As the freight recession continues into Q4 2025, major carriers reported net losses or sharply reduced earnings as soft demand, elevated insurance and claims, and a truncated peak season weighed on results.
Some executives pointed to regulatory enforcement—such as stricter CDL standards and English Language Proficiency requirements—as an emerging tailwind to accelerate capacity exits and help restore rate momentum heading into the year ahead.
Covenant sees growth in specialized agriculture capacity
Covenant Logistics (CCJ Top 250, No. 36) reported a net loss, driven by impairment charges and elevated insurance expense. Dedicated was the bright spot, with freight revenue up 12.6% from growth in specialized agriculture capacity. Managed Freight saw revenue up 28.8% year over year, boosted from its acquisition of brokerage business Star Logistics Solutions, though profitability was squeezed by peak season capacity costs. Expedited struggled, with freight revenue down 12.2% from the U.S. government shutdown impacting specialized team operations.
Dedicated segment’s average tractor count increased by 90 units or 6.3% to 1,514, compared to 1,424 in the prior year quarter. Expedited segment’s average total tractors decreased by 42 units or 4.8% to 833, compared to 875 in the prior year quarter.
Revenue: 2025 Q4: $295.4 million vs. 2024 Q4: $277 million
2025 YTD: $1.16 billion vs. 2024 YTD: $1.13 billion
Income: 2025 Q4: $(18) million vs. 2024 Q4: $6.7 million
2025 YTD: $7.2 million vs. 2024 YTD: $36 million
Forward Air focuses on pricing structure
Forward Air (No. 41) reported a year-over-year net loss, which President and CEO Shawn Stewart said was due to the “less than favorable freight market conditions.” Stewart said during its call with analysts that it’s focused on a “cohesive, agile and scalable operating model.”
The Omni Logistics segment reported its highest revenue since its acquisition in January 2024, up from $34 million to $360 million. Expedited Freight saw meaningful recovery, which the company attributed to pricing discipline and cost management. Its intermodal segment faced pressure from trade-related softness and seasonal declines.
Revenue: 2025 Q4: $631 million vs. 2024 Q4: $633 million
2025 YTD: $2.49 billion vs. 2024 YTD: $2.474 billion
Income: 2025 Q4: $ (36.4) million vs. 2024 Q4: $(35.8) million
2025 YTD: $(141.7) million vs. 2024 YTD: $(1,131.2) million
Heartland Express sees further losses
Heartland Express (No. 28) saw both revenue and net loss worsen year-over-year, largely due to a $19 million non-cash trade name impairment related to the decision to unify Contract Freighters, Inc. with Heartland Express in December 2025. CEO Mike Gerdin said the company believes the unified fleet would unlock freight opportunities and improve driver pay.
The company sees early positive signs including improving customer volumes, select rate improvements, and capacity exits but doesn’t expect meaningful market improvement until later in 2026.
The average age of the Company's tractor fleet was 2.6 years as of December 31, 2025, compared to 2.5 years a year ago. The average age of the Company's trailer fleet was 7.3 years as of Dec. 31, 2025, compared to 7.4 years on the same period a year ago.
Revenue: 2025 Q4: $179.4 million vs. 2024 Q4: $242.6 million
2025 YTD: $805.7 million vs. 2024 YTD: $1.047 billion
Income: 2025 Q4: $(19.4) million vs. 2024 Q4: $(1.9) million
2025 YTD: $(52.4) million vs. 2024 YTD: $(29.7) million
J.B. Hunt sees strong profitability despite soft revenue
J.B. Hunt Transport (No. 5) CEO Shelley Simpson called the freight market fragile, with slow demand upticks and regulatory changes that could trigger market impacts. “Capacity continues to exit the truckload market, and we are testing the elasticity of supply,” Simpson said.
Despite year-over-year revenue declines and inflationary cost pressures, the carrier reported improved operating results and over $25 million in cost savings. Operating ratio improved to 92.0% from 93.4% from a year ago. Intermodal’s revenue was down 3%, driven by improved network balance, fewer empty container moves, and lower drayage costs. Dedicated’s revenue was up 1% from lower insurance claims and increases in contracted price escalators. Integrated Capacity Solutions’ revenue was down 1%, due to lower personnel-related expenses, lower equipment and facility rental expense.
Revenue: 2025 Q4: $3.10 billion vs. 2024 Q4: $3.15 billion
2025 YTD: $12 billion vs. 2024 YTD: $12.09 billion
Income: 2025 Q4: $181 million vs. 2024 Q4: $155 million
2025 YTD: $598 million vs. 2024 YTD: $570 million
Knight-Swift says capacity reduction can restore margins
Knight-Swift Holdings (No. 3) CEO Adam Miller said the company believes capacity will continue to recede, “leading to healthier market where carriers can recover cost inflation and restore margins.”
