J.B. Hunt Transport Services, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 15 July 2026: press release. Guidance figures: 1 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue and operating income rose: Total operating revenue was $3.50 billion, up 19%, and operating income was $259.5 million, up 32%. Revenue excluding fuel surcharge revenue rose 11%. Source
• Diluted EPS rose 45%: Diluted earnings per share were $1.91 against $1.31, with net earnings of $181.0 million against $128.6 million a year earlier. Source
• Intermodal operating income up 58%: Intermodal operating income was $150.9 million. Management cited network efficiency from volume, dray productivity, fewer empty container moves, lower container storage expense and cost-to-serve initiatives. Source
• ICS revenue up 49%: ICS revenue was $388 million on load volume up 19% and revenue per load up 26%. Operating income was $1.7 million, against an operating loss of $3.6 million. Source
• Operating income rose as share of revenue: Operating income was 7.4% of total operating revenue against 6.7%. Higher fuel expense as a percentage of revenue partly offset the gain. Source
• Intermodal demand rose on fuel prices: Management said intermodal demand increased through the quarter, pointing to the service's value against higher fuel prices and constrained driver and capacity in other modes. Source
• Debt fell to $1.15 billion: Debt outstanding was about $1.15 billion, down from $1.72 billion a year earlier and $1.47 billion at December 31, 2025. Current debt was nil at June 30. Source

“Our second quarter results reflect the strength of executing our strategy, as we leveraged our investments in our people, technology, and capacity to drive growth and improve profitability.”

Shelley Simpson, president and CEO

Guidance

What changed from last quarter

• Guidance lowered: The 2026 annual tax rate range was narrowed, with the upper end reduced from 25.0% to 24.5%. Source

Results and growth drivers

• Revenue and operating income rose: Total operating revenue was $3.50 billion, up 19%, and operating income was $259.5 million, up 32%. Revenue excluding fuel surcharge revenue rose 11%. Source
• Diluted EPS rose 45%: Diluted earnings per share were $1.91 against $1.31, with net earnings of $181.0 million against $128.6 million a year earlier. Source
• Lower interest expense and tax rate: Net interest expense fell about 21% on a lower average consolidated debt balance, partly offset by a modestly higher average interest rate. The effective tax rate was 25.4% against 26.9%. Source

Intermodal volume and profit

• Intermodal volume rose 10%: Intermodal segment revenue was $1.75 billion, up 22%. Gross revenue per load rose 11% on fuel surcharge, customer rates and freight mix; excluding fuel surcharge, it rose 1%. Source
• Intermodal operating income up 58%: Intermodal operating income was $150.9 million. Management cited network efficiency from volume, dray productivity, fewer empty container moves, lower container storage expense and cost-to-serve initiatives. Source
• Eastern network volume led growth: Eastern network loads rose 16% and transcontinental loads rose 5%. Management tied Eastern volume growth to conversion and service execution. Source
• Insurance and driver costs rose: Higher insurance premium and claims expense and higher professional driver personnel expense partly offset the intermodal gains. Source

“As market conditions continue to evolve, we remain focused on creating long-term value for our shareholders, delivering valuable solutions to our customers while maintaining discipline around returns on our capital.”

Shelley Simpson, president and CEO

Dedicated and final mile

• Dedicated revenue rose on productivity: Dedicated revenue was $921 million, up 9%, and operating income rose 9% to $102.5 million. Average trucks were roughly flat, so the gain came from revenue per truck per week. Source
• Customer retention improved to 96%: Retention improved to about 96%. Net revenue-producing trucks were 5 higher than a year earlier and about 140 higher than at the end of the first quarter 2026. Source
• Final Mile revenue and profit declined: Final Mile revenue fell 6% to $198 million and operating income fell 30% to $5.6 million. Stops declined 14%. Management said efforts to improve revenue quality and profitability are ongoing. Source

Integrated Capacity and Truckload

• ICS revenue up 49%: ICS revenue was $388 million on load volume up 19% and revenue per load up 26%. Operating income was $1.7 million, against an operating loss of $3.6 million. Source
• ICS purchased transport rose 54%: Purchased transportation expense rose 54% in ICS. Gross profit margin was 12.5%, down from 15.5% a year earlier but up from 12.0% in the first quarter 2026. Source
• Contract share held near two-thirds: Contractual volume was about 65% of ICS load volume and 63% of revenue, against 62% and 63% a year earlier. Source
• Truckload revenue up 35%: Truckload revenue was $240 million, up 35%, on load volume up 14% and revenue per load excluding fuel surcharge up 13%. The segment reported an operating loss of $1.3 million. Source
• Trailer turns improved 13%: Trailer turns improved 13% on better network balance and velocity. Gross profit fell 12% as higher third-party capacity costs rose. Source

“I’m grateful for our people and their continued focus on delivering operational excellence around service, safety and cost discipline in this dynamic environment”

Shelley Simpson, president and CEO

Costs, fuel and margins

• Operating income rose as share of revenue: Operating income was 7.4% of total operating revenue against 6.7%. Higher fuel expense as a percentage of revenue partly offset the gain. Source
• Purchased transport and fuel rose: Rents and purchased transportation were 48.0% of revenue against 43.3%. Fuel and fuel taxes were 6.7% against 5.2%. Source
• Structural cost work and lower medical claims: Management cited higher revenue, productivity, structural cost removal, lower group medical claims, and lower facility rental and equipment storage expense as drivers of operating income. Source

Demand and market capacity

• Intermodal demand rose on fuel prices: Management said intermodal demand increased through the quarter, pointing to the service's value against higher fuel prices and constrained driver and capacity in other modes. Source
• ICS market capacity still shifting: Management described the ICS operating environment as volatile, with market capacity dynamics continuing to evolve. Source
• Final Mile demand stabilizing: Management described demand as stabilizing across many end markets served, and new business awarded over the past year is being implemented. Source

Capital, debt and buybacks

• Debt fell to $1.15 billion: Debt outstanding was about $1.15 billion, down from $1.72 billion a year earlier and $1.47 billion at December 31, 2025. Current debt was nil at June 30. Source
• Net capital expenditures fell sharply: Net capital expenditures were $144.9 million for the six months, against $399.1 million a year earlier. Operating cash flow for the six months was $723.3 million against $806.2 million. Source
• Repurchases of about $98 million: The company bought about 392,000 shares in the second quarter, leaving about $791 million under its repurchase authorization. Cash was about $4.2 million. Source

Strategy and leadership

• Strategy execution credited: Chief executive Shelley Simpson credited execution of the strategy, using investments in people, technology and capacity, for growth and profitability. Source
• Long-term value and capital discipline: Management said it remains focused on long-term shareholder value and on solutions for customers, while keeping discipline around returns on capital. Source
• Operational excellence and safety emphasized: Management thanked its people and pointed to continued focus on operational excellence across service, safety and cost discipline. Source

Figures management reported

Risks management discussed

• External: Management noted that market conditions are still evolving, which bears on the company's planning. Source
• Operational: Higher purchased transportation expense was named as the main reason for the JBT operating loss and lower gross profit. Source
• Financial: Higher fuel expense as a percentage of gross revenue was named as an offset to operating margin gains. Source
• Operational: Higher insurance premium and equipment-related expenses, plus new business onboarding costs, were named as offsets in dedicated. Source

Earlier plans management reported on

• Not stated: Management updated its 2026 tax rate expectation to a narrower range, after a prior range of 24.0% to 25.0%. Source
• Not stated: Management said it continues to execute on its initiative to remove structural cost. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.