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    Earnings call· Jun 2026(Q2 FY26)

    Schneider National Q2 FY26 earnings call SNDR

    Jul 30, 2026 Source

    Executive summary

    Schneider National Q2 FY26 — Earnings More Than Doubled Sequentially on Supply-Led Market Improvement

    Schneider National delivered strong Q2 FY26 results, with earnings more than doubling sequentially, driven by supply-led market improvement and effective execution of strategic initiatives. The company is capitalizing on tightening capacity and rising spot rates, while proactively addressing portfolio quality in Dedicated and prioritizing profitable growth in Intermodal. Management remains confident in the earnings trajectory, supported by technology innovation and cost savings, despite some demand uncertainty and driver capacity constraints.

    Highlights

    5

    • Earnings more than doubled sequentially, representing the strongest quarter-over-quarter improvement in the last decade.

    • Enterprise adjusted income from operations increased 29% year-over-year to $73 million.

    • Adjusted diluted EPS grew to $0.29, up from $0.21 in Q2 2025.

    • Truckload operating income increased 28% year-over-year to $51 million, with an operating ratio of 91.8% (180 bps improvement).

    • Logistics revenue grew 11% year-over-year to $376 million, with operating income up $4 million year-over-year to $12 million.

    Concerns

    4

    • Intermodal revenues, excluding fuel surcharge, declined 1% year-over-year to $262 million due to mix changes and lower length of haul.

    • Free cash flow declined $35 million year-over-year in the quarter due to increased net CapEx.

    • Anticipating a loss of a large Dedicated customer, which will be more evident in the second half of the year.

    • Tractor count in Truckload was impacted by driver availability, leading to lower truck count.

    Guidance & targets

    3
    CategoryTargetConfidence
    Full-year 2026 earnings per share
    $0.90 to $1.10
    high materiality
    High
    Full-year 2026 net CapEx
    $350 million to $400 million
    medium materiality
    High
    Full-year 2026 effective tax rate
    approximately 24%
    low materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Enterprise
    Enterprise revenues, excluding fuel surcharge, were up 4% year-over-year. Adjusted income from operations increased 29% year-over-year, and adjusted operating ratio improved 110 basis points.
    Adjusted income from operations: $73 millionAdjusted income from operations growth: 29% year-over-yearAdjusted operating ratio improvement: 110 basis points compared to second quarter 2025
    		$1.3 billion4%—$73 million
    Truckload
    Truckload revenues, excluding fuel surcharge, grew 1% year-over-year. Operating income increased 28% year-over-year, and operating ratio improved significantly, marking the strongest profitability since Q2 2023. This was driven by revenue management, improved Truckload backdrop, and cost savings.
    Operating income growth: 28% year-over-yearOperating ratio: 91.8%Operating ratio improvement: 180 basis points compared to last yearRevenue per truck per week growth: 5% year-over-yearNetwork revenues (ex-fuel surcharge) growth: 8% year-over-yearNetwork revenue per truck per week growth: 16% year-over-yearNetwork price growth: high-single digits year-over-yearNetwork price renewals: up double digitsProductivity growth: high-single digits year-over-year
    		$628 million1%—$51 million
    Dedicated
    Dedicated saw modest year-over-year price improvement, supported by portfolio upgrade actions. Productivity gains helped drive margins higher despite a year-over-year tractor count decline. The segment remains a key pillar for long-term growth.
    Revenue per truck per week: up modestly year-over-yearNew trucks sold year-to-date 2026: 500+
    		————
    Intermodal
    Intermodal revenues, excluding fuel surcharge, declined 1% year-over-year, but operating income increased 14%. Operating ratio improved 90 basis points. Revenue per order declined due to mix changes, while volumes grew modestly for the ninth consecutive quarter.
    Operating income growth: 14% compared to same period last yearOperating ratio: 93%Operating ratio improvement: 90 basis points compared to last yearRevenue per order decline: 2%Volumes growth: modestly year-over-yearConsecutive quarters of order growth: 9
    		$262 million-1%—$18 million
    Logistics
    Logistics revenue, excluding fuel surcharge, grew 11% year-over-year, and income from operations increased $4 million. Operating ratio improved 90 basis points, driven by top-line growth, effective management of net revenue per order, and productivity gains from technology investments.
    Income from operations growth: up $4 million year-over-yearOperating ratio: 96.8%Operating ratio improvement: 90 basis points from last yearBrokerage net revenue per order: improved year-over-year and sequentiallySpot exposure: increased year-over-year and sequentiallyFrontline productivity improvement: 17% year-over-year
    		$376 million11%—$12 million

