Knight-Swift Transportation Holdings Inc. (NYSE: KNX) revised its first quarter 2026 earnings guidance downward and provided second quarter projections, according to a company statement.

The transportation company now expects adjusted earnings per share of $0.08 to $0.10 for the first quarter, down from its previous guidance of $0.28 to $0.32. The revision reflects several factors that affected the quarter's performance.

A large arbitration award related to a 2022 incident in the company's less-than-truckload segment reduced earnings by $0.08 per share. Project business deferrals in the warehousing division, partly due to weather disruptions, contributed a $0.05 per share negative impact. An adverse VAT reimbursement decision in Mexico for prior tax years cost $0.02 per share, while severe winter weather and rising fuel prices in March reduced earnings by an estimated $0.05 to $0.06 per share.

For the second quarter of 2026, Knight-Swift expects adjusted earnings per share to range from $0.45 to $0.49. The company cited improving freight market fundamentals and indicated the first quarter issues are not expected to repeat.

"The truckload market continues to tighten, and the bid environment is rapidly evolving while our leading presence in the one-way market grows increasingly valuable to shippers," said CEO Adam Miller.

The company noted that winter weather exposed reduced truckload capacity to market participants, which management believes is significant for ongoing bid activity. Rising fuel costs, while negative for March earnings, are expected to contribute to supply reductions in the truckload industry.

Knight-Swift operates one of North America's largest freight transportation networks, providing truckload, less-than-truckload, intermodal and logistics services across the United States and Mexico.