Schneider National Inc (NYSE:SNDR) Q3 2025 Earnings: Revenue Beat Overshadowed by Major EPS Miss and Guidance Cut

Schneider National Inc (NYSE:SNDR) reported financial results for the third quarter of 2025, delivering a performance marked by revenue growth that surpassed analyst expectations but earnings that fell significantly short. The market reacted negatively to the earnings miss, with the stock declining approximately 6% following the report.

Revenue and Earnings Versus Estimates

The transportation and logistics company posted quarterly revenue of $1.45 billion, a 10.4% increase compared to the same period last year. This figure came in slightly above the analyst consensus estimate of $1.46 billion. However, the bottom line told a different story.

• Reported Revenue: $1.45 billion
• Estimated Revenue: $1.46 billion
• Reported Adjusted EPS: $0.12
• Estimated EPS: $0.21

The adjusted earnings per share of $0.12 missed the market's forecast by 41.3%. This significant earnings shortfall, despite the revenue beat, appears to be the primary driver behind the negative stock price reaction.

Operational Performance and Key Challenges

The company's results were shaped by a mix of strategic initiatives and unforeseen headwinds. President and CEO Mark Rourke noted that the quarter began with strength in late July, but market conditions softened through August and September, with trends becoming "largely sub-seasonal."

Key operational highlights from the quarter include:

• Truckload Segment: Revenues, excluding fuel surcharge, grew 17% year-over-year to $624.5 million, largely driven by the acquisition of Cowan Systems. However, income from operations in this segment decreased by 16%, pressured by higher salaries, wages, and insurance costs.
• Intermodal Segment: This was a bright spot, with a 7% increase in income from operations to $16.8 million, supported by a 10% volume growth.
• Logistics Segment: Income from operations declined 16% to $6.4 million, as growth from the Cowan acquisition was offset by lower brokerage volume.

A major factor impacting profitability was a $16.0 million claims cost overrun related to prior-year claims development, which management stated was $0.07 per share greater than previous guidance.

Updated Business Outlook

Schneider provided a revised full-year outlook that falls well below both its prior guidance and current analyst expectations. The company now expects full-year 2025 adjusted diluted earnings per share to be approximately $0.70, a sharp reduction from its prior guidance range of $0.75 to $0.95.

• Company's New FY2025 EPS Guidance: ~$0.70
• Analyst FY2025 EPS Estimate: $0.83

CFO Darrell Campbell attributed the revised guidance to "challenging insurance dynamics" and recent "sub-seasonal trends" that are expected to persist. He also noted that the company is lowering its net capital expenditures forecast to approximately $300 million.

Conclusion

Schneider National's third-quarter results present a tale of two metrics: solid revenue growth countered by a steep decline in profitability. While the acquisition of Cowan Systems is contributing to top-line expansion, integration costs, rising insurance claims, and a softening freight market are severely pressuring margins. The market's negative reaction reflects investor concern over the significant earnings miss and the substantially reduced profit outlook for the full year. The company's ability to navigate the current insurance headwinds and improve operational efficiency will be critical to restoring investor confidence in the coming quarters.

For a detailed look at future earnings estimates and historical performance, you can view more on the SNDR earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.