Marten Transport Ltd.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 23 April 2026: press release. The quarter’s numbers.

Key takeaways

Net income fell to $1.4 million: Net income was $1.4 million, or 2 cents per diluted share, against $4.3 million, or 5 cents, a year earlier. Source
Operating income down to $1.6 million: Operating income was $1.6 million against $5.9 million a year earlier, a decline of $4.3 million or 72.8%. Operating ratio rose to 99.2% from 97.4%. Source
Dedicated revenue and income fell: Dedicated revenue fell 13.8% to $63.5 million. Operating income was $1.6 million against $4.9 million, and the operating ratio rose to 97.4% from 93.4%. Source
Fuel surcharge revenue declined: Fuel surcharge revenue fell to $26.4 million from $27.4 million. Fuel and fuel taxes expense rose slightly to $33.9 million from $33.1 million. Source
Operating expense ratio rose: Operating expenses were 99.2% of operating revenue, up from 97.4%. Net of fuel surcharges, the ratio was 99.1%, against 97.0%. Source
Early recovery view: Management said it believes the freight market is in early recovery, driven by immigration enforcement under the current administration. Source
Cash balance rose to $69.8 million: Cash and cash equivalents rose to $69.8 million from $43.3 million at December 31, 2025. Source
Focus on service, efficiency and cost: Management said it is focused on minimizing the freight market's impact through safe, premium service, data-driven efficiencies and cost controls. Source

“Our people drove sequential increases in our revenue per tractor within our truckload and dedicated operations each of the last two quarters.”
Chairman of the Board and Chief Executive Officer Randolph L. Marten

What changed from last quarter

New: Management now describes the enforcement measures as structural changes that contract freight capacity. The prior release had expected them to positively affect growth prospects. Source

Earnings and operating income

Net income fell to $1.4 million: Net income was $1.4 million, or 2 cents per diluted share, against $4.3 million, or 5 cents, a year earlier. Source
Operating revenue down 8.8%: Operating revenue was $203.5 million, down $19.6 million or 8.8%. The prior-year figure included $12.1 million of intermodal revenue from operations sold in 2025. Source
Operating income down to $1.6 million: Operating income was $1.6 million against $5.9 million a year earlier, a decline of $4.3 million or 72.8%. Operating ratio rose to 99.2% from 97.4%. Source

Segment results and operating ratios

Truckload revenue up, loss widened: Truckload revenue rose 1.0% to $105.4 million. The segment posted an operating loss of $0.9 million against $0.3 million, with an operating ratio of 100.9% against 100.3%. Source
Dedicated revenue and income fell: Dedicated revenue fell 13.8% to $63.5 million. Operating income was $1.6 million against $4.9 million, and the operating ratio rose to 97.4% from 93.4%. Source
Brokerage revenue and loads rose: Brokerage revenue rose 5.0% to $34.7 million, and loads rose to 23,882 from 20,416. Operating income was $0.9 million against $2.2 million. Source
Intermodal sold, no revenue this quarter: Intermodal, sold effective September 30, 2025, had no revenue in the quarter, against $12.1 million a year earlier. Source

“This impact on our earnings was more than offset by the prolonged severe winter storms and the sharp spike in diesel prices in the first quarter.”
Chairman of the Board and Chief Executive Officer Randolph L. Marten

Volumes, fleet and revenue per unit

Revenue per tractor rose in both fleets: Truckload revenue net of fuel surcharges per tractor per week was $4,425, against $4,196. Dedicated was $3,909, against $3,846. Average tractors fell to 1,570 and 1,058. Source
Tractor count and age: Total tractors were 2,595 at March 31, 2026, against 3,040 a year earlier. The average age of company tractors rose to 2.4 years from 2.0. Source
Trailers and refrigerated containers: Total trailers were 5,021, against 5,331, and average trailer age was 5.1 years against 5.4. Refrigerated containers were none at March 31, 2026, against 786 a year earlier. Source
Miles per trip and non-revenue miles: Truckload average miles per trip were 518, against 537. The share of miles not compensated was 10.8%, against 11.2%. Source

Costs and fuel

Fuel surcharge revenue declined: Fuel surcharge revenue fell to $26.4 million from $27.4 million. Fuel and fuel taxes expense rose slightly to $33.9 million from $33.1 million. Source
Salaries and purchased transportation fell: Salaries, wages and benefits fell to $72.1 million from $78.8 million. Purchased transportation fell to $33.5 million from $37.7 million. Source
Depreciation and equipment gains: Depreciation fell to $25.0 million from $27.5 million. Gains on disposition of revenue equipment were $1.4 million, against $1.7 million. Source

