Shengfeng Development reports 18% revenue growth

• Shengfeng Development reported first-half 2026 revenue of approximately $311.8 million, up 18.4% year-over-year.
• Net income increased 9.6% to about $6.6 million despite lower gross margins.
• The company plans network optimization and capacity improvements to support margins in the second half of 2026.

Shengfeng Development (NASDAQ:SFWL) reported unaudited first-half 2026 revenue of approximately $311.8 million, up 18.4% year-over-year, with net income increasing to about $6.6 million.

The company’s gross profit increased 11.3% to approximately $26.8 million, while gross margin declined to 8.6% from 9.1% due to competitive pricing pressures.

Shengfeng Development reported transportation services revenue of approximately $301.6 million and warehouse storage management revenue of about $8.1 million, while operating expenses increased to $17.8 million due to higher general and administrative costs.

Shengfeng Development said it plans to improve margins in the second half of 2026 through network optimization and better capacity utilization, while cash and cash equivalents stood at $16.9 million at the end of the period.

Shengfeng Development provides transportation services, warehouse storage management, and supply chain solutions for customers in multiple industries.

The company said revenue growth was supported by expanded services for existing clients and new customer acquisitions, while restructuring activities contributed to higher administrative expenses.