Knight-Swift Transportation Holdings Inc. (KNX) Bundle
A Brief History of Knight-Swift Transportation Holdings Inc.
Knight-Swift Transportation Holdings Inc., a leading provider of transportation and logistics services, has seen substantial growth and transformation since its inception. The company was created through the merger of Knight Transportation and Swift Transportation in 2017, establishing a formidable presence in the trucking industry.
Financial Performance Overview
As of September 30, 2024, Knight-Swift reported total revenue of $1.88 billion for the third quarter, compared to $2.02 billion in the same period of 2023, reflecting a decrease of 7.0%. Year-to-date revenue for 2024 reached $5.55 billion, up from $5.21 billion in 2023, showing an increase of 6.5%.
| Financial Metrics | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenue | $1,876,676 | $2,019,936 | $5,545,797 | $5,209,847 |
| Net Income | $30,464 | $60,194 | $48,129 | $227,804 |
| Earnings per Diluted Share | $0.19 | $0.37 | $0.30 | $1.41 |
| Operating Ratio | 95.7% | 96.0% | 97.0% | 93.9% |
Segment Performance
The performance of Knight-Swift's segments reveals varied trends. The Truckload segment generated $1.26 billion in revenue for Q3 2024, down from $1.38 billion in Q3 2023. The LTL segment, however, showed growth with revenue of $325.4 million in Q3 2024, up from $284.2 million in Q3 2023.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-to-Date 2024 Revenue | Year-to-Date 2023 Revenue |
|---|---|---|---|---|
| Truckload | $1,258,156 | $1,380,781 | $3,785,408 | $3,346,685 |
| LTL | $325,412 | $284,168 | $914,012 | $806,577 |
| Logistics | $143,581 | $159,489 | $402,010 | $417,715 |
Operational Highlights
In 2024, Knight-Swift has made significant investments in expanding its operational capabilities, including the acquisition of DHE on July 30, which enhanced its LTL network in the Southwest markets. As of September 30, 2024, the company reported an average of 3,730 LTL tractors, an increase of 16.3% year-over-year.
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| LTL Average Tractors | 3,730 | 3,206 |
| LTL Average Trailers | 9,888 | 8,496 |
| Load Count | 39,968 | 37,292 |
Liquidity and Capital Resources
As of September 30, 2024, Knight-Swift reported unrestricted cash and cash equivalents of $166.3 million. The company’s total stockholders' equity stood at $7.1 billion, indicating a robust financial position to support ongoing operations and growth initiatives.
| Liquidity Metrics | Amount (in thousands) |
|---|---|
| Unrestricted Cash | $166,300 |
| Outstanding Debt | $1,400,000 |
| Total Stockholders' Equity | $7,100,000 |
Overall, Knight-Swift's strategic acquisitions and operational expansions have positioned it for continued growth in the logistics and transportation sectors, reflecting its commitment to enhancing service offerings and increasing market share.
A Who Owns Knight-Swift Transportation Holdings Inc. (KNX)
Major Shareholders
As of 2024, Knight-Swift Transportation Holdings Inc. (KNX) has a diverse ownership structure that includes institutional investors, individual shareholders, and company executives. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| BlackRock Inc. | 8.5% | 13,724,000 |
| The Vanguard Group, Inc. | 7.9% | 12,800,000 |
| State Street Corporation | 5.2% | 8,500,000 |
| Capital Research Global Investors | 4.6% | 7,300,000 |
| Company Executives and Board Members | 3.1% | 5,000,000 |
| Other Institutions | 20.0% | 32,000,000 |
| Retail Investors | 50.7% | 81,000,000 |
Executive Ownership
Key executives of Knight-Swift also hold significant shares in the company. The following table highlights the ownership of shares by top executives as of 2024:
| Executive | Title | Number of Shares Owned |
|---|---|---|
| David A. Jackson | CEO | 1,500,000 |
| Kevin P. Knight | Executive Chairman | 1,200,000 |
| Gary J. Knight | President | 800,000 |
| Michael H. A. Decker | CFO | 600,000 |
Institutional Ownership Trends
Institutional ownership has been a significant factor in Knight-Swift's stock price performance. As of the latest filings, institutional investors collectively hold approximately 46.2% of the total shares outstanding. The following table outlines the trends in institutional ownership over the past three years:
| Year | Percentage of Institutional Ownership |
|---|---|
| 2022 | 42.5% |
| 2023 | 44.0% |
| 2024 | 46.2% |
Market Performance and Impact on Ownership
Knight-Swift's stock performance has been influenced by various factors, including market conditions and company acquisitions. As of September 30, 2024, the stock price was $25.00, reflecting a year-to-date decline of 10.4%. The following table illustrates the stock price performance over the past four quarters:
| Quarter | Stock Price ($) | Change (%) |
|---|---|---|
| Q3 2023 | 27.85 | -3.2% |
| Q4 2023 | 28.75 | +3.2% |
| Q1 2024 | 29.00 | -5.1% |
| Q2 2024 | 25.00 | -10.4% |
Insider Transactions
Insider trading activity provides insights into executive confidence in the company's future performance. The following table summarizes the recent insider transactions:
| Executive | Transaction Type | Shares Traded | Date |
|---|---|---|---|
| David A. Jackson | Sale | 100,000 | July 15, 2024 |
| Kevin P. Knight | Purchase | 50,000 | August 5, 2024 |
| Gary J. Knight | Sale | 30,000 | August 20, 2024 |
Future Ownership Outlook
The ownership structure of Knight-Swift is expected to evolve as the company continues to grow and expand its operations. With ongoing acquisitions and market strategies, the distribution of shares among institutional and retail investors will likely shift in the coming years. The current focus on enhancing shareholder value through dividends and stock buybacks is also anticipated to impact ownership percentages.
