or so year over year improvement. For the second half of the year we also expect some level of improvement consistent with what we previously forecasted. No change in that guidance, but year over year, very modest, probably a modest.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Impact on results as it relates to other.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Other segment can be uneven in certain quarters and we certainly did see that. As a reminder, what’s in other segment, small carrier leasing business, which we’ve mentioned before, captive insurance company results is also in there, and then select unallocated corporate expenses. As it relates to looking forward, we’d expect that for the third and fourth quarters, the results will be consistent.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: With the second quarter.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: For your modeling, you can assume pretty much the same as 2Q.

Okay, yeah, thanks for that. Jim and Mark, you got a question on the intermodal, I guess the intermodal related to the potential rail consolidation.

I.

It seems to me that you’ve been very careful and strategic in crafting your service and your partners in intermodal such that you’re not just going toe to toe in all the business and lowest price always, but getting some differentiation in what you can offer. I guess Mexico is a good example of that. Maybe how much of your business do you think is east-west, would run on both railroads, and something that if the kind of consolidation doesn’t, you’re not on both sides of it, you might get hurt a little bit or have some disadvantage. How much do you think there’s either local traffic or there’s kind of some way that it’s more differentiated? I don’t know, maybe just how much of the volume is such as two railroads. I don’t know if there was a way you can frame it so we can think about that.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah, this is Jim. I’ll take a crack at that one. As Mark said, the details are what really matters as you go through this. You guys have seen some of the bigger changes we’ve made, and you talked about what we’ve done with Mexico and how that’s benefited us. I’d also say that there’s a lot of small tweaks that go on within that work. Of course, you don’t see all the decisions that we don’t make and the way we get there. It’s a very deliberate process that we use to evaluate any new rail service that’s really played out very well for us, both commercially and operationally, for Schneider National Inc. and for our customers. As this plays out, we’ll be applying that same recipe to how we think about this going.

Forward.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Which is also a way that we don’t really break down east versus west and some of those different components.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: But.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thanks for the questions, Tom.

Okay, thank you.

Conference Call Operator: Your next question comes from the line of Chris Weatherby from Wells Fargo. Your line is open. Great, thanks. Good morning.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: I wanted to talk a.

little bit about the guidance and try to understand a couple of things. The downside, I think when we talk in the second quarter, during the second quarter, I think there was a sense that maybe the downside of the guidance assumed an environment that was a pretty bad outcome, maybe that didn’t materialize, although that’s still there as we think about the back half of the year.

Maybe just a little bit of.

Perspective of what you think is kind of changed, what’s evolved, where the risk sort of lies here. I guess maybe as a follow up to that, you know, when you think about the shape of the back half, is 4Q still probably a bigger.

Quarter than 3Q from an earnings perspective.

Maybe there’s a little bit of.

A pull forward of peak, so it’s.

Really, 3Q is better and maybe the risk lies in 4Q. Just a little thought on that would be helpful.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Yeah, sure. This is Darrell, I’ll start. As you mentioned, the worst case that was kind of being floated around did not materialize. Just to clarify, the low end of our guidance was not tied to the worst case. There is still some risk as it relates to cost in select areas that I mentioned before, and also just overhang of trade policy uncertainty. We’re certainly not immune to that. From a high end perspective, in my prepared remarks, I did mention that we trimmed the high end of the guidance by $0.05. That is tied to some of the trade policy overhang that continues to impact just the general economy. Also, from a spot rate market perspective, we did see some seasonality throughout the quarter.

In order to have gotten to the higher end of our previous range of a dollar, that inflection would have had to be higher and more sustained. There are varying degrees of conditions that could happen, and that’s built into the scenarios that we’ve built in coming up with the high and the low end. There are many things that factor in: the level of seasonality and the persistence, the degree of spot price movement, the implementation of new business wins both in dedicated and intermodal, the timing of that new business wins, as well as inflationary impacts on cost. Depending on how some of those market forces evolve, you’ll get to varying degrees of outcomes within the range. Those are some of the things that we thought about. We also thought about regulatory and fiscal policy. Those things are obviously evolving.

