Lower revenues, higher costs hit J.B. Hunt’s Q3 results

Vicky Jarrett//Managing Editor//October 19, 2023

LOWELL, Ark. — Lower revenues in all business segments, higher equipment-related costs, and higher insurance and claims expense were the primary reasons for J.B. Hunt Transport Services’ operating income to drop 33% from the year-ago third quarter.

For the period ended Sept. 30, the company reported operating revenue of $3.16 billion, down 18%; operating income of $241.7 million, down 33%; and net earnings of $187.4 million, down 30%, compared with the same period in 2022.

The decrease in revenue was driven primarily by a 14% and 22% decrease in Intermodal and Truckload revenue per load, respectively; a 38% decrease in volume in Integrated Capacity Solutions; a 20% decrease in stops in Final Miles Services; and a 1% decline in average revenue producing trucks in Dedicated Contract Services. This was partially offset by a slight increase in Intermodal volumes and a 6% increase in Truckload loads, year-over-year.

In operating income, third quarter 2023 included an $8 million net loss from the sale of equipment. On a consolidated basis, operating income as a percentage of consolidated gross revenue decreased year-over-year as a result of higher professional driver and non-driver wages, and benefits and equipment-related and maintenance expenses. These items were partially offset by lower rail and truck purchased transportation costs.

On Sept. 14, J.B. Hunt announced it entered into a definitive agreement to purchase the brokerage operations of BNSF Logistics, which subsequently closed on Sept. 30. The results of the operations acquired will be reflected in the Integrated Capacity Solutions (ICS) segment beginning in the fourth quarter.

Also, on Jan. 1, the company transferred the majority of JBT’s company-owned trucking operations to the Dedicated Contract Services segment and transferred its less-than-truckload brokerage operations from ICS to Final Miles Services segment.

J.B. Hunt ended the third quarter with $1.4 billion outstanding on various debt instruments, up from the total debt of $1.2 billion in Sept. 30, 2022. The quarter ended with cash and cash equivalents of approximately $75 million.

For the complete report and a breakdown by segment, visit the J.B. Hunt website.