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Knight Transportation (KNX)
NYSE:KNX
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Knight Transportation
(NYSE:KNX)
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Rating:66Neutral
Price Target:
$63.00
▲(14.34% Upside)
KNX scores in the mid-range primarily due to solid balance sheet positioning and notably stronger cash flow, supported by constructive technical momentum. The score is held back by a very expensive P/E valuation and a cautious near-term earnings outlook despite operational improvements.
Positive Factors
Strong Cash Flow Generation
Robust free cash flow growth enhances financial flexibility, allowing for reinvestment in operations, debt reduction, or shareholder returns, supporting long-term business stability.
LTL Segment Revenue Growth
Strong growth in the LTL segment indicates successful market penetration and service demand, contributing to diversified revenue streams and long-term growth potential.
Cost Structure Improvements
Reducing fixed costs improves operational efficiency and margin sustainability, enhancing profitability and competitive positioning in the long term.
Negative Factors
Truckload Segment Challenges
Declining revenue in the Truckload segment suggests market or operational challenges, potentially impacting overall revenue growth and profitability.
Unusual Charges Impacting Earnings
Significant unusual charges can distort earnings and indicate underlying operational issues, affecting investor confidence and financial performance.
Softness in LTL Demand
Softening demand in the LTL segment could pressure margins and impact revenue growth, posing challenges to maintaining profitability in the near term.
Knight Transportation (KNX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.94B
Dividend Yield1.34%
Average Volume (3M)2.66M
Price to Earnings (P/E)135.9
Beta (1Y)1.13
Revenue Growth>-0.01%
EPS Growth279.47%
CountryUS
Employees35,300
SectorIndustrials
Sector Strength72
IndustryTrucking
Share Statistics
EPS (TTM)0.31
Shares Outstanding162,339,000
10 Day Avg. Volume3,487,234
30 Day Avg. Volume2,660,979
Financial Highlights & Ratios
PEG Ratio-1.59
Price to Book (P/B)1.21
Price to Sales (P/S)1.16
P/FCF Ratio-427.07
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue1.54
Enterprise Value/Gross Profit9.41
Enterprise Value/Ebitda10.93
Forecast
1Y Price Target
$62.14Price Target Upside12.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Knight Transportation Business Overview & Revenue Model
Company DescriptionKnight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation services in the United States, Mexico, and Canada. The company operates through four segments: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Its trucking services include irregular route, dedicated, refrigerated, flatbed, expedited, dry van, drayage, and cross-border transportation of various products, goods, and materials. The company also provides logistics and intermodal services, such as brokerage, intermodal, and certain logistics; freight management; and non-trucking services. In addition, it offers various support services, including repair and maintenance shop services, warranty, insurance, and equipment leasing; and trailer parts manufacturing and warehousing services, as well as engages in the driving academy activities. In addition, it offers regional direct services to customers national transportation needs by utilizing carriers for coverage areas outside networks. The company operates a total of 18,019 tractors, which comprises 16,166 company tractors and 1,853 independent contractor tractors, as well as 67,606 trailers; 2,735 tractors and 7,413 trailers; and 597 tractors and 10,847 intermodal containers. It serves retail, food and beverage, consumer products, paper products, transportation and logistics, housing and building, automotive, and manufacturing industries. Knight-Swift Transportation Holdings Inc. was incorporated in 1989 and is headquartered in Phoenix, Arizona.
How the Company Makes MoneyKnight Transportation generates revenue primarily through its truckload transportation services, which include long-haul and regional freight transportation. The company operates a fleet of trucks, which it uses to transport goods for various clients, charging them based on distance, weight, and service levels. Key revenue streams include contracts with large shippers, spot market transactions, and dedicated freight services that provide stable, recurring revenue. Additionally, Knight benefits from strategic partnerships with other logistics providers, enhancing its service offerings and expanding its market reach. The company's focus on operational efficiency, coupled with its investments in technology and fleet management, also contributes significantly to its profitability.
