Direct Answer
14 SEC filers are classified under the Standard Industrial Classification codes that describe the ground transportation industry, and their latest annual reports show $176.2 billion of combined revenue and a median operating margin of 7.2%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Ground transportation companies move people and goods by road and rail, including trucking, bus and delivery operators. Results follow volumes, rates, fuel and labor cost. The first numbers to compare across companies here are volume and revenue per unit, operating ratio and fuel and labor cost.
Key Industry Metrics
- Volume and revenue per unit: Shipments, miles or passengers carried, and revenue earned on each. Rising volume with falling revenue per unit signals price competition, while both rising suggests a tight market.
- Operating ratio: Operating expenses divided by revenue, where lower is better. Each point of improvement adds about one percent of revenue to operating profit, so small changes are meaningful.
- Fuel and labor cost: The two largest variable expenses for road and rail operators, shown per mile or as a share of revenue. Rising costs squeeze margin unless surcharges and rate increases keep pace.
- Fleet utilization: Share of vehicles, trucks or trains in productive use and miles run loaded. Higher utilization spreads fixed equipment and driver cost over more revenue, while idle equipment weighs on returns.
- Free cash flow: Cash from operations less capital spending on vehicles, track and terminals. It shows whether profit funds fleet replacement and returns, since equipment-heavy businesses can show profit without surplus cash.
Primary Macro Drivers
- Economic activity: Goods movement and passenger trips follow consumer and industrial activity, so volume and revenue per unit rise and fall with the economy.
- Rates and capacity: Pricing depends on how many trucks or vehicles chase available loads; excess capacity lowers rates and tight supply lifts revenue per unit.
- Fuel prices: Diesel is a major cost, so price changes move operating ratio unless surcharges recover them; the surcharge lag matters.
- Labor availability: Driver supply limits fleet utilization and sets wages, so shortages raise pay and turnover and restrain growth.
Major Risks
- Cyclical freight: Freight volumes and rates drop in downturns while fixed fleet and terminal costs stay, raising operating ratio; watch volume per unit and rate trends.
- Labor shortages: Too few drivers leave trucks idle and push wages up, hitting fleet utilization and margin; watch turnover and driver pay disclosures.
- Fuel costs: Rising diesel prices raise cost faster than surcharges recover it, squeezing margin in the near term; watch fuel as a share of revenue.
- Regulation: Safety, emissions and hours rules can raise compliance cost or limit productivity, showing in operating ratio and capital spending; watch rule changes.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Ground Transportation Filers in the SEC Record
14 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 4213, 4210, 4011. Their latest fiscal years end in 2025, and together they reported $176.2 billion of revenue. Median revenue growth over the prior year was -0.7%. Median operating margin was 7.2% and median net margin 3.7%. Median total liabilities were 63% of total assets, and 10 of 14 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| United Parcel Service Inc | $88.7 billion | -2.6% | 8.9% | 6.3% | FY 2025 |
| Union Pacific Corp | $24.5 billion | 1.1% | 40.2% | 29.1% | FY 2025 |
| Csx Corp | $14.1 billion | -3.1% | 32.1% | 20.5% | FY 2025 |
| Norfolk Southern Corp | $12.2 billion | 0.5% | 35.8% | 23.6% | FY 2025 |
| Hunt J B Transport Services Inc | $12.0 billion | -0.7% | 7.2% | 5.0% | FY 2025 |
| Knight-Swift Transportation Holdings Inc. | $7.5 billion | 0.8% | 2.9% | 0.9% | FY 2025 |
| Old Dominion Freight Line, Inc. | $5.5 billion | -5.5% | 24.8% | 18.6% | FY 2025 |
| Landstar System Inc | $4.7 billion | -1.6% | 3.2% | 2.4% | FY 2025 |
The 8 largest of 14 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Ground Transportation guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Ground Transportation industry?
Key performance indicators for the Ground Transportation industry include: Volume and revenue per unit, Operating ratio, Fuel and labor cost, Fleet utilization, Free cash flow. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Ground Transportation industry?
The Ground Transportation industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Ground Transportation industry?
The primary risks for Ground Transportation companies include: Cyclical freight, Labor shortages, Fuel costs, Regulation. Investors should assess each company's exposure to these factors and its track record of navigating them.