PAMT Corp Reports 11.8% Revenue Decline and $31.8 Million Net Loss for Fiscal Year 2024

PAMT Corp, formerly known as P.A.M. Transportation Services, Inc., reported a significant decline in financial performance for the fiscal year ending December 31, 2024. The company recorded total operating revenues of $714.6 million, a decrease of 11.8% from $810.8 million in 2023. This decline was primarily attributed to a drop in truckload services revenue, which fell to $422 million from $460.9 million, driven by a 5.7% decrease in total miles traveled and a 3.2% reduction in the rate per mile. The company also reported a net loss of $31.8 million, compared to a net income of $18.4 million in the previous year, resulting in a diluted loss per share of $1.45.

In terms of operational metrics, PAMT's truckload services accounted for 67.1% of total revenues, while brokerage and logistics services contributed 32.9%. The company’s operational efficiency, measured by the operating ratio, deteriorated to 111.2% in 2024 from 97.7% in 2023, indicating that operating expenses exceeded revenues. The increase in operating expenses was influenced by rising salaries, wages, and benefits, which constituted 38.9% of revenues, and a notable increase in depreciation expenses due to changes in accounting estimates regarding the useful lives and salvage values of revenue equipment.

Strategically, PAMT has focused on enhancing its service offerings and customer relationships, particularly in high-density traffic lanes. The company operates a fleet of 2,222 trucks and 8,703 trailers, with approximately 62% of revenues derived from domestic shipments and 38% from cross-border freight to and from Mexico and Canada. The company has also been actively managing its capital expenditures, with plans to purchase 293 new trucks and 300 trailers in 2025, while continuing to sell or trade older equipment.

Looking ahead, PAMT's management expressed cautious optimism about future operations, citing expectations for improved cash flows and financing availability. However, the company remains vigilant regarding market conditions, particularly the competitive landscape and potential economic downturns that could impact freight demand. The ongoing challenges in attracting and retaining qualified drivers, coupled with fluctuating fuel prices and regulatory pressures, continue to pose risks to the company's profitability and operational stability.