Executive Summary & Financial Highlights [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Marten Transport reported a decrease in net income and diluted EPS for Q2 2025 compared to Q2 2024, alongside a decline in operating revenue. Operating income also saw a slight decrease, while operating expenses as a percentage of operating revenue remained relatively stable | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | Percentage Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :----------- | :---------------------- | | Net Income | $7.2 | $7.9 | -$0.7 | -8.9% | | Diluted EPS | $0.09 | $0.10 | -$0.01 | -10.0% | | Operating Revenue | $229.9 | $246.2 | -$16.3 | -6.6% | | Operating Revenue (excl. fuel surcharges) | $203.8 | $213.5 | -$9.7 | -4.5% | | Fuel Surcharge Revenue | $26.1 | $32.7 | -$6.6 | -20.2% | | Operating Income | $9.7 | $10.0 | -$0.3 | -3.0% | | Operating Expenses as % of Operating Revenue | 95.8% | 95.9% | -0.1% | -0.1% | | Operating Expenses as % of Operating Revenue (net of fuel surcharges) | 95.2% | 95.3% | -0.1% | -0.1% | [Six-Month Period 2025 Financial Performance](index=1&type=section&id=Six-Month%20Period%202025%20Financial%20Performance) For the first six months of 2025, Marten Transport experienced a significant reduction in net income and diluted EPS compared to the same period in 2024. Total operating revenue and operating income also declined, while operating expenses as a percentage of revenue increased | Metric | YTD 2025 (in millions) | YTD 2024 (in millions) | Change (YoY) | Percentage Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :----------- | :---------------------- | | Net Income | $11.5 | $17.5 | -$6.0 | -34.3% | | Diluted EPS | $0.14 | $0.22 | -$0.08 | -36.4% | | Operating Revenue | $453.1 | $495.9 | -$42.8 | -8.6% | | Operating Revenue (excl. fuel surcharges) | $399.6 | $429.3 | -$29.7 | -6.9% | | Fuel Surcharge Revenue | $53.5 | $66.6 | -$13.1 | -19.7% | | Operating Income | $15.6 | $22.2 | -$6.6 | -29.7% | | Operating Expenses as % of Operating Revenue | 96.6% | 95.5% | +1.1% | +1.1% | | Operating Expenses as % of Operating Revenue (net of fuel surcharges) | 96.1% | 94.8% | +1.3% | +1.4% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Executive Chairman Randolph L. Marten highlighted the continued value of the company's multifaceted business model, particularly dedicated and brokerage operations, despite significant pressure from a prolonged freight market recession characterized by oversupply, weak demand, inflationary operating costs, freight rate reductions, and network disruptions. The company remains focused on mitigating market impacts and investing in organic growth opportunities, anticipating positive effects from increased enforcement of English Language Proficiency and B-1 visa regulations - The company's earnings are heavily pressured by the considerable duration and depth of the freight market recession's oversupply and weak demand[8](index=8&type=chunk) - Cumulative impact of inflationary operating costs, freight rate reductions, and freight network disruptions are contributing to earnings pressure[8](index=8&type=chunk) - Marten Transport is focused on minimizing market impact, investing in profitable organic growth opportunities, and expects positive impacts from anticipated additional industry capacity exits due to increased enforcement of English Language Proficiency and B-1 visa regulations[9](index=9&type=chunk) Company Overview [Business Description](index=2&type=section&id=Business%20Description) Marten Transport, Ltd. is a multifaceted transportation and distribution company specializing in time and temperature-sensitive and dry truck-based services across six distinct business platforms. It is a leading temperature-sensitive truckload carrier in the U.S., serving high-volume customers in the United States, Mexico, and Canada - Marten Transport offers a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities[10](index=10&type=chunk) - The company operates through six distinct business platforms: Temperature-Sensitive and Dry Truckload, Dedicated, Intermodal, Brokerage, and MRTN de Mexico[10](index=10&type=chunk) - Marten is a leading temperature-sensitive truckload carrier in the United States, specializing in transporting food, beverages, and other consumer packaged goods requiring temperature control, with services extending to Mexico and Canada[10](index=10&type=chunk) [Forward-Looking Statements & Contacts](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Contacts) The press release includes forward-looking statements subject to substantial risks and uncertainties, with actual results potentially differing materially. The company disclaims any obligation to update these