Knight-Swift Transportation: Reiterate Hold Until Earnings Growth Inflects Upwards

  • Knight-Swift's Q2 results showed improved execution, EPS beat, and reinstated guidance, suggesting the worst may be over but not a full recovery yet. Truckload segment margins improved due to cost controls and U.S. Xpress integration, while LTL saw strong revenue growth from network expansion. Headwinds persist: TL pricing remains soft, LTL margins are pressured by integration costs, and asset-light segments continue to underperform.