Schneider National, Inc. · NYSE:SNDR
Schneider National — Q4 2024 Earnings Presentation
33 slides from Schneider National's earnings presentation, Jan 30, 2025
Slide 1: Fourth Quarter 2024 Investor Presentation
FOURTH QUARTER 2024 Investor Presentation INNOVATIVE – RESILIENT – DRIVEN
Slide 2: Presentation highlights
Presentation highlights • BUSINESS OVERVIEW • STRATEGY • CAPITAL ALLOCATION • TECHNOLOGY AND INNOVATION • PEOPLE AND VALUES • SECULAR TRENDS • INVEST WITH SNDR • CURRENT RESULTS AND OUTLOOK • SNDR ACQUISITION OF COWAN SYSTEMS, LLC • APPENDIX 2
Slide 3: Business overview: by the numbers
by the numbers ALL THIS COULDN'T BE DONE WITHOUT: THE PEOPLE number of times theft-free loads Schneider loads freight miles circle the globe zero emission miles” per day* per day" with about 345,000 miles added monthly $5.3 BILLION annual operating revenues $2.3 BILLION third-party freight. managed
Slide 4: Experienced leadership, focused on growth and delivering shareholder value
BUSINESS OVERVIEW Experienced leadership, focused on growth and delivering shareholder value Mark Rourke Darrell Campbell Jim Filter • Chief Executive Officer and President since • Executive Vice President, Chief Financial • Executive Vice President, Group 2019, previously serving as Executive Vice
Slide 5: Driven by our uncompromising values to deliver the goods
BUSINESS OVERVIEW Driven by our uncompromising values to deliver the goods that enhance the lives of people everywhere. Truckload Segment Over the road freight transportation via dry van, bulk, temperature-controlled and flat- bed trailers across either network (irregular route) or dedicated (struct
Slide 6: Truckload consists primarily of dedicated contract configurations
BUSINESS OVERVIEW Truckload consists primarily of dedicated contract configurations, complemented by a trailer-centric network operation. Dedicated • Contracted and consistent capacity through freight cycles • Multi-year contracts with 90%+ renewal rates on average • Driver-preferred alignment • Org
Slide 7: Intermodal provides a greener method of transportation
BUSINESS OVERVIEW Intermodal provides a greener method of transportation, leveraging our differentiated company-owned container, chassis and dray model. • Approximately 27,000 company-owned containers and 23,900 company-owned chassis • Over 1,400 company dray tractors, executing the majority of dray
Slide 8: Logistics continues to grow share through advanced brokerage solutions
BUSINESS OVERVIEW Logistics continues to grow share by connecting shippers and carriers of all sizes through our advanced brokerage solutions, including Power Only. • Approximately 21,000 qualified carriers in our network • Largest Power Only network in the industry • Enabled by proprietary Schneide
Slide 9: Portfolio shaping built on diligent capital allocation
BUSINESS OVERVIEW Our portfolio shaping is built on diligent capital allocation and our pursuit to drive shareholder value. Dedicated Dedicated $1,411 Intermodal Intermodal $’s in millions. See Appendix for non-GAAP reconciliations. 9
Slide 10: Diversity of customers and end-markets served
BUSINESS OVERVIEW Diversity of customers and end-markets served Growing Customer Base: supports resiliency through business cycles. Change in Customer Concentration Diverse End-Market Footprint: 2024 Revenues (xFSC) All other 28% Retail 19% Food and Online-only beverage 14% retail 2% Consumer Transp
Slide 11: Comprehensive North American footprint with industry-leading safety
BUSINESS OVERVIEW Comprehensive North American footprint with industry-leading safety, culture and performance. 11
Slide 12: Our strategy is to deliver a superior portfolio of services
STRATEGY Our strategy is to deliver a superior portfolio of services that enables our business to prosper and achieve sustainable growth in revenue and earnings performance and shareholder value. Strategic approach ► Deploy capital to targeted service offerings in support of our goal Always to enhan
Slide 13: Strategic growth areas are Intermodal, Logistics and Dedicated
STRATEGY Schneider’s strategic growth areas are Intermodal, Logistics and Dedicated. We have purposefully reshaped the portfolio since our April 2017 IPO to enable resiliency through cycles. Increased earnings contribution Increased Dedicated mix within Truckload from Intermodal and Logistics fleet
Slide 14: Use-of-cash strategy balances growth, shareholder returns and resilience
CAPITAL ALLOCATION Schneider’s use-of-cash strategy creates a balance between growth, shareholder returns and resilient financial performance. Maintain strong balance sheet Free Cash Flow Net Capex Total Leverage* 0.9x Fund operating and 0.8x growth needs $306 $574 Fund acquisitive $462 $109 $352 $3
Slide 15: Disciplined capital deployment and long-term shareholder value
CAPITAL ALLOCATION Committed to disciplined capital deployment and delivering long-term shareholder value. Share repurchase program Quarterly dividends As of Dec. 31, 2024* *Does not include the $2.00 special dividend paid in Nov 2020 • Announced our inaugural $150.0 million, three-year share • Comm
Slide 16: Enhancing technology platforms and digital solutions
TECHNOLOGY AND INNOVATION We are driven to continually enhance our technology platforms and digital solutions to stay ahead of the needs of our customers, shippers and associates. • Our proprietary Schneider FreightPower® platform and marketplace drive growth into the enterprise by advancing and sim
