JBHT J B Hunt Transport Services Inc

• Fourth Quarter 2024 Revenue: $3.15 billion; down 5%
• Fourth Quarter 2024 Operating Income: $207.0 million; up 2%
• Fourth Quarter 2024 Diluted EPS: $1.53 vs. $1.47; up 4%
• Full Year 2024 Revenue: $12.09 billion; down 6%
• Full Year 2024 Operating Income: $831 million; down 16%
• Full Year 2024 Diluted EPS: $5.56 vs. $6.97; down 20%

J.B. Hunt Transport Services, Inc. (NASDAQ: JBHT) announced fourth quarter 2024 U.S. GAAP (United States Generally Accepted Accounting Principles) net income of $155.5 million, or diluted earnings per share of $1.53 versus fourth quarter 2023 net earnings of $153.5 million, or diluted earnings per share of $1.47.

Total operating revenue for the current quarter was $3.15 billion, compared with $3.30 billion for the fourth quarter 2023, a decrease of 5%. Current quarter total operating revenue, excluding fuel surcharge revenue, decreased 2% versus the comparable quarter 2023. This decrease was primarily driven by a 3% and 2% decline in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and Truckload (JBT) respectively, a 4% decline in average trucks in Dedicated Contract Services® (DCS®), and a 22% decline in load volume in Integrated Capacity Solutions (ICS). The revenue, excluding fuel surcharge revenue, decline was positively offset by a 5% increase in volume in JBI, a 2% increase in productivity (revenue per truck per week excluding fuel surcharge revenue) in DCS, and a 9% increase in gross revenue per load in ICS.

Operating income for the current quarter increased 2% to $207.0 million versus $203.3 million for the fourth quarter 2023. Current and prior-year quarterly operating income were negatively impacted by pre-tax charges of $16.0 million for intangible asset impairments and $53.4 million for insurance-related items, respectively. After consideration of these charges, operating income declined from the prior-year period primarily due to yield pressure in JBI, a lower average truck count in DCS, and higher consolidated equipment and insurance-related costs. On a GAAP consolidated basis, operating income as a percentage of consolidated gross revenue increased year-over-year as a result of lower rail and truck purchased transportation costs and lower insurance-related expenses. These items were partially offset by higher professional driver and non-driver wages and benefits and equipment-related costs as a percentage of gross revenue.

Net interest expense in the current quarter decreased primarily from a lower average outstanding debt balance compared to fourth quarter 2023. The fourth quarter effective tax rates for 2024 and 2023 were 19.0% and 17.9%, respectively. The annual effective tax rates for 2024 and 2023 were 24.8% and 22.1%, respectively. We expect our 2025 annual tax rate to be between 24.0% and 25.0%, based on current enacted legislation.

Segment Information:

Intermodal (JBI)

• Fourth Quarter 2024 Segment Revenue: $1.60 billion; down 2%
• Fourth Quarter 2024 Operating Income: $117.0 million; down 10%

Intermodal volume increased 5% over the same period in 2023. Transcontinental network loads increased 4%, while eastern network loads increased 6% compared to the fourth quarter 2023. Sequentially, volumes improved 2% from the third quarter, with stronger sequential volumes in both Eastern and Transcontinental networks. Demand trends for our intermodal service were seasonally strong during the quarter, particularly on eastbound loads out of Southern California. Revenue decreased 2% for the quarter versus the prior-year primarily driven by a 6% decrease in revenue per load resulting from changes in mix of freight, customer rates and fuel surcharge revenue, partially offset by the 5% increase in volume. Revenue per load excluding fuel surcharge revenue was down 3% year-over-year.

Operating income decreased 10% in the fourth quarter primarily from lower yields, which was only partially offset by greater volumes across the network. Repositioning costs related to network imbalances, in addition to driver hiring and onboarding expenses were elevated in the quarter to support customers’ peak season demand. JBI segment operating income as a percentage of segment gross revenue declined versus the prior-year period as a result of increases in professional driver and non-driver wages and benefits and higher equipment-related and maintenance expenses as a percentage of gross revenue. The prior-year period included $16.0 million in pre-tax charges for insurance-related items. Excluding these charges, remaining insurance-related expenses in the current quarter also contributed to a decline in segment operating income and a decline in segment operating income as a percentage of segment gross revenue.

