Few Signs of a Freight Slowdown in Knight-Swift’s Q2; Margins Impressive

Diversified trucking and logistics specialist Knight-Swift’s second-quarter revenue-before-fuel grew 40% year over year (it was up 49% last quarter). Despite easing truckload spot rates, revenue growth exceeded our forecast on strong contract pricing gains and fuel surcharge noise. Relative to the year-ago period, revenue benefitted from the firm’s LTL-carrier acquisitions, strong underlying freight demand, and the tight capacity backdrop, which has driven up core pricing across all segments.