statements. Contact information for key executives is provided - The report contains forward-looking statements regarding future growth and market impacts, which involve substantial risks and uncertainties[11](index=11&type=chunk) - Important factors that could cause actual results to differ are discussed in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024[11](index=11&type=chunk) - Contact information for CEO Tim Kohl, President Doug Petit, and EVP & CFO Jim Hinnendael is provided[12](index=12&type=chunk) Consolidated Financial Statements [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Marten Transport's balance sheet shows an increase in total assets and liabilities as of June 30, 2025, compared to December 31, 2024. Cash and cash equivalents significantly increased, while total stockholders' equity also saw a modest rise | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :-------------------------------- | :------------ | :---------------- | :----- | | Cash and cash equivalents | $35,052 | $17,267 | +$17,785 | | Total current assets | $155,813 | $138,511 | +$17,302 | | Net property and equipment | $834,268 | $828,613 | +$5,655 | | Total assets | $991,816 | $968,757 | +$23,059 | | Total current liabilities | $116,685 | $93,519 | +$23,166 | | Total liabilities | $221,100 | $200,835 | +$20,265 | | Total stockholders' equity | $770,716 | $767,922 | +$2,794 | [Consolidated Condensed Statements of Operations](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The statements of operations reveal a decline in operating revenue, operating income, and net income for both the three-month and six-month periods ended June 30, 2025, compared to the prior year. This was accompanied by a decrease in diluted EPS, while dividends declared per common share remained constant | Metric (in thousands, except per share) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------- | :------ | :------ | :------- | :------- | | Operating revenue | $229,922 | $246,238 | $453,074 | $495,910 | | Total operating expenses | $220,188 | $236,264 | $437,481 | $473,686 | | Operating income | $9,734 | $9,974 | $15,593 | $22,224 | | Net income | $7,186 | $7,889 | $11,521 | $17,535 | | Diluted earnings per common share | $0.09 | $0.10 | $0.14 | $0.22 | | Dividends declared per common share | $0.06 | $0.06 | $0.12 | $0.12 | Segment Performance Analysis [Three Months Ended June 30, 2025 vs 2024](index=5&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20vs%202024) For Q2 2025, Truckload operating income significantly increased by 110.2% despite a revenue decrease, driven by an improved operating ratio. Dedicated and Brokerage segments saw declines in both revenue and operating income, while Intermodal continued to report an operating loss with a higher operating ratio | Segment (in thousands) | Q2 2025 Revenue | Q2 2024 Revenue | Revenue Change (YoY) | Q2 2025 Operating Income/(Loss) | Q2 2024 Operating Income/(Loss) | Operating Income Change (YoY) | Q2 2025 Operating Ratio | Q2 2024 Operating Ratio | | :--------------------- | :-------------- | :-------------- | :------------------- | :------------------------------ | :------------------------------ | :---------------------------- | :---------------------- | :---------------------- | | Truckload | $106,486 | $112,523 | -5.4% | $2,344 | $1,115 | +110.2% | 97.8% | 99.0% | | Dedicated | $71,874 | $81,266 | -11.6% | $5,429 | $6,650 | -18.4% | 92.4% | 91.8% | | Intermodal | $11,703 | $15,064 | -22.3% | ($735) | ($684) | -7.5% | 106.3% | 104.5% | | Brokerage | $39,859 | $37,385 | +6.6% | $2,696 | $2,893 | -6.8% | 93.2% | 92.3% | | Total | $229,922 | $246,238 | -6.6% | $9,734 | $9,974 | -2.4% | 95.8% | 95.9% | [Six Months Ended June 30, 2025 vs 2024](index=6&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20vs%202024) For the first six months of 2025, total operating revenue decreased across all segments except Brokerage, which saw a slight decline. Truckload operating income increased, but Dedicated, Intermodal, and Brokerage segments experienced significant drops in operating income, leading to a substantial consolidated operating income decrease of 29.8% | Segment (in thousands) | YTD 2025 Revenue | YTD 2024 Revenue | Revenue Change (YoY) | YTD 2025 Operating Income/(Loss) | YTD 2024 Operating Income/(Loss) | Operating Income Change (YoY) | YTD 2025 Operating Ratio | YTD 2024 Operating Ratio | | :--------------------- | :--------------- | :--------------- | :------------------- | :------------------------------- | :------------------------------- | :---------------------------- | :----------------------- | :----------------------- | | Truckload | $210,877 | $224,074 | -5.9% | $2,044 | $1,604 | +27.4% | 99.0% | 99.3% | | Dedicated | $145,499 | $167,726 | -13.3% | $10,283 | $15,908 | -35.4% | 92.9% | 90.5% | | Intermodal | $23,820 | $31,036 | -23.3% | ($1,590) | ($878) | -81.1% | 106.7% | 102.8% | | Brokerage | $72,878 | $73,074 | -0.3% | $4,856 | $5,590 | -13.1% | 93.3% | 92.4% | | Total | $453,074 | $495,910 | -8.6% | $15,593 | $22,224 | -29.8% | 96.6% | 95.5% | Operating Statistics & Cash Flow [Operating Statistics by Segment](index=7&type=section&id=Operating%20Statistics%20by%20Segment) Operational statistics for Q2 and YTD 2025 show varied performance across segments. Truckload and Dedicated segments experienced decreases in average tractors and total miles, while Brokerage loads increased. Average revenue per tractor per week saw slight increases in Truckload and Dedicated segments Truckload Segment Operating Statistics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------- | :------ | :------ | :------- | :------- | | Revenue (in thousands) | $106,486 | $112,523 | $210,877 | $224,074 | | Average revenue, net of fuel surcharges, per tractor per week | $4,209 | $4,093 | $4,203 | $4,044 | | Average tractors | 1,690 | 1,805 | 1,680 | 1,817 | | Total miles (in thousands) | 39,221 | 40,847 | 77,494 | 80,550 | Dedicated Segment Operating Statistics | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------------- | :------ | :------ | :------- | :------- | | Revenue (in thousands) | $71,874 | $81,266 | $145,499 | $167,726 | | Average revenue, net of fuel surcharges, per tractor per week | $3,807 | $3,754 | $3,827 | $3,768 | | Average tractors | 1,239 | 1,382 | 1,251 | 1,421 | | Total miles (in thousands) | 25,132 | 28,231 | 50,368 | 57,311 | Intermodal and Brokerage Segment Operating Statistics | Segment | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------- | :--------------------- | :------ | :------ | :------- | :------- | | Intermodal | Revenue (in thousands) | $11,703 | $15,064 | $23,820 | $31,036 | | | Loads | 3,555 | 4,464 | 7,212 | 9,053 | | | Average tractors | 77 | 121 | 77 | 123 | | Brokerage | Revenue (in thousands) | $39,859 | $37,385 | $72,878 | $73,074 | | | Loads | 24,094 | 22,700 | 44,510 | 42,761 | [Cash Flow Activities](index=7&type=section&id=Cash%20Flow%20Activities) Net cash provided by operating activities decreased for both the three-month and six-month periods ended June 30, 2025, compared to the prior year. Net cash used for investing activities increased in Q2 but decreased for the six-month period, while net cash used for financing activities saw a slight increase | Cash Flow Activity (in thousands) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Net cash provided by operating activities | $33,153 | $35,821 | $69,368 | $81,543 | | Net cash used for investing activities | ($33,115) | ($27,776) | ($41,528) | ($48,025) | | Net cash used for financing activities | ($4,891) | ($4,576) | ($10,055) | ($9,532) | [Key Equipment and Share Data](index=7&type=section&id=Key%20Equipment%20and%20Share%20Data) As of June 30, 2025, Marten Transport reported a decrease in total tractors and trailers compared to the prior year. The average age of company tractors increased, while the average age of trailers remained constant. Weighted average shares outstanding saw a slight increase | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total tractors | 2,928 | 3,126 | | Average age of company tractors (in years) | 2.1 | 1.8 | | Total trailers | 5,164 | 5,539 | | Average age of company trailers (in years) | 5.0 | 5.0 | | Ratio of trailers to tractors | 1.8 | 1.8 | | Total refrigerated containers | 786 | 787 | Weighted Average Shares Outstanding | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------ | :------ | :------- | :------- | | Basic | 81,510 | 81,381 | 81,502 | 81,365 | | Diluted | 81,517 | 81,446 | 81,512 | 81,442 |

Core Viewpoint - The Zacks Transportation-Truck industry is facing significant challenges due to tariff-induced economic uncertainties, weak freight rates, driver shortages, and inflation, yet some companies like Marten Transport and PAMT CORP are positioned to endure these difficulties [1]. Industry Overview - The Zacks Transportation-Truck industry consists of truck operators that transport freight across North America, offering various services including full-truckload and less-than-truckload (LTL) [2]. - Companies in this sector provide diverse trucking services such as dry-van, dedicated, refrigerated, flatbed, and expedited, along with logistics and intermodal services [2]. Current Trends - Supply-chain disruptions and weak freight rates are negatively impacting the industry, with the Cass Freight Shipments Index declining by 5.3% year-over-year in March, marking eight consecutive months of decline [3]. - The industry is