Knight Transportation Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 16, 2026
Earnings Call Sentiment Neutral
The call conveyed a balanced message: the company is demonstrating meaningful operational progress (cost reductions, improved utilization levers, LTL revenue growth, Intermodal cost improvements and tech investments expected to deliver in 2026) and sees credible market tailwinds from capacity erosion and regulatory enforcement. However, these positives were offset in the quarter by a sizeable noncash impairment, modest consolidated revenue and adjusted income declines, margin pressures in Logistics and LTL as the network scales, a weakening secondary equipment market, and higher effective tax rates. Management offered cautious near-term guidance (Q1 2026 EPS $0.28–$0.32) while expressing confidence in margin recovery through cost actions and improving market dynamics later in 2026.Q4-2025 Updates
Positive Updates
Full-Year Truckload Earnings Growth Despite Revenue Decline
For the full year 2025 the Truckload segment grew adjusted operating income by $28 million despite a $125 million decline in truckload revenue (excluding fuel surcharge); Truckload held 2025 cost per mile flat with 2024 despite miles declining ~3.6% year-over-year.
Sequential Truckload Operating Margin Improvement
Truckload delivered meaningful sequential operating margin improvement in Q4 even though demand was weaker than expected; revenue per loaded mile (ex-fuel & intersegment) increased 0.7% year-over-year and improved 1.4% sequentially.
LTL Revenue and Pricing Strength
LTL revenue excluding fuel grew 7.0% year-over-year in Q4, shipments per day increased 2.1%, and revenue per hundredweight (ex-fuel) rose 5.0% year-over-year.
Intermodal Cost and Network Improvements
Intermodal improved adjusted operating ratio by 140 basis points year-over-year to 100.1%, with revenue per load up 2.8% and sequential revenue and load count growth (+1.7% and +2.6% sequentially).
All Other Segments Expansion
The 'All Other' category grew revenue 17.7% year-over-year and reduced its seasonal operating loss by $5.9 million (37.3% improvement), driven by warehousing and leasing growth.
Consolidated Adjusted Operating Ratio and Non-GAAP Results
Consolidated adjusted operating ratio was 94.0% in Q4, up 30 basis points year-over-year and 20 basis points sequentially; adjusted EPS of $0.31 for Q4 (non-GAAP).
Early Signs of Market Tightening and Improved Spot Dynamics
Management reported improved market indicators late in 2025 and into early January: increased rejection rates, improved spot vs. contract spread (best since early 2022), and better-than-typical Q1 network balance driven largely by capacity erosion.
Investment in Technology and Operational Levers
Company is rolling out tech-enabled programs (including AI, advanced planning, routing and fuel optimization) expected to begin delivering benefits in 2026 to improve utilization, reduce variable costs and enhance revenue capture.
LTL Network Growth Potential
Management expects the existing LTL infrastructure has capacity to support annualized revenue of $2.0 billion; door count grew ~10% year-over-year after opening one new center and upgrading another.
Guidance for Q1 2026
Provided Q1 2026 adjusted EPS guidance of $0.28 to $0.32, reflecting a cautious, seasonally-aware outlook while expecting continued cost progress.
Negative Updates
Noncash Impairment and GAAP Loss
Q4 GAAP results included $52.9 million of noncash impairment charges (primarily combining Abilene into Swift), producing GAAP diluted loss per share of $0.04 versus prior-year GAAP EPS of $0.43.
Consolidated Revenue and Adjusted Income Pressures
Consolidated revenue excluding fuel declined 0.4% year-over-year and consolidated adjusted operating income declined 5.3% year-over-year in Q4.
Truckload Quarterly Revenue and Income Declines
Truckload revenue excluding fuel fell 2.4% year-over-year in Q4 and adjusted operating income declined $9.2 million (10.7% year-over-year), with loaded miles down ~3.3% year-over-year.
LTL Margin Compression
Although LTL revenue grew, adjusted operating income decreased 4.8% year-over-year in Q4 and adjusted operating ratio widened ~60 basis points year-over-year, reflecting margin pressure from growth in facilities/doors outpacing shipment growth.
Logistics Revenue and Gross Margin Declines
Logistics revenue declined 4.8% year-over-year, volumes were down 1%, and gross margin fell to 15.5% (down 180 basis points year-over-year and 230 basis points sequentially); adjusted operating ratio was 95.8%.
