Core Viewpoint - Heartland Express reported a net loss of $19.4 million for the quarter, but showed sequential operating improvement despite the loss being impacted by a one-time impairment charge related to the integration of the CFI fleet acquired in 2022 [2][3] Financial Performance - The company reported revenue of $179 million, down 26% year-over-year and $15 million below consensus estimates [3] - Adjusted operating income was -$2.6 million, a decline of 214.2% year-over-year, while adjusted operating ratio was 101.6%, worsening by 270 basis points year-over-year but improving by 190 basis points sequentially [3] - Gains on equipment sales totaled $12.2 million, more than double the previous year, contributing approximately 6 cents per share to the results [2][3] Strategic Initiatives - Heartland has integrated all fleets onto the same Transportation Management System (TMS) and has restructured its network to eliminate unprofitable freight and excess real estate [4] - The company aims to profitably grow its topline through organic growth and M&A, targeting low- to mid-80s operating ratios and a debt-free balance sheet [4] Debt and Cash Flow - Net debt was reduced by $11 million in the fourth quarter, totaling $141 million, with $89 million available on an untapped revolving credit facility [6] - Operating cash flows decreased to $89 million in 2025 from $144 million in 2024 [5] Fleet and Operations - The average tractor age increased to 2.6 years, which is elevated compared to Heartland's historical standards [7]