February 3, 2026 For Immediate Release Press Release Heartland Express, Inc. Reports Fourth Quarter and Annual Financial Results NORTH LIBERTY, IOWA - February 3, 2026 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter and year ended December 31, 2025. Three months ended December 31, 2025: Twelve months ended December 31, 2025: Heartland Express Chief Executive Officer, Mike Gerdin, commented on the quarterly operating results and ongoing initiatives of the Company, " ...

Truckload carrier Heartland Express reported another net loss on Tuesday, but again logged sequential operating improvement. The North Liberty, Iowa-based company reported a headline net loss of $19.4 million, or 25 cents per share. However, the result included a $19 million impairment charge associated with its decision to integrate and rebrand the Contract Freighters, Inc. (CFI) fleet, which it acquired in 2022. Backing out the one-time charge moves the adjusted EPS line closer to a 6-cent loss, 2 cents ...

Core Insights - Heartland Express (HTLD) reported a revenue of $179.36 million for the quarter ended December 2025, reflecting a year-over-year decline of 26.1% [1] - The earnings per share (EPS) for the same period was -$0.06, compared to -$0.02 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $185.76 million, resulting in a surprise of -3.45% [1] - The company achieved an EPS surprise of +14.29%, with the consensus EPS estimate being -$0.07 [1] Financial Performance Metrics - The operating ratio was reported at 112.7%, significantly higher than the estimated 101.8% by analysts [4] - Fuel surcharge revenue was $21.68 million, slightly below the estimated $22.03 million, marking a -22.6% change compared to the year-ago quarter [4] - Operating revenue, excluding fuel surcharge revenue, was $157.68 million, which is lower than the estimated $163.72 million, representing a -26.5% change year-over-year [4] Stock Performance - Heartland Express shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Heartland Express, Inc. is facing macroeconomic challenges but shows potential for recovery due to insider buying and an upward trend in price targets among analysts [2][3][5]. Group 1: Company Overview - Heartland Express, Inc. is a significant player in the trucking industry, providing short-to-medium haul truckload services across the U.S. and Canada, primarily serving sectors like consumer goods, appliances, food products, and automotive industries [1]. Group 2: Price Target and Analyst Sentiment - The consensus price target for Heartland Express has increased from $9.25 a quarter ago to $10.50, indicating growing optimism among analysts about the company's future performance [2]. - Analyst Brandon Oglenski from Barclays has set a price target of $17 for the stock, reflecting confidence in its future growth despite current challenges [4]. Group 3: Financial Performance and Challenges - Heartland Express is expected to report negative earnings in its upcoming quarterly release due to weak demand and oil price volatility affecting revenue [3]. - The company is focusing on improving efficiency through effective cost controls while maintaining a strong balance sheet, stable cash flow, and low leverage [3]. Group 4: Stock Valuation and Insider Activity - The stock is currently trading below its book value and historical averages, suggesting that the recent downtrend may be overdone, presenting an attractive upside potential for investors [4]. - Notable insider trading activity has been observed, with insiders purchasing shares, indicating confidence in the company's prospects despite mixed analyst reports [5][6].

Core Viewpoint - The company's stock has been declining for nearly a decade, but there has been a recent temporary increase, likely due to long-only investment strategies focusing on operational aspects rather than market-driven dynamics [1]. Group 1: Investment Strategy - The investment approach emphasizes evaluating companies from an operational and buy-and-hold perspective, focusing on long-term earnings potential and competitive dynamics within industries [1]. - The strategy involves holding most companies, with only a small fraction deemed suitable for purchase at any given time, promoting a healthy skepticism in a generally bullish market [1]. Group 2: Market Dynamics - The articles produced by Quipus Capital do not prioritize future price movements but rather the operational fundamentals of companies, which is intended to provide valuable insights for future investors [1].

