Schneider National cuts FY25 adjusted EPS view to 70c from 75c-95c

Consensus 80c. Cuts FY25 capital expenditures view to $300M from $325M-$375M. “The challenging insurance dynamics that have pressured the industry in recent years weighed on third quarter results as we saw the impact of adverse development of three claims associated with 2021 and 2023 policy years,” said Darrell Campbell, Executive Vice President and Chief Financial Officer of Schneider. “The timing has masked some of the traction we are seeing on our efforts to lower our cost to serve and deliver on our focused revenue strategies. We expect earnings improvement in the fourth quarter as we continue to execute on these efforts. However, recent sub-seasonal trends are likely to persist for the balance of the year. Several new dynamics have been introduced over the last few months that are definitive catalysts for the removal of excess capacity, including regulatory enforcement actions, which have the potential to significantly change the supply dynamics of the industry. As we continue to grapple with macro uncertainty, we will remain disciplined on capital allocation and are well positioned to act opportunistically to enhance shareholder value including through accretive acquisitions and shareholder returns.”