Intermodal Volume Weakness
Intermodal revenue declined 3.4% year-over-year on a 6.0% decrease in load count despite revenue-per-load improvement, leaving the segment near breakeven (adjusted OR 100.1%).
Secondary Equipment Market Weakness
Secondary equipment market weakened in Q4, causing gains on sale to come in roughly $4 million below prior quarter expectations and prompting a reduced guidance range for expected gain on sale.
Higher Effective Tax Rates
Effective tax rate on GAAP results increased to 21.6%, up 820 basis points year-over-year; non-GAAP effective tax rate was 23.1%, up 460 basis points year-over-year, negatively impacting net income.
Seasonality and Shortfall in Expected Q4 Demand
Truckload demand lacked the typical broad-based seasonal lift until late in Q4; seasonal project activity wound down quickly, and border blockades impacted productivity (notably TransMex), contributing to weaker-than-expected volumes.
Adjusted EPS Contraction
Adjusted EPS fell to $0.31 in Q4 2025 from $0.36 in Q4 2024 (a decline of ~13.9%), reflecting lower demand and cost/volume dynamics despite cost saves.
Company Guidance
Knight‑Swift guided first‑quarter 2026 adjusted EPS of $0.28–$0.32, noting that this outlook assumes current conditions remain stable, typical seasonal truckload weakening and seasonal LTL recovery; management called for a strong bounce back in the "all‑other" category after its Q4 seasonal trough and said it has materially narrowed its expected gain‑on‑sale range given a weaker secondary equipment market (gains on sale ran roughly $4 million below the prior quarter). The company also flagged continued cost progress (truckload cost per mile was flat year‑over‑year in 2025 despite miles declining ~3.6% and CFOs expect further cost‑per‑mile improvement in Q1), expects LTL to return closer to a ~20% share next quarter, and tied the guidance to improving capacity dynamics (higher rejection rates and a tighter spot vs. contract spread exiting 2025) while warning results could vary if market conditions change.Knight Transportation Financial Statement Overview
Summary
Overall financials are steady: income statement is mixed (modest revenue growth and low net margin, with a notable gross margin drop), the balance sheet is solid with manageable leverage (debt-to-equity 0.39) and slightly improved ROE, and cash flow is a clear strength with strong free cash flow growth (+80.23% TTM) and improved cash conversion.Income Statement
Knight Transportation shows moderate revenue growth with a TTM increase of 0.68% and a previous annual growth of 3.76%. However, the gross profit margin has decreased from 24.34% in 2024 to 16.39% in TTM, indicating rising costs or pricing pressures. The net profit margin improved slightly to 1.90% in TTM from 1.59% in 2024, but remains low, suggesting profitability challenges. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.65
Positive
Balance Sheet
The company's debt-to-equity ratio is stable at 0.39 in TTM, indicating a balanced leverage position. Return on equity improved to 2.00% in TTM from 1.65% in 2024, showing better utilization of equity. The equity ratio remains strong, suggesting a solid capital structure with a significant portion of assets financed by equity.70
Positive
Cash Flow
Knight Transportation's free cash flow growth is robust at 80.23% in TTM, recovering from negative growth in 2024. The operating cash flow to net income ratio is healthy at 0.74, indicating strong cash generation relative to net income. The free cash flow to net income ratio improved significantly, reflecting better cash conversion efficiency.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.48B | 7.41B | 7.14B | 7.43B | 6.00B | 4.67B |
| Gross Profit | 1.23B | 1.80B | 1.96B | 2.41B | 1.97B | 1.46B |
| EBITDA | 1.06B | 1.03B | 1.01B | 1.66B | 1.47B | 1.07B |
| Net Income | 142.24M | 117.63M | 217.15M | 771.33M | 743.39M | 410.00M |
Balance Sheet | ||||||
| Total Assets | 12.62B | 13.07B | 13.26B | 11.14B | 10.82B | 8.62B |
| Cash, Cash Equivalents and Short-Term Investments | 294.35M | 365.94M | 466.35M | 389.74M | 354.11M | 205.03M |
