U.S. stock futures were mixed this morning, with the Dow futures falling around 0.1% on Friday.Shares of Biohaven Ltd (NYSE:BHVN) fell sharply in pre-market trading after the company reported that its Phase 2 depression drug trial missed its primary endpoint.The biopharmaceutical company announced BHV-7000, an investigational drug for major depressive disorder, failed to achieve a reduction in depressive symptoms versus placebo in the six-week study, measured by the Montgomery Åsberg Depression Rating Scale ...

Truckload carrier Heartland Express announced it will integrate and rebrand the domestic operations of Contract Freighters, Inc. (CFI), which it acquired in 2022. The changes come amid a stretch of heavy losses for the Iowa-based company and deviate from its normal strategy of maintaining the brand identity of acquired companies. Heartland said it’s keeping CFI’s headquarters in Joplin, Missouri and locations in West Memphis, Arkansas, and Laredo, Texas. Current CFI employees will be given the opportunit ...

NORTH LIBERTY, Iowa, Dec. 09, 2025 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD) (the “Company”) announced today that the Company plans to integrate the U.S. operations of Contract Freighters, Inc. (“CFI”) into Heartland Express, effective December 31, 2025. The Company’s Chief Executive Officer, Mike Gerdin, commented, “We are excited to announce the integration and rebranding of the U.S. operations of CFI into Heartland Express, similar to several of our prior acquisitions. CFI Logistica, S.A ...

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The entry into the US market has provided additional avenues for investment, particularly in sectors such as banking, hotels, and logistics, reflecting a broader trend of globalization in investment strategies [1] Investment Strategies - Initial investments were focused on blue-chip companies, but there has been a diversification into various industries and market capitalizations over time [1] - The approach includes holding stocks for retirement as well as for trading profits, showcasing a balanced investment strategy [1] - The use of platforms like Seeking Alpha has enhanced knowledge and comparative analysis between different markets, particularly between the US and Philippine markets [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-15087 319-645-7060 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of t ...

Heartland Express, Inc. Reports Operating Results for the Third Quarter of 2025 NORTH LIBERTY, IOWA - October 31, 2025 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three and nine months ended September 30, 2025. October 31, 2025 For Immediate Release Press Release Three months ended September 30, 2025: Nine months ended September 30, 2025: Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Co ...

Core Insights - Heartland Express reported a net loss of $8.3 million, or 11 cents per share, marking its ninth consecutive quarterly loss, with a slight operational improvement noted but no significant recovery expected until next year [1][2] - The company's revenue decreased by 24% year-over-year to $197 million, falling short of consensus estimates by $13 million [3] - Year-to-date net losses reached $33 million, compared to $27.9 million in the same period last year, indicating a worsening financial situation [2] Financial Performance - The adjusted operating ratio was 103.5%, which is 90 basis points worse year-over-year but 250 basis points better than the previous quarter [3] - Insurance and claims expenses increased significantly, up 340 basis points year-over-year, while depreciation and amortization expenses rose by 240 basis points [4] - Gains on equipment sales totaled $11.3 million year-to-date, with expectations to double this amount in the fourth quarter [4] Operational Developments - The legacy fleet and Millis Transfer fleet operated at low-90% operating ratios, while the acquired Smith Transport fleet returned to profitability, but Contract Freighters Inc. (CFI) remained unprofitable [4] - Recent upgrades to the transportation management system (TMS) for the Millis and Smith fleets are expected to enhance operational efficiency and driver utilization [5]