The big beautiful bill and also some of the things that Jim talked about in terms of regulatory enforcement could have direct impact. That is on a net positive, but the timing of that also is uncertain and yet to be played out. Chris.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: I think as it relates to the second quarter, I think it played out fairly close to what our expectations were. Just to reiterate, at the time of, I guess this last call, we were right in the heart of this paranoia around the tariffs and all the things that could do from a negative standpoint. Our guidance never took the worst, worst case scenario there. To Darrell’s point, we thought a reasonably positioned range on both the downside and the upside, although wider than is typical for us just because of that uncertainty. As it relates to the third versus the fourth quarter, you know, there could be different impacts by our segments. The question is what is the import volumes that will materialize in the fourth quarter.

Intermodal might be a little bit more uncertain at this point and truck could be a bit stronger just based upon us being in the last mile versus the first mile that our intermodal positions in. We try to be thoughtful to our best assessment of that, and that’s not only by quarter, but also by segment. That’s how we would position the range.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Yeah, the only thing, this is Darrell again. Despite all the uncertainty that continues to linger, we have demonstrated the ability to grow earnings through that uncertainty. We’ve seen that several quarters in a row just based on the structural actions that we’ve taken for things within our control.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Okay, okay.

I appreciate the color around that, and maybe just as a quick follow-up, the dedicated pipeline.

Can you just expand a little.

Bit on sort of what you’re seeing.

Maybe how we think about that and sort of what hits in 3Q, maybe what hits in 4Q?

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Sure.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: I’ll let Jim maybe fill in some additional color here. As we talked about in our first quarter call, we were adding some additional resources to get after what we felt was a growing pipeline. We feel really solid. As I did in my opening comments, our pipeline is at a position now by size and by configuration that if we use any level of historical assessment, that pretends that we’re in a position of future growth. We feel that the additional resources are focused around specialty and the targets that we’ve laid out, in addition not only to our legacy, but also our three other brands that we’ve acquired, has put us in a pretty darn good position towards the future. We always use the word robust, but I would say certainly based upon any historical context, we feel really good about where we are in the pipeline.

We have to close, we have to implement all the things that need to occur, but we need to have where we are in the pipeline and we have several large late stages that we should be hearing about soon.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah, we’re late stage and at the same time very well prepared to implement efficiently. Some of those will be able to add in without actually adding trucks as well. We feel really good about our position.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Great, thanks very much.

Appreciate it.

Thank you.

Conference Call Operator: Chris, your next question comes from the line of Jonathan Chappell from Evercore. Your line is open.

Thank you. Good morning, Mark. On the logistics front, it sounds like power-only is doing pretty well. Traditional brokerage is struggling as to be expected. I thought we, I mean I felt that the long-term logistics guidance range, margin guidance range increase some years back was driven by the thought that power-only can retain a stronger margin. Can you just help us understand, you know, margin continues to be around this low 2%. Seems like power-only is moving up the chain, lower margin business moving down. What kind of drives that closer to the range? Is it just truly a cycle or is power-only maybe not as through-cycle resilient as we may have thought?

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Yeah, Jonathan, thank you for the question. We do have a bit of a mix going on there, and our most under stress part of our traditional Brokerage centers around the truckload mode, and LTL and some of the other modes are taking a higher % of our overall mix, which also comes with a different contribution per order, play, and configuration. Really, our focus is getting as efficient as we can get with the new tools. Some AI work, feel really good how the Brokerage team is adopting and getting in front of some emerging technologies that I think can drive real value not only there, but in other elements and starting to play in other elements of our business across the portfolio. Clearly, we’re really positive about our performance on power-only, and that not only counts top line, but bottom line performance as well.

