GREEN BAY, Wis. — Schneider National Inc. is announcing its financials for the fourth quarter of 2024.
“In the second quarter of 2024, signs of seasonality returned to the freight market and were even more evident in the fourth quarter,” said Mark Rourke, president and CEO. “The year ended positively as carriers continued to exit the market and demand aligned more closely to seasonal expectations.”
Year-Over-Year Improvement
“The fourth quarter reflected the cumulative effects of actions we have taken to expand margins, which resulted in year over year earnings improvement across all our reportable segments for the first time since the second quarter of 2022,” Rourke said. “Intermodal achieved its second consecutive quarter of year over year earnings growth with continued improvement in volume and revenue per order. Our Dedicated business delivered resilient results through organic fleet growth and continues to have a strong new business pipeline.”
Cowan Acquisition
“In December, we successfully completed our third Dedicated acquisition in as many years,” Rourke said. “Bringing Cowan Systems into our family of companies aligns with our long-term strategic vision to provide customer-centric dedicated solutions as the cornerstone of our Truckload segment and broaden our presence to provide greater value to our customers. As of the end of the year, with the Cowan acquisition, Dedicated represents 70% of our Truckload segment.”
Enterprise Results
Enterprise income from operations for the fourth quarter of 2024 was $42.4 million, an increase of $11.1 million, or 35%, compared to the same quarter in 2023. Diluted earnings per share in the fourth quarter of 2024 was $0.18 compared to $0.15 in the prior year. Adjusted diluted earnings per share was $0.20 in the fourth quarter of 2024 compared to $0.16 in the same period a year ago. Compared to 2023, non-GAAP items in the fourth quarter included $1.4 million of transaction costs related to the acquisition of Cowan Systems.
In 2024, Schneider achieved significant reductions in our DOT reportable accidents, attaining an all-time low accident frequency. At the same time, the industry overall has seen a surge in litigious activity, including litigation funding, nuclear verdicts, and inflated settlements which has increased the cost and volatility of claims reserves, as well as insurance premiums. Refinement of reserve estimates, primarily relating to three accident claims from prior years, resulted in approximately $7.0 million of expense in the quarter, a $0.03 earnings per share impact.
Cash Flow and Capitalization
At December 31, 2024, the Company had $526.8 million outstanding on total debt and finance lease obligations compared to $302.1 million as of December 31, 2023. The Company had cash and cash equivalents of $117.6 million and $102.4 million as of December 31, 2024, and December 31, 2023, respectively.
The Company’s cash provided by operating activities for 2024 increased slightly year over year. Net capital expenditures were lower compared to the same period a year ago primarily due to reduced purchases of transportation equipment. Despite freight market conditions, we have generated strong free cash flow. For 2024, free cash flow increased $199.6 million compared to the same period in 2023.
In February 2023, the Company announced the approval of a $150.0 million stock repurchase program. As of December 31, 2024, the Company had repurchased a total of 3.8 million Class B shares for a total of $95.5 million under the program. In October 2024, the Company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of December 13, 2024, which was paid on January 8, 2025. On January 27, 2025, the Company’s Board of Directors declared a $0.095 dividend payable to shareholders of record as of March 14, 2025, expected to be paid on April 9, 2025. As of December 31, 2024, the Company had returned $66.6 million in the form of dividends to shareholders year to date.
Truckload
Truckload revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $560.1 million, an increase of $9.4 million, or 2%, compared to the same quarter in 2023 due to the acquisition of Cowan Systems, Dedicated organic new business growth, and a higher Network rate per total mile, partially offset by lower Network volumes. Dedicated average truck count increased 8% year over year due to the Cowan Systems acquisition and new business growth, while Network average truck count was down 13%. Truckload revenue per truck per week was $4,100, an increase compared to the same quarter in 2023, as both Network and Dedicated revenue per truck per week improved year over year.
Truckload income from operations was $19.8 million in the fourth quarter of 2024, an increase of $1.0 million, or 5%, compared to the same quarter in 2023 primarily due to Dedicated organic new business growth and the acquisition of Cowan Systems, partially offset by increased insurance expense. Operating ratio was 96.5% in the fourth quarter of 2024 compared to 96.6% in the fourth quarter of 2023.
Intermodal
Intermodal revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $276.2 million, an increase of $15.6 million, or 6%, compared to the same quarter in 2023 primarily due to volume growth of 3% and higher revenue per order. Revenue per order was $2,536, an increase of $52, or 2% year over year, partially due to changes in freight mix which impacted length of haul.
Intermodal income from operations for the fourth quarter of 2024 was $17.2 million, an increase of $11.0 million, or 177%, compared to the same quarter in 2023. In addition to the volume growth and increased revenue per order mentioned above, internal cost actions, network optimization, and improved dray productivity contributed to the increase in earnings. Intermodal operating ratio was 93.8% compared to 97.6% in the same quarter in 2023, an improvement of 380 basis points.
Logistics
Logistics revenues (excluding fuel surcharge) for the fourth quarter of 2024 were $323.9 million, a decrease of $18.2 million, or 5%, compared to the same quarter in 2023 primarily due to lower brokerage revenue per order and volumes, which were down 6% and 5%, respectively, year over year, partially offset by the Cowan Systems acquisition.
Income from logistics operations for the fourth quarter of 2024 was $8.5 million, an increase of $2.4 million, or 39%, compared to the same quarter in 2023 primarily due to higher brokerage net revenue per order and the Cowan Systems acquisition, partially offset by lower brokerage volume noted above. Logistics operating ratio was 97.4% in the fourth quarter of 2024, compared to 98.2% in the fourth quarter of 2023, an improvement of 80 basis points.
“I would like to recognize our associates, particularly our professional drivers, for their unwavering dedication and commitment throughout the year. I would also like to thank our customers and stakeholders for their support,” Rourke said. “As we look ahead to 2025 and what we believe will be a year of improving freight market conditions, we expect to build on the momentum of the fourth quarter with a focus on restoring margins and positioning the business for through-cycle growth.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