“We believe that the freight market is in the early stages of recovery fueled by the current administration’s accelerating immigration enforcement clampdowns on multiple fronts”
Chairman of the Board and Chief Executive Officer Randolph L. Marten

Margins and operating expense ratio

Operating expense ratio rose: Operating expenses were 99.2% of operating revenue, up from 97.4%. Net of fuel surcharges, the ratio was 99.1%, against 97.0%. Source
Net-of-fuel ratios for truckload and dedicated: Net of fuel surcharges, the Truckload operating ratio was 101.1%, against 100.3%. The Dedicated operating ratio was 96.9%, against 92.2%. Source
Brokerage ratio and cost pressures cited: Brokerage operating ratio was 97.4%, against 93.5%. Management cited cumulative inflationary costs, freight rate reductions and freight network disruptions as pressure on earnings. Source

Freight market and demand

Early recovery view: Management said it believes the freight market is in early recovery, driven by immigration enforcement under the current administration. Source
Enforcement areas listed: Management listed enforcement areas including non-domiciled CDL state licensing, English Language Proficiency, electronic logging device fraud, CDL mills and chameleon carriers. Source
Enforcement seen contracting capacity: Management said the measures are expected to keep contracting capacity by removing noncompliant and unqualified drivers. Source
Oversupply and demand pressure: Management said the freight market recession's historic oversupply and demand conditions have heavily pressured earnings. Source

Cash, cash flow and dividends

Cash balance rose to $69.8 million: Cash and cash equivalents rose to $69.8 million from $43.3 million at December 31, 2025. Source
Operating cash flow and investing outflow: Operating cash flow was $33.0 million, against $36.2 million. Investing activities used $1.6 million, against $8.4 million. Source
Dividend held at $0.06: Dividends declared were $0.06 per share in both periods. Source
Shares outstanding rose slightly: Shares outstanding were 81,589,135 at March 31, 2026, up from 81,542,174 at December 31, 2025. Source

Strategy and investment

Focus on service, efficiency and cost: Management said it is focused on minimizing the freight market's impact through safe, premium service, data-driven efficiencies and cost controls. Source
Investment in technology and fleet: Management said the balance sheet supports continued investment in technology and a modern fleet, and positioning for growth. Source
Multifaceted model shown by segments: Management said the value of the multifaceted model continued to be shown by dedicated and brokerage results. Source

Figures management reported

Figure	Reported
Truckload total miles Source	36,887 thousand vs 38,273 thousand
Dedicated total miles Source	21,905 thousand vs 25,236 thousand
Brokerage loads Source	23,882 vs 20,416
Truckload revenue per tractor per week, net of fuel surcharges Source	$4,425 vs $4,196
Consolidated operating ratio Source	99.2% vs 97.4%
Fuel and fuel taxes expense Source	$33.9 million vs $33.1 million
Total tractors Source	2,595 vs 3,040

Risks management discussed

External: Management cited severe winter storms and a sharp rise in diesel prices as first-quarter pressure on earnings. Source
Demand: Management said the freight market recession's historic oversupply and demand conditions have heavily pressured earnings. Source
Financial: Management cited cumulative inflationary operating costs, freight rate reductions and freight network disruptions as pressure on earnings. Source

Earlier plans management reported on

Not stated: The prior release expected enforcement measures to positively affect growth. This release describes them as structural changes to freight capacity, without restating the earlier expectation.

Other quarters

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.

As filed with the SEC

Open the filing on EDGAR

MARTEN TRANSPORT ANNOUNCES FIRST QUARTER RESULTS

MONDOVI, Wis., April 23, 2026 (GLOBE NEWSWIRE) -- Marten Transport, Ltd. (Nasdaq/GS:MRTN) today reported net income of $1.4 million, or 2 cents per diluted share, for the first quarter ended March 31, 2026, compared with $4.3 million, or 5 cents per diluted share, for the first quarter of 2025.

Operating revenue was $203.5 million for the first quarter of 2026 compared with $223.2 million for the first quarter of 2025. Our intermodal operations, which were sold in 2025, had operating revenue of $12.1 million in the 2025 quarter. Excluding fuel surcharges, operating revenue was $177.2 million for the 2026 quarter compared with $195.8 million for the 2025 quarter. Fuel surcharge revenue decreased to $26.4 million for the 2026 quarter from $27.4 million for the 2025 quarter.

Operating income was $1.6 million for the first quarter of 2026 compared with $5.9 million for the first quarter of 2025.