Dedicated Contract Services (DCS)

• Fourth Quarter 2024 Segment Revenue: $839 million; down 5%
• Fourth Quarter 2024 Operating Income: $90.3 million; up 5%

DCS revenue decreased 5% during the current quarter over the same period in 2023, driven by a 4% decline in average trucks combined with a 1% decline in productivity (revenue per truck per week). Productivity, excluding fuel surcharge revenue, increased 2% from a year ago driven by increases in contracted indexed-based price escalators. On a net basis, there were 605 fewer revenue producing trucks in the fleet by the end of the quarter compared to the prior-year period, and 114 fewer versus the end of the third quarter 2024. Customer retention rates are approximately 90%, largely reflecting the downsizing of fleets and to a lesser extent account losses.

Operating income increased 5% from the prior-year quarter. Fourth quarter 2023 included $20.0 million in pre-tax charges for insurance-related items. Excluding these charges, operating income decreased primarily from lower revenue and higher remaining insurance-related costs, including insurance premium, casualty claim, and group medical expenses. These items were partially offset by lower bad debt expense, the maturing of new business onboarded over the trailing twelve months, and greater productivity, excluding fuel surcharge revenue, and utilization of equipment.

Integrated Capacity Solutions (ICS)

• Fourth Quarter 2024 Segment Revenue: $308 million; down 15%
• Fourth Quarter 2024 Operating (Loss): $(21.8) million; vs. $(24.9) million in Q4'23

ICS revenue decreased 15% in the current quarter versus the fourth quarter 2023. Overall segment volume decreased 22% versus the prior-year period. Revenue per load increased 9% compared to the fourth quarter 2023 due to higher contractual and transactional rates and changes in customer freight mix. Contractual volume represented approximately 63% of the total load volume and 63% of the total revenue in the current quarter compared to 59% and 59%, respectively, in fourth quarter 2023.

Operating loss was $21.8 million compared to an operating loss of $24.9 million in the fourth quarter 2023. Fourth quarter 2024 included $16.0 million of pre-tax intangible asset impairment charges while fourth quarter 2023 included a $9.9 million pre-tax charge for insurance-related items. Excluding these charges, operating loss improved largely due to higher gross profit and lower personnel-related expenses. These items were partially offset by higher bad debt and technology-related costs in the quarter. Gross profit increased 5% as a result of higher gross profit margins compared to the prior-year period. Gross profit margins increased to 17.3% in the current period versus 14.0% in the prior period as a result of project-related work, our disciplined bid strategy and the effective sourcing of capacity. ICS carrier base decreased 10% year-over-year, largely driven by changes to carrier qualification requirements.

Final Mile Services (FMS)

• Fourth Quarter 2024 Segment Revenue: $228 million; down 6%
• Fourth Quarter 2024 Operating Income: $13.2 million; up 7%

FMS revenue declined 6% compared to the same period 2023. The decline was primarily driven by general weakness in demand across many of the end markets served. The decline in revenue was partially offset by improved revenue quality at underperforming accounts and multiple new customer contracts implemented over the past year.

Operating income increased 7% compared to the prior-year period. The fourth quarter 2023 included a $3.3 million pre-tax charge for insurance-related items. Excluding these charges, operating income decreased primarily from lower revenue, and higher purchased transportation and remaining insurance-related costs. These items were partially offset by lower personnel-related costs and lower equipment and facility rental expenses.

Truckload (JBT)

• Fourth Quarter 2024 Segment Revenue: $182 million; down 7%
• Fourth Quarter 2024 Operating Income/(Loss): $8.6 million; vs. $(39) thousand in Q4’23

JBT revenue decreased 7% compared to the same period in the previous year. Revenue excluding fuel surcharge revenue decreased 3% primarily due to a 2% decrease in revenue per load excluding fuel surcharge revenue and flat load volume versus the prior-year period. Total average effective trailer count decreased by approximately 770 units, or 6% versus the prior-year period. Trailer turns in the quarter were up 9% from the prior period primarily due to continued focus on improving network balance and trailer utilization.

JBT operating income increased to $8.6 million from a modest operating loss in the fourth quarter 2023. Fourth quarter 2023 included $4.2 million in pre-tax charges for insurance-related items. Excluding these charges, operating income increased primarily as a result of better trailer utilization and a continued focus on cost management efforts across the segment. JBT segment operating income as a percentage of segment gross revenue increased year-over-year due to lower purchased transportation and equipment-related expenses.

