Knight-Swift Transportation Holdings, one of the largest trucking and logistics firms in North America, posted another disappointing quarter, underscoring the challenges facing the U.S. freight industry. As demand for shipping services remains soft and pricing power limited, the company’s recovery appears to be progressing more slowly than investors had hoped.

Revenue Slumps Amid Freight Recession

Knight-Swift’s third-quarter earnings highlighted the ongoing downturn in the trucking sector. Total revenue fell around 8% year-over-year to roughly $1.8 billion, with adjusted earnings per share dropping nearly 30%. The declines stemmed largely from lower contract and spot market rates, which have remained under pressure as excess capacity persists across the U.S. freight market.

The company’s truckload division, its largest revenue driver, saw continued margin compression, while its less-than-truckload (LTL) segment also reported declining profitability. Analysts note that a prolonged “freight recession” — triggered by weaker consumer spending and inventory normalization post-pandemic — has kept freight rates below sustainable levels for carriers.

Integration Efforts and Cost Discipline

Despite the tough market conditions, Knight-Swift continues to invest in operational efficiency and scale integration following its acquisition of U.S. Xpress earlier this year. Management believes synergies from the merger will begin to show in 2025, particularly through improved asset utilization and lower administrative costs.

The company has also been adjusting its fleet and workforce size to better match the current demand environment. This strategic discipline, coupled with investments in technology and logistics automation, is aimed at strengthening Knight-Swift’s competitiveness once freight demand rebounds.

Market Outlook and Investor Sentiment

While Knight-Swift’s near-term outlook remains subdued, industry indicators suggest that freight volumes could begin to improve in mid-2025 as inventory restocking and e-commerce growth drive more consistent shipments. Management reiterated its expectation for a modest recovery in both spot and contract rates over the next 12 months.

Investor sentiment toward the trucking sector remains cautious but not pessimistic. Knight-Swift’s stock has traded within a narrow range this year, reflecting uncertainty about timing rather than direction. Analysts view the company’s strong balance sheet and disciplined cost management as critical buffers against ongoing industry headwinds.

Looking forward, Knight-Swift’s ability to execute on integration, maintain liquidity, and capture efficiencies will determine how quickly it can return to growth. A turnaround in freight pricing would provide a tailwind, but until then, investors are likely to see continued volatility in both operating results and share performance.