focusing on cost-cutting measures to improve productivity and efficiency in response to high inflation affecting labor, freight, and fuel costs [4]. - A prolonged driver shortage is expected to leave the trucking industry short of over 160,000 drivers by 2030, exacerbating supply-chain challenges [5]. Tariff Impact - The current administration's protectionist policies and new tariffs are creating trade tensions with major partners like Canada, Mexico, and China, leading to increased volatility and uncertainty in global trade, which is detrimental to the industry [6]. Industry Ranking and Performance - The Zacks Transportation-Truck industry ranks 244 out of 246 Zacks industries, placing it in the bottom 1% and indicating poor near-term prospects [7]. - Analysts have reduced the industry's earnings estimate for 2025 by 42.7% year-over-year, reflecting a negative outlook for earnings growth [8]. - Over the past year, the industry has underperformed, declining by 30.6%, while the S&P 500 increased by 8.3% and the broader transportation sector fell by 17.4% [10]. Valuation Metrics - The industry is currently trading at an EV-to-EBITDA ratio of 13.64X, which is lower than the S&P 500's 15.2X but higher than the sector's 8.82X [13]. Notable Companies - Marten Transport, based in Mondovi, WI, operates across five business platforms and has shown impressive cost-control efforts, currently holding a Zacks Rank 3 (Hold) [17]. - PAMT CORP provides truckload dry van carrier services and has expanded its customer base significantly through acquisitions, also holding a Zacks Rank 3 [21].

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements.) Presents unaudited consolidated financial statements for Q1 2025, detailing a significant decrease in net income and changes in assets and liabilities [Consolidated Condensed Balance Sheets](index=2&type=section&id=CONSOLIDATED%20CONDENSED%20BALANCE%20SHEETS) Total assets increased to **$983.3 million** as of March 31, 2025, driven by cash, while total liabilities also grew Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $162,500 | $138,511 | | **Net property and equipment** | $819,057 | $828,613 | | **Total assets** | **$983,332** | **$968,757** | | **Total current liabilities** | $109,623 | $93,519 | | **Total liabilities** | $215,832 | $200,835 | | **Total stockholders' equity** | $767,500 | $767,922 | | **Total liabilities and stockholders' equity** | **$983,332** | **$968,757** | [Consolidated Condensed Statements of Operations](index=3&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20OPERATIONS) Operating revenue decreased by **10.6%** and net income declined by **55.1%** in Q1 2025, leading to lower diluted earnings per share Q1 2025 vs Q1 2024 Performance (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Operating revenue** | $223,152 | $249,672 | | **Total operating expenses** | $217,293 | $237,422 | | **Operating income** | $5,859 | $12,250 | | **Net income** | **$4,335** | **$9,646** | | **Diluted earnings per common share** | **$0.05** | **$0.12** | | **Dividends declared per common share** | $0.06 | $0.06 | [Consolidated Condensed Statements of Cash Flows](index=5&type=section&id=CONSOLIDATED%20CONDENSED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities decreased to **$36.2 million** in Q1 2025, with a net increase in cash and cash equivalents to **$39.9 million** Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $36,215 | $45,722 | | Net cash used for investing activities | ($8,413) | ($20,249) | | Net cash used for financing activities | ($5,164) | ($4,956) | | **Net change in cash and cash equivalents** | **$22,638** | **$20,517** | | **Cash and cash equivalents, end of period** | **$39,905** | **$73,730** | [Notes to Consolidated Condensed Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Details accounting policies, segment performance, debt facilities, and significant commitments, noting declines across all business segments - The company has a **$30.0 million** unsecured credit facility maturing in August 2027, with no outstanding principal balance as of March 31, 2025. Remaining borrowing availability was **$7.6 million**[16](index=16&type=chunk) - The company has commitments for new revenue equipment purchases of **$124.3 million** for the remainder of 2025[24](index=24&type=chunk) Segment Operating Income/(Loss) (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Truckload | $(300) | $489 | | Dedicated | $4,854 | $9,258 | | Intermodal | $(855) | $(194) | | Brokerage | $2,160 | $2,697 | | **Total operating income** | **$5,859** | **$12,250** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=12&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management attributes Q1 2025 revenue