| Total Debt | 2.76B | 2.82B | 2.67B | 1.67B | 1.96B | 1.03B |
| Total Liabilities | 5.50B | 5.96B | 6.16B | 4.18B | 4.27B | 2.75B |
| Stockholders Equity | 7.11B | 7.11B | 7.09B | 6.95B | 6.53B | 5.87B |
Cash Flow | ||||||
| Free Cash Flow | 352.45M | -20.09M | 90.06M | 635.29M | 656.06M | 398.58M |
| Operating Cash Flow | 817.75M | 799.06M | 1.16B | 1.44B | 1.19B | 919.64M |
| Investing Cash Flow | -564.61M | -759.12M | -1.23B | -646.18M | -1.82B | -480.71M |
| Financing Cash Flow | -274.04M | -139.40M | 150.69M | -754.35M | 779.33M | -443.88M |
Knight Transportation Technical Analysis
Neutral
55.10
Price Trends
52.30
Positive
47.66
Positive
45.36
Positive
Market Momentum
0.92
Positive
50.47
Neutral
16.30
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNX, the sentiment is Neutral. The current price of 55.1 is below the 20-day moving average (MA) of 56.14, above the 50-day MA of 52.30, and above the 200-day MA of 45.36, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 16.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KNX.
Knight Transportation Risk Analysis
Knight Transportation disclosed 38 risk factors in its most recent earnings report. Knight Transportation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Knight Transportation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $8.92B | 31.64 | 11.92% | ― | 1.96% | -24.55% | |
66 Neutral | $8.94B | 135.88 | 0.93% | 1.34% | >-0.01% | 279.47% | |
64 Neutral | $1.00B | 58.57 | 2.53% | 2.07% | -9.74% | -42.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $2.05B | 84.19 | 1.78% | 1.84% | -3.42% | -43.86% | |
57 Neutral | $4.71B | 45.49 | 3.45% | 1.40% | 5.46% | 2.31% | |
56 Neutral | $2.03B | 34.44 | 4.61% | 0.62% | -5.34% | -48.16% |
* Industrials Sector Average
KNX
Knight Transportation
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Knight Transportation Corporate Events
Business Operations and StrategyExecutive/Board ChangesPrivate Placements and Financing
Knight Transportation executes new receivables facility and leadership change
Positive
Jan 2, 2026
On December 31, 2025, Knight-Swift Transportation Holdings Inc., through its wholly owned subsidiary Swift Receivables Company II, LLC, entered into a new $575 million Receivables Purchase Agreement that replaces its prior receivables financing arrangement, shifting the structure from a receivables-secured financing to a sale of receivables, which is expected to lower the company’s expenses and segregate collections for the benefit of purchasers rather than the company’s general creditors. Using proceeds from this new facility, the company simultaneously repaid all remaining outstanding borrowings and terminated the prior agreement, while also appointing Soumit Roy as executive vice president, General Counsel and Corporate Secretary effective December 31, 2025, following the previously disclosed retirement of Todd Carlson, signaling both a significant refinancing of its receivables program and a key change in its senior leadership team.
The most recent analyst rating on (KNX) stock is a Buy with a $59.00 price target. To see the full list of analyst forecasts on Knight Transportation stock, see the KNX Stock Forecast page.
Executive/Board ChangesDividends
Knight Transportation Increases CFO Salary Amidst Leadership Changes
Neutral
Nov 7, 2025
On November 4, 2025, Knight-Swift’s Compensation Committee approved equity awards for its named executive officers, to be granted on November 28, 2025, under the Omnibus Plan. These awards include performance-based stock units and restricted stock units, aligning with the company’s long-term growth objectives. Additionally, the base salary of CFO Andrew Hess was increased, effective November 8, 2025. The company also announced the retirement of General Counsel Todd Carlson, effective January 1, 2026, and declared a quarterly cash dividend of $0.18 per share, payable on December 22, 2025.
The most recent analyst rating on (KNX) stock is a Hold with a $48.00 price target. To see the full list of analyst forecasts on Knight Transportation stock, see the KNX Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.