After years of empty miles and empty wallets, trucking is back in the fast lane. Freight rates have climbed to their highest levels since the post-pandemic boom, setting up what could be the industry's strongest earnings season in years.

Rates reloaded: Trucking spot rates have risen above their 2022 post-pandemic peak, pointing to a genuine supply-demand squeeze instead of a short-lived rebound. Citi analyst Ariel Rosa expects Q2 earnings across transport companies to be "among the strongest in years," helped by tighter capacity and moderately improving demand.

• Trucking stocks are already reflecting the turnaround, with XPOXPO
  , Old Dominion Freight LineODFL
  , and Knight-Swift TransportationKNX
  gaining 53%, 43%, and 48%, respectively.
• United Parcel ServiceUPS
  saw operating profit fall from roughly $14B in 2022 to $8.7B in 2025, showing how deep the downturn was before the current recovery.

The Bulls Hit the Gas

Citi reversed recent downgrades on Knight-Swift and Saia after sharp pullbacks created more attractive valuations. Knight-Swift had fallen 7% and Saia 14% over the previous month. The firm maintained its $90 price target on Knight-Swift, lowered Saia's target to $488 from $524, and upgraded Old Dominion to Neutral.

• SaiaSAIA
  now trades at ~32x forward earnings vs. ~28x a year ago while Knight-Swift trades at ~26x vs. ~24x, reflecting elevated but improving fundamentals.
• Wall Street remains bullish on XPOXPO
  , C.H. RobinsonCHRW
  , Ryder SystemR
  , FedExFDX
  , and Knight-Swift TransportationKNX
  , with nearly 80% of analysts rating them Buy.

Beyond the rally: The sector's next act could be M&A. Trucking dealmakers say three years of pent-up seller demand is finally being unleashed, as aging owners who delayed retirement through the freight downturn look to sell into a stronger market. Citi cautions that second-half 2026 upside will likely be more modest, with P/E multiple compression a risk even as earnings rise. The biggest winners may be the companies that can turn higher freight rates into stronger margins without being tripped up by rising costs or service issues.