We do expect and do require higher returns in that because we’re putting a trailing asset and capital against that power-only. It’s achieving not only the volume expectations and the customer value that we anticipated through cycles, whether it’s up or down, it’s also performing financially. Where we’re leaning into is our productivity initiatives and growth in our traditional Brokerage and still profitable. I mean, there’s others that aren’t profitable, but we’re not satisfied where we are there, and we think we have improvement opportunity.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: This is Jim. I’ll just add on, I do feel like we’ve done a good job in terms of the capability that we’re building into the business, and that’s why we’re integrating the Cowan resources onto this platform. The other thing I just share is that we are seeing customers prefer asset-based solutions right now. When that does return, as there’s market tightness, we’re really going to be able to leverage our investments there.

Okay, thanks, Jim.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Just a quick follow-up here.

I don’t want to read too much into this, but to Tom’s question, that other loss at $9.1 million in the second quarter, I think you were unofficially or officially looking for like $4 million. That’s $5 million higher. We’re looking. You just said 3Q and 4Q at a similar level.

If we add that off, that’s.

Like maybe $15 million higher. Yet you did keep the guidance range effectively, which is the top end coming down. Were you already anticipating kind of that level of other loss, or is maybe the core business holding up a bit better and this stub, so to speak, is kind of dragging you down.

Back to the original thought range?

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: Yeah.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: The $3 to $4 million that you said officially, unofficially, that was not embedded within our guidance. What we’ve seen was within the range of what we expected. Going forward, we expect a similar run rate, just given the composition of what’s in other.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Yeah, that won’t be. We don’t obviously give long-term guidance there. As it relates to the year, that’s what we would inform you. We’re working on those businesses to get that back to what we believe is what we would target as our sustainable level there.

Okay, that makes sense. Thanks, Mark.

Darren, I’m likely to make a big change in the remaining 2/4 of the year. Right.

Thank you.

Thank you.

Conference Call Operator: Your next question comes from a line of Ari Rosa from Citigroup. Your line is open.

Hi, good morning. I hear you on the points about capacity tightening and I think that’s encouraging. I’m curious how you interpret some of the weakness that we’ve seen in July related to spot rates in that post July 4th period. I understand obviously some of that is seasonality, but talk to me about how you see that capacity tightening playing out because it seems like the overall tone from some of your peers has been maybe a little bit more incrementally cautious, I would say, on the demand outlook and the pace of tightening. I’m just curious to see how you see back half playing out and into 2026. Thanks.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Thank you. I think what we were really laying out is the case for tightening of capacity. We’ve been careful not to predict because I don’t think any of us have done a good job of predicting when there’s an inflection there. There are elements that are different and new that, as we have surveyed a broad set of carriers, we’re not just doing that with border carriers, we’re doing that across certain pockets in the upper Midwest and the Southeast, where there are other opportunities for English language proficiency to have an impact. As we’ve done our survey work there, there’s a cohort that’s doing nothing and a cohort that’s taking more aggressive action. What we believe, and particularly we’ve seen a little bit with the B1 and others, is that the mere threat of enforcement has a deterrent effect or causes changes to how people operate.

As Jim mentioned, we’re seeing small carriers and mid-sized carriers implement testing on the front end. We’re seeing people take action to mitigate their risk because with this remedy of an out of service, it means that you’re out recovering cargo, you’re out recovering equipment, you’re not just fixing a tire or fixing a brake. There are more implications to having an out of service call here. We’re trying to, again, that all has to play out and prove, but we’re seeing evidence by the people that we know and trust and what they’re doing to adapt their business to the new reality. We’re not trying to predict, we’re just trying to set the case for what could occur. From a demand standpoint, I don’t know if we’re being overly optimistic.

We’re just talking about, in the individual segments, what we believe is the most likely scenario in the evidence that we have in front of us. I wouldn’t characterize us as being overly optimistic there prudently.

Okay, fair enough.

I may characterize ourselves.