Operating expenses as a percentage of operating revenue were 99.2% for the 2026 first quarter and 97.4% for the 2025 first quarter. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, were 99.1% for the 2026 quarter and 97.0% for the 2025 quarter.

Chairman of the Board and Chief Executive Officer Randolph L. Marten stated, “Our people drove sequential increases in our revenue per tractor within our truckload and dedicated operations each of the last two quarters. This impact on our earnings was more than offset by the prolonged severe winter storms and the sharp spike in diesel prices in the first quarter.”

“Our unique multifaceted business model’s value continued to be highlighted by the operating results of our dedicated and brokerage operations. Our earnings have been heavily pressured by the historic duration and depth of the freight market recession’s oversupply and weak demand, and the cumulative impact of inflationary operating costs, freight rate reductions and freight network disruptions.”

“We are focused on minimizing the freight market’s impact with our emphasis on safe, premium service, data-driven operating efficiencies and aggressive cost controls. Our strong, debt-free balance sheet enhances our ability to continue investing in our technology and modern fleet and position our operations to capitalize on improving profitable organic growth opportunities.”

“We believe that the freight market is in the early stages of recovery fueled by the current administration’s accelerating immigration enforcement clampdowns on multiple fronts -- including noncompliant state licensing practices for non-domiciled commercial driver’s licenses, or CDL’s, English Language Proficiency enforcement, electronic logging device fraud, CDL mills and chameleon carriers. These measures are structural changes to the freight market that have been and are expected to continue contracting capacity by removing noncompliant and unqualified drivers who never should have been driving in the first place.”

Current Investor Presentation

Marten Transport, with headquarters in Mondovi, Wis., is a multifaceted business offering a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across Marten’s five distinct business platforms - Temperature-Sensitive and Dry Truckload, Dedicated, Brokerage and MRTN de Mexico. Marten’s Intermodal operations were sold effective September 30, 2025. Marten is one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food, beverages and other consumer packaged goods that require a temperature-controlled or insulated environment. The Company offers service in the United States, Mexico and Canada, concentrating on expedited movements for high-volume customers. Marten’s common stock is traded on the Nasdaq Global Select Market under the symbol MRTN.

Forward-looking statements notice

This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include a discussion of Marten’s prospects for future growth, including the impact on the freight market of the current administration’s accelerating immigration enforcement clampdowns on multiple fronts -- including noncompliant state licensing practices for non-domiciled commercial driver’s licenses, or CDL’s, English Language Proficiency enforcement, electronic logging device fraud, CDL mills and chameleon carriers, and by their nature involve substantial risks and uncertainties, and actual results may differ materially from those expressed in such forward-looking statements. Important factors known to the Company that could cause actual results to differ materially from those discussed in the forward-looking statements are discussed in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACTS: Randy Marten, Chairman of the Board and Chief Executive Officer, Doug Petit, President, and Jim Hinnendael, Executive Vice President and Chief Financial Officer, of Marten Transport, Ltd., 715-926-4216.

CONSOLIDATED CONDENSED BALANCE SHEETS

	March 31,	December 31,
(In thousands, except share information)	2026	2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$69,786	$43,278
Escrow deposit	5,000	5,000
Receivables:
Trade, net	91,911	85,807
Other	8,114	13,084
Prepaid expenses and other	20,792	24,532
Total current assets	195,603	171,701
Property and equipment:
Revenue equipment, buildings and land, office equipment and other	1,112,817	1,128,932
Accumulated depreciation	(362,739)	(352,426)
Net property and equipment	750,078	776,506
Other noncurrent assets	1,546	1,560
Total assets	$947,227	$949,767
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$27,756	$28,769
Insurance and claims accruals	44,853	43,700
Accrued and other current liabilities	21,641	19,763
Total current liabilities	94,250	92,232
Deferred income taxes	88,612	89,716
Noncurrent operating lease liabilities	157	194
Total liabilities	183,019	182,142
Stockholders’ equity:
Preferred stock, $.01 par value per share; 2,000,000 shares authorized; no shares issued and outstanding	-	-
Common stock, $.01 par value per share; 192,000,000 shares authorized; 81,589,135 shares at March 31, 2026, and 81,542,174 shares at December 31, 2025, issued and outstanding	816	815
Additional paid-in capital	54,858	54,762
Retained earnings	708,534	712,048
Total stockholders’ equity	764,208	767,625
Total liabilities and stockholders’ equity	$947,227	$949,767