Core Insights - Heartland Express, Inc. reported financial results for the three and nine months ended September 30, 2025, showing sequential improvement in operating ratios despite ongoing challenges in the freight industry [1][2][3] Financial Performance - For the three months ended September 30, 2025, operating revenue was $196.5 million, down from $259.9 million in the same period of 2024. The net loss was $8.3 million, compared to a net loss of $9.3 million in Q3 2024 [5][6] - For the nine months ended September 30, 2025, operating revenue totaled $626.4 million, a decrease from $804.9 million in the same period of 2024. The net loss for this period was $33.0 million, compared to a net loss of $27.9 million in the prior year [6][8] Operating Ratios - The operating ratio for Q3 2025 was 103.7%, compared to 102.7% in Q3 2024. The non-GAAP adjusted operating ratio was 103.5% for Q3 2025, compared to 102.6% in the same quarter of the previous year [5][6] - For the nine-month period, the operating ratio was 105.5%, up from 102.6% in the same period of 2024, with a non-GAAP adjusted operating ratio of 105.6% [6][8] Cash Flow and Debt Management - The company generated positive cash flows from operations amounting to $74.4 million for the first nine months of 2025, representing 11.9% of operating revenue. Cash was utilized for debt repayment, stock repurchases, and dividends [8][10] - Debt and financing lease obligations were reduced from $494 million in 2022 to $185 million as of September 30, 2025, with $309 million repaid over three years [4][7] Fleet and Operational Efficiency - All four operating brands are now on a common transportation management system, expected to enhance driver utilization and operational collaboration [3][4] - The average age of the consolidated tractor fleet was 2.6 years as of September 30, 2025, while the trailer fleet averaged 7.5 years [9] Shareholder Returns - The company declared a regular dividend of $0.02 per share during Q3 2025, maintaining a commitment to shareholder returns with cumulative cash dividends of $559.9 million since 2003 [10][11]

Group 1 - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets [1] - Investment diversification has become a strategy for individuals, moving away from traditional savings in banks and properties [1] - The popularity of insurance companies in the Philippines has influenced investment choices since 2014 [1] Group 2 - Initial investments were made in blue-chip companies, but there has been a shift towards a diversified portfolio across various industries and market capitalizations [1] - The US market has been entered since 2020, with a focus on banks, hotels, shipping, and logistics companies [1] - The use of analytical tools and comparisons between the US and Philippine markets has enhanced investment strategies [1]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and management's analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements and notes, reflecting increased net losses and decreased operating revenues [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This table presents the consolidated balance sheets, highlighting changes in assets, liabilities, and equity | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Total Assets | $1,299,372 | $1,334,192 | $(34,820) | -2.61% | | Total Liabilities | $512,635 | $511,593 | $1,042 | 0.20% | | Total Stockholders' Equity | $786,737 | $822,599 | $(35,862) | -4.36% | | Cash and cash equivalents | $22,879 | $12,812 | $10,067 | 78.57% | | Property and equipment, net | $728,677 | $764,407 | $(35,730) | -4.67% | [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) This table presents the consolidated statements of comprehensive income (loss), showing significant declines in operating revenue and increased net losses | Metric | Three Months Ended June 30, 2025 (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | $210,387 | $274,754 | $(64,367) | -23.43% | | Operating (loss) income | $(12,419) | $264 | $(12,683) | -4804.92% | | Net loss | $(10,855) | $(3,478) | $(7,377) | -212.12% | | Basic Net loss per share | $(0.14) | $(0.04) | $(0.10) | -250.00% | | Diluted Net loss per share | $(0.14) | $(0.04) | $(0.10) | -250.00% | | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | $429,807 | $545,074 | $(115,267) | -21.15% | | Operating (loss) income | $(27,317) | $(14,120) | $(13,197) | -93.46% | | Net loss | $(24,728) | $(18,586) | $(6,142) | -33.05% | | Basic Net loss per share | $(0.32) | $(0.24) | $(0.08) | -33.33% | | Diluted Net loss per share | $(0.32) | $(0.24) | $(0.08) | -33.33% | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) This table details changes in stockholders' equity, including net loss, stock repurchases, and dividends | Metric | December 31, 2024 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $822,599 | $786,737 | $(35,862) | | Net loss (6 months) | N/A | $(24,728) | N/A | | Repurchases of common stock (6 months) | N/A | $(8,931) | N/A | | Dividends on common stock (6 months) | N/A | $(3,124) | N/A | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This table presents the consolidated statements of cash flows, showing changes in operating, investing, and financing activities | Metric | Six Months Ended June 30, 2025 (in thousands) | Six Months Ended June 30, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $46,842 | $70,966 | $(24,124) | -33.99% | | Net cash used in investing activities | $(17,318) | $(2,631) | $(14,687) | -558.99% | | Net cash used in financing activities | $(19,233) | $(72,379) | $53,146 | -73.43% | | Net increase (decrease) in cash, cash equivalents and restricted cash | $10,291 | $(4,044) | $14,335 | -354.47% | | Purchases of property and equipment | $(57,350) | $(15,244) | $(42,106) | -276.21% | | Repayments of finance leases and debt | $(6,949) | $(63,358) | $56,409 | -89.03% | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes accompanying the consolidated financial statements, explaining accounting policies and specific financial items [Note 1. Basis of Presentation and New Accounting Pronouncements](index=8&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20New%20Accounting%20Pronouncements) The company provides truckload and transportation services, with interim financial statements prepared under GAAP, and is evaluating a new FASB update - Heartland Express, Inc. and its subsidiaries provide nationwide asset-based dry van truckload service, cross-border freight, and other transportation services[19](index=19&type=chunk) - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions[20](index=20&type=chunk) - FASB Update 2023-09, 'Income Taxes (Topic 740): Improvements to Income Tax Disclosures,' effective for annual periods beginning after December 15, 2024, is being evaluated for impact, with no material impact expected[21](index=21&type=chunk) [Note 2. Use of Estimates](index=8&type=section&id=Note%202.%20Use%20of%20Estimates) Financial statement preparation involves management estimates and assumptions, with no significant changes in critical accounting policies during the period - Management makes estimates and assumptions in preparing consolidated financial statements, which may differ from actual results[22](index=22&type=chunk) - No significant changes in estimates and assumptions related to critical accounting policies occurred during the three and six months ended June 30, 2025[22](index=22&type=chunk) [Note 3. Segment Information](index=8&type=section&id=Note%203.%20Segment%20Information) The company operates as a single reportable segment, providing truckload services across North America, managed on a combined basis - The Company has one reportable segment, consistent with authoritative accounting guidance[23](index=23&type=chunk) - Services include asset-based dry van truckload, temperature-controlled transportation, and Mexico logistics services[23](index=23&type=chunk) - The Chief Operating Decision Maker (CODM) oversees and manages all transportation services on a combined basis[23](index=23&type=chunk) [Note 4. Revenue Recognition](index=8&type=section&id=Note%204.%20Revenue%20Recognition) Revenue is recognized over time, with total revenues, fuel surcharge, and other revenues significantly decreasing in 2025 compared to 2024 - Revenue is recognized over time as control of promised services is transferred to customers, reflecting expected consideration[24](index=24&type=chunk) - The average length of haul is under **400 loaded miles** per trip, generally less than two days of continuous transit time[25](index=25&type=chunk) Revenue by Type (Three Months Ended June 30) | Revenue Type | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Change (in millions) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $210.4 | $274.8 | $(64.4) | -23.4% | | Fuel surcharge revenues | $24.5 | $36.8 | $(12.3) | -33.4% | | Accessorial, brokerage and other revenues | $14.7 | $20.0 | $(5.3) | -26.5% | Revenue by Type (Six Months Ended June 30) | Revenue Type | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | Change (in millions) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $429.8 | $545.1 | $(115.3) | -21.1% | | Fuel surcharge revenues | $50.8 | $73.0 | $(22.2) | -30.4% | | Accessorial, brokerage and other revenues | $30.6 | $40.1 | $(9.5) | -23.7% | [Note 5. Cash and Cash Equivalents](index=9&type=section&id=Note%205.