Direct Answer
10 SEC filers are classified under the Standard Industrial Classification codes that describe the less-than-truckload trucking industry, and their latest annual reports show $124.9 billion of combined revenue and a median operating margin of 3.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Less-than-truckload carriers consolidate small freight shipments from many customers on shared trucks and terminals. Network density, pricing discipline and capacity are key, and results track industrial activity. The first numbers to compare across companies here are tonnage per day, revenue per hundredweight and operating ratio.
Key Industry Metrics
- Tonnage per day: Weight of freight handled each working day, which adjusts for differing day counts. Rising tonnage signals shipment demand or share gains, while falling tonnage tracks industrial softness.
- Revenue per hundredweight: Revenue earned per hundred pounds shipped, a standard price measure. Read it with weight per shipment and fuel surcharge, since mix and surcharge can move it without a true price change.
- Operating ratio: Operating expenses divided by revenue, where lower is better. Each point of improvement adds about one percent of revenue to operating profit, and top carriers are measured against peers on it.
- Terminal capacity: Number of doors and facilities available to sort and move freight relative to volume. Tight capacity limits growth and supports pricing, while spare capacity adds fixed cost.
- Fuel surcharge: Extra fee added to base rates to offset diesel cost. It can lift revenue per unit without improving profit, so compare base pricing with surcharge-inclusive revenue.
Primary Macro Drivers
- Industrial production: Factories and distribution centers generate smaller shipments, so industrial output moves tonnage per day and terminal throughput.
- Pricing discipline: Network operators raising rates in step with cost lift revenue per hundredweight and cut the operating ratio.
- Capacity: Terminal and door space is hard to add, so limited supply supports pricing, while new capacity can invite price competition.
- Labor and fuel costs: Drivers, dock workers and diesel make up most operating cost, so changes move operating ratio unless recovered through price.
Major Risks
- Freight recession: Lower tonnage leaves the terminal network under-used, since fixed cost is high, so operating ratio rises; watch tonnage per day.
- Labor costs: Union contracts or wage increases raise cost across a large workforce, squeezing margin unless pricing follows; watch labor cost per hundredweight.
- Capacity expansion costs: New terminals require heavy investment and take time to fill, which can depress returns if volume falls short; watch capex and door utilization.
- Competition: Rival carriers cutting price to fill capacity can erode revenue per hundredweight, lowering yield; watch pricing commentary and mix.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | High |
| Regulatory Intensity | Medium |
| Industry Maturity | Mature |
| Geographic Importance | U.S. |
Less-Than-Truckload Trucking Filers in the SEC Record
10 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification codes 4213, 4210. Their latest fiscal years end in 2025, and together they reported $124.9 billion of revenue. Median revenue growth over the prior year was -1.6%. Median operating margin was 3.0% and median net margin 1.7%. Median total liabilities were 48% of total assets, and 7 of 10 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 |
| 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 |
| Saia Inc | $3.2 billion | 0.8% | 10.9% | 7.9% | FY 2025 |
| Universal Logistics Holdings, Inc. | $1.6 billion | -15.6% | -4.1% | -6.4% | FY 2025 |
| Covenant Logistics Group, Inc. | $1.2 billion | 2.9% | 0.3% | 0.6% | FY 2025 |
The 8 largest of 10 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 Less-Than-Truckload Trucking 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.
More in Industrials
- Industrials sector overview
- LNG Shipping
- Japanese Trading Houses
- Low-Cost Airlines
- IT Staffing
- LPG Shipping
- Intermodal Transportation
- Machine Tools
- Insulation Products
Put it to work
Frequently Asked Questions
What are the main KPIs for the Less-Than-Truckload Trucking industry?
Key performance indicators for the Less-Than-Truckload Trucking industry include: Tonnage per day, Revenue per hundredweight, Operating ratio, Terminal capacity, Fuel surcharge. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Less-Than-Truckload Trucking industry?
The Less-Than-Truckload Trucking 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 Less-Than-Truckload Trucking industry?
The primary risks for Less-Than-Truckload Trucking companies include: Freight recession, Labor costs, Capacity expansion costs, Competition. Investors should assess each company's exposure to these factors and its track record of navigating them.