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months
	Ended March 31,
(In thousands, except per share information)	2026	2025
Operating revenue	$203,526	$223,152
Operating expenses (income):
Salaries, wages and benefits	72,119	78,800
Purchased transportation	33,468	37,656
Fuel and fuel taxes	33,907	33,117
Supplies and maintenance	15,128	15,513
Depreciation	25,006	27,470
Operating taxes and licenses	2,245	2,417
Insurance and claims	13,245	13,377
Communications and utilities	2,105	2,279
Gain on disposition of revenue equipment	(1,420)	(1,665)
Other	6,131	8,329
Total operating expenses	201,934	217,293
Operating income	1,592	5,859
Other	(457)	(349)
Income before income taxes	2,049	6,208
Income taxes expense	667	1,873
Net income	$1,382	$4,335
Basic earnings per common share	$0.02	$0.05
Diluted earnings per common share	$0.02	$0.05
Dividends declared per common share	$0.06	$0.06

SEGMENT INFORMATION

(Unaudited)

			Dollar	Percentage
			Change	Change
	Three Months		Three Months	Three Months
	Ended		Ended	Ended
	March 31,		March 31,	March 31,
(Dollars in thousands)	2026	2025	2026 vs. 2025	2026 vs. 2025
Operating revenue:
Truckload revenue, net of fuel surcharge revenue	$89,310	$90,106	$(796)	(0.9)%
Truckload fuel surcharge revenue	16,080	14,285	1,795	12.6
Total Truckload revenue	105,390	104,391	999	1.0
Dedicated revenue, net of fuel surcharge revenue	53,174	62,405	(9,231)	(14.8)
Dedicated fuel surcharge revenue	10,289	11,220	(931)	(8.3)
Total Dedicated revenue	63,463	73,625	(10,162)	(13.8)
Brokerage revenue	34,673	33,019	1,654	5.0
Intermodal revenue, net of fuel surcharge revenue	-	10,268	(10,268)	(100.0)
Intermodal fuel surcharge revenue	-	1,849	(1,849)	(100.0)
Total Intermodal revenue	-	12,117	(12,117)	(100.0)
Total operating revenue	$203,526	$223,152	$(19,626)	(8.8)%
Operating income/(loss):
Truckload	$(944)	$(300)	$(644)	(214.7)%
Dedicated	1,622	4,854	(3,232)	(66.6)
Brokerage	914	2,160	(1,246)	(57.7)
Intermodal	-	(855)	855	100.0
Total operating income	$1,592	$5,859	$(4,267)	(72.8)%
Operating ratio:
Truckload	100.9%	100.3%
Dedicated	97.4	93.4
Brokerage	97.4	93.5
Intermodal	-	107.1
Consolidated operating ratio	99.2%	97.4%
Operating ratio, net of fuel surcharges:
Truckload	101.1%	100.3%
Dedicated	96.9	92.2
Brokerage	97.4	93.5
Intermodal	-	108.3
Consolidated operating ratio, net of fuel surcharges	99.1%	97.0%

OPERATING STATISTICS

(Unaudited)

	Three Months
	Ended March 31,
	2026	2025
Truckload Segment:
Revenue (in thousands)	$105,390	$104,391
Average revenue, net of fuel surcharges, per tractor per week	$4,425	$4,196
Average tractors	1,570	1,670
Average miles per trip	518	537
Non-revenue miles percentage	10.8%	11.2%
Total miles (in thousands)	36,887	38,273
Dedicated Segment:
Revenue (in thousands)	$63,463	$73,625
Average revenue, net of fuel surcharges, per tractor per week	$3,909	$3,846
Average tractors	1,058	1,262
Average miles per trip	298	308
Non-revenue miles percentage	1.3%	1.6%
Total miles (in thousands)	21,905	25,236
Brokerage Segment:
Revenue (in thousands)	$34,673	$33,019
Loads	23,882	20,416
Intermodal Segment:
Revenue (in thousands)	$-	$12,117
Loads	-	3,657
Average tractors	-	77
At March 31, 2026 and March 31, 2025:
Total tractors	2,595	3,040
Average age of company tractors (in years)	2.4	2.0
Total trailers	5,021	5,331
Average age of company trailers (in years)	5.1	5.4
Ratio of trailers to tractors	1.9	1.8
Total refrigerated containers	-	786

	Three Months
	Ended March 31,
(In thousands)	2026	2025
Net cash provided by operating activities	$33,049	$36,215
Net cash used for investing activities	(1,607)	(8,413)
Net cash used for financing activities	(4,934)	(5,164)
Weighted average shares outstanding:
Basic	81,579	81,493
Diluted	81,579	81,508

Includes tractors driven by both company-employed drivers and independent contractors. Independent contractors provided 77 and 82 tractors as of March 31, 2026 and 2025, respectively.
Represents the percentage of miles for which the company is not compensated.