J.B. Hunt · Earnings release

J.B. Hunt Transport Services, Inc.

Contact: Brad Delco

615 J.B. Hunt Corporate Drive

Senior Vice President – Finance

(NASDAQ: JBHT)

FOR IMMEDIATE RELEASE

J.B. HUNT TRANSPORT SERVICES, INC. REPORTS U.S. GAAP REVENUES, NET EARNINGS AND EARNINGS PER SHARE FOR THE SECOND QUARTER 2025

■ Second Quarter 2025 Revenue:

■ Second Quarter 2025 Operating Income:

LOWELL, Ark., July 15, 2025 - J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced second quarter 2025 U.S. GAAP (United States Generally Accepted Accounting Principles) net earnings of $128.6 million, or diluted earnings per share of $1.31 versus second quarter 2024 net earnings of $135.9 million, or $1.32 per diluted share.

Total operating revenue for the current quarter was $2.93 billion and flat with the second quarter 2024. Revenue performance was driven by a 6% increase in Intermodal (JBI) loads and a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services® (DCS®) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services® (FMS) revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Current quarter total operating revenue, excluding fuel surcharge revenue, increased 1% versus the comparable quarter 2024.

Operating income for the current quarter decreased 4% to $197.3 million versus $205.7 million for the second quarter 2024. The decrease in operating income was primarily due to increases in casualty and group medical claims expenses, and higher professional driver wages and equipment-related costs. Overall operating expenses increased 30bps versus the prior year period but decreased 40bps compared to the first quarter 2025, as productivity and cost-initiatives only partially offset the previously mentioned inflationary cost pressures. Operating income as a percentage of gross revenue decreased year-over-year as a result of the previously disclosed expense items, partially offset by lower rail and truck purchased transportation and fuel costs as a percentage of gross revenue.

Net interest expense for the current quarter increased approximately 5% from the second quarter 2024 due to a higher consolidated debt balance, partially offset by lower effective interest rates.

The effective income tax rate was 26.9% in the current quarter compared to 26.8% in the second quarter 2024. G1We continue to expect our 2025 annual tax rate to be between 24.0% and 25.0%.

Segment Information:

Intermodal (JBI)

■

Second Quarter 2025 Segment Revenue: $1.44 billion; up 2%

■

Second Quarter 2025 Operating Income: $95.7 million; down 4%

Intermodal volume increased 6% over the same period in 2024. Transcontinental network loads decreased 1%, while eastern network loads increased 15% compared to the second quarter 2024. Overall demand for our intermodal service remained steady, despite market volatility surrounding global supply-chains and trade patterns. Volume growth in our Eastern network continues to be strong, driven by overall service execution and the value proposition it presents to customers. Segment gross revenue increased 2% from the prior-year period, reflecting the 6% increase in volume and a 3% decrease in gross revenue per load, resulting from changes in mix of freight, fuel surcharge revenue, and customer rates. Revenue per load excluding fuel surcharge revenue decreased 2% year-over-year.

Operating income decreased 4% compared to the second quarter 2024 primarily from a combination of lower yields combined with an increase in professional driver wages, casualty and group medical claims expenses and higher maintenance costs. These items were partially offset by improvements in both tractor and trailing asset utilization and overall cost management initiatives.

Dedicated Contract Services (DCS)

■

Second Quarter 2025 Segment Revenue: $847 million; flat

■

Second Quarter 2025 Operating Income: $93.7 million; down 3%

DCS revenue was flat compared to the same period 2024 driven by a 3% decline in average trucks offset by a 3% increase in productivity (revenue per truck per week). Productivity excluding fuel surcharge revenue increased 5% from the prior-year period due to contracted indexed-based price escalators and a decline in idled equipment. On a net basis, there were 150 fewer revenue-producing trucks in the fleet by the end of the quarter compared to the prior-year period but 115 more versus the end of the first quarter 2025. Customer retention rates are approximately 92%.

Operating income decreased 3% from the prior-year period primarily from higher group medical and casualty claims expenses, increased professional driver wages and equipment-related expenses. These items were partially offset by the maturing of new business onboarded over the past trailing twelve months and overall cost management initiatives.

Integrated Capacity Solutions (ICS)

■

Second Quarter 2025 Segment Revenue: $260 million; down 4%

■

Second Quarter 2025 Operating Loss: $(3.6) million; vs. $(13.3) million in Q2’24

ICS revenue declined 4% during the current quarter compared to the second quarter of 2024. Overall segment volume decreased 9% versus the prior-year period. Revenue per load increased 6% due to increases on contractual rates and changes in customer freight mix, partially offset by lower transactional rates compared to the second quarter of 2024. Contractual volume represented approximately 62% of the total load volume and 63% of the total revenue in the current quarter compared to 61% and 59%, respectively, in the second quarter 2024.

Operating loss was $3.6 million compared to an operating loss of $13.3 million for the second quarter of 2024. Operating results improved from the prior-year quarter primarily due to a modest increase in gross profit, lower personnel-related expenses and lower cargo insurance and technology costs. Gross profit increased 1% versus the prior year period as a result of higher revenue per load and gross profit margins improving to 15.5% compared to 14.8% in the prior-year period. ICS carrier base increased 8% from the prior year period following recent declines resulting from changes made to carrier qualification requirements to mitigate cargo theft in prior periods.

