Schneider National (SNDR) Q2 2024 earnings summary

Executive summary

• Q2 2024 operating revenues were $1.32 billion, down 2% year-over-year, with net income of $35.3 million, a 54% decrease from Q2 2023; sequential improvement in earnings and margins was achieved across Truckload, Intermodal, and Logistics through cost containment and asset efficiency.

• Adjusted net income for Q2 2024 was $36.3 million, with adjusted EBITDA at $152.9 million, down from $199.1 million year-over-year.

• The M&M Transport Services acquisition contributed to Dedicated segment growth, offset by declines in Network, Intermodal, and Logistics.

• Intermodal and Logistics contributed 51% of segment revenues and 46% of segment earnings in the quarter.

• Management cited multiple customer recognition awards and ongoing strategic focus on Intermodal, Logistics, and Dedicated growth.

Financial highlights

• Adjusted income from operations for Q2 2024 was $52 million, down from $107 million a year ago.

• Adjusted diluted EPS for Q2 2024 was $0.21, compared to $0.45 in Q2 2023; adjusted EBITDA was $153 million, down from $199 million year-over-year.

• Free cash flow for Q2 2024 was $112.9 million, compared to negative $57.1 million in Q2 2023; year-to-date free cash flow improved by $93.5 million.

• Adjusted operating ratio for Q2 2024 was 95.5%, up from 91.0% in Q2 2023.

• Quarterly dividend payout YTD was $33.3 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 adjusted diluted EPS guidance updated to $0.80–$0.90, with a 25% effective tax rate assumed.

• Net capital expenditures guidance for 2024 set at $300–$350 million.

• Management expects margin improvement in the second half, supported by typical seasonality and ongoing cost and productivity actions.

• Freight allocation season outcomes and soft market conditions have delayed anticipated pricing improvements.