J.B. Hunt Transport Services, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Total operating revenue for Q3 2026 was $3.68 billion, a 20% increase from $3.05 billion in Q3 2025; revenue excluding fuel surcharge increased 13% year-over-year.
• Net earnings were $172.4 million ($1.82 diluted EPS) compared to $170.8 million ($1.76 diluted EPS) in Q3 2025, representing a 3% increase in EPS.
• Operating income was $247.1 million, up 2% from $242.7 million in Q3 2025; operating margin decreased to 6.7% from 7.9% in the prior year period.
• Net interest expense decreased to $15.7 million from $17.9 million in Q3 2025 due to a lower average consolidated debt balance.
• Effective income tax rate was 25.5% in Q3 2026 versus 24.0% in Q3 2025; the full-year 2026 tax rate is expected to be approximately 24.0%.
• Cash and cash equivalents were approximately $4 million at September 30, 2026.
• Net capital expenditures for the nine months ended September 30, 2026, were $291.1 million, down from $490.9 million in the same period in 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $1.11 billion, compared to $1.29 billion in the prior year period.

Guidance and Future Outlook

• Management expects the 2026 full-year annual tax rate to be approximately 24.0%.
• The company expressed confidence in its strategy to support customers' evolving needs and drive long-term profitable growth.

Business Segments and Product Lines

• Intermodal (JBI): Revenue increased 20% to $1.83 billion; operating income rose 18% to $147.5 million. Volume increased 8%, driven by an 11% increase in gross revenue per load and an 8% volume increase. Eastern network loads grew 18%.
• Dedicated Contract Services (DCS): Revenue increased 11% to $960 million; operating income decreased 22% to $81.7 million. Productivity (revenue per truck per week) improved 10%, and customer retention remained at approximately 96%.
• Integrated Capacity Solutions (ICS): Revenue surged 57% to $434 million; operating income turned positive at $9.6 million versus a $0.8 million loss in Q3 2025. Volume increased 22%, and revenue per load increased 29%. Gross profit margin was 14.3%.
• Final Mile Services (FMS): Revenue decreased 3% to $200 million; operating income fell 76% to $1.6 million. The revenue decline was attributed to known business losses as the company improved revenue quality.
• Truckload (JBT): Revenue increased 37% to $261 million; operating income decreased 6% to $7.0 million. Revenue per load excluding fuel surcharge increased 29%, and load volume increased 4%.

Market and Competitive Landscape

• Intermodal demand remained strong throughout the quarter, with significant growth in road-to-rail conversion in the Eastern network.
• The company noted improved productivity and network balance across segments, though purchased transportation costs and insurance claims increased industry-wide.
• J.B. Hunt operates a mode-neutral approach utilizing a large company-owned fleet and third-party capacity through its 360° digital freight marketplace.

Risks and Challenges

• Operating income margins were pressured by higher purchased transportation, fuel and fuel taxes, and increased insurance and group medical claims expenses.
• Dedicated Contract Services operating income declined due to higher professional driver personnel expenses, increased group medical claims, higher insurance premiums, and new business onboarding costs.
• Final Mile Services operating income dropped significantly due to revenue declines from business losses and higher purchased transportation expenses.
• Truckload operating income decreased primarily due to higher third-party capacity costs as a percentage of revenue.

Management Commentary and Tone

• Shelley Simpson, President and CEO, thanked employees for their commitment to safety and execution, stating the company is building capabilities to support evolving customer needs.
• Management emphasized discipline in cost management and execution on initiatives to lower the cost to serve.

Other Key Points

• The company purchased approximately 704,000 shares of common stock for $174 million in the third quarter of 2026.
• Approximately $619 million remained under the share repurchase authorization as of September 30, 2026.
• Outstanding debt decreased to $1.12 billion at September 30, 2026, from $1.60 billion at September 30, 2025, and $1.47 billion at December 31, 2025.
• Actual shares outstanding were approximately 93.2 million at September 30, 2026.
• Customer retention rates for Dedicated Contract Services remained at approximately 96%.