Refrigerated carrier Marten Transport noted a significant firming in truckload fundamentals when it reported second-quarter results Thursday after the market closed. A much tighter capacity backdrop is allowing the company to improve its freight selection and raise rates.
“The freight market has sharply tightened in recent months and is now breaking out from the longest freight market recession on record,” stated CEO Randy Marten in a news release. He said the regulatory crackdown is “contracting meaningful levels of freight capacity by removing noncompliant and unqualified drivers.”
(The Mondovi, Wisconsin-based company does not host a quarterly call.)
Revenue from Marten’s (NASDAQ: MRTN) non-dedicated TL fleet increased 9% year over year to $116 million, but was flat at $93 million excluding fuel surcharges. An 8% decline in average tractors in service was offset by a 9% increase in revenue per tractor.
Like most large carriers, Marten has been managing truck counts to improve asset utilization. Revenue per loaded mile increased 6% y/y to $2.81. The unit booked a 97.4% operating ratio (ex-fuel), which was 10 basis points better y/y.
The company’s smaller dedicated segment saw a 14% y/y decline in revenue (ex-fuel) as a 17% drop in truck count was only partially offset by a 3% increase in revenue per tractor. Revenue per loaded mile was down 5% y/y to $2.36. The unit posted a 95.4% OR (ex-fuel), 430 bps worse y/y.
Brokerage revenue was flat y/y at $40 million, as a 2% increase in loads was offset by a 2% decline in revenue per load. The segment’s OR worsened 160 bps to 94.8%, but actually compares favorably to other similar brokerages. Third-party capacity buy rates (purchased transportation) are much higher than in-place sell rates on contractual business given the rapid run-up in the broader spot market.
Consolidated revenue of $224 million was 3% lower y/y and $4 million light of the consensus estimate. (Revenue excluding fuel surcharges was 9% lower y/y.) The 2025 sale of its intermodal unit to Hub Group (NASDAQ: HUBG) presented an $11.7-million revenue headwind during the quarter.
Marten reported earnings per share of 7 cents (net income of $5.3 million), which was 2 cents lower y/y and a penny light of consensus. Earnings per share faced a 3-cent headwind due to a $3.5-million y/y drop in gains on equipment sales.
Cash flow from operations was $61 million for the first half of 2026, a 12% y/y decline. The company maintained a debt-free balance sheet in the quarter.
The average age of its tractor fleet was 2.5 years compared to 2.1 years in the year-ago period.
Shares of MRTN were off 2% in early trading on Friday compared to the S&P 500, which was off 0.1%.
Why it matters? Marten Transport is viewed as a “refrigerated pure play.” It is the only public carrier in the reefer market and its quarterly results serve as a bellwether for the industry. The company’s second quarter provided a signal for improving fundamentals in the refrigerated freight market.
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