J.B. Hunt Transport Services(JBHT) - 2025 Q2 - Quarterly Results

Financial Highlights J.B. Hunt's Q2 2025 reported flat total operating revenue at $2.93 billion, with operating income down 4% and net earnings at $128.6 million Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | $2.93 billion | $2.93 billion | Flat | | Operating Income | $197.3 million | $205.7 million | -4% | | Net Earnings | $128.6 million | $135.9 million | -5.4% | | Diluted EPS | $1.31 | $1.32 | -0.8% | - Revenue performance was mixed: growth in Intermodal (+6% loads) and Truckload (+13% loads) was offset by a 10% revenue decline in Final Mile Services and a 9% load volume decrease in Integrated Capacity Solutions[3] - Operating income was primarily pressured by increased casualty and group medical claims, higher professional driver wages, and increased equipment-related costs[4] - Total operating revenue excluding fuel surcharge increased by 1% year-over-year[3] Segment Performance Q2 2025 segment performance varied, with volume growth in Intermodal and Truckload, declines in FMS, and improved loss in ICS Intermodal (JBI) Intermodal revenue grew 2% to $1.44 billion on 6% volume increase, but operating income fell 4% to $95.7 million JBI Q2 2025 Financials (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | $1.44 billion | $1.41 billion | +2% | | Operating Income | $95.7 million | $99.2 million | -4% | - Overall volume increased 6% YoY, with a notable 15% growth in the eastern network, while transcontinental loads saw a slight decrease of 1%[7] - The increase in volume was offset by a 3% decrease in gross revenue per load, attributed to changes in freight mix, fuel surcharges, and customer rates[7] Dedicated Contract Services (DCS) DCS revenue remained flat at $847 million, with operating income decreasing 3% to $93.7 million due to cost pressures DCS Q2 2025 Financials (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | $847 million | $851 million | Flat | | Operating Income | $93.7 million | $96.4 million | -3% | - Productivity, excluding fuel surcharge, increased 5% due to indexed-based price escalators and less idled equipment[9] - The fleet had 150 fewer revenue-producing trucks compared to the prior year, though it grew by 115 trucks from Q1 2025, with customer retention rates remaining high at approximately 92%[9] Integrated Capacity Solutions (ICS) ICS revenue declined 4% to $260 million, but operating loss significantly narrowed to $3.6 million from $13.3 million due to improved margins ICS Q2 2025 Financials (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | $260 million | $270 million | -4% | | Operating Loss | $(3.6) million | $(13.3) million | +73% | - Gross profit margin improved to 15.5% from 14.8% in the prior-year period[12] - Contractual volume represented 62% of total load volume, up from 61% in Q2 2024[11] Final Mile Services (FMS) FMS revenue decreased 10% to $211 million due to soft demand, with operating income declining 60% to $8.0 million FMS Q2 2025 Financials (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | $211 million | $235 million | -10% | | Operating Income | $8.0 million | $19.8 million | -60% | - The revenue decline was attributed to general softness in demand across most end markets served[15] - The Q2 2024 operating income included a $1.1 million net benefit from claim settlements, making the underlying YoY decline slightly less severe than reported[16] Truckload (JBT) JBT revenue increased 5% to $177 million on 13% higher load volume, but operating income decreased 5% to $3.4 million JBT Q2 2025 Financials (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Segment Revenue | $177 million | $168 million | +5% | | Operating Income | $3.4 million | $3.5 million | -5% | - Trailer turns in the quarter were up 17% from the prior period, indicating improved equipment utilization and network balance[17] - Revenue excluding fuel surcharge increased 8% year-over-year[17] Cash Flow and Capitalization As of June 30, 2025, total debt increased to $1.72 billion, with $399 million in net capital expenditures and $319 million in share repurchases - Total debt outstanding was approximately $1.72 billion, compared to $1.48 billion at the end of Q2 2024[19] - Net capital expenditures for the first six months of 2025 were $399 million, slightly down from $409 million in the same period of 2024[19] - In Q2 2025, the company repurchased approximately 2,400,000 shares of common stock for about $319 million[20] - Cash and cash equivalents were approximately $51 million at the end of the quarter[19] Financial Statements and Operating Statistics This section presents detailed unaudited Q2 2025 financial results, including consolidated statements, balance sheets, and segment operating statistics Condensed Consolidated Statements of Earnings Q2 2025 statements show flat total operating revenue at $2.93 billion, with operating income decreasing to $197.3 million due to higher expenses Q2 2025 Statement of Earnings Highlights (in thousands USD) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total operating revenues | $2,928,181 | $2,928,685 | | Total operating expenses | $2,730,907 | $2,722,976 | | Operating income | $197,274 | $205,709 | | Net earnings | $128,624 | $135,873 | Condensed Consolidated Balance Sheets As of June 30, 2025, total assets were $8.24 billion, with total debt at $1.72 billion and stockholders' equity at $3.66 billion Balance Sheet Highlights (in thousands USD) | Line Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $1,686,822 | $1,770,983 | | Net property and equipment | $5,750,531 | $5,729,799 | | Total assets | $8,241,134 | $8,312,270 | | Total current liabilities | $1,933,194 | $1,678,040 | | Long-term debt | $1,019,925 | $977,702 | | Stockholders' equity | $3,655,330 | $4,014,505 | Operating Statistics by Segment Q2 2025 operational metrics highlight varied segment performance, including load growth in Intermodal and Truckload, and declines in ICS and FMS Q2 2025 Key Operating Statistics (vs. Q2 2024) | Segment | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Intermodal | Loads | 525,161 loads | 497,446 loads | | Dedicated | Revenue per truck per week | $5,163 USD/week | $5,004 USD/week | | Integrated Capacity Solutions | Loads | 132,315 loads | 145,362 loads | | Final Mile Services | Stops | 998,916 stops | 1,098,521 stops | | Truckload | Loads | 104,357 loads | 92,628 loads |