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JB Hunt Transport Services’ Q4 Results Mixed

[ January 31, 2025   //   ]

JB Hunt Transport Services’ Q4 Results Mixed

J.B. Hunt Transport Services Inc. reported fourth quarter net income of US$155.5 million, compared to net earnings of US$153.5 million in the fourth quarter 2023.
Operating revenue for the Lowell, Arkansas-based intermodal service provider was US$3.15 billion in the fourth quarter, down 5 percent from US$3.3 billion in the year-earlier quarter.
Intermodal, or JBI, saw fourth quarter operating income fall 10 percent to US$117 million, primarily from lower yields, while segment revenue slipped 2 percent to US$1.6 billion, partially offset by a 5 percent increase in intermodal volume.
Transcontinental network loads increased 4 percent, while eastern network loads increased 6 percent compared to the fourth quarter 2023.
Demand trends for intermodal service were seasonally strong during the quarter, particularly on eastbound loads out of Southern California. Revenue’s decline was primarily driven by a 6 percent decrease in revenue per load resulting from changes in mix of freight, customer rates and fuel surcharge revenue, J.B. Hunt reported.
Dedicated Contract Services, or DCS, saw operating income improve 5 percent to US$90.3 million (Q4 2023 included US$20 million in pre-tax charges for insurance-related items).
DCS revenue declined 5 percent to US839 million, driven by a 4 percent decline in average trucks combined with a 1 percent decline in productivity.
Integrated Capacity Solutions, or ICS), saw an operating loss of US$21.8 million, compared to a loss of US$24.9 million in Q4 2023. Revenue dropped 15 percent to US$308 million.
Q4 2024 included US$16 million of pre-tax intangible asset impairment charges while Q4 2023 included a $9.9 million pre-tax charge for insurance-related items.
Overall segment volume decreased 22 percent versus the prior-year period. Revenue per load increased 9 percent compared to the fourth quarter 2023 due to higher contractual and transactional rates and changes in customer freight mix. Contractual volume represented approximately 63 percent of the total load volume and 63 percent of the total revenue in the current quarter compared to 59 percent and 59 percent, respectively, in fourth quarter 2023.
Final Mile Services, or FMS, saw operating income improve 7 percent to US$13.2 million on segment revenue of US$228 million, down 6 percent, primarily driven by general weakness in demand across many markets, but partially offset by improved revenue quality at underperforming accounts and multiple new customer contracts implemented over the past year. Q4 2023 included a $3.3 million pre-tax charge for insurance-related items.
Truckload, or JBT, saw segment revenue fall 7 percent to US$182 million, and an operating loss of US$8.6 million.
Revenue excluding fuel surcharge revenue decreased 3 percent primarily due to a 2 percent decrease in revenue per load excluding fuel surcharge revenue and flat load volume versus the prior-year period.
Truckload, or JBT, saw operating income increase to US$8.6 million from a modest operating loss in the fourth quarter 2023. Segment revenue fell 7 percent to US$182 million, and an operating loss of US$8.6 million.
Revenue excluding fuel surcharge revenue decreased 3 percent primarily due to a 2 percent decrease in revenue per load excluding fuel surcharge revenue and flat load volume versus the prior-year period.
Q4 2023 included US$4.2 million in pre-tax charges for insurance-related items. Excluding these charges, operating income increased primarily because of better trailer utilization and a continued focus on cost management efforts across the segment.
For the full year, operating income fell 16 percent to US$831 million on revenue of US$12.1 billion, down 6 percent.
J.B. Hunt Transport Services serves intermodal, dedicated, refrigerated, truckload, less-than-truckload, flatbed, single source, last mile, transload markets.

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