Heartland Express, Inc. Reports Operating Results for the Second Quarter of 2025

Core Viewpoint - Heartland Express, Inc. reported financial results for the three and six months ended June 30, 2025, indicating a challenging operating environment with weak freight demand and rising costs, leading to operating losses despite positive cash flows from operations [1][2][3]. Financial Results - For the three months ended June 30, 2025, operating revenue was $210.4 million, down from $274.8 million in the same period of 2024, with a net loss of $10.9 million compared to a net loss of $3.5 million in Q2 2024 [6][7]. - For the six months ended June 30, 2025, operating revenue was $429.8 million, down from $545.1 million in the same period of 2024, with a net loss of $24.7 million compared to a net loss of $18.6 million in the prior year [7][8]. Operating Performance - The operating ratio for Q2 2025 was 105.9%, compared to 99.9% in Q2 2024, indicating increased operational inefficiencies [6][7]. - The Heartland Express and Millis Transfer fleets operated profitably, improving their operating ratios by approximately 400 basis points in Q2 2025 compared to Q1 2025 [2][3]. Debt and Capital Management - The company reduced debt and financing lease obligations from $494 million in 2022 to $194 million as of June 30, 2025, reflecting a $300 million reduction in less than three years [5][8]. - Cash balances increased to $22.9 million as of June 30, 2025, up by $10.1 million since December 31, 2024 [8][9]. Shareholder Returns - The company repurchased 1 million shares of common stock for $8.9 million during Q2 2025, continuing its commitment to return capital to shareholders [5][11]. - A regular dividend of $0.02 per share was declared and paid on July 3, 2025, contributing to cumulative cash dividends of $558.3 million since 2003 [11][12]. Operational Initiatives - The CFI fleet is undergoing a full fleet telematics transition, approximately 75% complete, aimed at improving driver utilization and experience [2][3]. - The company continues to strategically reduce underperforming freight lanes and align fleet size with current demand [3][4].