J.B. Hunt Transport Services Reports Decline in Revenues and Profitability in Q3 2024

J.B. Hunt Transport Services, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a decline in total operating revenues and profitability compared to the same periods in 2023.

For Q3 2024, total operating revenues amounted to $3,068.2 million, a decrease of 3% from $3,163.8 million in Q3 2023. The nine-month total operating revenues also fell to $8,940.9 million from $9,526.0 million, reflecting a 6% decline. The decrease in revenue was attributed to lower revenue per load in key segments, reduced volumes in the Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS) segments, and a decrease in stops in the Final Mile Services (FMS) segment. However, there was load volume growth in the J.B. Hunt Intermodal (JBI) segment and an increase in ICS revenue per load.

Operating income for Q3 2024 was $224.1 million, down 7.3% from $241.7 million in Q3 2023. For the nine-month period, operating income decreased to $624.2 million from $789.9 million. Net earnings for Q3 2024 were $152.1 million, an 18.9% decline from $187.4 million in the prior year, resulting in basic earnings per share of $1.50, down from $1.81.

Total operating expenses for Q3 2024 were $2,844.1 million, a decrease from $2,922.0 million in Q3 2023. The reduction in expenses was driven by lower rents and purchased transportation costs, which fell by 4.4% due to decreased transportation rates and load volumes. However, salaries and benefits costs increased slightly by 0.8%, primarily due to higher medical benefit expenses.

As of September 30, 2024, the company reported cash and cash equivalents of $120.0 million, a significant increase from $53.3 million at the end of 2023. Total current assets decreased to $1,926.4 million, while total assets fell to $8,325.9 million. The current portion of long-term debt rose to $500.0 million from $250.0 million at the end of 2023, contributing to an increase in total current liabilities to $2,041.4 million.

Strategically, J.B. Hunt completed the acquisition of BNSF Logistics, LLC on September 30, 2023, for a total cash consideration of $81.2 million, which included the recognition of definite-lived intangible assets and goodwill. The company also authorized an additional $1 billion stock repurchase program in August 2024, with $967 million remaining as of September 30, 2024.

The effective income tax rate for Q3 2024 was 25.2%, up from 18.2% in Q3 2023, contributing to an increase in income tax expense. Despite the challenges faced, J.B. Hunt remains one of the largest surface transportation and logistics companies in North America, serving a diverse customer base through its various business segments.