and operating income declines to a softened freight market, impacting all segments and worsening the operating ratio, while maintaining strong liquidity - Operating revenue decreased **10.6%** and net income declined **55.1%** in Q1 2025 compared to Q1 2024, primarily due to a softened freight market[54](index=54&type=chunk)[56](index=56&type=chunk) - The consolidated operating ratio worsened to **97.4%** in Q1 2025 from **95.1%** in Q1 2024. Net of fuel surcharges, the ratio increased to **97.0%** from **94.3%**[56](index=56&type=chunk) - The company plans capital expenditures, net of dispositions, of approximately **$107 million** for the remainder of 2025[57](index=57&type=chunk)[86](index=86&type=chunk) [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Detailed analysis reveals broad-based weakness in Q1 2025, with revenue declines across all segments and increased insurance and claims expenses Segment Revenue Changes (Q1 2025 vs Q1 2024, in thousands) | Segment Revenue (Net of Fuel Surcharge) | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Truckload | $90,106 | $95,022 | $(4,916) | (5.2)% | | Dedicated | $62,405 | $71,738 | $(9,333) | (13.0)% | | Intermodal | $10,268 | $13,281 | $(3,013) | (22.7)% | | Brokerage | $33,019 | $35,689 | $(2,670) | (7.5)% | - The Truckload segment's operating ratio increased to **100.3%** from **99.6%** due to higher insurance, depreciation, and maintenance costs[65](index=65&type=chunk) - Insurance and claims expense increased by **$1.7 million (14.8%)** in Q1 2025, primarily due to higher self-insured auto liability claim costs and insurance premiums[76](index=76&type=chunk) - The effective income tax rate rose to **30.2%** from **26.1%** in the prior-year period, mainly due to increases in non-deductible expenses as a percentage of lower projected earnings[80](index=80&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through cash from operations and an undrawn credit facility, with available funds for share repurchases and planned capital expenditures - Net cash from operating activities was **$36.2 million** in Q1 2025, down from **$45.7 million** in Q1 2024[83](index=83&type=chunk)[85](index=85&type=chunk) - As of March 31, 2025, the company had no outstanding long-term debt and **$7.6 million** in borrowing availability under its credit facility[88](index=88&type=chunk) - The company has a share repurchase program with authorization for up to **$33.2 million** remaining as of March 31, 2025. No shares were repurchased in Q1 2025[84](index=84&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk.) The primary market risk is diesel fuel price volatility, partially mitigated by surcharges, with a hypothetical **5%** increase impacting Q1 2025 fuel expense by **$1.6 million** - The primary market risk is the price and availability of diesel fuel[93](index=93&type=chunk) - A **5%** increase in the average cost of diesel fuel would have increased fuel expense by **$1.6 million** in Q1 2025[93](index=93&type=chunk) - The company uses fuel surcharge programs to pass through a significant portion of fuel cost increases to customers, but these programs are not fully effective in mitigating all fuel-related price increases[94](index=94&type=chunk) [Item 4. Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[96](index=96&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[96](index=96&type=chunk) PART II. OTHER INFORMATION [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors from the 2024 Annual Report, with an updated emphasis on general economic conditions, trucking capacity, trade policies, and geopolitical events - An updated risk factor highlights dependence on general economic and business factors beyond the company's control[98](index=98&type=chunk) - Specific risks mentioned include excess capacity in the trucking industry, the impact of trade tariffs on shipping volumes and equipment costs, and unpredictable effects of geopolitical conflicts[99](index=99&type=chunk)[100](index=100&type=chunk) [Item 5. Other Information](index=22&type=section&id=Item%205.%20Other%20Information.) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement in Q1 2025[101](index=101&type=chunk) [Item 6. Exhibits](index=23&type=section&id=Item%206.%20Exhibits.) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial data in iXBRL format - Filed exhibits include certifications from the CEO (31.1) and CFO (31.2) pursuant to Section 302 of the Sarbanes-Oxley Act[103](index=103&type=chunk) - The report includes financial statements and notes formatted in iXBRL (Exhibit 101)[103](index=103&type=chunk)