Core Insights - Palm Valley Capital Fund's performance in Q4 2025 showed a 0.66% appreciation, underperforming the S&P SmallCap 600's 1.70% gain and the Morningstar Small Cap Total Return Index's 3.12% rise [1] - The Fund increased its allocation to Treasury bills from 74.1% to 76.3% during the quarter, while equity holdings rose by 1.12% [1] - Precious metals, particularly silver, significantly contributed to the Fund's equity performance [1] Company-Specific Insights - Heartland Express, Inc. (NASDAQ:HTLD) was highlighted as a top contributor to the Fund's performance in Q4 2025, with a one-month return of 6.26% despite a 52-week loss of 8.97% [2][3] - The company is experiencing stabilization in operating results amidst a severe freight recession, with signs of trucking rates bottoming out and beginning to rise [3] - Capacity reductions and stricter trucking regulations are expected to improve pricing and profitability for Heartland Express in 2026, with a 60% reduction in net debt over three years [3] - Heartland Express is not among the 30 Most Popular Stocks Among Hedge Funds, with 17 hedge fund portfolios holding its stock at the end of Q3 2025, an increase from 15 in the previous quarter [4]

Core Viewpoint - U.S. stock futures showed mixed results, with Dow futures declining approximately 0.1% as Biohaven Ltd's shares fell sharply following disappointing trial results for its depression drug [1] Company-Specific Summary - Biohaven Ltd (NYSE:BHVN) reported that its investigational drug BHV-7000 for major depressive disorder did not meet its primary endpoint in a six-week trial, failing to show a significant reduction in depressive symptoms compared to placebo, as measured by the Montgomery Åsberg Depression Rating Scale [2] - Following the announcement, Biohaven's shares dropped 14.3% to $9.27 in pre-market trading [2] Other Stocks Movement - Heartland Express Inc (NASDAQ:HTLD) saw a decline of 8.9% to $8.40 in pre-market trading after declaring a regular quarterly cash dividend of 2 cents per share [3] - Omeros Corp (NASDAQ:OMER) decreased by 6.8% to $14.32 in pre-market trading, despite a previous surge of over 75% after FDA approval of YARTEMLEA for a specific medical condition [3] - Andersen Group Inc (NYSE:ANDG) fell 4.6% to $24.30 in pre-market trading after a prior gain of 4% [3] - PennyMac Mortgage Investment Trust (NYSE:PMT) declined 2.8% to $12.67, while Black Rock Coffee Bar Inc (NASDAQ:BRCB) and Lifestance Health Group Inc (NASDAQ:LFST) both fell by 2.7% to $22.70 and $6.90 respectively [3] - Kyverna Therapeutics Inc (NASDAQ:KYTX) experienced a decrease of 2.6% to $8.76 in pre-market trading [3]

Core Insights - Heartland Express is integrating and rebranding the domestic operations of Contract Freighters, Inc. (CFI), which was acquired in 2022, due to ongoing heavy losses [1] Company Operations - CFI's headquarters will remain in Joplin, Missouri, with additional locations in West Memphis, Arkansas, and Laredo, Texas. Current CFI employees will have the opportunity to continue their employment at Heartland or its other brands [2] - CFI driver compensation and benefits will be aligned with Heartland's legacy operations, resulting in increased pay for CFI drivers. They will have the option to operate under any of Heartland's brands while retaining their current trucks [3] Financial Performance - Heartland has experienced nine consecutive quarterly losses (excluding one-time real estate gains). However, Smith returned to profitability, while Millis and Heartland's legacy fleet operated at low-90% operating ratios. CFI was the only fleet that was unprofitable in the third quarter, although improvements have been noted [4] - CEO Mike Gerdin stated that the integration and rebranding of CFI is a logical step to enhance consolidated operating and financial performance. The company has completed a telematics conversion and a TMS upgrade, which were challenges this year [5]

Core Viewpoint - Heartland Express, Inc. plans to integrate and rebrand the U.S. operations of Contract Freighters, Inc. (CFI) effective December 31, 2025, aiming to enhance consolidated operating and financial performance [1][2]. Group 1: Integration and Rebranding - The integration of CFI into Heartland Express is seen as a logical step following improvements in CFI's operating performance during 2025, supported by a transportation management system conversion and a unified driver electronic logging device [2]. - CFI's Mexican operations will remain unaffected by this integration [2]. - The integration aims to align CFI drivers' pay packages with those of Heartland Express, offering increased compensation and benefits [2]. Group 2: Operational Impact - Current CFI offices in Joplin, Missouri, West Memphis, Arkansas, and Laredo, Texas, will be maintained, and all current CFI employees will have the opportunity to continue their employment with Heartland Express [2]. - Drivers will have the option to choose from various pay packages and can operate within other subsidiaries, Millis Transfer, LLC, or Smith Transport, LLC [2]. - The integration is expected to increase fleet capacity, enhancing service delivery to customers [2]. Group 3: Financial Considerations - The company is assessing the potential impact of the integration and rebranding on the value of goodwill and other intangible assets associated with CFI [3].

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]