The truckload market saw stable demand and a tightening spot market in December, Miller said, though it lacked the typical seasonal lift till late in the quarter. Capacity reduction from stricter regulatory enforcement seemed to drive the tightening market, he noted.
The company has been invested in internal development and external products to boost tech-enabled efficiency, Miller said, including utilizing AI.
Revenue: 2025 Q4: $1.86 billion vs. 2024 Q4: $1.86 billion
2025 YTD: $7.47 billion vs. 2024 YTD: $7.41 billion
Income: 2025 Q4: $(6.8) million vs. 2024 Q4: $69.5 million
2025 YTD: $65.9 million vs. 2024 YTD: $117.6 million
Landstar sees strength in unsided/platform equipment business
Landstar System, Inc. (No. 11) saw its revenue and earnings decline as market headwinds continue. Insurance and claim costs surged to $56 million from $30 million a year ago, including a $16.7 million spike from three vehicular accidents and $5.3 million from increased actuarilly determined claim reserves.
Despite challenging demand conditions, CEO Frank Lonegro pointed to some positive signs: continued strength in the unsided/platform equipment business, which saw a 11% year-over-year revenue increase, and heavy-haul revenue was also up 23% compared to a year ago.
Revenue: 2025 Q4: $1.17 billion vs. 2024 Q4: $1.21 billion
2025 YTD: $4.74 billion vs. 2024 YTD: $4.82 billion
Income: 2025 Q4: $23.9 million vs. 2024 Q4: $46.2 million
2025 YTD: $115 million vs. 2024 YTD: $195.9 million
Marten reports sequential improvement
Marten Transport (No. 40)’s net income improved 66.1% at $3.7 million, up from the previous quarter’s $2.2 million. The company noted increases in revenue per tractor, rate per total mile, and miles per tractor in both truckload and dedicated operations.
Chairman of the Board and CEO Randolph L. Marten cited the freight market recession’s “historic duration and depth” as the primary drivers of headwinds and highlighted the current administration’s immigration enforcement efforts—including stricter CDL standards and English Language Proficiency enforcement—as expected to positively impact growth opportunities to reduce capacity.
As of Dec. 31, 2025, the carrier had a total of 2,654, compared to 3,006 on Dec. 31, 2024. The average age of tractors was 2.3 years in this quarter, compared to 1.9 years in the same period last year. Total trailers were 5,107 trailers, while in the same period last year, it was 5,440 trailers. The average age of trailers was 4.9 years in this quarter, compared to 5.3 years a year ago.
Revenue: 2025 Q4: $210.1 million vs. 2024 Q4: $230.4 million
2025 YTD: $883.7 million vs. 2024 YTD: $963.7 million
Income: 2025 Q4: $3.7 million vs. 2024 Q4: $5.6 million
2025 YTD: $17.4 million vs. 2024 YTD: $26.9 million
Old Dominion’s results reflect cost discipline
Old Dominion Freight Line (No. 9) saw its volume decline, with LTL tons per day down 10.7%, driven by a 9.7% decrease in shipments per day and a 1.0% decrease in weight per shipment. For the full year, LTL tonnage per day was down 8.8%, reflecting the impact of the prolonged soft freight environment.
President and CEO Marty Freeman also noted that ODFL’s disciplined cost-based pricing approach that has helped to offset inflation over the long term—LTL revenue per hundredweight excluding fuel surcharges increased 4.9% in Q4 and 4.8% for the full year. Its Q4 operating ratio was 76.7%, up 80 basis points from 75.9% a year ago, as the revenue decline affected overhead costs.
Capital expenditures for 2026 are expected to be approximately $265 million, a significant reduction from $415 million in 2025.
Revenue: 2025 Q4: $1.31 billion vs. 2024 Q4: $1.39 billion
2025 YTD: $5.05 billion vs. 2024 YTD: $5.81 billion
Income: 2025 Q4: $229.5 million vs. 2024 Q4: $263.1 million
2025 YTD: $1.024 billion vs. 2024 YTD: $1.186 billion
P.A.M. posts loss as it trims fleet counts
P.A.M. Transportation Services (No. 55) reported a net loss of $29.3 million in Q4 2025, a slight improvement from a $31.6 million net loss in Q4 2024, though results were weighed down by a $26.5 million increase in auto-liability reserve “associated with a specific claim expected to settle in excess of insurance policy limits,” the company noted. Revenue before fuel surcharge declined to $123.1 million in Q4 from $147.0 million a year ago, and for the full year fell to $526.5 million from $629.0 million (a 16.3% drop).
