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 March 31, 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 HEARTLAND EXPRESS INC. (Exact Name of Registrant as Specified in Its Charter) Nevada 93-0926999 (State or Other Jurisdicti ...

Financial Performance - Operating revenues for Q1 2025 were $219.4 million, down from $270.3 million in Q1 2024, representing a decrease of approximately 18.8%[2] - The net loss for Q1 2025 was $13.9 million, an improvement from a net loss of $15.1 million in Q1 2024, indicating a reduction of about 8%[2] - Basic loss per share was $0.18 in Q1 2025, compared to $0.19 in the same period of 2024, reflecting a slight improvement[2] - Operating revenue for Q1 2025 was $219,420,000, down from $270,320,000 in Q1 2024, representing a decrease of approximately 18.9%[17] - Operating revenue excluding fuel surcharge revenue was $193,099,000 in Q1 2025, compared to $234,108,000 in Q1 2024, a decline of about 17.5%[17] - Adjusted operating loss for Q1 2025 was $(13,644,000), slightly worse than the $(13,129,000) loss in Q1 2024[17] - The operating loss for Q1 2025 was $(14,898,000), compared to $(14,383,000) in Q1 2024, indicating a slight deterioration in performance[17] Operational Efficiency - The operating ratio for Q1 2025 was 106.8%, compared to 105.3% in Q1 2024, indicating a decline in operational efficiency[2] - The adjusted operating ratio increased to 107.1% in Q1 2025 from 105.6% in Q1 2024, indicating a decline in operational efficiency[17] - Operating expenses for Q1 2025 totaled $234,318,000, down from $284,703,000 in Q1 2024, a reduction of approximately 17.7%[17] Cash Flow and Assets - Cash balances increased to $23.9 million as of March 31, 2025, up by $11.1 million since December 31, 2024[3] - Total assets were reported at $1.3 billion, with stockholders' equity at $807.7 million as of March 31, 2025[3] - Net cash flows from operations for Q1 2025 were $25.8 million, representing 11.8% of operating revenue[5] Capital Expenditures and Dividends - The company expects net capital expenditures of approximately $40 to $50 million for the calendar year 2025[6] - A regular dividend of $0.02 per share was declared and paid during Q1 2025, maintaining a commitment to stockholders[7] Fleet Information - The average age of the consolidated tractor fleet was 2.6 years, while the trailer fleet averaged 7.4 years as of March 31, 2025[6] Non-GAAP Measures - The company emphasizes that non-GAAP measures like adjusted operating income provide better comparability for underlying operations, despite limitations[17] - Management continues to rely primarily on GAAP results while using non-GAAP measures as supplemental information[17] - The company aims to mitigate the volatility of fuel prices in its financial reporting to better reflect operational performance[17] Fuel Surcharge Revenue - The company reported a fuel surcharge revenue of $26,321,000 in Q1 2025, compared to $36,212,000 in Q1 2024, reflecting a decrease of about 27.4%[17]

Core Viewpoint - Heartland Express reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, marking an earnings surprise of -38.46% [1] - The company's revenues for the quarter were $219.42 million, missing the Zacks Consensus Estimate by 9.20% and down from $270.32 million a year ago [2] Financial Performance - Over the last four quarters, Heartland Express has only surpassed consensus EPS estimates once [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] - Year-to-date, Heartland Express shares have declined approximately 30.1%, compared to a 5.5% decline in the S&P 500 [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of recent earnings report and future expectations [4] - Current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $275.22 million, and for the current fiscal year, it is $0.06 on revenues of $1.07 billion [7] Industry Context - The Transportation - Truck industry, to which Heartland Express belongs, is currently ranked in the bottom 1% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Heartland Express's stock performance [5][6]

