Schneider's Q4 Earnings: A Beacon Among Ground Transportation Stocks

As the earnings season for ground transportation stocks comes to a close, Schneider (NYSE:SNDR) stands out as a shining example of strong performance. While the broader sector reported a slower Q4, Schneider delivered impressive results, driven by strategic acquisitions, organic growth, and operational improvements. Let's dive into the key factors contributing to Schneider's success and compare its performance with its peers.



Schneider's Q4 Earnings Highlights

Schneider reported a 19% gain in fourth-quarter profit, driven by a boost in its dedicated operations from the acquisition of Cowan Systems and improvements in its operating ratios. The company's overall operating ratio improved to 96.8 from 97.7, with its intermodal division posting an operating ratio of 93.8, compared with 97.6 in the same period 12 months earlier. Schneider's truckload division posted an operating ratio of 96.5 in Q4, compared with 96.6% a year earlier, and its intermodal unit posted a 380 basis-point improvement in its OR, helping to boost revenue in the most recent quarter by 6% or $15.6 million year over year to $276.2 million from $260.6 million.

Acquisitions and Fleet Transformation

Schneider's acquisition of Cowan Systems in 2024 contributed significantly to its earnings growth and market position. The acquisition expanded Schneider's dedicated operations and broadened its presence in the truckload segment, with dedicated tractors accounting for 70% of its truckload fleet in 2025, up from 33% in 2017. This strategic move allowed Schneider to broaden its vertical reach and geographic expansion, enabling it to serve a wider range of customers and industries.

Organic Business Growth and Higher Rates

Schneider's truckload division experienced organic business growth in the dedicated segment, along with a higher rate per total mile across its truckload network operations. This contributed to an increase in revenue per truck per week, which averaged $4,100 in Q4 2024, a 1% increase from the same quarter in 2023. Schneider's intermodal division also experienced volume growth of 3% in Q4 2024, with 109,906 orders compared to 106,377 orders in the year-ago period, and a 6% increase in revenue.

Improving Operating Ratios

Schneider's improving operating ratios indicate better cost management and revenue generation within the division. The company's truckload division posted an operating ratio of 96.5 in Q4 2024, compared to 96.6% in the same period a year earlier, and its intermodal division posted a 380 basis-point improvement in its OR. This improvement in operating ratios is partially attributed to the organic business growth and higher rate per total mile in the dedicated segment, which was boosted by the Cowan Systems acquisition.

Comparing Schneider's Performance with Peers

While Schneider's Q4 earnings performance was strong, other ground transportation stocks reported mixed results. For instance, XPO (NYSE:XPO) reported revenues of $1.92 billion, flat year on year, in line with analysts' expectations, but its stock was down 8.5% since reporting. Werner (NASDAQ:WERN) reported revenues of $754.7 million, down 8.2% year on year, falling short of analysts' expectations by 0.9%, and its stock was down 3.5% since reporting. Avis Budget Group (NASDAQ:CAR) reported revenues of $2.71 billion, down 2% year on year, falling short of analysts' expectations by 1%, and its stock was up 1.4% since reporting.

In conclusion, Schneider's Q4 earnings performance was exceptional compared to its peers in the ground transportation sector. The company's strategic acquisitions, organic business growth, and improved operating ratios contributed to its strong performance. As Schneider continues to execute its acquisition strategy and optimize its operations, it is well-positioned to capture unique opportunities and drive growth in the transportation and logistics industry.