J.B. Hunt Transport Services, Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 15 October 2026: press release. Guidance figures: 1 lowered. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 20% to $3.68 billion: Total operating revenue was $3.68 billion against $3.05 billion a year earlier, an increase of 20%. Fuel surcharge revenue was $670.8 million of the total. Source
• Operating income up 2%: Operating income rose 2% to $247.1 million from $242.7 million. Higher revenue, productivity and lower equipment storage and facility rental expenses drove the increase. Source
• Diluted EPS $1.82 against $1.76: Net earnings were $172.4 million against $170.8 million, giving diluted EPS of $1.82 versus $1.76. Average diluted shares were 94.6 million against 96.8 million. Source
• Intermodal operating income up 18%: Intermodal operating income was $147.5 million. Revenue per load excluding fuel surcharge rose 2%, while gross revenue per load rose 11%. Source
• Dedicated operating income down 22%: Dedicated operating income was $81.7 million, against $104.3 million a year earlier. Higher driver personnel, medical claims, insurance and onboarding costs drove the decline. Source
• ICS revenue up 57%: Integrated Capacity Solutions revenue was $434 million. Volume rose 22% and revenue per load rose 29% on both contractual and transactional rates. Source
• FMS operating income down 76%: FMS operating income was $1.6 million. Lower revenue and higher purchased transportation expense drove the decline, partly offset by lower personnel and facility rental costs. Source

“We remain confident in our strategy and are building the capabilities needed to support our customers' evolving needs, strengthen our competitive position and drive long-term profitable growth for our shareholders.”

Shelley Simpson, president and CEO

Guidance

What changed from last quarter

• Guidance lowered: The full-year tax rate expectation moved from a range of 24.0% to 24.5% to approximately 24.0%.

Results and growth drivers

• Revenue rose 20% to $3.68 billion: Total operating revenue was $3.68 billion against $3.05 billion a year earlier, an increase of 20%. Fuel surcharge revenue was $670.8 million of the total. Source
• Revenue excluding fuel up 13%: Revenue excluding fuel surcharge rose 13%. Drivers were Intermodal loads and ICS revenue per load, with JBT revenue per load also up 29%, partly offset by a 10% fall in FMS stops. Source
• Operating income up 2%: Operating income rose 2% to $247.1 million from $242.7 million. Higher revenue, productivity and lower equipment storage and facility rental expenses drove the increase. Source
• Diluted EPS $1.82 against $1.76: Net earnings were $172.4 million against $170.8 million, giving diluted EPS of $1.82 versus $1.76. Average diluted shares were 94.6 million against 96.8 million. Source

Intermodal and Dedicated segments

• Eastern Intermodal loads up 18%: Eastern network loads rose 18% and Transcontinental loads rose 1% against the third quarter 2025. Intermodal segment revenue was $1.83 billion. Source
• Intermodal operating income up 18%: Intermodal operating income was $147.5 million. Revenue per load excluding fuel surcharge rose 2%, while gross revenue per load rose 11%. Source
• Dedicated revenue up 11%: Dedicated revenue was $960 million. Revenue per truck per week rose 10% and average trucks rose 1%. Productivity excluding fuel rose 3% on indexed price escalators and fewer idled tractors. Source
• Dedicated operating income down 22%: Dedicated operating income was $81.7 million, against $104.3 million a year earlier. Higher driver personnel, medical claims, insurance and onboarding costs drove the decline. Source

“I want to thank our people for their unwavering commitment to serving our customers, operating safely and executing with excellence every day.”

