J.B. Hunt Q2 Earnings & Revenues Lag Estimates, Decrease Y/Y

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

Operating income fell 4% year over year to $197.3 million. The downside was owing to increases in casualty and group medical claims expenses, and higher professional driver wages and equipment-related costs.

JBHT's Segmental Highlights

Intermodal division generated quarterly revenues of $1.44 billion, grew 2% year over year, reflecting the 6% increase in volume and a 3% decrease in gross revenue per load, resulting from changes in the mix of freight, fuel surcharge revenue, and customer rates. Revenue per load, excluding fuel surcharge revenue, declined 2% year over year.

Intermodal volume grew 6% year over year. Transcontinental network loads fell 1%, while eastern network loads increased 15% year over year. Overall demand for intermodal services remained steady, despite market volatility surrounding global supply chains and trade patterns. Volume growth in the Eastern network continued to be strong, driven by overall service execution and the value proposition it presents to customers.

Segmental operating income declined 4% year over year due to lower yields, increased professional driver wages, higher casualty and group medical claims expenses, and higher maintenance costs. These items were partially offset by improvements in both tractor and trailing asset utilization and overall cost management initiatives.

Dedicated Contract Services segment revenues of $847 million remained flat year over year, owing to a 3% decline in average trucks offset by a 3% increase in productivity (revenue per truck per week).

Segmental operating income decreased 3% year over year owing to higher group medical and casualty claims expenses, increased professional driver wages and equipment-related expenses. These were partially offset by the maturing of new business onboarded over the past trailing 12 months and overall cost management initiatives.

Integrated Capacity Solutions’ revenues decreased 4% year over year to $260 million. Segment volume fell 9% year over year. Revenues per load grew 6% owing to increases in contractual rates and changes in customer freight mix, partially offset by lower transactional rates compared to the second quarter of 2024.

Operating loss in the reported quarter came in at $3.6 million compared with an operating loss of $13.3 million in the year-ago quarter. Operating results improved from the prior-year quarter owing to a modest increase in gross profit, lower personnel-related expenses and lower cargo insurance and technology costs.

Truckload revenues grew 5% year over year to $177 million. Excluding fuel surcharge, revenues increased 8% owing to a 13% increase in load volume, partially offset by a 4% decline in revenue per load excluding fuel surcharge revenue.

At the second-quarter end, total tractors were 2,041 compared with 1,897 a year ago. Trailers in the segment were 12,785 compared with the year-ago quarter’s figure of 13,299.

Segmental operating income decreased 5% year over year owing to higher casualty and group medical claims expenses and increased maintenance-related costs.

Final Mile Services revenues fell 10% year over year to $211 million, due to general softness in demand across a majority of the end markets served and ongoing efforts to improve revenue quality and profitability across various accounts, which resulted in some loss of business.

Operating income fell 60% year over year owing to lower revenues, higher casualty and group medical claims expenses and an increase in bad debt expense compared to the prior-year period.

Liquidity & Buyback Details of JBHT

J.B. Hunt exited the second quarter of 2025 with cash and cash equivalents of $50.9 million compared with $43 million at the end of the prior quarter. Long-term debt was $1.01 billion compared with $880.2 million at the end of the prior quarter.

In the second quarter of 2025, JBHT purchased almost 2,400,000 shares for $319 million. As of June 30, 2025, JBHT had almost $335 million remaining under its share repurchase authorization. 

JBHT's Zacks Rank

Currently, JBHT carries a Zacks Rank #4 (Sell).

Q2 Performances of Another Transportation Company

Apart from JBHT, another stock from the Zacks Transportation sector that has reported second-quarter 2025 results is Delta Air Lines (DAL). DAL reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

Transportation Stocks to Consider

Investors interested in the Zacks Transportation sector may consider SkyWest SKYW and Kirby Corporation KEX, each currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. The Zacks Consensus Estimate for second-quarter 2025 earnings has been revised 1.30% upward in the past 60 days. SKYW’s second-quarter 2025 earnings are expected to grow 28.5% year over year. 

SKYW’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters by an average of 17.1%. SkyWest has reported impressive traffic numbers over the past few months.

Kirby has an expected earnings growth rate of 18.7% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5%. Shares of KEX have rallied 10.5% year to date.

Favorable market conditions at the marine transportation unit and consistent efforts to reward shareholders through share buybacks bode well for Kirby's prospects. Kirby has a solid balance sheet. 

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