Knight-Swift Q2 earnings jump 80% on truckload pricing gains, issues $1.5B convertibles

Knight-Swift reported Q2 2026 total revenue of $2.1 billion, up 12.6% year-over-year, with revenue excluding fuel surcharge up 5.5%. Adjusted EPS rose 80% to $0.63 from $0.35 in Q2 2025, while GAAP EPS increased 23.8% to $0.26. Operating income improved 44.4% to $104.9 million, and adjusted operating income grew 45.5% to $151.0 million, reflecting pricing gains and operational improvements across segments.

The Truckload segment delivered revenue growth of 2.8% excluding fuel surcharge, driven by a 5.5% increase in revenue per loaded mile. The adjusted operating ratio improved 360 basis points to 91.0%, benefiting from pricing gains and a 140 basis point reduction in empty miles. Pricing momentum accelerated through the quarter, with June showing high single-digit rate improvement overall and double-digit gains in over-the-road operations, signaling strengthening market conditions.

The LTL segment reported revenue excluding fuel surcharge down 1.4% year-over-year as shipments per day declined 3.7%, reflecting deliberate volume management to improve freight mix and network efficiency. Tonnage per day grew 4.0% on a 7.9% increase in weight per shipment, and length of haul rose 5.3%. The adjusted operating ratio improved 100 basis points to 92.1%, demonstrating progress on operational efficiency and freight quality despite lower shipment volumes.

Knight-Swift reported strong Q2 2026 results with total revenue up 12.6% year-over-year, revenue excluding fuel surcharge up 5.5%, and adjusted operating income up 45.5%. Adjusted net income increased 79.7% and adjusted earnings per share rose 80.0% to $0.63 from $0.35 in Q2 2025, driven by improved pricing and network execution across segments.

The Truckload segment, representing 61% of company revenue, delivered revenue excluding fuel surcharge of $1,103.1 million (up 2.8% year-over-year) and adjusted operating income of $98.9 million (up 69.4%). The adjusted operating ratio improved 360 basis points to 91.0%, reflecting a 5.5% improvement in revenue per loaded mile as recent bid outcomes contributed and the U.S. Xpress over-the-road division achieved profitability for the first time since acquisition.

Knight-Swift issued $1.5 billion of senior unsecured convertible notes with a 5.5-year maturity and 1.0% coupon. The proceeds were used to fully repay floating-rate senior credit facility borrowings (previously at approximately 4.9% interest), leaving zero outstanding on the $1.5 billion revolving line and $225 million of term loans remaining. The company purchased a $107 million call spread to raise the effective conversion price to $104.75 per share from the base $80.11, limiting dilution until significant stock appreciation.

Management guided Q3 2026 adjusted EPS to $0.71-$0.77, implying continued sequential improvement. The guidance assumes Truckload revenue excluding fuel surcharge up mid-single digits year-over-year with adjusted operating ratio improving 650-750 basis points, LTL revenue up low-single digits with adjusted operating ratio in the low 90s, and net interest expense down approximately $5 million sequentially reflecting the convertible notes refinancing benefit.

The Less-Than-Truckload segment generated revenue excluding fuel surcharge of $333.0 million (down 1.4% year-over-year) but improved adjusted operating income 13.3% to $26.4 million with adjusted operating ratio improving 100 basis points to 92.1%. Tonnage per day increased 4% year-over-year with length of haul up 5.3% as the freight mix evolved into the larger national footprint, and renewal rates increased at a mid-single-digit percentage.