Final Mile Services (FMS)

■

■

Second Quarter 2025 Operating Income: $8.0 million; down 60%

FMS revenue decreased 10% compared to the same period 2024. The decrease was primarily driven by general softness in demand across a majority of the end markets served and ongoing efforts to improve revenue quality and profitability across various accounts which resulted in some loss of business.

Operating income decreased 60% compared to the prior-year period. Second quarter 2024 included a $1.1 million net benefit from two offsetting claim settlements. After consideration of this impact, operating income decreased primarily from lower revenue, higher casualty and group medical claims expenses and an increase in bad debt expense compared to the prior-year period.

Truckload (JBT)

■

Second Quarter 2025 Segment Revenue: $177 million; up 5%

■

Second Quarter 2025 Operating Income: $3.4 million; down 5%

JBT revenue increased 5% compared to the same period in the previous year. Revenue excluding fuel surcharge revenue increased 8% driven by a 13% increase in load volume partially offset by a 4% decline in revenue per load excluding fuel surcharge revenue. Total average effective trailer count decreased by approximately 450 units, or 4% versus the prior-year period. Trailer turns in the quarter were up 17% from the prior period primarily due to improved network balance and overall initiatives to improve equipment utilization.

JBT operating income decreased 5% to $3.4 million compared to the second quarter 2024. The decrease in operating income was primarily driven by higher casualty and group medical claims expenses and increased maintenance-related costs. JBT segment operating income as a percentage of segment gross revenue decreased slightly year-over-year as a result of higher third-party capacity costs and insurance and claims expense as a percentage of gross revenue.

Cash Flow and Capitalization:

At June 30, 2025, we had approximately $1.72 billion outstanding on various debt instruments compared to $1.48 billion at June 30, 2024 and December 31, 2024.

Our net capital expenditures for the six months ended June 30, 2025 approximated $399 million compared to $409 million for the same period 2024. At June 30, 2025, we had cash and cash equivalents of approximately $51 million.

In the second quarter 2025, we purchased approximately 2,400,000 shares of common stock for approximately $319 million. At June 30, 2025, we had approximately $335 million remaining under our share repurchase authorization. Actual shares outstanding at June 30, 2025 approximated 96.8 million.

Conference Call Information:

The company will hold a conference call today from 4:00–5:00 p.m. CDT to discuss the quarterly earnings. Investors will have the opportunity to listen to the conference call live over the internet by going to investor.jbhunt.com. Please log on 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, an online replay of the earnings call webcast will be available a few hours after the completion of the call.

Forward-Looking Statements:

This press release may contain forward-looking statements, which are based on information currently available. Actual results may differ materially from those currently anticipated due to a number of factors, including, but not limited to, those discussed in Item 1A of our Annual Report filed on Form 10-K for the year ended December 31, 2024. We assume no obligation to update any forward-looking statement to the extent we become aware that it will not be achieved for any reason. This press release and additional information will be available to interested parties on our website, www.jbhunt.com.

About J.B. Hunt

J.B. Hunt’s vision is to create the most efficient transportation network in North America. The company’s industry-leading solutions and mode-neutral approach generate value for customers by eliminating waste, reducing costs and enhancing supply chain visibility. Powered by one of the largest company-owned fleets in the country and third-party capacity through its J.B. Hunt 360°® digital freight marketplace, J.B. Hunt can meet the unique shipping needs of any business, from first mile to final delivery, and every shipment in-between. Through disciplined investments in its people, technology and capacity, J.B. Hunt is delivering exceptional value and service that enable long-term growth for the company and its stakeholders.

J.B. Hunt Transport Services Inc. is an S&P 500 company and a component of the Dow Jones Transportation Average. Its stock trades on NASDAQ under the ticker symbol JBHT. J.B. Hunt Transport Inc. is a wholly owned subsidiary of JBHT. The company’s services include intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, transload and more. For more information, visit www.jbhunt.com.

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

Three Months Ended June 30

% Of

% Of

Amount

Revenue

Amount

Revenue

Operating revenues, excluding fuel surcharge revenues

$

$

Fuel surcharge revenues

Total operating revenues

%

%

Operating expenses

Rents and purchased transportation

%

%

Salaries, wages and employee benefits

%

%

Depreciation and amortization

%

%

Fuel and fuel taxes

%

%

Operating supplies and expenses

%

%

Insurance and claims

%

%

General and administrative expenses, net of asset dispositions

%

%

Operating taxes and licenses

%

%

Communication and utilities

%

%

Total operating expenses

%

%

Operating income

%

%

Net interest expense

%

%

Earnings before income taxes

%

%

Income taxes

%

%

Net earnings

$

%

$

%

Average diluted shares outstanding

Diluted earnings per share

$

$

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

Six Months Ended June 30

% Of

% Of

Amount

Revenue

Amount

Revenue

Operating revenues, excluding fuel surcharge revenues

$

$

Fuel surcharge revenues

Total operating revenues

%

%

Operating expenses

Rents and purchased transportation

%

%

Salaries, wages and employee benefits

%

%

Depreciation and amortization

%

%

Fuel and fuel taxes

%

%

Operating supplies and expenses

%

%

Insurance and claims

%

%

General and administrative expenses, net of asset dispositions

%

%

Operating taxes and licenses

%

%

Communication and utilities

%

%

Total operating expenses

%

%

Operating income

%

%

Net interest expense

%

%

Earnings before income taxes

%

%

Income taxes

%

%

Net earnings

$

%

$

%

Average diluted shares outstanding

Diluted earnings per share

$

$

Financial Information By Segment

(in thousands)