Shelley Simpson, president and CEO

ICS, FMS and JBT segments

• ICS revenue up 57%: Integrated Capacity Solutions revenue was $434 million. Volume rose 22% and revenue per load rose 29% on both contractual and transactional rates. Source
• ICS operating income turned positive: ICS operating income was $9.6 million, against an operating loss of $0.8 million. Higher gross profit from rate and volume more than offset higher personnel and insurance claims expense. Source
• ICS gross margin at 14.3%: ICS gross profit margin was 14.3%, down from 15.0% a year earlier and up from 12.5% in the second quarter of 2026. Source
• FMS revenue down 3%: Final Mile Services revenue was $200 million. The decline came from known business losses tied to ongoing efforts to improve revenue quality and profitability. Source
• FMS operating income down 76%: FMS operating income was $1.6 million. Lower revenue and higher purchased transportation expense drove the decline, partly offset by lower personnel and facility rental costs. Source
• JBT operating income down 6%: Truckload operating income was $7.0 million, down 6%. Gross revenue excluding fuel rose 34%. Third-party capacity costs rose as a share of revenue. Source

Costs and margins

• Purchased transport and driver costs rose: Purchased transportation, driver personnel, equipment-related costs, insurance and group medical claims all rose year over year, partly offset by productivity gains. Source
• Fuel and insurance weighed on margin: Operating income as a share of gross revenue fell on higher purchased transportation, fuel and fuel taxes, and insurance claims. Fuel and fuel taxes were $260.4 million, or 7.1% of revenue. Source
• FMS costs partly offset decline: Lower personnel-related and facility rental expenses, along with continued progress on the cost-to-serve initiative, partly offset the decline in FMS operating income. Source
• Effective tax rate rose to 25.5%: The effective tax rate was 25.5% against 24.0% a year earlier, attributed to the timing of certain discrete tax items. Source
• Net interest expense decreased: Net interest expense was $15.7 million against $17.9 million, reflecting a lower average debt balance partly offset by a modestly higher average rate. Source

Demand and capacity

• ICS volume up 22%: ICS volume grew in both published and spot business. Contractual volume was 63% of loads and 58% of revenue, against 63% and 64% a year earlier. Source
• Final Mile demand stabilizing: Management cited stabilizing demand across many end markets and improved revenue quality across various accounts as partly offsetting the FMS revenue decline. Source
• JBT trailer turns up 3%: Trailer turns rose 3% on better network balance, improved asset utilization and modestly higher load volume. The average effective trailer count fell by about 60 units. Source

Capital, cash and returns

• Debt down to $1.12 billion: Debt outstanding was $1.12 billion at September 30, 2026, against $1.60 billion a year earlier and $1.47 billion at December 31, 2025. Source
• Net capex down to $291 million: Net capital expenditures for the nine months ended September 30, 2026 were $291.1 million, against $490.9 million for the same period of 2025. Source
• Cash of about $4 million: Cash and cash equivalents were approximately $4 million at September 30, 2026, against about $17.3 million at December 31, 2025. Source
• Third-quarter buyback of $174 million: The company bought about 704,000 shares for about $174 million in the third quarter. Shares outstanding at September 30, 2026 were about 93.2 million. Source
• $619 million left on authorization: About $619 million remained under the share repurchase authorization at September 30, 2026. Source

Strategy and people

• Cost-to-serve initiative continues: Management cited discipline and execution on the initiative to lower cost to serve and lower container storage expense in Intermodal. Source
• Credit to employees for execution: The CEO credited the company's people with meeting customer needs, improving operations and continuing to provide excellent service. Source
• Strategy and capabilities build: Management said it remains confident in its strategy and is building capabilities to meet evolving customer needs and drive long-term profitable growth. Source

Figures management reported

Risks management discussed

• Operational: Higher professional driver personnel, equipment-related and insurance claims costs were cited across the segments as offsets to productivity. Source
• Operational: Higher third-party capacity costs reduced the operating income share of gross revenue in the JBT segment. Source
• Demand: Known business losses in Final Mile reduced segment revenue while the company works to improve revenue quality. Source
• External: Higher fuel and fuel taxes expense increased costs as a share of gross revenue. Source
• Financial: The effective tax rate rose in the quarter because of discrete tax items, and the full-year rate is now expected near 24.0%. Source

Earlier plans management reported on

• Not stated: Management referred to continued progress on the cost-to-serve initiative in Final Mile. Source
• Not stated: Management described ongoing efforts to improve revenue quality and profitability across the Final Mile portfolio. Source

Other quarters

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