Cash Flow and Capitalization:

At December 31, 2024, we had total debt outstanding of $1.48 billion on various debt instruments compared to $1.58 billion at December 31, 2023, and $1.53 billion at September 30, 2024.

Our net capital expenditures for 2024 approximated $674 million vs. $1.60 billion in 2023. At December 31, 2024, we had cash and cash equivalents of $47 million.

In the fourth quarter 2024, we purchased approximately 489,000 shares of our common stock for approximately $86 million. At December 31, 2024, we had approximately $882 million remaining under our share repurchase authorization. Actual shares outstanding on December 31, 2024, approximated 100.6 million.

Conference Call Information:

The company will hold a conference call today from 4:00–5:00 p.m. CST 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, 2023. 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 a Fortune 500 company, 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 December 31

2024

 

 

2023

 

 

% Of

 

 

 

 

% Of

Amount

 

Revenue

 

 

Amount

 

Revenue

    Operating revenues, excluding fuel surcharge revenues

$

2,781,717

 

$

2,837,428

Fuel surcharge revenues

364,631

 

466,273

Total operating revenues

3,146,348

100.0%

 

3,303,701

100.0%

 

 

 

Operating expenses

 

 

 

Rents and purchased transportation

1,442,957

45.9%

 

1,557,010

47.1%

Salaries, wages and employee benefits

812,015

25.8%

 

807,422

24.4%

Depreciation and amortization

205,504

6.5%

 

194,456

5.9%

Fuel and fuel taxes

155,519

4.9%

 

187,855

5.7%

Operating supplies and expenses

124,070

3.9%

 

121,141

3.7%

Insurance and claims

86,316

2.7%

 

118,782

3.6%

General and administrative expenses, net of asset dispositions

82,476

2.7%

 

83,272

2.5%

Operating taxes and licenses

19,732

0.6%

 

19,199

0.6%

Communication and utilities

10,720

0.4%

 

11,285

0.3%

Total operating expenses

2,939,309

93.4%

 

3,100,422

93.8%

Operating income

207,039

6.6%

 

203,279

6.2%

Net interest expense

15,111

0.5%

 

16,330

0.5%

Earnings before income taxes

191,928

6.1%

 

186,949

5.7%

Income taxes

36,474

1.2%

 

33,414

1.1%

Net earnings

$

155,454

4.9%

 

$

153,535

4.6%

Average diluted shares outstanding

101,647

 

104,122

Diluted earnings per share

$

1.53

 

$

1.47

         

J.B. HUNT TRANSPORT SERVICES, INC.

Condensed Consolidated Statements of Earnings

(in thousands, except per share data)

(unaudited)

   

Twelve Months Ended December 31

2024

 

 

2023

 

 

% Of

 

 

 

 

% Of

Amount

 

Revenue

 

 

Amount

 

Revenue

    Operating revenues, excluding fuel surcharge revenues $

10,557,709

  $

10,978,387

Fuel surcharge revenues

1,529,495

 

1,851,278

Total operating revenues

12,087,204

100.0%

 

12,829,665

100.0%

 

 

 

Operating expenses

 

 

 

Rents and purchased transportation

5,378,336

44.5%

 

5,872,591

45.8%

Salaries, wages and employee benefits

3,232,440

26.7%

 

3,257,484

25.4%

Depreciation and amortization

761,141

6.3%

 

737,954

5.8%

Fuel and fuel taxes

652,129

5.4%

 

751,497

5.9%

Operating supplies and expenses

495,375

4.1%

 

509,354

4.0%

Insurance and claims

313,664

2.6%

 

315,678

2.5%

General and administrative expenses, net of asset dispositions

306,355

2.5%

 

274,564

2.0%

Operating taxes and licenses

72,547

0.6%

 

74,996

0.6%

Communication and utilities

43,992

0.4%

 

42,351

0.3%

Total operating expenses

11,255,979

93.1%

 

11,836,469

92.3%

Operating income

831,225

6.9%

 

993,196

7.7%

Net interest expense

71,709

0.6%

 

58,309

0.4%

Earnings before income taxes

759,516

6.3%

 

934,887

7.3%

Income taxes

188,630

1.6%

 

