KNX

• Market Environment Update

  • The truckload freight market has tightened rapidly in recent months. Spot rates are outperforming normal seasonality, tender rejection rates have reached levels not seen since 2021, and contractual bid activity has become increasingly supportive.
  • The current market dynamic is largely supply-driven, though early signs of demand improvement are emerging.
  • Knight-Swift's tender rejection rates in Q2 were roughly twice the level of public market indicators, signaling that demand for the company's truckload services is outpacing overall market growth.

• Company Strategic Positioning

  • The firm is well-positioned for the current market environment, supported by its leading over-the-road scale, market agility to optimize yield, cross-brand collaborative solutions for shippers, industry-leading driver training academy network, and a cultural focus on cost control and execution excellence.

• Pricing and Bidding Activity

  • Realized revenue per mile began recovering in Q2 2026, as contract rate improvements were largely driven by bids priced early in the year. Revenue per mile growth accelerated in June as newer bids reflecting tighter market conditions took effect, with most new bids delivering double-digit pricing gains.
  • Annual large-scale bid activity is expected to slow in Q3, but mini-bid and turn-back bid activity has remained elevated (or increased) in recent weeks. The company is also conducting rate reviews for existing contracts that are priced below market, to adjust rates before the next scheduled full bid cycle.

• Regulatory and Legal Drivers of Capacity Tightening

  • FMCSA and DOT efforts to eliminate invalidly issued commercial driver's licenses (CDLs) are in early stages and will continue. Management expects this regulatory cleanup to disproportionately impact the one-way truckload market, especially low-price capacity, and drive further supply exit that supports market firming.
  • The U.S. Supreme Court's recent Montgomery ruling is expected to add additional capacity tightening, as marginal small carriers will be squeezed out by higher insurance costs and stricter selection standards from shippers and brokers.

No forward-looking guidance statements, including revisions to prior guidance or new guidance targets, were disclosed in the provided transcript due to technical difficulties that interrupted the call before full financial details and guidance were presented.

No segment-level financial performance data (absolute revenue figures or revenue contribution percentages) was disclosed in the provided transcript.

General forward-looking statement risk disclosure was provided: all forward-looking statements on the call are subject to known and unknown risks, assumptions, and uncertainties that could cause actual future results to differ materially from projected statements. Investors are directed to the detailed risk factor disclosures included in the company's most recent Form 10-K filed with the SEC. No specific new or updated material risks or operational failures were discussed in the provided portion of the transcript.

No question and answer session was conducted in the portion of the call provided; the call was interrupted by technical difficulties before management commentary concluded and the Q&A segment began.