Truckload’s operating ratio worsened to 146.2% in Q4 2025 from 137.5% a year ago. Total loads declined from 93,778 to 88,543 in Q4.
Revenue: 2025 Q4: $141.3 million vs. 2024 Q4: $166.5 million
2025 YTD: $598.1 million vs. 2024 YTD: $714.6 million
Income: 2025 Q4: $(29.3) million vs. 2024 Q4: $(31.6) million
2025 YTD: $(52.6) million vs. 2024 YTD: $(31.8) million
Schneider sees positive impact from Cowan Systems acquisition
Schneider (No. 6) President and CEO Mark Rourke said results fell short due to softer-than-expected market conditions beginning in November, reflecting a “truncated peak season.” Other headwinds included spiking third-party carrier capacity costs, unplanned auto production shutdowns, and heightened healthcare costs.
Truckload was the standout segment with operating income up 16% to $23.0 million and operating ratio improving 30 basis points to 96.2%. Revenue grew 9% to $610 million, driven by a 21% increase in Dedicated volume largely from the Cowan Systems acquisition. The acquisition drove dedicated average truck count 18% year over year and contributed to both revenue growth of 7% and higher salaries, wages, and depreciation costs.
Capex is expected at $400-450 million, with the company targeting $40 million in additional cost savings in 2026 after achieving its 2025 savings target. It launched a new $150 million share repurchase program in January 2026.
Revenue: 2025 Q4: $1.40 billion vs. 2024 Q4: $1.34 billion
2025 YTD: $5.67 billion vs. 2024 YTD: $5.29 billion
Income: 2025 Q4: $ 22.1 million vs. 2024 Q4: $32.6 million
2025 YTD: $103.6 million vs. 2024 YTD: $117.0 million
Saia hit by high insurance charges
Saia Inc. (No. 18) Q4 results were in line with expectations, though president and CEO Fritz Holzgrefe said the quarter was impacted by “unexpected adverse developments late in the quarter related to accidents that occurred in prior years,” bringing approximately $4.7 million in elevated self-insurance costs.
The LTL carrier invested more than $2.0 billion in capex over the past three years to build a national footprint, opening 21 new terminals in 2024 alone. Though that expansion is now complete, depreciation and facilities costs are running at 5.6% in Q4.
The company’s capex is at $350-400 million, with 2026 focused on fleet maintenance rather than network expansion.
Revenue: 2025 Q4: $790 million vs. 2024 Q4: $789 million
2025 YTD: $3.23 billion vs. 2024 YTD: $3.20 billion
Income: 2025 Q4: $47.5 million vs. 2024 Q4: $76.1 million
2025 YTD: $255 million vs. 2024 YTD: $362.1 million
Werner restructures its One-Way business
Werner Enterprises (No. 14) Q4 results reflects “both the challenges and progress made during a difficult operating year,” Chairman and CEO Derek Leathers said. Werner began restructuring its One-Way Truckload operation during Q4, narrowing the business toward specialized, expedited cross-border Mexico and engineered freight.
The acquisition of FirstFleet also positions Werner for sustainable, profitable growth, Leathers said.
The company also cited ongoing regulatory capacity attrition as a supportive tailwind.
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Revenue: 2025 Q4: $737.6 million vs. 2024 Q4: $754.7 million
2025 YTD: $2.97 billion vs. 2024 YTD: $3.03 billion
Income: 2025 Q4: $(27.8) million vs. 2024 Q4: $11.9 million
2025 YTD: $(14.3) million vs. 2024 YTD: $34.2 million
XPO’s results reflect disciplined pricing
XPO (No. 7) saw its earnings decline due to a $21 million reduction in real estate gains and a $23 million increase in restructuring expense primarily from equity awards granted in connection with the transition in board leadership.
Other than that, North American LTL delivered Q4 revenue of $1.17 billion, adjusted operating income up 14% to $181 million. This was the 12th consecutive quarter of sequential growth in revenue per shipment excluding fuel, and the 15th consecutive quarter of improved on-time performance. On the LTL volume side, shipments per day declined 1.6% and tonnage per day fell 4.5% year over year, but yield excluding fuel rose 5.2%, indicating disciplined pricing.
In a call with analysts, Chief Strategy Officer Ali Faghri said the company is utilizing AI to help control costs and boost productivity to navigate the challenging market.
Revenue: 2025 Q4: $2.01 billion vs. 2024 Q4: $1.92 billion
2025 YTD: $8.2 billion vs. 2024 YTD: $8.0 billion
Income: 2025 Q4: $59 million vs. 2024 Q4: $76 million
2025 YTD: $316 million vs. 2024 YTD: $387 million