Slide 17: Living out our core values in support of our vision
PEOPLE AND VALUES How we do it is as important: Living out our core values in support of our vision. SAFETY FIRST RESPECT INTEGRITY IN EXCELLENCE AND ALWAYS FOR ALL EVERY ACTION IN W HAT W E DO Schneider trucks are spec’d Schneider has provided nearly $11 Schneider named one of TIME Schneider surpas
Slide 18: People and values: Corporate Responsibility Report
LIVING 2023 Corporate Responsibility Report 9.7% 94 13% 13% 780 18 reduction of reduction in battery electric of our drivers are percentage of associates active company third party and emissions per emissions at vehicles (BEVs) women, ahead of associate have military drivers who have customer awards
Slide 19: Trends that drive our strategy and future growth
SECULAR TRENDS Trends that drive our strategy and future growth. Truckload Intermodal Logistics Customers value committed contract Increased focus on over-the-road Operating conditions are expected to freight in order to build reliability and conversion from Truckload and remain pressured in the tra
Slide 20: Invest with SNDR: positioned for value creation and growth
INVEST W ITH SNDR Positioned for value creation and growth at the forefront of the Premier multimodal transportation industry. transportation platform • Most diverse logistics and Technology leader and innovator transportation platform in North America. • Portfolio of services enables growth Strong
Slide 21: Fourth quarter reflected cumulative effects of margin improvement actions
CURRENT RESULTS AND OUTLOOK The fourth quarter reflected the cumulative effects of actions we have taken to improve margins, which resulted in year over year earnings improvement across all our segments for the first time since the second quarter of 2022. In the second quarter of 2024, signs of seas
Slide 22: 4Q24 Enterprise Results
CURRENT RESULTS AND OUTLOOK 4Q24 Enterprise Results Operating revenues Revenues excluding fuel surcharge • Intermodal and Logistics contributed 56% to segment revenues and 52% to segment earnings in the quarter. • As of December 31, 2024, year to date free cash flow increased $200M compared to the s
Slide 23: 4Q24 Truckload Results
CURRENT RESULTS AND OUTLOOK 4Q24 Truckload Results Revenues excluding Income from fuel surcharge operations • Revenues increased 2% YoY due to the acquisition of Cowan Systems, Dedicated organic new business growth and a higher Network revenue per truck per week, partially offset by lower Network vo
Slide 24: 4Q24 Intermodal Results
CURRENT RESULTS AND OUTLOOK 4Q24 Intermodal Results Revenues excluding fuel surcharge Income from operations • Revenues increased 6% YoY primarily due to 3% volume growth and 2% higher revenue per order. • Delivered its second consecutive quarter of YoY earnings growth with continued improvement in
Slide 25: 4Q24 Logistics Results
CURRENT RESULTS AND OUTLOOK 4Q24 Logistics Results Revenues excluding Income from fuel surcharge operations • Revenues decreased 5% YoY primarily due to 6% lower brokerage revenue per order and 5% lower volumes. • Earnings increased 39% YoY primarily due to higher brokerage net revenue per order and
Slide 26: Continued improvement in freight market conditions anticipated in 2025
CURRENT RESULTS AND OUTLOOK We anticipate continued improvement in freight market conditions in 2025, leading to revenue and earnings growth with enhanced margins and asset returns progressing throughout the year. The combination of improving conditions and our disciplined approach to managing costs
Slide 27: Schneider acquisition of Cowan Systems, LLC
pom | Cuudan j 1a ; i] ‘The Lightfyetaht 4 Schneider i / acquisition of Cowan Systems, LLC
Slide 28: Cowan operations
SCHNEIDER ACQUISITION OF COWAN Cowan operations ► Leading provider of dedicated transportation with a 100-year reputation for superior customer service and financial stability. ► Founded in 1924, headquartered in Baltimore, Maryland. ► Operates over approximately 1,900 tractors and 7,600 trailers ac
Slide 29: Strategic alignment and anticipated benefits
SCHNEIDER ACQUISITION OF COWAN Strategic alignment and anticipated benefits ► Schneider approaches $2 billion in annual Dedicated contract revenues and over 8,600 Dedicated tractors in service to our valued customer base. ► Lightweight equipment enables customers to move more freight per shipment, s
Slide 30: The path forward
SCHNEIDER ACQUISITION OF COWAN The path forward ► 100% of the membership interests in Cowan Transport Holdings, LLC and Cowan Equipment Leasing, LLC, as well as all affiliated entities. ► Acquisition expected to be accretive to Schneider’s earnings per share within the first year, before considerati
Slide 31: Disclaimer and Forward-Looking Statements
Special Note Regarding Forward-Looking Statements This presentation contains and, any commentary or discussion by management of the content of this presentation may Disclaimer and Forward- include “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995 (the “
Slide 32: Appendix
Appendix
Slide 33: Non-GAAP Reconciliations
APPENDIX Non-GAAP Recon—Revenues Excluding Fuel Surcharge1 Non-GAAP Recon—Adjusted Income from Operations1 ($M) FY17 4Q23 4Q24 FY23 FY24 ($M) 4Q23 4Q24 FY23 FY24 Operating revenues $4,384 $1,372 $1,339 $5,499 $5,291 Income from operations $31 $42 $296 $165 Less: fuel surcharge 386 177 133 684 576 Li