(unaudited)

Three Months Ended June 30

% Of

% Of

Amount

Total

Amount

Total

Revenue

Intermodal

$

%

$

%

Dedicated

%

%

Integrated Capacity Solutions

9

%

9

%

Final Mile Services

7

%

8

%

Truckload

6

%

6

%

Subtotal

%

%

Intersegment eliminations

)

(0

%)

)

(0

%)

Consolidated revenue

$

%

$

%

Operating income

Intermodal

$

%

$

%

Dedicated

%

%

Integrated Capacity Solutions

)

(2

%)

)

(7

%)

Final Mile Services

4

%

%

Truckload

2

%

2

%

Other (1)

0

%

0

%

Operating income

$

%

$

%

Six Months Ended June 30

% Of

% Of

Amount

Total

Amount

Total

Revenue

Intermodal

$

%

$

%

Dedicated

%

%

Integrated Capacity Solutions

9

%

9

%

Final Mile Services

7

%

8

%

Truckload

6

%

6

%

Subtotal

%

%

Intersegment eliminations

)

(0

%)

)

(0

%)

Consolidated revenue

$

%

$

%

Operating income

Intermodal

$

%

$

%

Dedicated

%

%

Integrated Capacity Solutions

)

(1

%)

)

(8

%)

Final Mile Services

3

%

9

%

Truckload

1

%

1

%

Other (1)

2

0

%

0

%

Operating income

$

%

$

%

(1)

Includes corporate support activity

Operating Statistics by Segment

(unaudited)

Three Months Ended June 30

Intermodal

Loads

Average length of haul

Revenue per load

$

$

Average tractors during the period *

Tractors (end of period) *

Trailing equipment (end of period)

Average effective trailing equipment usage

Dedicated

Loads

Average length of haul

Revenue per truck per week**

$

$

Average trucks during the period***

Trucks (end of period) ***

Trailing equipment (end of period)

Average effective trailing equipment usage

Integrated Capacity Solutions

Loads

Revenue per load

$

$

Gross profit margin

%

%

Employee count (end of period)

Approximate number of third-party carriers (end of period)

Marketplace for J.B. Hunt 360 revenue (millions)

$

$

Final Mile Services

Stops

Average trucks during the period***

Truckload

Loads

Revenue per load

$

$

Average length of haul

Tractors (end of period)

Company-owned

-

Independent contractor

Total tractors

Trailers (end of period)

Average effective trailing equipment usage

* Includes company-owned and independent contractor tractors

** Using weighted workdays

*** Includes company-owned, independent contractor, and customer-owned trucks

Operating Statistics by Segment

(unaudited)

Six Months Ended June 30

Intermodal

Loads

Average length of haul

Revenue per load

$

$

Average tractors during the period *

Tractors (end of period) *

Trailing equipment (end of period)

Average effective trailing equipment usage

Dedicated

Loads

Average length of haul

Revenue per truck per week**

$

$

Average trucks during the period***

Trucks (end of period) ***

Trailing equipment (end of period)

Average effective trailing equipment usage

Integrated Capacity Solutions

Loads

Revenue per load

$

$

Gross profit margin

%

%

Employee count (end of period)

Approximate number of third-party carriers (end of period)

Marketplace for J.B. Hunt 360 revenue (millions)

$

$

Final Mile Services

Stops

Average trucks during the period***

Truckload

Loads

Revenue per load

$

$

Average length of haul

Tractors (end of period)

Company-owned

-

Independent contractor

Total tractors

Trailers (end of period)

Average effective trailing equipment usage

* Includes company-owned and independent contractor tractors

** Using weighted workdays

*** Includes company-owned, independent contractor, and customer-owned trucks

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$

$

Accounts Receivable, net

Prepaid expenses and other

Total current assets

Property and equipment

Less accumulated depreciation

Net property and equipment

Other assets, net

$

$

LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities:

Current debt

$

$

Trade accounts payable

Claims accruals

Accrued payroll

Other accrued expenses

Total current liabilities

Long-term debt

Long-term claims accruals

Other long-term liabilities

Deferred income taxes

Stockholders' equity

$

$

Supplemental Data

(unaudited)

Actual shares outstanding at end of period (000)

Book value per actual share outstanding at end of period

$

$

Six Months Ended June 30

Net cash provided by operating activities (000)

$

$

Net capital expenditures (000)

$

$