Core Insights - Marten Transport, Ltd. (MRTN) reported quarterly earnings of $0.05 per share, matching the Zacks Consensus Estimate, but down from $0.12 per share a year ago [1] - The company posted revenues of $223.15 million for the quarter, missing the Zacks Consensus Estimate by 2.55% and down from $249.67 million year-over-year [2] - Marten Transport shares have declined approximately 14.9% year-to-date, compared to a decline of 8.3% for the S&P 500 [3] Earnings Performance - The company had a surprise of 16.67% in the previous quarter, reporting earnings of $0.07 per share against an expected $0.06 [1] - Over the last four quarters, Marten Transport has only surpassed consensus EPS estimates once [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $236 million, and for the current fiscal year, it is $0.39 on revenues of $949 million [7] - The estimate revisions trend for Marten Transport is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Transportation - Truck industry, to which Marten Transport belongs, is currently ranked in the bottom 4% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Marten Transport's stock performance [5]

Financial Performance - Marten Transport reported net income of $4.3 million, or $0.05 per diluted share, for Q1 2025, down from $9.6 million, or $0.12 per diluted share, in Q1 2024[2][12]. - Operating revenue decreased to $223.2 million in Q1 2025 from $249.7 million in Q1 2024, representing a decline of 10.6%[3][14]. - Operating income fell to $5.9 million in Q1 2025, down 52.2% from $12.3 million in Q1 2024, with operating expenses as a percentage of revenue increasing to 97.4%[4][14]. - Truckload revenue, net of fuel surcharges, decreased by 5.2% to $90.1 million, while dedicated revenue dropped by 14.8% to $73.6 million[14]. - Net cash provided by operating activities decreased to $36,215,000 from $45,722,000, a decline of 20.5% year-over-year[16]. Market Conditions - The company faced significant pressure from the freight market recession, inflationary operating costs, and reduced freight rates, impacting overall performance[5]. - The company is focused on minimizing the impact of the freight market and positioning operations for organic growth opportunities amid economic volatility[5][7]. Asset and Liability Management - Total current assets increased to $162.5 million as of March 31, 2025, compared to $138.5 million at the end of 2024[10]. - Total liabilities rose to $215.8 million as of March 31, 2025, up from $200.8 million at the end of 2024[10]. Operational Metrics - Truckload segment revenue decreased to $104,391,000 from $111,551,000, a decline of 6.5% year-over-year[16]. - Average revenue per tractor per week in the truckload segment increased to $4,196 from $3,996, a rise of 5.0%[16]. - Dedicated segment revenue decreased to $73,625,000 from $86,460,000, a decline of 15.0% year-over-year[16]. - Intermodal segment revenue decreased to $12,117,000 from $15,972, a decline of 24.0% year-over-year[16]. - Total tractors decreased to 3,040 from 3,406, a reduction of 10.7% year-over-year[16]. - Average age of company tractors increased to 2.0 years from 1.9 years[16]. - Total trailers decreased to 5,331 from 5,619, a reduction of 5.1% year-over-year[16]. - Non-revenue miles percentage in the truckload segment improved to 11.2% from 12.6%[16]. Investment and Growth Strategy - Marten Transport continues to invest in its multifaceted business model, which includes temperature-sensitive and dry truckload services across the U.S., Mexico, and Canada[6]. - Net cash used for investing activities improved to $(8,413,000) from $(20,249,000)[16]. Recognition and Awards - Marten Transport was certified as a TCA Elite Fleet – 2025 Best Place to Drive, highlighting its commitment to driver support and competitive compensation[5].

Revenue Performance - Operating revenue decreased by $167.7 million, or 14.8%, in 2024 compared to 2023, with revenue net of fuel surcharges down by $132.0 million, or 13.6%[137] - Truckload segment revenue, net of fuel surcharges, decreased by 4.6% from 2023, while Dedicated segment revenue fell by 20.3% and Intermodal segment revenue dropped by 34.8%[137] - Operating revenue decreased by $167.7 million, or 14.8%, to $963.7 million in 2024 from $1.131 billion in 2023[145] - Truckload segment revenue decreased by $25.7 million, or 5.5%, to $439.8 million in 2024 from $465.5 million in 2023[147] - Dedicated segment revenue decreased by $89.1 million, or 21.8%, to $319.1 million in 2024 from $408.3 million in 2023[148] - Intermodal segment revenue decreased by $33.3 million, or 36.2%, to $58.8 million in 2024 from $92.1 million in 2023[149] - Brokerage segment revenue decreased by $19.6 million, or 11.8%, to $146.0 million in 2024 from $165.6 million in 2023[150] Income and Expenses - Operating income declined by 63.1% to $33.2 million in 2024 from $90.1 million in 2023, with net income down 61.7% to $26.9 million, or $0.33 per diluted share[139] - Total operating income decreased by $56.9 million, or 63.1%, to $33.2 million in 2024 from $90.1 million in 2023[151] - Net income decreased 61.7% to $26.9 million, or $0.33 per diluted share, in 2024 from $70.4 million, or $0.86 per diluted share, in 2023[160] - Salaries, wages, and benefits decreased by $37.1 million, or 9.8%, in 2024 from 2023[152] - Fuel and fuel taxes decreased by $33.3 million, or 18.5%, in 2024 from 2023[154] - Gain on disposition of revenue equipment was $5.0 million in 2024, down from $13.6 million in 2023[158] Operating Ratios - The operating ratio increased to 96.6% in 2024 from 92.0% in 2023, indicating a rise in operating expenses as a percentage of operating revenue[139] - The consolidated operating ratio increased to 96.6% in 2024 from 92.0% in 2023[151] - Operating income declined 63.1% to $33.2 million in 2024 from $90.1 million in 2023, with an operating ratio of 96.6% in 2024 compared to 92.0% in 2023[159] Capital Expenditures and Cash Flow - Capital expenditures are estimated to be approximately $150 million in 2025, with net cash flows from operating activities of $134.8 million used for new revenue equipment purchases and dividends[140] - Net cash flows provided by operating activities decreased to $134.8 million in 2024 from $164.4 million in 2023 and $219.5 million in 2022[181] - Capital expenditures are estimated to be approximately $150 million in 2025, including commitments to purchase $191.2 million of new revenue equipment[182] Environmental and Operational Investments - The company continues to invest in environmentally sustainable solutions, including the use of auxiliary power units and energy-efficient equipment[142] Fleet and Mileage - Average revenue per tractor per week for the Truckload segment was $4,123 in 2024, down from $4,377 in 2023, while the Dedicated segment saw a decrease to $3,767 from $3,936[144] - Total miles for the Truckload segment increased to 158,985 thousand miles in 2024 from 155,929 thousand miles in 2023, while Dedicated segment total miles decreased to 110,681 thousand miles from 133,163 thousand miles[144] - The average number of tractors in the Truckload segment increased to 1,751 in 2024 from 1,733 in 2023, while the Dedicated segment's average tractors decreased to 1,356 from 1,632[144] Shareholder Returns and Financial Obligations - The company expects to continue paying quarterly cash dividends of $0.06 per share, totaling $19.5 million in both 2024 and 2023[182] - The company has outstanding standby letters of credit totaling $23.1 million as of December 31, 2024, to guarantee settlement of self-insurance claims[189] - The credit agreement effective in August 2022 provides for an unsecured committed credit facility of $30.0 million, maturing in August 2027, with no outstanding principal balance as of December 31, 2024[184] - The company maintains insurance coverage for losses in excess of self-insured retention levels, with total claims reserves of $37.5 million and $40.3 million as of December 31, 2024 and 2023, respectively[189]

Core Viewpoint - Marten Transport, Ltd. (NASDAQ: MRTN) reported its Q4 and full-year 2024 earnings, which were not well received by the investing community [1] Financial Performance - The earnings report for Q4 and the full year 2024 did not meet positive expectations from investors [1]

Company Performance - Marten Transport, Ltd. (MRTN) reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, but down from $0.15 per share a year ago, indicating a 53.33% year-over-year decline [1] - The company achieved an earnings surprise of 16.67% for the quarter, while the previous quarter saw a negative surprise of -28.57% [1][2] - Revenues for the quarter were $230.43 million, missing the Zacks Consensus Estimate by 2.77% and down from $268.22 million year-over-year, reflecting a decline of 14.06% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $235 million, and for the current fiscal year, it is $0.43 on revenues of $978 million [7] - The trend of estimate revisions for Marten Transport has been unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Transportation - Truck industry, to which Marten Transport belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment and stock performance [5]

