Knight-Swift Announces Executive Changes
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Adam Miller has been appointed CEO at Knight-Swift Holdings Inc., succeeding David Jackson, who is stepping down after nine years as chief executive and 13 as president. Jackson also had a seat on the Phoenix-based company’s board.
In another executive-level announcement, Andrew Hess is being promoted to chief financial officer.
Miller was Knight-Swift’s CFO and president of Swift Transportation. Hess was senior vice president of mergers and acquisitions and senior vice president of finance for Swift.
Knight-Swift ranks No. 7 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.
“It is an honor to be asked to lead Knight-Swift, and I’m grateful for the opportunity,” Miller said in a statement. “Across our entire enterprise, I believe we have the best team of driving and nondriving associates in the business, great customers and all the resources we need to continue as an industry leader.
Hess
“Together with Andrew and the rest of the team, we will be intently focused on expanding our LTL footprint, improving consolidated margins and generating free cash flow and stockholder returns. We are grateful for Dave’s service as CEO over the past nine years, a period that has been transformational for the company and rewarding for our stockholders. Dave will always be part of the Knight-Swift family, and we wish him all the best.”
Executive chairman Kevin Knight said in a statement, “Adam’s broad strategic, financial and operating experience during his 22-year career at Knight-Swift has him well-prepared and ready to lead as CEO. During his tenure, he played leading roles in establishing Knight Refrigerated as a major player in its market, integrating Swift after the merger and improving its operations, service and profitability while overseeing our capital structure and financial performance as chief financial officer.
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“This experience, combined with Adam’s humble yet confident personality and inclusive leadership style, make him widely respected inside and outside of our organization.”
The company’s 2023 revenue, including fuel surcharges, declined by nearly 4% year-over-year to $7.1 billion.
In the fourth quarter, Knight-Swift reported a $10.7 million net loss. It showed a $217 million profit for the full year, but that was down 72% compared with 2022.
Knight-Swift’s third-party insurance business, Iron Insurance, reported a $71.7 million loss in the fourth quarter, and the company said it planned to “cease all third-party insurance operations and cancel any remaining [insurance] policies by the end of the first quarter.”
The company’s intermodal rail division also reported a loss in the fourth quarter, of $4.4 million.
Shanker
Morgan Stanley industry analyst Ravi Shanker said in an investment note that Jackson’s retirement “will likely come as a significant surprise” to the transportation industry. “We understand the decision to change was taken by the board [of directors] very recently. While [Knight-Swift’s] recent earnings trajectory has no doubt been disappointing, especially compared to management’s expectations … the fact is that this down cycle has been deeper and longer than anyone expected.”
In 2017, Jackson helped lead a period of growth at Knight-Swift when Knight Transportation acquired Swift Transportation for $6 billion, which was the largest merger in U.S. trucking history.
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In 2022, he pushed for diversification, and the company purchased two less-than-truckload carriers and 35 LTL terminals. Knight-Swift acquired truckload carrier U.S. Xpress Enterprises for $808 million last year. As a result, the carrier gained 7,200 tractors and 14,400 trailers. The company expects it could mean an additional $2.2 billion in operating revenue.
The company also added 14 terminals since the acquisitions and will be adding 25 locations from bankrupt LTL carrier Yellow Corp.
“It is time for a change and for the next generation to take the baton. Adam and Andrew are ready, the timing is right, the company is well-positioned, and they have my full support,” Jackson said. “I look forward to my next chapter and to continuing to make a difference in the community.”
