J.B. Hunt Ends 2024 With Slight Revenue Decline

Intermodal segment revenue declined 2% to $1.6 billion from $1.62 billion. (J.B. Hunt Transport Services)

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J.B. Hunt Transport Services ended the year slightly behind where it was during the prior fourth quarter amid efforts to reinvest and improve operations, the company reported Jan. 16.

The Lowell, Ark.-based carrier posted net income of $155.5 million, or diluted earnings per share of $1.53, for the three months ending Dec. 31. That compared with $153.5 million, $1.47, during the same time the previous year. The total operating revenue decreased 5% to $3.15 billion from $3.3 billion.

“While 2024 was a continuation of the challenging freight environment, I am proud of the work of our team and how we position the company for our future,” J.B. Hunt CEO Shelley Simpson said during a call with investors. “We focus on providing excellent service to our customers, improving on our record-setting safety performance, and remaining cost discipline, all while leveraging our strategic investments in our people, technology and capacity.”

J.B. Hunt has been heavily reinvesting in the business to better prepare for future expansion. Simpson noted the business is being positioned for long-term growth that generates appropriate returns on capital and value for shareholders.

“The decisions we make to strategically hold onto our people and capacity through the freight recession and make some bold investments, like acquiring the intermodal assets from Walmart, were made through that lens and has only enhanced our future earnings potential,” Simpson noted. “That said, while our performance has held up relatively well in this difficult environment, we aren’t satisfied with the current results of our business.”

Simpson pointed to margins and returns on capital as areas needing improvement. She also noted that leadership has prioritized getting the company on the right path to repair and improve its financial performance.

The decrease in revenue was primarily driven by a slight decline in revenue per load in the intermodal and truckload segments, a 4% decline in average trucks in Dedicated Contract Services and a 22% decline in load volume in Integrated Capacity Solutions. This was positively offset by a 5% increase in volume in intermodal, a 2% increase in productivity in DCS and a 9% increase in gross revenue per load in ICS.

“JBHT barely missed our 4Q expectations, but 1Q guidance implies sequential earnings decline well below consensus,” TD Cowen analyst Jason Seidl wrote in a report. “Hunt is winning record volumes with strong service within [intermodal] though margins limit upside to growth as [over-the-road] market continues to weigh on pricing. Dedicated growth assumptions lowered in ’25 as churn and startup costs challenge the resilient segment.”

For the full year, J.B. Hunt reported net income of $570.9 million, $5.56, on revenue of $12.1 billion, compared with net income of $728.3 million, $6.97, on revenue of $12.8 billion in 2023.

Truckload segment revenue decreased 7% to $182 million from $195.4 million during the same time last year. This was primarily due to a 2% decrease in revenue per load and flat load volume versus the prior-year period. Total average effective trailer count decreased by about 6%. The operating income increased to $8.55 million from an operating loss of $39,000 last year.

Final Mile Services revenue decreased 6% to $227.5 million from $243.2 million. The decline was primarily driven by general weakness in demand across many of the end markets served. But this was partially offset by improved revenue quality at underperforming accounts and new customer contracts. Operating income rose 7% to $13.2 million from $12.3 million.

ICS segment revenue decreased 15% to $307.6 million from $363.7 million. The earnings report noted that overall segment volumes decreased 22% versus the prior-year period. Revenue per load increased 9% due to higher contractual and transactional rates and changes in customer freight mix. Operating income improved to a loss of $21.8 million from a loss of $24.9 million.

DCS segment revenue decreased 5% to $838.5 million from $883.9 million. This was driven by a decline in average trucks and productivity. The customer retention rate of 90% is largely reflective of the fleet downsizing and some account losses. But the operating income increased 5% to $90.3 million from $86.1 million.

Intermodal segment revenue declined 2% to $1.6 billion from $1.62 billion. The report noted that this was primarily driven by a 6% decrease in revenue per load resulting from changes in mix of freight, customer rates and fuel surcharge revenue. But this was partially offset by the 5% increase in volume. Operating income decreased 10% to $117 million from $130 million.

J.B. Hunt ranks No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in North America, No. 2 on the truckload/dedicated sector list and No. 1 in the intermodal/drayage market segment. It also ranks No. 3 on TT’s Top 100 list of the largest logistics companies.