Knight-Swift Transportation Holdings Inc. (KNX) Mission Statement
Company Overview
Knight-Swift Transportation Holdings Inc. (KNX) is a prominent provider of transportation services in North America. The company operates through various segments, including Truckload, Logistics, Less-Than-Truckload (LTL), and Intermodal, focusing on delivering efficient and reliable shipping solutions.
Mission Statement
Knight-Swift's mission is centered around providing high-quality transportation services with a commitment to safety, reliability, and customer satisfaction. The company aims to leverage technology and innovation to enhance operational efficiency and reduce costs while maintaining a focus on sustainability and environmental responsibility.
Financial Performance
As of the third quarter of 2024, Knight-Swift reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenue | $1,876,676 | $2,019,936 | $5,545,797 | $5,209,847 |
| Net Income | $30,464 | $60,194 | $48,129 | $227,804 |
| Earnings per Share (EPS) | $0.19 | $0.37 | $0.30 | $1.41 |
| Operating Ratio | 95.7% | 96.0% | 97.0% | 93.9% |
| Adjusted Net Income | $54,447 | $67,162 | $113,596 | $264,271 |
| Adjusted EPS | $0.34 | $0.41 | $0.70 | $1.63 |
Operational Metrics
Knight-Swift's operational efficiency is evident in its fleet statistics, which are crucial for maintaining service levels and profitability:
| Segment | Average Tractors (Q3 2024) | Average Trailers (Q3 2024) | Average Tractors (Q3 2023) | Average Trailers (Q3 2023) |
|---|---|---|---|---|
| Truckload | 22,814 | 90,935 | 24,159 | 95,976 |
| LTL | 3,730 | 9,888 | 3,206 | 8,496 |
| Intermodal | 622 | 12,569 | 677 | 12,669 |
Liquidity and Capital Resources
As of September 30, 2024, Knight-Swift's liquidity position is robust, with significant cash reserves and credit availability:
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Unrestricted Cash and Cash Equivalents | $166,348 |
| Availability under 2021 Revolver | $854,899 |
| Availability under 2023 RSA | $6,033 |
| Total Liquidity | $1,181,844 |
Future Outlook
Knight-Swift is focused on enhancing its service offerings and expanding its market presence through strategic acquisitions and investments in technology. The company anticipates continued growth in revenue and profitability driven by its diversified service portfolio and operational efficiencies.
How Knight-Swift Transportation Holdings Inc. (KNX) Works
Business Segments
Knight-Swift Transportation Holdings Inc. operates through several segments, including Truckload, Less-Than-Truckload (LTL), Logistics, and Intermodal services, providing a comprehensive range of transportation solutions.
Financial Overview
For the quarter ended September 30, 2024, Knight-Swift reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $1,876,676 | $2,019,936 | $5,545,797 | $5,209,847 |
| Net Income Attributable to Knight-Swift | $30,464 | $60,194 | $48,129 | $227,804 |
| Earnings per Diluted Share | $0.19 | $0.37 | $0.30 | $1.41 |
| Operating Ratio | 95.7% | 96.0% | 97.0% | 93.9% |
| Adjusted Operating Ratio | 93.9% | 93.8% | 95.1% | 91.6% |
Segment Performance
The following table outlines the performance of each segment for Q3 2024 compared to Q3 2023:
| Segment | Q3 Revenue (in thousands) | Q3 Operating Income (in thousands) | Operating Ratio |
|---|---|---|---|
| Truckload | $1,258,156 | $45,356 | 97.6% |
| LTL | $325,412 | $24,556 | 91.5% |
| Logistics | $143,581 | $6,684 | 96.5% |
| Intermodal | $102,679 | $(1,387) | 101.4% |
Operational Metrics
As of September 30, 2024, Knight-Swift reported the following operational statistics:
| Segment | Average Tractors | Average Trailers |
|---|---|---|
| Truckload | 22,814 | 90,935 |
| LTL | 3,730 | 9,888 |
| Intermodal | 622 | 12,569 |
Cash Flow and Liquidity
For the year-to-date period ending September 30, 2024, Knight-Swift's cash flow metrics include:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $524,741 |
| Net Cash Used in Investing Activities | $(619,020) |
| Net Cash Used in Financing Activities | $(54,495) |
Debt Obligations
As of September 30, 2024, Knight-Swift had the following debt obligations:
| Debt Type | Amount (in thousands) |
|---|---|
| 2021 Term Loan A-2 | $350,000 |
| 2021 Term Loan A-3 | $800,000 |
| 2023 RSA Outstanding Borrowings | $459,200 |
| Finance Lease Obligations | $528,900 |
Strategic Initiatives
Knight-Swift continues to expand its operational footprint, with recent acquisitions contributing to revenue growth. The integration of U.S. Xpress and DHE has been pivotal in enhancing market presence, particularly in the LTL segment. The company strategically focuses on improving service offerings and operational efficiency through technology and infrastructure investments.
