J.B. Hunt Transport Services stated during a call with analysts on Thursday evening that “demand is solid” and that the company is actively taking market share. However, these gains may be specific to J.B. Hunt, as it is aligned with customers that are also winning share in their respective industries.
Tightening in the truckload market began the week before Thanksgiving, carrying through the end of the year. While the trend has held through the first two weeks of the new year, management was hesitant to commit to firm guidance, noting past head fakes in this cycle. However, it said the recent strength is occurring in the absence of severe winter weather and that customer inventories are lean.
J.B. Hunt (NASDAQ: JBHT) reported fourth-quarter earnings per share of $1.90, 24 cents higher year over year and 9 cents ahead of consensus. (The 2024 fourth-quarter EPS result was adjusted to exclude $16 million, or 13 cents per share, in nonrecurring intangible asset impairments in its brokerage unit.)
Consolidated revenue of $3.1 billion was 2% lower y/y and just shy of the $3.12 billion consensus estimate. However, operating income increased 11% (on an adjusted basis) given cost takeouts across the organization and improved productivity.
The company has reached its target for $100 million in annual cost reductions but noted that it continues to find opportunities to cut expenses further.
Cost reductions showing across enterprise
Intermodal revenue was off 3% y/y to $1.55 billion as load counts and revenue per load were both off approximately 1.5%. Transcontinental loads were down 6% while shipments in the Eastern network increased 5%. A mix shift to the East, where lengths of haul are shorter, was a headwind to yield. (Length of haul was down 3% y/y.)
By comparison, total intermodal carloads were off nearly 5% y/y on the U.S. Class I railroads in the quarter. The company also had a tough volume comp to the 2024 fourth quarter (plus-5%).
The unit reported a 91.2% operating ratio (inverse of operating margin). That was 140 basis points better y/y and 60 bps better than the third quarter. Cost per load was down 3% while revenue per load was off just 1.5%. Container turns improved 4% y/y to 5.1 on average.
To get back to the long-term margin target of 10% to 12% (90% to 88% OR), the company said it would need to capture one point of margin from each lower costs, better volumes and higher yields. It said it is already on target on the cost front.
Norfolk Southern’s planned merger with Union Pacific (NYSE: UNP) has pushed CSX (NASDAQ: CSX) and BNSF (NYSE: BRK-B), J.B. Hunt’s lone rail partner in the West, to become more closely aligned through service partnerships. Management said it continues to talk with all railroads about future opportunities as it works to find the best solutions for its customers.
(CSX reported a 5% y/y increase in total intermodal traffic in the fourth quarter while Norfolk Southern saw a 7% decline.)
Dedicated revenue was up 1% y/y to $843 million as a small decline in the truck count was offset by a slight increase in revenue per truck per week. The company inked new contracts in the quarter covering 385 trucks (1,205 trucks in total during 2025). It added 40 new customers during the year and said the pipeline remains healthy. However, the sales process is now a little longer, which has pushed net growth expectations from the second-half of 2025 into 2026.
An 88.3% OR was 90 bps better y/y. J.B. Hunt is forecasting only modest y/y operating income growth in 2026. (Operating income was up 9% y/y in the fourth quarter on a less than 1% revenue increase.)
Brokerage reported a $3.3 million operating loss, the 12th-straight quarterly loss. A 7% y/y decline in loads was partially by a 6% increase in revenue per load. Gross margins compressed 490 bps to 12.4% as purchased transportation costs accelerated through the end of the quarter.
However, quarterly operating expenses in the brokerage unit have been reduced to $41 million, the lowest in seven years.
Truckload volumes were up y/y by mid-teen percentage for a third straight quarter. Management said that could be a sign that the market is turning.
J.B. Hunt flagged a $90-million revenue hit in 2026 from the loss of a final-mile customer. It said it is working to replace the lost business currently. The unit’s revenue was $824 million over the past 12 months.
Shares of JBHT were off 4.2% in after-hours trading on Thursday. Shares are up nearly 50% since its third-quarter earnings beat.
