Knight-Swift Transportation reports 2023 financials

Knight-Swift Transportation Holdings Inc. has reported financial results for 2023, and the year-end revenues totalled $7,141.8m, down 4% y-o-y from 2022. It produced operating income of $338.28m, down 69% y-o-y from 2022.

During the fourth quarter of 2023, consolidated total revenue was $1.9bn, which is a 10.8% increase from the fourth quarter of 2022. Consolidated operating income was $18.3m, reflecting a decrease of 91.0%, as compared to the same quarter last year, primarily due to the $71.7m operating loss in the third-party insurance business and the 58.7% decline in operating income of the Truckload segment.

The Company has four reportable segments: Truckload, Logistics, LTL, and Intermodal, as well as the non-reportable segments.  

Truckload:  The truckload segment continues to experience a difficult environment. Revenue for the quarter, excluding fuel surcharge and intersegment transactions, was $1.2bn, an increase of 25.5% y-o-y, reflecting a 12.5% decline in the existing truckload business prior to the inclusion of U.S. Xpress, which was acquired in Q3 2023.

Logistics: Revenue for the quarter, excluding intersegment transactions, decreased by 5% y-o-y. The segments existing logistics load count declined by 22.7% y-o-y, before the addition of U.S. Xpress logistics volumes brought the segment to a 2.6% increase y-o-y. Revenue per load decreased by 7.4% y-o-y but improved by 10.5% from the third quarter.

LTL:  The LTL segment performed well, with revenue excluding fuel surcharge for the quarter growing by 13.8% y-o-y and adjusted operating income growing by 14% y-o-y. Volumes were strong with shipments per day for the quarter increasing 11.9% y-o-y. The company stated it expects to close on the addition of fifteen terminals, which will serve to further extend the segments service offering and increase the density of the company’s network.

Intermodal: Total revenue for the quarter decreased 16.4% y-o-y to $94.4m. While load count increased year-over-year by 4.2%, it declined 6.0% sequentially. Revenue per load declined 19.7% as a result of soft demand and competitive truck capacity.

Source: Knight-Swift Transportation