Heartland Express, Inc. reported a decline in financial performance for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Revenue for the third quarter was $259.9 million, down 11.9% from $295.0 million in 2023. For the nine months, total revenue decreased to $804.9 million from $932.1 million, reflecting a 13.6% decline. The decrease in revenue was attributed to a weak freight environment, with trucking and other revenues falling by $99.0 million (12.4%) and fuel surcharge revenues decreasing by $28.2 million (21.0%).

The company reported a net loss of $9.3 million for the third quarter, an improvement from a loss of $10.7 million in the same period last year. However, for the nine months ended September 30, 2024, Heartland experienced a net loss of $27.9 million, contrasting sharply with a net income of $9.7 million in 2023. The operating ratio for the nine months was 102.6%, compared to 96.6% in the prior year, indicating increased operational inefficiencies.

Operating expenses showed mixed results. Salaries, wages, and benefits decreased by $32.4 million (8.9%) to $330.2 million for the nine months, while fuel expenses dropped by $25.1 million (15.4%) to $138.1 million, reflecting lower diesel prices. Conversely, insurance and claims expenses rose to $38.9 million, attributed to unfavorable claim severity and frequency.

Heartland's strategic focus has included two significant acquisitions in 2022—Smith Transport and CFI—aimed at enhancing growth and addressing industry challenges. As of September 30, 2024, the company had $188.0 million outstanding on its $550.0 million unsecured credit facility, with no balance on the revolving line of credit. The weighted average interest rate on outstanding borrowings was 6.8%.

The company has also prioritized debt repayment while maintaining regular quarterly dividends, declaring $1.6 million in dividends for the third quarter, consistent with the previous year. Cash flow from operating activities for the nine months was $106.6 million, representing 13.2% of operating revenues, slightly down from 13.4% in 2023.

Market conditions have posed challenges, with freight demand softening since late 2022 and continuing into 2024. However, there are signs of potential recovery in freight demand noted in October 2024, although significant improvement is not anticipated until 2025. The company is implementing strategic changes to enhance operational readiness for this expected growth.