206,600

1.6%

Net earnings $

570,886

4.7%

  $

728,287

5.7%

Average diluted shares outstanding

102,754

 

104,451

Diluted earnings per share $

5.56

  $

6.97

         

Financial Information By Segment

(in thousands)

(unaudited)

   

Three Months Ended December 31

2024

 

 

2023

 

 

% Of

 

 

 

 

% Of

Amount

 

Total

 

 

Amount

 

Total

    Revenue       Intermodal $

1,596,471

 

51%

  $

1,623,372

 

49%

Dedicated

838,529

 

27%

 

883,876

 

27%

Integrated Capacity Solutions

307,634

 

10%

 

363,661

 

11%

Final Mile Services

227,543

 

7%

 

243,164

 

7%

Truckload

181,950

 

5%

 

195,436

 

6%

Subtotal

3,152,127

 

100%

 

3,309,509

 

100%

Intersegment eliminations

(5,779

)

(0%)

 

(5,808

)

(0%)

Consolidated revenue $

3,146,348

 

100%

  $

3,303,701

 

100%

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

Intermodal $

116,959

 

56%

  $

129,893

 

64%

Dedicated

90,309

 

44%

 

86,149

 

42%

Integrated Capacity Solutions

(21,811

)

(11%)

 

(24,949

)

(12%)

Final Mile Services

13,171

 

6%

 

12,295

 

6%

Truckload

8,550

 

5%

 

(39

)

(0%)

Other (1)

(139

)

(0%)

 

(70

)

(0%)

Operating income $

207,039

 

100%

  $

203,279

 

100%

       

Twelve Months Ended December 31

2024

 

 

2023

 

 

% Of

 

 

 

 

% Of

Amount

 

Total

 

 

Amount

 

Total

Revenue       Intermodal $

5,956,092

 

49%

  $

6,207,461

 

48%

Dedicated

3,395,518

 

28%

 

3,542,869

 

28%

Integrated Capacity Solutions

1,141,475

 

9%

 

1,390,141

 

11%

Final Mile Services

910,430

 

8%

 

918,109

 

7%

Truckload

701,581

 

6%

 

789,439

 

6%

Subtotal

12,105,096

 

100%

 

12,848,019

 

100%

Intersegment eliminations

(17,892

)

(0%)

 

(18,354

)

(0%)

Consolidated revenue $

12,087,204

 

100%

  $

12,829,665

 

100%

 

 

 

 

 

 

Operating income

 

 

 

 

 

 

Intermodal $

429,877

 

52%

  $

569,383

 

57%

Dedicated

375,878

 

45%

 

404,759

 

41%

Integrated Capacity Solutions

(55,895

)

(7%)

 

(44,115

)

(4%)

Final Mile Services

60,057

 

7%

 

46,714

 

5%

Truckload

21,479

 

3%

 

16,464

 

1%

Other (1)

(171

)

(0%)

 

(9

)

(0%)

Operating income $

831,225

 

100%

  $

993,196

 

100%

        (1) Includes corporate support activity        

Operating Statistics by Segment

(unaudited)

 

 

 

 

 

 

 

 

Three Months Ended December 31

 

 

2024

 

 

2023

  Intermodal   Loads

560,132

 

535,987

 

Average length of haul

1,693

 

1,703

 

Revenue per load

$

2,850

 

$

3,029

 

Average tractors during the period *

6,546

 

6,388

 

Tractors (end of period) *

6,502

 

6,380

 

Trailing equipment (end of period)

122,272

 

118,171

 

Average effective trailing equipment usage

113,320

 

104,781

 

    Dedicated   Loads

967,571

 

1,021,783

 

Average length of haul

181

 

180

 

Revenue per truck per week**

$

5,210

 

$

5,284

 

Average trucks during the period***

12,711

 

13,214

 

Trucks (end of period) ***

12,647

 

13,252

 

Trailing equipment (end of period)

32,046

 

32,600

 

Average effective trailing equipment usage

32,573

 

33,091

 

    Integrated Capacity Solutions   Loads

158,440

 

203,928

 

Revenue per load

$

1,942

 

$

1,783

 

Gross profit margin

17.3

%

14.0

%

Employee count (end of period)

590

 

861

 

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

110,000

 

122,100

 

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

$

94.0

 

$

121.5

 

