Schneider National raises 2026 forecast, Q3 profit misses estimates

Schneider National, Inc. (SNDR) said on Oct. 29 that it raised its full-year 2026 adjusted diluted earnings per share forecast to $1.00 to $1.10 in the same release that reported third-quarter results.

Third-quarter adjusted earnings were 29 cents per share, missing the 30-cent consensus estimate compiled by Finnhub. Operating revenue of $1.59 billion was below the $1.61 billion estimate, the company said in a filing furnished to the Securities and Exchange Commission.

Schneider is among the largest providers of surface transportation and logistics solutions in North America. It offers truckload, intermodal and logistics services across the continental United States, Canada and Mexico.

Here's how the company did:

• Operating revenues: $1,585.3 million vs. $1,452.4 million a year earlier
• Adjusted diluted EPS: 29 cents vs. 12 cents a year earlier, against 30 cents expected, according to Finnhub
• Diluted EPS: 28 cents vs. 11 cents a year earlier
• Income from operations: $62.1 million vs. $35.3 million a year earlier
• Net income: $49.5 million vs. $19.4 million a year earlier

Income from operations rose 76% from a year earlier. Adjusted income from operations rose 66% to $63.8 million, and adjusted EBITDA rose 13% to $168.8 million.

CEO Jim Filter said: "Our third-quarter performance demonstrates how our strategy has positioned the enterprise to convert improving market conditions into stronger earnings and margins."

2026 guidance

The company raised its full-year adjusted diluted EPS guidance to $1.00 to $1.10, from the 90 cents to $1.10 range it gave on July 30. The guidance assumes an effective tax rate of about 22%.

It now expects net capital expenditures of $325 million to $350 million, down from the $350 million to $400 million range it gave on July 30.

Executive Vice President and Chief Financial Officer Darrell Campbell said: "Our outlook anticipates continued contract rate recovery and further benefits from our productivity and cost initiatives, while also recognizing that peak season demand and driver capacity remain important variables as we close the year."

Segment results

Truckload income from operations was $43.7 million, up $23.9 million, or 121%, from a year earlier. Its operating ratio improved to 93.0% from 96.8%.

Intermodal income from operations was $22.6 million, up $5.8 million, or 35%. Its operating ratio improved to 92.1% from 94.0%.

Logistics reported no income from operations in the quarter, down $6.4 million from a year earlier. The company said higher purchased transportation costs and insurance expense tied to a specific prior-year claim drove the decline.

The company also said it reached a new agreement with Norfolk Southern. The release gave no terms. Filter said: "We announced a new agreement with Norfolk Southern today and this is a strong example of that approach in action, further differentiating our Intermodal offering while enhancing service and supporting profitable growth."

Cash and capital returns

As of Sept. 30, the company had $326.2 million in cash and cash equivalents and $393.6 million outstanding on total debt and finance lease obligations.

Net capital expenditures decreased from a year earlier, primarily because of higher proceeds from equipment sales.

Under a $150.0 million share repurchase program approved in January, the company had bought back 0.2 million Class B shares for $5.2 million as of Sept. 30. The board declared a $0.10 dividend on Oct. 26, payable to shareholders of record on Dec. 11, with payment expected on Jan. 12, 2027.