%20Cash%20and%20Cash%20Equivalents) Cash equivalents are highly liquid investments, with restricted and designated cash totaling **$13.7 million** at June 30, 2025 - Cash equivalents are short-term, highly liquid investments with original maturities of three months or less[28](index=28&type=chunk) Restricted and Designated Cash and Investments | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Restricted and designated cash and investments | $13.7 | $13.5 | $0.2 | - Restricted funds represent deposits for self-insurance and designated funds are earmarked for specific purposes[28](index=28&type=chunk) [Note 6. Prepaid Tires, Property, Equipment, and Depreciation](index=9&type=section&id=Note%206.%20Prepaid%20Tires%2C%20Property%2C%20Equipment%2C%20and%20Depreciation) Property and equipment are reported at cost, with new tires capitalized and depreciation methods varying by asset type and specific salvage values - Property and equipment are reported at cost, net of accumulated depreciation[29](index=29&type=chunk) - New tires are capitalized as 'Prepaid tires' and amortized over two years[29](index=29&type=chunk) - Depreciation for new tractors uses the declining balance method, while other assets use the straight-line method, with salvage values of **$15,000** for new tractors and **$4,000** for new trailers[29](index=29&type=chunk) [Note 7. Other Intangibles, Net and Goodwill](index=9&type=section&id=Note%207.%20Other%20Intangibles%2C%20Net%20and%20Goodwill) Goodwill remained constant at **$322.6 million**, while finite-lived intangibles are amortized, with expenses of **$1.3 million** and **$2.5 million** for the periods - Goodwill remained constant at **$322.6 million** at June 30, 2025 and December 31, 2024[32](index=32&type=chunk) - Other intangibles, net, totaled **$91.0 million** at June 30, 2025, including **$31.6 million** of indefinite-lived trade name assets and **$59.4 million** of net finite-lived intangible assets[30](index=30&type=chunk) Amortization Expense | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Amortization expense | $1.3 | $1.3 | $2.5 | $2.5 | [Note 8. (Loss) Earnings per Share](index=11&type=section&id=Note%208.%20%28Loss%29%20Earnings%20per%20Share) Basic and diluted loss per share increased for both periods ended June 30, 2025, reflecting higher net losses Loss per Share (Three Months Ended June 30) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic loss per share | $(0.14) | $(0.04) | | Diluted loss per share | $(0.14) | $(0.04) | Loss per Share (Six Months Ended June 30) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Basic loss per share | $(0.32) | $(0.24) | | Diluted loss per share | $(0.32) | $(0.24) | [Note 9. Equity](index=12&type=section&id=Note%209.%20Equity) The company's stock repurchase program has **5.0 million** shares remaining, with **1.0 million** shares repurchased for **$8.9 million** in H1 2025, and quarterly dividends of **$0.02** per share declared - The stock repurchase program has **5.0 million** shares remaining authorized for repurchase as of June 30, 2025[35](index=35&type=chunk) Stock Repurchases (Six Months Ended June 30) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Shares repurchased | 1.0 million | 0.6 million | | Value of repurchases | $8.9 million | $7.3 million | Dividends Declared | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Dividends declared | $1.6 million | $1.6 million | $3.1 million | $3.2 million | | Dividends per share | $0.02 | $0.02 | $0.04 | $0.04 | [Note 10. Stock-Based Compensation](index=12&type=section&id=Note%2010.%20Stock-Based%20Compensation) The 2021 Restricted Stock Award Plan has **0.3 million** shares available, with compensation expense of **$0.5 million** for Q2 2025 and **$1.1 million** for H1 2025 - The 2021 Restricted Stock Award Plan has **0.3 million** shares remaining available for grants at June 30, 2025[37](index=37&type=chunk) Stock-Based Compensation Expense | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | | :--- | :--- | :--- | :--- | :--- | | Compensation expense | $0.5 | $0.4 | $1.1 | $0.7 | - Unrecognized compensation expense was **$0.4 million** at June 30, 2025, to be recognized over a weighted average period of **1.2 years**[38](index=38&type=chunk) [Note 11. Long-Term Debt](index=13&type=section&id=Note%2011.