Core Viewpoint - Heartland Express, Inc. reported financial results for Q1 2025, highlighting challenges such as adverse weather, tariff uncertainties, and operating cost inflation that outpaced freight demand and rate improvements [1][2]. Financial Results - Operating revenues for Q1 2025 were $219.4 million, down from $270.3 million in Q1 2024 [2]. - Fuel surcharge revenues were $26.3 million, compared to $36.2 million in the same period of 2024 [2]. - The net loss was $13.9 million, an improvement from a net loss of $15.1 million in Q1 2024 [2]. - Basic loss per share was $0.18, compared to $0.19 in Q1 2024 [2]. - The operating ratio was 106.8%, with a non-GAAP adjusted operating ratio of 107.1%, compared to 105.3% and 105.6% respectively in Q1 2024 [2]. Balance Sheet, Liquidity, and Capital Expenditures - As of March 31, 2025, cash balances increased to $23.9 million, up by $11.1 million since December 31, 2024 [3]. - Debt and financing lease obligations were $199.6 million, down from $447.3 million at the time of the CFI acquisition in August 2022 [3]. - The company had $88.3 million in available borrowing capacity on its unsecured line of credit as of March 31, 2025 [3]. - Total assets were reported at $1.3 billion, with stockholders' equity of $807.7 million [3]. Cash Flows - Net cash flows from operations for Q1 2025 were $25.8 million, representing 11.8% of operating revenue [4]. - Cash used for financing activities included $1.3 million for debt repayment and $1.6 million for dividends [4]. - The primary cash outflow for investing activities was $11.7 million for net property and equipment transactions [4]. Fleet Information - The average age of the consolidated tractor fleet was 2.6 years as of March 31, 2025, compared to 2.4 years in the previous year [5]. - The average age of the consolidated trailer fleet was 7.4 years as of March 31, 2025, down from 6.7 years in 2024 [6]. Dividends and Share Repurchase - A regular dividend of $0.02 per share was declared and paid on April 4, 2025 [7]. - Cumulative cash dividends paid amounted to $556.8 million since 2003 [7]. - No shares were repurchased in Q1 2025 or the same period in 2024, with the ability to repurchase an additional 6.0 million shares under current authorization [7]. Awards and Recognition - The company and its employees received awards for service and fleet safety, including the PepsiCo - 2024 Carrier of the Year (West) and TCA Fleet Safety Award 2024 - 2nd Place [10].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Heartland Express despite lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Heartland Express is expected to report a quarterly loss of $0.13 per share, reflecting a year-over-year change of +31.6% [3]. - Revenues are projected to be $241.65 million, down 10.6% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 20% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Heartland Express aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive [7][8]. - Heartland Express currently holds a Zacks Rank of 4, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Heartland Express was expected to post a loss of $0.04 per share but delivered a loss of $0.02, resulting in a surprise of +50% [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Industry Comparison - Marten Transport, another player in the trucking and logistics sector, is expected to report earnings of $0.05 per share, indicating a year-over-year decline of -58.3% [17]. - Marten Transport's revenues are anticipated to be $229 million, down 8.3% from the previous year [17].

Industry Overview - The trucking industry has been experiencing a downcycle for three years, but there are signs of stabilization in freight rates, which could lead to a potential upside for the industry [1] - Heartland Express is expected to benefit significantly from its integration efforts, which may enhance its equity price [1] Company Insights - Heartland Express's equity price is anticipated to be "turbocharged" due to its strategic integration initiatives [1]

Financial Performance - In 2024, the company generated operating revenues of $1.0 billion, a decrease from $1.2 billion in 2023, with a net loss of $29.7 million compared to a net income of $14.8 million in the previous year[190]. - The operating ratio for 2024 was 101.9%, significantly higher than 96.5% in 2023, indicating increased operating expenses relative to revenues[190]. - Operating income was negative at (1.9%) for 2024, compared to a positive 3.5% in 2023[202]. - Operating revenue decreased by $160.0 million (13.2%) to $1.0 billion for the year ended December 31, 2024, from $1.2 billion in 2023, primarily due to a weak freight environment[203]. - Cash flow from operating activities for 2024 was $144.3 million, representing 13.8% of operating revenues, compared to $165.3 million or 13.7% in 2023[192]. - Operating cash flow for 2024 was $144.3 million, a decrease of $21.0 million compared to $165.3 million in 2023, primarily due to a $41.2 million decrease in net income[231]. Expenses and Cost Management - Fuel expenses decreased by $35.0 million (16.5%) to $177.2 million in 2024, driven by a 10.8% decrease in average diesel prices per gallon[208]. - Salaries, wages, and benefits decreased by $47.1 million (9.9%) to $427.7 million in 2024, reflecting lower company miles and a reduction in office and shop employees[206]. - Depreciation and amortization decreased by $17.5 million (8.8%) to $181.5 million in 2024, attributed to ongoing fleet replacement strategies[209]. - Insurance and claims expense increased by $5.6 million (12.3%) to $50.9 million in 2024, due to unfavorable claim severity and frequency[212]. - Significant inflation has impacted operating expenses, particularly in driver compensation and equipment costs, with the average age of revenue equipment being in the top tier of the industry[217]. Debt and Financing - The company repaid almost $300 million of debt and capitalized leases since acquiring CFI and Smith Transport in 2022, while maintaining a relatively young fleet[188]. - The company had $184.0 million outstanding on the Term Facility and no outstanding borrowings under the Revolving Facility as of December 31, 2024[227]. - The weighted average interest rate on outstanding borrowings under the Credit Facilities was 6.0% as of December 31, 2024[227]. - Interest expense decreased by $6.6 million (27.3%) to $17.6 million in 2024, reflecting debt repayments made during the year[215]. - A 1.0% increase in the SOFR rate would result in an additional $1.8 million in annual interest expense based on current variable rate debt[249]. Investments and Acquisitions - The company has made ten acquisitions since 1986, with the most recent being CFI on August 31, 2022, aimed at expanding service offerings and market reach[195]. - 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, to support business growth[219]. - The company anticipates net capital expenditures for revenue equipment and terminal properties in 2025 to be between $55.0 million to $65.0 million[232]. - Cash flows used in investing activities decreased to $46.5 million in 2024 from $67.9 million in 2023, mainly due to $24.7 million less net cash used for property and equipment[232]. Operational Strategy - The company aims to achieve an operating ratio in the low to mid 80s and to grow revenue profitably through both organic growth and acquisitions[186]. - The driver compensation and benefits program has been enhanced to attract and retain qualified drivers, resulting in lower turnover rates compared to industry averages[194]. - Over 96% of total miles are driven by company drivers operating revenue equipment, with tractors and trailers having estimated useful lives of 5 and 7 years respectively[242]. Tax and Valuation - The effective tax rate decreased to 19.0% in 2024 from 25.6% in 2023, primarily due to permanent differences reducing the rate[216]. - The company has not recorded a valuation allowance against deferred tax assets, believing it is more likely than not that remaining deferred tax assets will be utilized[245]. - Goodwill from acquisitions is subject to impairment testing and is influenced by the valuation estimates of other acquired long-lived assets[244]. Risk Management - The company does not currently use derivative financial instruments for risk management, although it has in the past for fuel price risk management[248]. - Management estimates accruals for self-insured auto liability and workers' compensation claims based on historical development trends and individual case evaluations[243].