I’d say we’re hopefully optimistic. I would love to see some better conditions here in the second half. Switching gears a little bit, I wanted to return back to this subject of the transcon rail merger proposal. It sounds like you’re broadly optimistic in terms of the upside to grow intermodal volume if that were to go forward. Obviously, I recognize there are a lot of complex allegiances that you guys have given your relationship with CPKC and also given your relationship with Union Pacific. I’m curious just how you’re thinking about the net opportunity to grow intermodal volume if that were to move forward and then if there are essentially how you would position yourself in terms of seeking any concessions or commitments or how you’re thinking about your role in this going forward. Thanks.

Great.

Thank you.

Ari, let me just again take an opportunity to clarify. We have not taken a position of optimism or we’re taking the position of obviously we have relationships that we value across three partners, but what we also said, details matter and details dependent for us to have any position on anything. At this juncture at a weekend, we are not in a position to make comment. We’re not in a position to take, you know, any pro or negative side. Do we like ultimately solutions, ultimately that improve transit, that improve the customer experience, that allow us to compete. We’re pro competition and we’re pro customer. To the degree that any of this helps us achieve those, then that’s kind of where we’ll come down. We don’t have enough information at this time to take an official position.

If we came across overly optimistic on that, then that was not our intent or negative. We’re not negative either. We’re just in the learning mode.

Totally fair and understood. Thanks for the time.

Conference Call Operator: Your final question comes from the line of Ken Hexter from Bank of America. Your line is open.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Great.

Good morning, Mark, Darrell and Christine.

Good morning, Ken.

Christine, hopefully one day we can jump over Ravi. We’ll have to work with you on that. 2Q to 3Q margins, maybe you can talk about what’s normal at truckload. If we should see 100 basis points deterioration like normal, is there anything that would drive that? I know you don’t do quarterly outlooks, but if there’s anything normal or abnormal as you move on, just given the gyrations in volumes from tariffs and the like, and then dedicated revenue per truck decelerated. It was flat year over year. Just wanted any thoughts on pricing, why we would see that, and then thoughts on the fleet size at network. So three numerical questions.

Darrell Campbell, Executive Vice President and Chief Financial Officer, Schneider National Inc.: Hopefully it’s pretty soon.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: Stacking them up on overtime. We don’t generally give guidance obviously directly on quarter to quarter. I think you’ve aptly kind of assessed as you look at historic performance between second, third quarter, there are years that it’s better, there’s years that it’s slightly worse. I think actually in our experience that’s about half and half depending upon the circumstances of the year. You know, as we came in through the July 4th holiday, we obviously seen some of that seasonality that we would typically see. To your comment, particularly in the spot pricing arena, that did not sustain itself. We would also say that July hasn’t necessarily been disappointing from how it’s played out in the back half of the month, both of some of our wins and some of the things that we’re seeing across both truck and intermodal.

It’s obviously way too early to discuss what the full quarter is going to look like or be, but feeling, you know, reasonably good where the second half of the month at least from a volume and a health standpoint played. Yeah.

Jim Filter, Executive Vice President and Group President of Transportation and Logistics, Schneider National Inc.: This is Jim. I’ll take your question on network capacity. We did see some growth of owner operators, which we’d say is a little bit counter to what we’re seeing in the overall market there. That’s really driven by the traction we have with our freight power for owner operator applications, which we implemented in Q1. That’s giving our owner operators more visibility, including to our own Brokerage freight that they now have the opportunity to weave into our network business. With company drivers, we’re being a little bit opportunistic here. We’re in the part of the cycle where we’re able to do that very economically, and it gives us some leverage against all of those other cost initiatives that we talked about. We believe as you have company drivers, when the market does inflect upwards, it’s an opportunity to also grow our owner operators as well.

They’ll have more opportunities there.

Mark Rourke, President and Chief Executive Officer, Schneider National Inc.: We are looking to drive efficiency first, which centers around what’s our ratio of drivers to trucks. That should manifest itself in the revenue per truck per week as much as it does in actual truck count.

Wonderful. Appreciate the time, guys.

Thanks, Ken.

Thanks for squeezing me in.

Conference Call Operator: That concludes our question and answer period and also concludes today’s conference call. We thank you for your participation and you may now disconnect.

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