J.B. Hunt Transport Services Inc. of Lowell (Nasdaq: JBHT) on Tuesday reported falling second-quarter profits on higher expenses and weaker performance in its final mile segment.
Net income was $128.6 million, down 5.3 % from $135.9 million in the second quarter of 2024. Per share, earnings came to $1.31.
The results did not meet Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $1.34 per share.
The trucking and logistics company posted revenue of $2.93 billion, flat compared to a year ago and short of Street forecasts. Seven analysts surveyed by Zacks expected $2.94 billion.
Shares of the company rose about 1% Wednesday morning to $150.50. Over the past 12 months, shares were down more than 14%.
J.B. Hunt reported second-quarter operating expenses of $2.73 billion, up from $2.72 billion a year ago. The company attributed the increase primarily to rising casualty and group medical claims expenses. Driver wages and equipment-related costs were also higher.
Results by segment are below.
Intermodal
Intermodal operating income was $95.7 million, down 3.5% from $99.2 million a year ago.
Revenue in the segment was $1.44 billion, up 2.2% from $1.41 billion.
The company said overall demand for intermodal service remained steady, despite market volatility surrounding global supply-chains and trade patterns.
Volume was 525,161 loads, up 5.6% from 497,446.
Revenue per load excluding fuel surcharge revenue decreased 2% year-over-year.
Dedicated contract services
Operating income for dedicated contract services was $93.7 million, down 2.8% from $96.4 million a year ago.
Revenue was $847 million, flat compared to the same period in 2024. The company attributed that result to a 3% decline in average trucks offset by a 3% increase in productivity (revenue per truck per week).
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.
The customer retention rates was about 92%.
Integrated capacity solutions
Integrated capacity solutions posted a loss of $3.6 million, improving on a loss of $13.3 million a year ago. The company said operating results improved primarily due to a modest increase in gross profit, lower personnel-related expenses and lower cargo insurance and technology costs.
Revenue in the quarter was $260.2 million, down 3.7% from $270.4 million a year ago. Segment volume decreased 13%.
Segment volume decreased 9% while revenue per load increased 6% due to increases on contractual rates and changes in customer freight mix.. Contractual volume represented about 62% of the load volume.
Final mile services
Operating income for final mile services was just under $8 million, down 59.6% from $19.8 million a year ago, when the segment saw a net benefit of $1.1 million from two offsetting claim settlements.
Revenue in the period was $210.6 million, down 10.5% from $235.3 million.
J.B. Hunt said decrease was primarily driven by general softness in demand across a majority of the end markets it serves, as well as ongoing efforts to improve revenue quality and profitability across various accounts, which resulted in some loss of business.
Truckload
Operating income for truckload was $3.4 million, down 5.1% from $3.5 million a year ago.
Revenue was $176.97 million, up 5.3% from $168.1 million.
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.
Trailer turns in the quarter were up 17% from the prior period primarily due to improved network balance and initiatives to improve equipment utilization.
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