    Operational metrics

    13
    Adjusted diluted earnings per share
    $0.29up from $0.21 in Q2 2025
    Q2 FY26

    Compared to $0.21 for the second quarter of 2025.

    Cost savings program target
    $40 millionon track
    FY26

    Execution against the $40 million cost savings target, where the company remains on track.

    Net capital expenditure
    $84 millioncompared to $53 million last year
    Q2 FY26

    Primarily reflecting efforts to improve the age of the tractor fleet.

    Dividends paid
    nearly $35 million
    YTD 2026

    Returned to shareholders in the form of dividends year-to-date.

    Total debt and lease obligations
    $397 million
    as of June 30

    Balance sheet position at the end of the quarter.

    Cash and cash equivalents
    $293 million
    as of June 30

    Balance sheet position at the end of the quarter.

    Net debt leverage
    0.2x
    as of June 30

    Net debt leverage at the end of the quarter.

    Spot rates vs. contract rates delta
    15%higher than contract price
    Q2 FY26

    Spot rates are still about 15% higher than contract price, enabling price extraction.

    Carrier qualification rate
    approximately 60%
    current

    Approximately 60% of carriers that apply are qualified by Schneider for brokerage services.

    Carrier count reduction
    from 60,000 to less than 14,000
    past several years

    Carrier count reduced to improve cargo security and safety standards.

    Trucks involved in injury crashes
    increased 18%
    since 2016

    Industry-wide increase in trucks involved in injury crashes, highlighting public safety concerns.

    Non-compliant capacity remaining
    roughly half
    current

    Roughly half of the noncompliant capacity is still expected to exit the marketplace through next year.

    Non-domiciled drivers remaining
    about 1/3
    current

    About 1/3 of non-domiciled drivers are still expected to be removed, with the first 2/3 having exited faster than anticipated.

    Industry KPIs

    3
    MetricValueDetails
    Operating ratio91.8%%
    Intermodal truckload volumemodestlygrowth
    Labor productivity headcount17%%

    Risks & headwinds

    5
    Driver Recruiting and Retention Challenges

    putting upward pressure on the cost of capacity

    Mitigation: aligned pay structure to reward hardest working drivers; surgically reinforcing recruiting efforts, including growing recruiters, expanding AI capabilities, and enhancing starting driver pay in constrained geographies.

    Demand Uncertaintysecond half of the year

    stronger demand could drive additional upside while softer demand may moderate some of the benefits from supply rationalization

    Mitigation: focused on a broad portfolio of customers to provide a cushion; preparedness to execute if and when freight becomes available.

    Loss of Large Dedicated Customersecond half of the year

    contemplated in what we're expecting going forward

    Mitigation: proactively addressing bottom performing agreements and reallocating resources to higher-performing opportunities; robust sales pipeline to absorb shocks.

    Litigation Environment

    companies that do the right thing should be held accountable based on the facts and not exposed to disproportionate outcomes driven by the current litigation environment

    Mitigation: investing heavily in safety, training, technology, compliance; advocating for tort reform to ensure fair, predictable outcomes aligned with actual conduct.

