Schneider, TFI, ArcBest, Hub Group: Q2 2024 Earnings Reports

Major freight companies hit turbulence in Q2 2024. Here's the rundown:

Schneider National: Income Nosedives

• Revenue: $1.3B (about the same from Q2 2023)
• Income from operations: $51M (51% drop)
• Culprit: Lower truckload demand, rising costs

Despite the severe drop in profit, company President and CEO Mark Rourke anticipates, “movement towards more typical freight replenishment and seasonality trends, contributing to continued improvement in margin performance across our operating segments.”

TFI International: Feeling the Squeeze

• Revenue: $648M (down from $649M in Q2 2023)
• Struggle: Reduced customer demand

TFI aims to reduce expenses in their LTL operations while boosting revenues through enhanced service quality. CEO Alain Bédard described TFI's Freight as "fat," indicating it has excessive costs it wants to cut down on.

ArcBest: Asset-Light Unit Struggles

• Revenue: $712.7M (down from $722M in Q2 2023)
• Reasons for Decline: Lower volumes, pricing pressures

Ongoing challenges in ArcBest’s truckload brokerage operations offset the gains in its less-than-truckload unit during the second quarter, resulting in earnings falling short of analysts' predictions.

Hub Group: Outlook Lowered

• Revenue: $986M (down from $1.04B)
• EPS: $0.47 (1 cent below analyst's predictions of $0.48 cent a share)

“This quarter, we updated assumptions to assume that the challenges that we have experienced the last few quarters will continue throughout the year,” Phil Yeager, president and CEO of Hub Group.

The CEO outlined that increased consumer demand and a rise in customers opting for intermodal transportation could boost earnings in 2024.

Each of these companies faced unique challenges in Q2 2024, reflecting broader industry trends and market dynamics. With 2 quarters to go, there is still plenty of time to rebound after a disastrous second quarter.

Source: Schneider: Trucking Dive | TFI: LinkedIn | ArcBest: FreightWave 1, 2| Hub Group: FreightWaves