%20Long-Term%20Debt) The company has a **$550.0 million** unsecured credit facility, with **$179.8 million** outstanding on the term loan at a **6.0%** weighted average interest rate - The Company entered into a **$550.0 million** unsecured credit facility (including a **$100.0 million** revolving line of credit and **$450.0 million** in term loans) in conjunction with the CFI acquisition[42](index=42&type=chunk) - Outstanding borrowings on the Term Facility were **$179.8 million** at June 30, 2025, with no outstanding borrowings under the Revolving Facility[50](index=50&type=chunk) - The weighted average interest rate on outstanding borrowings under the Credit Facilities was **6.0%** at June 30, 2025, and the Company was in compliance with all financial covenants[48](index=48&type=chunk)[50](index=50&type=chunk) [Note 12. Lease Obligations](index=14&type=section&id=Note%2012.%20Lease%20Obligations) The company holds operating lease right-of-use assets of **$4.5 million** and finance lease liabilities of **$9.2 million** at June 30, 2025 Lease Assets and Liabilities | Lease Category | June 30, 2025 (in thousands) | | :--- | :--- | | Operating Lease Right of Use Assets | $4,479 | | Finance Lease Liabilities (Present Value) | $9,216 | Future Minimum Lease Payments | Future Minimum Lease Payments (in thousands) | Operating | Finance | | :--- | :--- | :--- | | Total minimum lease payments | $4,629 | $9,401 | | Less: future payment amount for interest | $150 | $185 | | Present value of minimum lease payments | $4,479 | $9,216 | [Note 13. Income Taxes](index=15&type=section&id=Note%2013.%20Income%20Taxes) The effective tax benefit rate increased to **28.5%** for Q2 2025 and **25.2%** for H1 2025, with gross unrecognized tax benefits decreasing to **$4.2 million** Effective Tax Benefit Rate | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Effective tax benefit rate | 28.5% | 13.5% | 25.2% | 20.4% | - The increase in the effective tax benefit rate is primarily due to a larger reduction in accrued liabilities from statutes of limitation expiring and favorable provision to actual adjustments[55](index=55&type=chunk) Gross Unrecognized Tax Benefits | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Gross unrecognized tax benefits | $4.2 | $5.2 | [Note 14. Commitments and Contingencies](index=16&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) The company faces routine litigation and has **$37.3 million** in estimated purchase commitments for equipment extending into 2026 - The Company is a party to ordinary, routine litigation and administrative proceedings incidental to its business, with potential exposure adequately provided for[59](index=59&type=chunk) - Total estimated purchase commitments for tractors and trailer equipment as of June 30, 2025, was **$37.3 million**, extending into 2026[59](index=59&type=chunk) [Note 15. Subsequent Events](index=16&type=section&id=Note%2015.%20Subsequent%20Events) The U.S. enacted the One Big Beautiful Bill Act (OBBBA) in July 2025, with its impact currently being analyzed for financial statements - In July 2025, the U.S. enacted comprehensive tax legislation, the One Big Beautiful Bill Act (OBBBA)[60](index=60&type=chunk) - The impact of the OBBBA is being analyzed and will be included in the financial statement period in which it was signed into law[60](index=60&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company faced a challenging freight environment in H1 2025, resulting in decreased revenue and increased net losses, despite cost management efforts - The company posted a **106.4%** operating ratio (**106.5%** non-GAAP adjusted) for the six months ended June 30, 2025, compared to **102.6%** (**102.5%** non-GAAP adjusted) for the same period of 2024[73](index=73&type=chunk)[75](index=75&type=chunk) - Net loss for the six months ended June 30, 2025, was **$24.7 million**, compared to **$18.6 million** in the first six months of 2024[73](index=73&type=chunk) - Operating revenues decreased by **$115.3 million** (**21.1%**) to **$429.8 million** for the six months ended June 30, 2025, primarily due to fewer drivers and a weak freight environment[73](index=73&type=chunk)[93](index=93&type=chunk) [Overview](index=17&type=section&id=Overview) Heartland Express expanded services with the CFI acquisition, now facing a weak freight market, leading to fleet reductions and cost optimization efforts - With the acquisition of CFI in August 2022, the company expanded its services to include cross-border freight to and from Mexico[64](index=64&type=chunk) - The freight demand began to soften in H2 2022 and remained weak throughout 2023 and 2024, with material improvements not expected until potentially later in 2025[66](index=66&type=chunk) - The company is strategically reducing underperforming lanes of freight and its overall fleet