Financial Performance - Operating revenue for Q4 2024 was $242.6 million, a decrease from $275.3 million in Q4 2023, representing a decline of 11.9%[5] - Net loss for Q4 2024 was $1.9 million, compared to a net income of $5.1 million in Q4 2023, resulting in a basic loss per share of $0.02[5] - For the twelve-month period ended December 31, 2024, operating revenues were $1.0 billion, down 13.2% from $1.2 billion in 2023[6] - Adjusted operating income for Q4 2024 was $2.276 million, down from $11.967 million in Q4 2023, indicating a decrease of 81.0%[21] - Total operating expenses for Q4 2024 were $241.554 million, down 8.7% from $264.642 million in Q4 2023[18] - Operating ratio for Q4 2024 was 99.6%, up from 96.1% in Q4 2023, reflecting increased operational inefficiencies[21] Assets and Equity - Total assets at December 31, 2024, were $1.3 billion, with stockholders' equity of $822.6 million[8] - Total current assets fell to $129.448 million in Q4 2024, down 23.5% from $169.272 million in Q4 2023[20] - Total stockholders' equity decreased to $822.599 million in Q4 2024 from $865.260 million in Q4 2023, a decline of 4.9%[20] - Long-term debt decreased to $191.707 million in Q4 2024 from $290.696 million in Q4 2023, a reduction of 34.1%[20] Cash Flow and Dividends - Operating cash flow margin for Q4 2024 was 15.6%, with net cash flows from operations for the twelve-month period at $144.3 million, representing 13.8% of operating revenues[9] - Cash and cash equivalents decreased to $12.812 million in Q4 2024 from $28.123 million in Q4 2023, a decline of 54.4%[20] - Regular dividends of $0.02 per share were declared during each quarter of 2024, contributing to cumulative cash dividends of $555.2 million since 2003[11] - The company declared dividends of $0.02 per share for both Q4 2024 and Q4 2023, maintaining consistency[18] Operational Efficiency - The company achieved a consolidated operating ratio of 99.6% in Q4 2024, an improvement of 570 basis points from Q1 2024[2] - The company continues to focus on cost improvements and operational integrations, anticipating a favorable increase in overall freight demand[4] - The average age of the tractor fleet was 2.5 years as of December 31, 2024, compared to 2.2 years at the end of 2023[10] Debt Management - The company paid down $100.3 million in debt during 2024, totaling $295.9 million since acquisitions in 2022[3]

Group 1 - Heartland Express reported revenue of $242.58 million for the quarter ended December 2024, reflecting a year-over-year decline of 11.9% [1] - The company's EPS for the same period was -$0.02, compared to $0.06 a year ago, indicating a significant drop in profitability [1] - The reported revenue fell short of the Zacks Consensus Estimate of $254.84 million, resulting in a surprise of -4.81% [1] Group 2 - Heartland Express delivered an EPS surprise of +50.00%, with the consensus EPS estimate being -$0.04 [1] - The operating ratio for the company was reported at 99.6%, which is better than the average estimate of 101.4% based on two analysts [4] - Fuel surcharge revenue was $28 million, significantly lower than the average estimate of $33.20 million, representing a year-over-year decline of 29.5% [4] Group 3 - Operating revenue, excluding fuel surcharge revenue, was $214.58 million, compared to the average estimate of $221.65 million, marking a year-over-year change of -8.9% [4] - Over the past month, shares of Heartland Express have returned +6.4%, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Heartland Express reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.06 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of $242.58 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.81%, and down from $275.35 million year-over-year [2] - Over the last four quarters, Heartland Express has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Outlook - Heartland Express shares have increased approximately 5.3% since the beginning of the year, outperforming the S&P 500's gain of 2.2% [3] - The current consensus EPS estimate for the coming quarter is -$0.06 on revenues of $242.69 million, and for the current fiscal year, it is $0.17 on revenues of $1.1 billion [7] Industry Context - The Transportation - Truck industry, to which Heartland Express belongs, is currently ranked in the bottom 6% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Heartland Express's stock performance [5]