Trucking Giant Knight-Swift Swaps Out Top Leadership

Jackson, who spent nearly 24 years at Knight-Swift, had been CEO and a member of the board since January 2015 and president since February 2011.

Miller, who joined the company in 2002, has been chief financial officer since 2017.

The company didn’t disclose a reason for the leadership switch beyond a statement from Jackson that it was “time for a change.”

Tough market conditions, including falling freight rates and dimming shipping demand, have pressed the operator’s earnings following booming growth during the pandemic. The company recently reported a $10.9 million loss in the fourth quarter despite a 10.8% gain in revenue, to $1.93 billion. 

Jackson as CEO has managed the trucker through a period of rapid expansion, led by the acquisition in 2017 of rival Swift Transportation. The company last year acquired a smaller truckload competitor, U.S. Xpress Enterprises, and has pushed into the separate less-than-truckload market, in which shipments from multiple customers are combined in the same truck, with deals including the $1.35 billion acquisition in 2021 of AAA Cooper Transportation. 

Knight-Swift has also acquired several terminals formerly operated by bankrupt LTL carrier Yellow with a goal of expanding in that market.

Citi analyst Christian Wetherbee wrote in a research report that the timing of the succession “was unexpected [but] we don’t get the sense that the move is any indication of near-term financial performance.”

“We think the key priorities for the company remain and earnings retain leverage to an improving freight cycle as 2024 progresses,” Wetherbee wrote.

Satish Jindel, head of SJ Consulting, said he expects the carrier under Miller to focus more on expanding its LTL business. He noted Knight-Swift shares were trading recently at about 1.3 times revenue while shares in rival Old Dominion Freight Line, one of the largest LTL carriers, were trading at 8.2 times earnings.

“LTL is the best performing segment of all the businesses they are in, it has the best growth opportunities,” Jindel said. 

Knight-Swift shares fell 0.6% in trading Tuesday, to $57.46.