    Regulatory Enforcement Impact on Supplythrough next year

    roughly half of the noncompliant capacity is left with the remaining impact of supply expected to exit through next year

    Mitigation: leveraging multimodal strategy to capitalize on market improvement; adapting to structural changes in driver supply.

    What to watch in Q3 FY26

    5

    Dedicated revenue per truck per week improvement

    immediately here already in third quarter
    Currentup modestly year-over-year
    Targetmore pronounced improvement

    Why it matters

    Indicates successful portfolio quality actions and margin restoration in the Dedicated segment.

    I think in Dedicated, we're expecting that we should start seeing improvement in revenue per truck per week in Dedicated immediately here already in third quarter.

    Q&A highlights

    6

    What are customers saying about demand, and what are the company's plans for fleet growth, especially regarding moving trucks to the network segment?

    Demand is largely stable, playing out as expected, with some modest seasonal activity. The market is primarily supply-driven. The company is excited about supply exiting the driver market. In Dedicated, sales are strong (500 new trucks YTD), offset by near-term churn. For the network, the priority is to restore margins before growing the driver fleet.

    “demand is playing out largely as expected. Underlying demand is largely stable. We saw a little bit of seasonal activity in the quarter related to both summer holidays and the World Cup.”

    asked by Jordan Alliger · answered by Jim Filter

    2 min read6 chapters

    Detailed Narrative

    01

    Market Dynamics and Supply Attrition

    The market improvement is primarily supply-led, with regulatory actions (noncompliant CDL usage, English proficiency, illegal cabotage, ELD tampering) accelerating supply attrition. The market is now driver-constrained, with the long-haul driver population well below long-term averages. Roughly half of noncompliant capacity is expected to exit through next year, suggesting early stages of rate recovery. This structural shift, with capacity not growing as fast as after the pandemic, could lead to a longer recovery.

    02

    Pricing and Productivity Focus

    Schneider is balancing customer commitments with the need for rates that support service, recoup cost inflation, and drive returns. Spot rates now exceed contract rates by approximately 15%, historically preceding more meaningful contract rate improvement. The company is leveraging tools like elevated spot exposure, advanced freight selection, and mini bids to extract price. Productivity gains, driven by asset efficiency and driver utilization, are compounding these pricing efforts.

    03

    Dedicated Business Strategy

    Dedicated saw modest year-over-year price improvement, supported by portfolio quality actions. The company remains disciplined in adding durable solutions with targeted returns, proactively addressing pricing to get ahead of increased capacity costs. This discipline is creating some near-term churn but positions the portfolio for higher quality growth and margin restoration. The robust sales pipeline, with over 500 new trucks sold year-to-date, is expected to absorb shocks and restore margins.

    04

    Intermodal Growth and Constraints

    Intermodal delivered earnings growth despite revenue pressure, prioritizing profitable growth. Drayage has become the primary constraint, and the company elected not to chase growth requiring expensive third-party dray when pricing was not supportive. Success is seen in Mexico (17 consecutive quarters of growth) and the East due to over-the-road conversion opportunities and clear differentiation. The company is making targeted investments in company dray capacity and seeing accelerated pricing renewals.

    05

    Logistics Performance and Technology

    Logistics extended momentum with double-digit year-over-year growth in revenue and earnings. Brokerage net revenue per order improved due to revenue management, premium project business, and expanded spot opportunities. Technology investments, particularly in Agentic AI solutions, led to a 17% year-over-year improvement in frontline productivity. While project-based work may introduce quarter-to-quarter variability, the expertise built is expected to be a meaningful growth driver.

    06

    Capital Allocation and Balance Sheet

    Strategic priorities for capital remain unchanged: disciplined deployment supporting organic growth, accretive M&A, and robust shareholder returns. The company has a strong balance sheet with $293 million in cash and cash equivalents and $397 million in debt and lease obligations, resulting in net debt leverage of 0.2x at quarter-end. This financial strength provides flexibility to execute on all three capital allocation priorities.

    AI-generated summary of the company’s earnings call. Not investment advice.