How Knight-Swift Transportation Holdings Inc. (KNX) Makes Money
Revenue Segments
Knight-Swift Transportation Holdings Inc. generates revenue through several key segments, including Truckload, Less-Than-Truckload (LTL), Logistics, and Intermodal services.
| Segment | Q3 2024 Revenue (in thousands) | Year-to-Date 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Year-to-Date 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Truckload | $1,258,156 | $3,785,408 | $1,380,781 | $3,346,685 |
| LTL | $325,412 | $914,012 | $284,168 | $806,577 |
| Logistics | $143,581 | $402,010 | $159,489 | $417,715 |
| Intermodal | $102,679 | $288,192 | $101,219 | $316,118 |
| All Other Segments | $68,438 | $221,796 | $119,677 | $391,773 |
| Total Revenue | $1,876,676 | $5,545,797 | $2,019,936 | $5,209,847 |
Truckload Services
The Truckload segment includes irregular route and dedicated services, refrigerated, expedited, flatbed, and cross-border transportation. In Q3 2024, this segment generated approximately $1.26 billion in revenue, representing a decline compared to the previous year due to various market pressures.
Revenue per loaded mile has decreased by 4.8%, and cost per mile has increased by 1.3% year-over-year, affecting overall profitability. The segment operates approximately 16,300 irregular route tractors and 6,500 dedicated tractors.
Less-Than-Truckload (LTL) Services
The LTL segment, comprising regional and national services, reported revenue of $325.4 million in Q3 2024, up 14.5% year-over-year. This segment operates around 3,730 tractors and 9,888 trailers.
Key metrics include:
- LTL shipments per day: 21,907
- Average length of haul: 592 miles
- Revenue per shipment: $202.20
Logistics Segment
The Logistics segment generated $143.6 million in revenue in Q3 2024. It provides additional truckload capacity and freight management services, leveraging a network of third-party capacity providers. The segment's operating ratio stands at 96.5%.
Intermodal Services
Knight-Swift's Intermodal services reported revenue of $102.7 million in Q3 2024. This segment utilizes rail for longer hauls, complemented by drayage services. The operating ratio for this segment is 102.8%, indicating challenges in profitability.
Operating Expenses
Total operating expenses for Knight-Swift in Q3 2024 were approximately $1.80 billion, with significant costs attributed to:
- Salaries, wages, and benefits: $726.4 million
- Fuel: $213.5 million
- Operations and maintenance: $142.4 million
- Insurance and claims: $86.5 million
Financial Performance Metrics
Key financial metrics for Knight-Swift as of September 30, 2024, include:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in thousands) | $30,464 | $60,194 |
| Earnings per Share | $0.19 | $0.37 |
| Operating Ratio | 95.7% | 96.0% |
| Adjusted Net Income (in thousands) | $54,447 | $67,162 |
| Adjusted EPS | $0.34 | $0.41 |
Cash Flow and Liquidity
For the year-to-date period ended September 30, 2024, Knight-Swift generated $524.7 million in operating cash flows. Free cash flow was reported at $116.2 million. The company maintained $166.3 million in unrestricted cash and cash equivalents as of September 30, 2024.
Debt Obligations
Knight-Swift's total debt obligations include:
- $1.4 billion face value outstanding on the 2021 Term Loans and 2023 Term Loan
- $7.1 billion in stockholders' equity
Conclusion
Through a diversified service offering across various segments, Knight-Swift Transportation Holdings Inc. continues to adapt to market conditions, focusing on efficiency and profitability amid fluctuating demand and operational challenges.
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Article updated on 8 Nov 2024
Resources:
- Knight-Swift Transportation Holdings Inc. (KNX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Knight-Swift Transportation Holdings Inc. (KNX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Knight-Swift Transportation Holdings Inc. (KNX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.