J.B. Hunt Transport Services(JBHT) - 2025 Q3 - Quarterly Results

Executive Summary & Consolidated Financial Performance Third Quarter 2025 Financial Highlights J.B. Hunt Transport Services, Inc. reported a strong third quarter 2025, with diluted EPS increasing by 18% and operating income up 8%, despite total operating revenue remaining flat | Metric | Q3 2025 | Q3 2024 | Change | Change (%) | | :-------------------------- | :---------- | :---------- | :------- | :--------- | | Revenue | $3.05 billion | $3.07 billion | -$0.02 billion | Flat | | Operating Income | $242.7 million | $224.1 million | +$18.6 million | +8% | | Diluted EPS | $1.76 | $1.49 | +$0.27 | +18% | | Net Earnings | $170.8 million | $152.1 million | +$18.7 million | +12.3% | CEO Commentary and Strategic Outlook The CEO expressed pride in the improved financial performance, attributing it to the hard work of employees. The company remains confident in its long-term strategy, focusing on operational excellence, safety, and reducing the cost to serve to deliver stakeholder value - CEO Shelley Simpson highlighted improved financial performance and reaffirmed confidence in the long-term strategy focused on operational excellence, safety, and lowering the cost to serve[4] Consolidated Financial Drivers Total operating revenue was flat, primarily due to declines in gross revenue per load in Intermodal and Truckload, and decreased load volumes in Integrated Capacity Solutions and Dedicated Contract Services, partially offset by improved DCS productivity and JBT load growth. Operating income increased due to structural cost removal, improved productivity, and lower purchase transportation costs, while net interest expense decreased due to lower rates and tax position resolutions. The effective income tax rate also decreased - Total operating revenue decreased less than 1% year-over-year, driven by declines in gross revenue per load in Intermodal (-1%) and Truckload (-4%), and decreased load volumes in Integrated Capacity Solutions (-8%) and Dedicated Contract Services (-1%)[4] - These declines were partially offset by a 3% improvement in DCS productivity and 14% load growth in JBT[4] - Operating income increased 8% primarily due to structural cost removal, improved productivity, and lower purchase transportation costs, partially offset by higher professional-driver wages and benefits and equipment-related costs[5] - Net interest expense decreased due to lower interest rates and resolution of tax positions, and the effective income tax rate decreased to 24.0% from 25.2% in Q3 2024[6] Segment Performance Overview Intermodal (JBI) Intermodal segment revenue decreased 2% due to a 1% decline in volume and a 1% decrease in gross revenue per load. Despite this, operating income increased by 12% due to improved network balance and efficiency from cost-to-serve initiatives | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | Segment Revenue | $1.52 billion | $1.56 billion | -2% | | Operating Income | $125.0 million | $111.8 million | +12% | | Volume (Loads) | 539,907 | 547,988 | -1% | | Revenue per load | $2,816 | $2,841 | -1% | - Transcontinental network loads decreased 6%, while Eastern network loads increased 6%, reflecting a strategic decision to prioritize network balance[7] - Operating income growth was driven by improved network balance, fewer empty container moves, and efficiency gains from the cost-to-serve initiative[8] Dedicated Contract Services (DCS) DCS revenue increased 2%, primarily driven by a 3% improvement in productivity (revenue per truck per week), despite a 1% decline in average trucks. Operating income rose 9% due to higher revenue, lower equipment-related expenses, and progress on cost-to-serve initiatives, partially offset by increased insurance premiums | Metric | Q3 2025 | Q3 2024 | Change (%) | | :----------------------- | :---------- | :---------- | :--------- | | Segment Revenue | $864 million | $846 million | +2% | | Operating Income | $104.3 million | $95.5 million | +9% | | Productivity (Revenue/truck/week) | $5,209 | $5,073 | +3% | | Average Trucks | 12,718 | 12,800 | -1% | - Customer retention rates remained strong at approximately 95%[9] Integrated Capacity Solutions (ICS) ICS revenue declined 1% due to an 8% decrease in volume, although revenue per load increased 9%. The segment significantly reduced its operating loss to $0.8 million from $3.3 million in Q3 2024, driven by lower personnel, technology, and insurance claims expenses. However, gross profit decreased 17% and gross profit margins fell to 15.0% from 17.9% | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | Segment Revenue | $276 million | $278 million | -1% | | Operating (Loss) | $(0.8) million | $(3.3) million | +75.8% | | Volume (Loads) | 135,309 | 147,805 | -8% | | Revenue per load | $2,042 | $1,882 | +9% | | Gross profit margin | 15.0% | 17.9% | -2.9 ppts | - Contractual volume represented approximately 63% of total load volume and 64% of total revenue in the current quarter, up from 62% and 61% respectively in Q3 2024[11] - The ICS carrier base increased 13% year-over-year[12] Final Mile Services (FMS) FMS revenue decreased 5% due to general softness in demand and a shift in business mix. Operating income saw a significant 42% decline, primarily driven by the revenue decrease and higher insurance claims expenses, partially offset by lower personnel costs and cost-to-serve improvements | Metric | Q3 2025 | Q3 2024 | Change (%) | | :---------------- | :---------- | :---------- | :--------- | | Segment Revenue | $206 million | $218 million | -5% | | Operating Income | $6.9 million | $12.0 million | -42% | | Stops | 971,244 | 1,051,428 | -8% | - The decline in revenue was primarily driven by general softness in demand across many end markets and a change in mix between asset and asset-lite businesses[16] Truckload (JBT) JBT segment gross revenue increased 10%, driven by a 14% increase in load volume, despite a 4% decline in gross revenue per load. However, operating income decreased 9% to $7.4 million, primarily due to higher insurance claims and equipment-related costs, as well as increased third-party capacity costs | Metric | Q3 2025 | Q3 2024 | Change (%) | | :-------------------- | :---------- | :---------- | :--------- | | Segment Gross Revenue | $190 million | $173 million | +10% | | Operating Income | $7.4 million | $8.2 million | -9% | | Load Volume | 115,269 | 100,896 | +14% | | Gross Revenue per load | $1,646 | $1,717 | -4% | - Trailer turns in the quarter were up 19% from the prior-year period due to higher load volume and better network balance[18] - J.B. Hunt's 360box volume increased 11% versus the third quarter 2024[19] Cash Flow, Capitalization & Shareholder Returns Debt and Capital Expenditures As of September 30, 2025, J.B. Hunt's outstanding debt increased to $1.60 billion from $1.53 billion a year prior. Net capital expenditures for the first nine months of 2025 remained stable at approximately $490.9 million | Metric | Sep 30, 2025 | Sep 30, 2024 | Change | | :-------------------------------- | :----------- | :----------- | :----- | | Debt Outstanding | $1.60 billion | $1.53 billion | +$0.07 billion | | Net Capital Expenditures (9 months) | $490.9 million | $488.1 million | +$2.8 million | - Cash and cash equivalents stood at approximately $52 million at September 30, 2025[20] Share Repurchase Program During the third quarter of 2025, the company repurchased approximately 1.6 million shares of common stock for $230 million. As of September 30, 2025, approximately $107 million remained under the share repurchase authorization, with actual shares outstanding at 95.2 million | Metric | Q3 2025 | | :------------------------------------ | :---------- | | Shares Repurchased | 1,600,000 | | Cost of Repurchase | $230 million | | Remaining Repurchase Authorization | $107 million | | Actual Shares Outstanding (Sep 30, 2025) | 95.2 million | Corporate Information Conference Call Details J.B. Hunt scheduled a conference call for October 15, 2025, from 4:00–5:00 p.m. CDT to discuss quarterly earnings, with