size to better align with current freight demand and reduce operating costs[66](index=66&type=chunk) - Driver pay per mile and as a percentage of revenue increased in 2023, 2024, and H1 2025 due to non-productive time payments in a slower freight environment[68](index=68&type=chunk) Average Age of Fleet | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Average age of tractor fleet | 2.6 years | 2.6 years | | Average age of trailer fleet | 7.5 years | 6.9 years | [Results of Operations](index=21&type=section&id=Results%20of%20Operations) The operating ratio worsened to **106.4%** in H1 2025, with net loss increasing significantly due to decreased revenue and higher operating costs - The Heartland Express brand was profitable in H1 2025, but Millis Transfer, Smith Transport, and CFI experienced under-utilized assets, operating cost growth, and driver retention challenges, leading to a lack of profitability[92](index=92&type=chunk) Operating Performance (Six Months Ended June 30) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Operating ratio | 106.4% | 102.6% | | Adjusted operating ratio | 106.5% | 102.5% | | Net loss | $(24.7) million | $(18.6) million | [Three Months Ended June 30, 2025 Compared With the Three Months Ended June 30, 2024](index=21&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Compared%20With%20the%20Three%20Months%20Ended%20June%2030%2C%202024) Q2 2025 net loss increased to **$10.9 million**, with operating revenue decreasing by **23.4%** and the operating ratio worsening to **105.9%** Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (in millions) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(10.9) | $(3.5) | $(7.4) | -211.4% | | Operating ratio | 105.9% | 99.9% | 6.0 pp | 6.0% | | Operating revenue | $210.4 | $274.8 | $(64.4) | -23.4% | | Salaries, wages, and benefits | $87.2 | $110.1 | $(22.9) | -20.8% | | Fuel expense | $33.7 | $47.0 | $(13.3) | -28.3% | | Insurance and claims expense | $14.2 | $13.0 | $1.2 | 9.2% | | Depreciation and amortization | $41.5 | $46.1 | $(4.6) | -10.0% | | Gain on disposal of property and equipment | $2.8 | $1.1 | $1.7 | 154.5% | | Interest expense | $3.0 | $4.6 | $(1.6) | -34.8% | - Average DOE diesel fuel prices decreased by **7.9%** for the three months ended June 30, 2025, compared to 2024[71](index=71&type=chunk)[83](index=83&type=chunk) - The increase in insurance and claims expense is due to claim severity, frequency, and general unfavorable accident claim trends within the trucking industry[86](index=86&type=chunk) [Six Months Ended June 30, 2025 Compared With the Six Months Ended June 30, 2024](index=23&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20With%20the%20Six%20Months%20Ended%20June%2030%2C%202024) H1 2025 net loss increased to **$24.7 million**, with operating revenue decreasing by **21.1%** and the operating ratio at **106.4%** Financial Performance (Six Months Ended June 30) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (in millions) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Net loss | $(24.7) | $(18.6) | $(6.1) | -32.8% | | Operating ratio | 106.4% | 102.6% | 3.8 pp | 3.7% | | Operating revenue | $429.8 | $545.1 | $(115.3) | -21.1% | | Salaries, wages, and benefits | $180.4 | $222.8 | $(42.4) | -19.0% | | Fuel expense | $71.6 | $94.3 | $(22.7) | -24.1% | | Insurance and claims expense | $26.1 | $27.6 | $(1.5) | -5.4% | | Depreciation and amortization | $83.1 | $92.6 | $(9.5) | -10.3% | | Gain on disposal of property and equipment | $4.6 | $1.0 | $3.6 | 360.0% | | Interest expense | $6.1 | $9.9 | $(3.8) | -38.4% | - Average DOE diesel fuel prices decreased by **8.1%** for the six months ended June 30, 2025, compared to 2024[94](index=94&type=chunk)[98](index=98&type=chunk) - The decrease in insurance and claims expense is due to favorable claim severity and frequency comparing the two periods[101](index=101&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is driven by operating cash flow and equipment sales, with **$550.0 million** credit facility available, and **$35-45 million** in net capital expenditures expected for 2025 - Primary sources of liquidity are cash flow from operating activities and proceeds from sales of used equipment[108](index=108&type=chunk) - The company has a **$550.0 million** unsecured credit facility, with **$179.8 million** outstanding on the Term Facility and **$88.3 million** available on the Revolving Facility at June 30, 2025[108](index=108&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk) Net Cash Provided by Operating Activities | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | Change (in millions) | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $46.8 | $71.0 | $(24.2) | - Expected net capital expenditures for 2025 are approximately **$35 to $45 million**, with **$12 to $17 million** in gains on disposal of property and equipment[119](index=119&type=chunk) - The company intends to continue paying down debt, maintaining regular quarterly dividends, and funding ongoing capital expenditure needs[118](index=118&type=chunk) - The stock repurchase program has **5.0 million** shares remaining authorized for repurchase as of June 30, 2025, with no expiration date[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rate changes and commodity price fluctuations, with specific sensitivities to SOFR, fuel, and tire prices - The Company is exposed to market risk changes in interest rates (on outstanding borrowings) and commodity prices (primarily fuel and rubber)[126](index=126&type=chunk) - A **1.0%** increase in the SOFR rate would decrease income before income taxes by approximately **$1.8 million** annually, based on current variable-rate debt[127](index=127&type=chunk) - A **$1.00** increase in the average price of fuel per gallon, year over year, would decrease income before income taxes by approximately **$14.4 million** in 2025[128](index=128&type=chunk) - A **10%** increase in the price of tires would increase tire purchase expense by **$2.2 million**, decreasing income before income taxes[128](index=128&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures were effective as of June 30, 2025[130](index=130&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[132](index=132&type=chunk) [PART II - OTHER INFORMATION](index=29&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides other information, including legal proceedings, risk factors, equity security sales, and exhibits [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine litigation, primarily for personal injury and property damage, with insurance covering liabilities beyond self-insured retentions - The Company is a party to ordinary, routine litigation and administrative proceedings incidental to its business[135](index=135&type=chunk) - These proceedings primarily involve claims for personal injury, property damage, cargo, and workers' compensation[135](index=135&type=chunk) - The Company maintains insurance to cover liabilities arising from the transportation of freight for amounts in excess of certain self-insured retentions[135](index=135&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company's business is subject to various risks and uncertainties, detailed in its 2024 Annual Report on Form 10-K and Q1 2025 Form 10-Q - Risks and uncertainties associated with the business are discussed in the Company's 2024 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the quarter ended March 31, 2025[136](index=136&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **1.0 million** shares for **$8.93** per share, with **5,020,150** shares remaining authorized for repurchase Share Repurchases (May 2025) | Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum number of shares that may yet be purchased under the plans or programs | | :--- | :--- | :--- | :--- | :--- | | May 1, 2025 - May 31, 2025 | 1,000,000 | $8.93 | 1,000,000 | 5,020,150 | - The share repurchase plan has no expiration date and remains in effect until authorized shares are repurchased or authorization is terminated[138](index=138&type=chunk) [Item 3. Defaults Upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[139](index=139&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - This item is not applicable[140](index=140&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q2 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the second quarter of 2025[141](index=141&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications, corporate documents, and XBRL data files - Exhibits include certifications (31.1, 31.2, 32.1, 32.2), Articles of Incorporation (3.1), Amended and Restated Bylaws (3.2), and XBRL interactive data files (101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[142](index=142&type=chunk) [Signatures](index=31&type=section&id=Signatures) The report was signed on August 7, 2025, by Christopher A. Strain, Vice President of Finance and Chief Financial Officer - The report was signed on August 7, 2025[147](index=147&type=chunk) - Signed by Christopher A. Strain, Vice President of Finance and Chief Financial Officer[147](index=147&type=chunk)