Knight-Swift strengthens profitability as trucking and intermodal activity improves
Knight-Swift Transportation Holdings reported a significant improvement in profitability during the third quarter of 2026, supported by stronger pricing in its truckload operations and increased activity across its intermodal business.
The US-based transportation group recorded total revenue of $2.20 billion, representing a 14.2% increase compared with the corresponding period in 2025. Operating income rose to $178.7 million from $50.3 million, while net income attributable to Knight-Swift reached $118.3 million, compared with $7.9 million a year earlier.
Adjusted operating income increased by 87.4% to $198.5 million, while the group’s adjusted operating ratio improved by 450 basis points to 89.3%. The improvement reflected stronger pricing, operational efficiencies and cost management across several business segments.
Truckload pricing supports earnings recovery
Knight-Swift’s Truckload division recorded revenue of $1.41 billion, an increase of 14% year-on-year. Excluding fuel surcharges and intersegment transactions, revenue increased by 6.5% to approximately $1.15 billion.
The improvement was primarily driven by a 9.7% increase in revenue per loaded mile, excluding fuel surcharges and intersegment transactions, although total loaded miles declined by 3%.
The segment’s adjusted operating income increased to $124.6 million from $41.2 million in the previous year, while its adjusted operating ratio improved to 89.2%, compared with 96.2% in the third quarter of 2025.
Operational efficiency also improved, with the proportion of non-paid empty miles declining by 170 basis points to 12.1%.
According to the company, demand for reliable truckload capacity remained strong, while industry capacity constraints and driver availability continued to influence market conditions.
Knight-Swift Chief Executive Officer Adam Miller indicated that continued cost inflation and capacity pressures could require further freight rate increases during 2027 to support margins and fleet investment.
Intermodal volumes record strong growth
The company’s Intermodal segment delivered particularly strong growth during the quarter, with revenue increasing by 30.6% to $122.9 million.
Intermodal load volumes rose by 13.3% to 40,090, reaching their highest level in more than five years. Revenue per load increased by 15.2%, including fuel surcharges, while the increase excluding fuel surcharges was 5.5%.
The segment recorded operating income of $2.8 million, compared with an operating loss of $2.3 million in the same quarter of 2025. Its adjusted operating ratio improved to 97.8% from 99.8%.
Knight-Swift attributed the performance to stronger customer demand, improved pricing and operational efficiencies. The company also pointed to tighter trucking capacity and higher fuel prices as factors supporting intermodal transport demand.
Elsewhere, the Less-than-Truckload (LTL) division reported revenue of $434.5 million, up 10.1%, although revenue excluding fuel surcharges increased by only 0.4%.
LTL daily tonnage increased by 3.3%, supported by a 4.8% rise in average shipment weight. However, adjusted operating income declined by 8.4% to $29.4 million.
The Logistics division recorded a 1% decline in revenue to $139 million, while adjusted operating income increased by 19.6% to $9.6 million as margins improved.
Company expects continued momentum
Knight-Swift expects adjusted earnings per share of between $0.78 and $0.84 for the fourth quarter of 2026, based on its assumptions regarding stable freight demand, constrained capacity and normal seasonal patterns.
The group also revised its expected full-year net cash capital expenditure range to $600 million–$625 million, compared with its previous forecast of $600 million–$650 million.
For the first nine months of 2026, Knight-Swift generated operating cash flow of approximately $799.9 million and reported free cash flow of $373.2 million.
The company expects continued opportunities from freight pricing adjustments, improved asset utilisation and demand for transportation capacity, particularly during the peak shipping season.
Although the substantial increase in reported net income also reflected lower interest expenses, a reduced effective tax rate and differences in certain prior-year charges, the third-quarter results showed improved underlying operating performance across the group’s truckload, logistics and intermodal businesses.