live internet access and an online replay available - A conference call was scheduled for October 15, 2025, from 4:00–5:00 p.m. CDT to discuss quarterly earnings, accessible live via investor.jbhunt.com with an online replay available afterwards[22] Forward-Looking Statements The press release includes forward-looking statements based on current information, with actual results potentially differing due to various factors outlined in the company's Form 10-K. The company disclaims any obligation to update these statements - The press release contains forward-looking statements, and actual results may differ materially due to factors discussed in Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2024[25] About J.B. Hunt Transport Services, Inc. J.B. Hunt Transport Services, Inc. aims to create North America's most efficient transportation network, offering industry-leading solutions across various modes, powered by its fleet and the J.B. Hunt 360°® digital freight marketplace. The company is an S&P 500 component, trades on NASDAQ (JBHT), and provides a wide range of transportation services - J.B. Hunt's vision is to create the most efficient transportation network in North America, leveraging its company-owned fleet and the J.B. Hunt 360°® digital freight marketplace[26] - The company is an S&P 500 company and a component of the Dow Jones Transportation Average, trading on NASDAQ under the ticker symbol JBHT[27] - J.B. Hunt offers diverse services including intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, and transload[27] Condensed Consolidated Financial Statements Condensed Consolidated Statements of Earnings The condensed consolidated statements of earnings provide a detailed breakdown of revenues, operating expenses, and net earnings for both the three and nine months ended September 30, comparing 2025 to 2024 Three Months Ended September 30 | Metric | Q3 2025 (Amount in thousands) | Q3 2025 (% Of Revenue) | Q3 2024 (Amount in thousands) | Q3 2024 (% Of Revenue) | | :------------------------------------------ | :--------------- | :--------------------- | :--------------- | :--------------------- | | Total operating revenues | $3,052,897 | 100.0% | $3,068,171 | 100.0% | | Total operating expenses | $2,810,240 | 92.1% | $2,844,063 | 92.7% | | Operating income | $242,657 | 7.9% | $224,108 | 7.3% | | Net interest expense | $17,871 | 0.5% | $20,751 | 0.7% | | Earnings before income taxes | $224,786 | 7.4% | $203,357 | 6.6% | | Income taxes | $53,937 | 1.8% | $51,291 | 1.6% | | Net earnings | $170,849 | 5.6% | $152,066 | 5.0% | | Diluted earnings per share | $1.76 | | $1.49 | | Nine Months Ended September 30 | Metric | 9M 2025 (Amount in thousands) | 9M 2025 (% Of Revenue) | 9M 2024 (Amount in thousands) | 9M 2024 (% Of Revenue) | | :------------------------------------------ | :--------------- | :--------------------- | :--------------- | :--------------------- | | Total operating revenues | $8,902,470 | 100.0% | $8,940,856 | 100.0% | | Total operating expenses | $8,283,858 | 93.1% | $8,316,670 | 93.0% | | Operating income | $618,612 | 6.9% | $624,186 | 7.0% | | Net interest expense | $57,754 | 0.6% | $56,598 | 0.7% | | Earnings before income taxes | $560,858 | 6.3% | $567,588 | 6.3% | | Income taxes | $143,645 | 1.6% | $152,156 | 1.7% | | Net earnings | $417,213 | 4.7% | $415,432 | 4.6% | | Diluted earnings per share | $4.24 | | $4.03 | | Financial Information By Segment This section provides a detailed breakdown of revenue and operating income for each segment (Intermodal, Dedicated, Integrated Capacity Solutions, Final Mile Services, and Truckload) for both the three and nine months ended September 30, comparing 2025 to 2024 Three Months Ended September 30 | Segment | Q3 2025 Revenue (in thousands) | Q3 2024 Revenue (in thousands) | Q3 2025 Operating Income (in thousands) | Q3 2024 Operating Income (in thousands) | | :-------------------------- | :-------------- | :-------------- | :----------------------- | :----------------------- | | Intermodal | $1,520,377 | $1,556,774 | $125,003 | $111,785 | | Dedicated | $864,110 | $845,963 | $104,282 | $95,510 | | Integrated Capacity Solutions | $276,343 | $278,177 | $(752) | $(3,255) | | Final Mile Services | $206,481 | $218,318 | $6,913 | $12,021 | | Truckload | $189,743 | $173,223 | $7,436 | $8,151 | | Consolidated Revenue | $3,052,897 | $3,068,171 | $242,657 | $224,108 | Nine Months Ended September 30 | Segment | 9M 2025 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2025 Operating Income (in thousands) | 9M 2024 Operating Income (in thousands) | | :-------------------------- | :-------------- | :-------------- | :----------------------- | :----------------------- | | Intermodal | $4,427,515 | $4,359,621 | $315,137 | $312,918 | | Dedicated | $2,533,157 | $2,556,989 | $278,243 | $285,569 | | Integrated Capacity Solutions | $804,628 | $833,841 | $(6,972) | $(34,084) | | Final Mile Services | $617,812 | $682,887 | $19,583 | $46,886 | | Truckload | $533,339 | $519,631 | $12,845 | $12,928 | | Consolidated Revenue | $8,902,470 | $8,940,856 | $618,612 | $624,186 | Operating Statistics by Segment Three Months Ended September 30 This section details key operating metrics for each segment for the three months ended September 30, 2025, compared to the same period in 2024, including loads, revenue per load, average length of haul, and equipment counts | Segment | Metric | Q3 2025 | Q3 2024 | | :-------------------------- | :-------------------------- | :------ | :------ | | Intermodal | Loads | 539,907 | 547,988 | | | Revenue per load | $2,816 | $2,841 | | Dedicated | Loads | 992,032 | 1,005,515 | | | Revenue per truck per week | $5,209 | $5,073 | | Integrated Capacity Solutions | Loads | 135,309 | 147,805 | | | Revenue per load | $2,042 | $1,882 | | | Gross profit margin | 15.0% | 17.9% | | Final Mile Services | Stops | 971,244 | 1,051,428 | | Truckload | Loads | 115,269 | 100,896 | | | Revenue per load | $1,646 | $1,717 | Nine Months Ended September 30 This section presents operating statistics for each segment for the nine months ended September 30, 2025, compared to the same period in 2024, offering a year-to-date view of performance metrics | Segment | Metric | 9M 2025 | 9M 2024 | | :-------------------------- | :-------------------------- | :------ | :------ | | Intermodal | Loads | 1,586,889 | 1,530,600 | | | Revenue per load | $2,790 | $2,848 | | Dedicated | Loads | 2,927,698 | 3,017,650 | | | Revenue per truck per week | $5,167 | $5,032 | | Integrated Capacity Solutions | Loads | 405,367 | 451,414 | | | Revenue per load | $1,985 | $1,847 | | | Gross profit margin | 15.3% | 15.7% | | Final Mile Services | Stops | 2,890,504 | 3,226,638 | | Truckload | Loads | 314,770 | 287,209 | | | Revenue per load | $1,694 | $1,809 | Condensed Consolidated Balance Sheets Balance Sheet Details The condensed consolidated balance sheets provide a snapshot of J.B. Hunt's financial position as of September 30, 2025, compared to December 31, 2024, detailing assets, liabilities, and stockholders' equity | Category | Sep 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | | ASSETS | | | | Total current assets | $1,676,282 | $1,770,983 | | Net property and equipment | $5,640,827 | $5,729,799 | | Total Assets | $8,107,652 | $8,312,270 | | LIABILITIES & STOCKHOLDERS' EQUITY | | | | Total current liabilities | $1,932,868 | $1,678,040 | | Long-term debt | $902,207 | $977,702 | | Stockholders' equity | $3,571,866 | $4,014,505 | | Total Liabilities & Stockholders' Equity | $8,107,652 | $8,312,270 | Supplemental Data Supplemental data includes actual shares outstanding, book value per share at period end, and net cash provided by operating activities for the nine months ended September 30 | Metric | Sep 30, 2025 | Dec 31, 2024 | | :------------------------------------------ | :----------- | :----------- | | Actual shares outstanding at end of period (000) | 95,218 | 100,555 | | Book value per actual share outstanding at end of period | $37.51 | $39.92 | | Net cash provided by operating activities (9 months) | $1,292,674 (2025) | $1,165,520 (2024) |