J.B. Hunt Transport Services(JBHT) - 2024 Q4 - Annual Report

Revenue Performance - Total consolidated operating revenues decreased 5.8% to $12.09 billion in 2024, down from$ 12.83 billion in 2023[127] - Total segment revenues decreased to $12.105 billion in 2024 from$ 12.848 billion in 2023[135] - JBI segment revenue decreased 4% to $5.96 billion in 2024, down from$ 6.21 billion in 2023, primarily due to a 6% decrease in revenue per load[137] - DCS segment revenue decreased 4% to $3.40 billion in 2024, compared to$ 3.54 billion in 2023, with productivity defined as revenue per truck per week decreasing by 2%[139] - ICS segment revenue decreased 18% to $1.14 billion in 2024, with overall volumes down 20% and revenue per load increasing by 3%[141] - FMS segment revenue decreased 1% to$ 910 million in 2024 from $918 million in 2023, attributed to general weakness in customer demand[143] - JBT segment revenue decreased 11% to$ 702 million in 2024, with a 5% decrease in revenue per load and load volume[145] Operating Expenses and Income - Operating expenses decreased 4.9% in 2024, resulting in an operating ratio of 93.1% compared to 92.3% in 2023[128] - Rents and purchased transportation costs decreased 8.4% in 2024, primarily due to lower rates and decreased load volume[129] - Operating income for the JBI segment decreased to $430 million in 2024 from$ 569 million in 2023, impacted by increased maintenance and equipment-related costs[138] - Operating income for the DCS segment decreased to $376 million in 2024 from$ 405 million in 2023, primarily due to higher insurance premiums and new account start-up costs[140] Cash Flow - Net cash provided by operating activities totaled $1.48 billion in 2024, down from$ 1.74 billion in 2023, primarily due to decreased earnings of approximately $157 million[149] - Net cash used in investing activities totaled$ 664 million in 2024, a significant decrease from $1.69 billion in 2023, mainly due to reduced equipment purchases[149] Tax and Interest - Net interest expense increased by 23.0% in 2024, attributed to higher effective interest rates and increased average debt balance[133] - Effective income tax rate increased to 24.8% in 2024 from 22.1% in 2023, primarily due to discrete tax items recorded in 2023[133] Fuel Price Impact - Diesel fuel prices are subject to fluctuations due to global oil production, seasonality, weather, and other market factors[161] - Historically, the company has been able to recover a majority of fuel-price increases through fuel surcharges[161] - The company cannot predict the extent of future fuel price fluctuations or the effectiveness of fuel surcharges in offsetting these increases[161] - As of December 31, 2024, the company had no derivative financial instruments to mitigate fuel-price fluctuations[161] General and Administrative Expenses - General and administrative expenses increased 11.6% in 2024, driven by higher building rental and technology costs[132] Asset Disposal - Net loss from sale or disposal of assets was$ 14.6 million in 2024, compared to a loss of $27.8 million in 2023[132] Segment Performance - The gross profit margin for the ICS segment increased to 16.1% in 2024 from 13.4% in 2023, despite an operating loss of$ 56 million[142]