Financial Performance - Net income for Q4 2024 was $5.6 million, or $0.07 per diluted share, down from $12.4 million, or $0.15 per diluted share in Q4 2023[1] - For the full year 2024, net income was $26.9 million, or $0.33 per diluted share, compared to $70.4 million, or $0.86 per diluted share in 2023[1] - Operating income for Q4 2024 was $6.7 million, down from $15.7 million in Q4 2023, but improved 57.6% sequentially from Q3 2024[4] - Total operating income dropped to $6,727 in Q4 2024, down 57.0% from $15,657 in Q4 2023[16] - Truckload operating income for the year decreased by 86.8% to $3,283 from $24,835 in 2023[18] Revenue Trends - Operating revenue for Q4 2024 was $230.4 million, a decrease from $268.2 million in Q4 2023; excluding fuel surcharges, it was $202.9 million compared to $229.4 million[2] - Operating revenue for 2024 totaled $963.7 million, down from $1.131 billion in 2023; excluding fuel surcharges, it was $840.0 million compared to $972.0 million[3] - Total operating revenue for Q4 2024 was $230,432, a decrease of 14.1% compared to $268,222 in Q4 2023[16] - For the year ended December 31, 2024, total operating revenue was $963,708, a decline of 14.8% from $1,131,455 in 2023[18] Revenue Breakdown - Truckload revenue, net of fuel surcharge revenue, decreased by 2.5% to $93,106 in Q4 2024 from $95,461 in Q4 2023[16] - Dedicated revenue, net of fuel surcharge revenue, fell by 16.4% to $64,997 in Q4 2024 compared to $77,731 in Q4 2023[16] - Intermodal revenue, net of fuel surcharge revenue, decreased by 28.0% to $11,238 in Q4 2024 from $15,610 in Q4 2023[16] Operating Expenses and Ratios - Operating expenses as a percentage of operating revenue were 97.1% for Q4 2024, compared to 94.2% for Q4 2023[5] - The consolidated operating ratio increased to 97.1% in Q4 2024 from 94.2% in Q4 2023[16] Cash Flow and Assets - Net cash provided by operating activities for Q4 2024 was $23,793, down from $38,045 in Q4 2023[20] - Total current assets decreased to $138.5 million in 2024 from $196.6 million in 2023[12] - Total liabilities decreased to $200.8 million in 2024 from $233.0 million in 2023[12] Performance Trends - The company reported a sequential improvement in net income, operating income, and operating ratio since Q2 2022, indicating a positive trend in performance[7] - Average revenue per tractor per week for the Truckload segment was $4,227 in Q4 2024, slightly up from $4,183 in Q4 2023[20] Fuel Surcharge Impact - Fuel surcharge revenue decreased to $27.6 million in Q4 2024 from $38.8 million in Q4 2023[2]

Core Viewpoint - Marten Transport, Ltd. reported a decline in net income and operating revenue for both the fourth quarter and the full year of 2024 compared to 2023, although there was a sequential improvement in net income and operating income from the third quarter of 2024 [1][4][3]. Financial Performance - For Q4 2024, net income was $5.6 million (7 cents per diluted share), down from $12.4 million (15 cents per diluted share) in Q4 2023, but up 50.1% sequentially from Q3 2024's net income of $3.8 million (5 cents per diluted share) [1]. - Total operating revenue for Q4 2024 was $230.4 million, a decrease from $268.2 million in Q4 2023, with fuel surcharge revenue dropping to $27.6 million from $38.8 million [2]. - For the full year 2024, net income was $26.9 million (33 cents per diluted share), compared to $70.4 million (86 cents per diluted share) in 2023 [1]. - Total operating revenue for 2024 was $963.7 million, down from $1.131 billion in 2023, with fuel surcharge revenue decreasing to $123.7 million from $159.4 million [3]. Operating Income and Expenses - Operating income for Q4 2024 was $6.7 million, down from $15.7 million in Q4 2023, but improved 57.6% from Q3 2024's operating income of $4.3 million [4]. - For the full year 2024, operating income was $33.2 million, compared to $90.1 million in 2023 [4]. - Operating expenses as a percentage of operating revenue were 97.1% for Q4 2024, compared to 94.2% for Q4 2023 [5]. Segment Performance - Truckload revenue for Q4 2024 was $107.3 million, down 5.5% from $113.5 million in Q4 2023 [16]. - Dedicated revenue for Q4 2024 was $76.4 million, a decrease of 19.6% from $95.0 million in Q4 2023 [16]. - Intermodal revenue for Q4 2024 was $13.2 million, down 30.8% from $19.1 million in Q4 2023 [16]. - Brokerage revenue for Q4 2024 was $33.5 million, a decline of 17.4% from $40.6 million in Q4 2023 [16]. Operational Metrics - The average revenue per tractor per week for the Truckload segment was $4,227 in Q4 2024, compared to $4,183 in Q4 2023 [19]. - The average number of tractors in the Truckload segment was 1,676 in Q4 2024, down from 1,737 in Q4 2023 [19]. - The total miles driven in the Truckload segment for Q4 2024 were 39,147 thousand, compared to 39,278 thousand in Q4 2023 [19]. Strategic Outlook - The Executive Chairman expressed optimism about sequential improvements in net income, operating income, and operating ratios, indicating a focus on minimizing market impacts and positioning for organic growth opportunities [7].