KNX

Knight-Swift is a scaled truckload, LTL and intermodal carrier sitting near the bottom of a multi-year freight recession. The GAAP optics are ugly — FY2025 revenue was essentially flat at $7.47B, net income fell 43.9% to $65.9M, diluted EPS dropped to $0.41, and operating margin is just 2.9% — but the trailing P/E of 180.9x is a trough-earnings artifact, not a real valuation. Net income has collapsed from $771M in FY2022 through $217M, $118M and now $65.9M as freight rates stayed depressed.

The MD&A's non-GAAP reconciliation reframes the year. GAAP EPS of $0.41 absorbed $98.3M of non-cash impairments (goodwill/intangibles from ceasing Abilene operations and rebranding MME/DHE LTL brands under AAA Cooper, plus discontinued software and real-property writedowns) and $78.2M of acquisition-related intangible amortization. Stripping those out, adjusted net income actually rose to $204.7M from $172.1M and adjusted EPS climbed to $1.26 from $1.06 — underlying profitability improved even in a soft market, largely on LTL and cost actions. Operating cash flow jumped 58.5% to $1.27B, comfortably covering capex and the growing dividend ($117M, +12.8%).