J.B. Hunt’s Financial Struggles: The Truth About
The Trucking Giant’s Q2 Earnings

J.B. Hunt Transport Services, Inc. has shared its financial results for the second quarter of 2024. The company reported lower revenue and earnings compared to last year. This article highlights the key details from the report.

Financial Highlights

For the second quarter of 2024, J.B. Hunt’s revenue was $2.93 billion. This is a 7% drop from the same period in 2023. The company’s operating income also fell by 24% to $205.7 million. Earnings per share (EPS) decreased from $1.81 to $1.32, a 27% decline.

Reasons for Revenue Drop

The drop in revenue came from several segments:

• Intermodal (JBI) saw a 5% drop in revenue per load and a 1% drop in volume.
• Integrated Capacity Solutions (ICS) had a 25% drop in load volume.
• Truckload (JBT) and Dedicated Contract Services® (DCS®) both experienced a 9% drop in load volume.
• Final Mile Services® (FMS) grew by 5% due to new contracts.

Operating income was affected by lower revenue and higher expenses for insurance, equipment, and staff. Despite lower costs for rail and truck transportation, these expenses led to a lower percentage of operating income compared to revenue.

Segment Performance

1. Intermodal (JBI):

   • Revenue: $1.41 billion (down 5%)
   • Operating Income: $99.2 million (down 31%)
   • Volume: Decreased by 1%
   • Key Issues: Weak freight market, underused assets, higher wages, and maintenance costs.

2. Dedicated Contract Services (DCS):

   • Revenue: $851 million (down 4%)
   • Operating Income: $96.4 million (down 15%)
   • Key Issues: Lower truck productivity, more idle equipment, higher insurance, and claims expenses.

3. Integrated Capacity Solutions (ICS):

   • Revenue: $270 million (down 21%)
   • Operating Loss: $(13.3) million (worse than $(4.4) million last year)
   • Key Issues: Lower volume, higher insurance costs, costs from BNSF Logistics purchase.

4. Final Mile Services (FMS):

   • Revenue: $235 million (up 5%)
   • Operating Income: $19.8 million (up 33%)
   • Key Factors: New contracts, better revenue quality, lower costs for staff and equipment.

5. Truckload (JBT):

   • Revenue: $168 million (down 12%)
   • Operating Income: $3.5 million (down 7%)
   • Key Issues: Lower load volume and revenue per load, effective cost management.

Cash Flow and Debt

As of June 30, 2024, J.B. Hunt had $1.48 billion in debt. The company’s net capital expenditures for the first half of 2024 were $409 million, down from $854 million last year. Cash and cash equivalents were $54 million.

J.B. Hunt repurchased 1,225,000 shares of common stock for $203 million in the second quarter, leaving $163 million in their repurchase plan.

About J.B. Hunt

J.B. Hunt Transport Services, Inc. is a leading transportation and logistics company in North America. They offer intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, and transload solutions. The company is listed on NASDAQ under the ticker symbol JBHT.

Looking Ahead

Despite J.B. Hunt’s financial struggles, the company continues to focus on investments and cost management. Their wide range of services and commitment to efficiency set them up for future growth in a competitive market. For more information, visit the company’s website or listen to the conference call replay.