    Final Mile Services   Stops

1,089,940

 

1,169,727

 

Average trucks during the period***

1,376

 

1,470

 

    Truckload   Loads

102,623

 

102,755

 

Revenue per load

$

1,773

 

$

1,902

 

Average length of haul

591

 

663

 

  Tractors (end of period) Company-owned

2

 

27

 

Independent contractor

1,917

 

1,931

 

Total tractors

1,919

 

1,958

 

  Trailers (end of period)

12,895

 

13,561

 

Average effective trailing equipment usage

12,130

 

12,897

 

  * Includes company-owned and independent contractor tractors ** Using weighted workdays *** Includes company-owned, independent contractor, and customer-owned trucks        

Operating Statistics by Segment

(unaudited)

 

Twelve Months Ended December 31

2024

 

 

2023

  Intermodal   Loads

2,090,732

 

2,044,980

 

Average length of haul

1,692

 

1,673

 

Revenue per load $

2,849

 

$

3,035

 

Average tractors during the period *

6,368

 

6,488

 

Tractors (end of period) *

6,502

 

6,380

 

Trailing equipment (end of period)

122,272

 

118,171

 

Average effective trailing equipment usage

104,103

 

99,374

 

    Dedicated   Loads

3,985,221

 

4,274,677

 

Average length of haul

181

 

175

 

Revenue per truck per week** $

5,075

 

$

5,184

 

Average trucks during the period***

12,988

 

13,290

 

Trucks (end of period) ***

12,647

 

13,252

 

Trailing equipment (end of period)

32,046

 

32,600

 

Average effective trailing equipment usage

32,639

 

32,408

 

    Integrated Capacity Solutions   Loads

609,854

 

764,839

 

Revenue per load $

1,872

 

$

1,818

 

Gross profit margin

16.1

%

13.4

%

Employee count (end of period)

590

 

861

 

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

110,000

 

122,100

 

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

395.8

 

$

765.6

 

    Final Mile Services   Stops

4,316,578

 

4,596,715

 

Average trucks during the period***

1,373

 

1,540

 

    Truckload   Loads

389,832

 

410,091

 

Revenue per load $

1,800

 

$

1,925

 

Average length of haul

629

 

652

 

  Tractors (end of period) Company-owned

2

 

27

 

Independent contractor

1,917

 

1,931

 

Total tractors

1,919

 

1,958

 

  Trailers (end of period)

12,895

 

13,561

 

Average effective trailing equipment usage

12,552

 

13,000

 

  * 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)

 

 

 

 

 

 

 

 

December 31, 2024

 

 

December 31, 2023****

ASSETS Current assets: Cash and cash equivalents $

46,983

$

53,344

Accounts Receivable, net

1,224,166

1,334,912

Prepaid expenses and other

462,575

523,047

Total current assets

1,733,724

1,911,303

Property and equipment

9,148,928

8,767,872

Less accumulated depreciation

3,419,129

2,993,959

Net property and equipment

5,729,799

5,773,913

Other assets, net

811,488

853,044

$

8,275,011

$

8,538,260

    LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Current debt $

500,000

$

249,961

Trade accounts payable

645,925

737,364

Claims accruals

257,121

220,357

Accrued payroll

122,477

94,563

Other accrued expenses

152,517

150,256

Total current liabilities

1,678,040

1,452,501

  Long-term debt

977,702

1,326,107

Other long-term liabilities

745,774

719,686

Deferred income taxes

858,990

936,208

Stockholders' equity

4,014,505

4,103,758

$

8,275,011

$

8,538,260

     

Supplemental Data

(unaudited)

December 31, 2024

December 31, 2023 

  Actual shares outstanding at end of period (000)

100,555

103,220

  Book value per actual share outstanding at end of period $

39.92

$

39.76

     

Twelve Months Ended December 31

2024

2023

  Net cash provided by operating activities (000) $

1,483,156

$

1,744,618

  Net capital expenditures (000) $

674,406

$

1,600,215

 

**** We revised our unaudited Condensed Consolidated Balance Sheet at December 31, 2023 to correct the classification of portions of our claims accruals and corresponding insurance receivables for claims in excess of self-insurance levels from current liabilities and assets to long-term.

   

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250116856369/en/

Brad Delco Senior Vice President – Finance (479) 820-2723