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J.B. Hunt Transport Services, Inc. Reports U.S. GAAP Revenues, Net Earnings and Earnings Per Share for Both the Fourth Quarter and Year Ended December 31, 2024

1. 4Q 2024 net income was $155.5 million, up from $153.5 million. 2. Operating revenue decreased 5% YoY, impacted by load volume drops. 3. Intermodal revenue dropped 2%, but volumes increased 5% year-over-year. 4. Operating income rose 2% due to lower purchased transportation costs. 5. Annual tax rate forecast for 2025 is between 24% and 25%.

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While earnings grew, revenue and load volume declines may create mixed investor reactions.

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The article covers J.B. Hunt's financial performance and outlook, affecting investor sentiment.

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Immediate financial results indicate possible volatility, yet long-term growth remains intact.

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LOWELL, Ark.--(BUSINESS WIRE)--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.    

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