HTLD

NORTH LIBERTY, Iowa, Oct. 20, 2026 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three and nine months ended September 30, 2026. Three months ended September 30, 2026: - Operating Revenue of $179.5 million, - Net Income of $1.0 million, - Basic Earnings per Share of $0.01, - Operating Ratio of 98.7% (a 500bp improvement to Q3 2025) and 97.6% Non-GAAP Adjusted Operating Ratio(1), - Purchased 183,371 shares of our common stock for $2.2 million, - Payments of $35 million to reduce outstanding acquisition-related debt, - Total Assets of $1.1 billion, including $48.5 million of Cash, - Stockholders' Equity of $754.1 million. Nine months ended September 30, 2026: - Operating Revenue of $539.9 million, - Net Income of $6.7 million, - Basic Earnings per Share of $0.09, - Operating Ratio of 97.1% and 95.7% Non-GAAP Adjusted Operating Ratio(1), - Purchased 355,432 shares of our common stock for $4.6 million, - Smith Transport debt and equipment leases eliminated, - Payments of $59.9 million to reduce outstanding debt and finance lease obligations. Acquisition-related debt and finance lease obligations reduced from $494.1 million in 2022 to $99.9 million. Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three months ended September 30, 2026, reflect significant operating ratio improvement (98.7%) as compared to the third quarter of 2025 (103.7%). The improved financial results reflect stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions, even though we do not expect the positive impacts of ongoing contract negotiations to be fully reflected in our operating results until 2027. During the third quarter of 2026, we continued to pay down acquisition-related debt and repurchase shares of our common stock. Our operating expenses were significantly impacted by rising fuel costs throughout the quarter, along with inflationary impacts to maintenance, repairs, and other employee-related costs. We expect to rely on our positive cash flows from operations to invest in our fleet of tractors and trailers over the remainder of the year. This allows us to continue our commitment to our professional drivers and our customers, to provide the latest and most efficient equipment throughout our operating fleet for their benefit." Financial Results For the three months ended September 30, 2026, the Company delivered operating revenues of $179.5 million, compared to $196.5 million in the same period of 2025. Operating revenues for the quarter included fuel surcharge revenues of $32.7 million, compared to $24.1 million in the same period of 2025. Net income was $1.0 million, as compared to a net loss of ($8.3) million in the third quarter of 2025. Basic earnings per share was $0.01 during the quarter, as compared to basic loss per share of $(0.11) in the same period of 2025. The Company posted an operating ratio of 98.7%, non-GAAP adjusted operating ratio(1) of 97.6%, and net income as a percentage of operating revenues of 0.5% in the third quarter of 2026 compared to 103.7%, 103.5%, and (4.2)% (net loss as a percentage of operating revenues) respectively, in the third quarter of 2025. For the nine months ended September 30, 2026, the Company delivered operating revenues of $539.9 million, compared to $626.4 million in the same period of 2025. Operating revenues for the period included fuel surcharge revenues of $86.9 million, compared to $75.0 million in the same period of 2025. Operating income for the nine-month period ended September 30, 2026 was $15.6 million, compared to an operating loss of $(34.6) million in the same period of the prior year, an improvement of $50.2 million. Net income was $6.7 million, compared to net loss of $(33.0) million in the same period of the prior year. Basic earnings per share was $0.09 during the nine-month period as compared to $(0.42) basic loss per share during the same period of 2025. The Company posted an operating ratio of 97.1%, non-GAAP adjusted operating ratio(1) of 95.7%, and net income as a percentage of operating revenues of 1.2% for the nine months ended September 30, 2026 compared to 105.5%, 105.6%, and (5.3)% (net loss as a percentage of operating revenues) respectively, in the same period of the prior year. Balance Sheet, Liquidity, and Capital Expenditures As of September 30, 2026, the Company had $48.5 million in cash balances, an increase of $30.0 million since December 31, 2025. Debt of $99.9 million remains at September 30, 2026, down from total combined debt and finance lease obligations of $494.1 million related to the Smith Transport and Contract Freighters, Inc. acquisitions in 2022. These reductions occurred during very challenging truckload operating conditions during the same period. The acquisition-related debt and finance lease obligations of Smith Transport were fully retired in the first three months of 2026. There were no borrowings under the Company's unsecured line of credit at September 30, 2026. The Company had $88.8 million in available borrowing capacity on the line of credit as of September 30, 2026 after consideration of $11.2 million of outstanding letters of credit. The Company continues to be in compliance with associated financial covenants. The Company ended the quarter with total assets of $1.1 billion and stockholders' equity of $754.1 million. Net cash flows from operations for the first nine months of 2026 were $55.1 million or 10.2% of operating revenue. The primary uses of cash for financing activities were $59.9 million used for repayment of debt and financing leases along with $4.6 million for dividends paid and $4.6 million for repurchases of common stock. Cash provided by investing activities included $44.7 million from net property and equipment transactions. The average age of the Company's consolidated tractor fleet was 2.3 years as of September 30, 2026 compared to 2.6 years as of September 30, 2025. The average age of the Company's consolidated trailer fleet was 7.1 years as of September 30, 2026 compared to 7.5 years as of September 30, 2025. We expect to continue to dispose of excess trailers within our fleet as used equipment market conditions improve. For the remainder of 2026, we currently expect total net capital expenditures to be approximately $2 to $5 million and $9 to $13 million of total gains on disposal of property and equipment. The Company continues its commitment to stockholders through the payment of cash dividends. Our regular dividend of $0.02 per share was declared during the third quarter of 2026 and paid on October 7, 2026. The Company has now paid cumulative cash dividends of $566.1 million, including four special dividends, ($2.00 in 2007, $1.00 in 2010, $1.00 in 2012, and $0.50 in 2021) over the past ninety-three consecutive quarters since 2003. Our outstanding shares at September 30, 2026 were 77.2 million. A total of 2.2 million shares of common stock have been repurchased for $22.9 million over the past five years. The Company has the ability to repurchase an additional 4.5 million shares under the current authorization which would result in 72.7 million outstanding shares if fully executed. Other Information During the third quarter of 2026, our family of operating brands continued to deliver award-winning service as Heartland Express was recognized with the FedEx Yearly Performer award for outstanding performance and received Logistics Management Magazine's 2026 Quest for Quality Award within the Expedited Motor Carriers classification. Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are non-GAAP financial measures and are not intended to replace financial measures calculated in accordance with GAAP. These non-GAAP financial measures supplement our GAAP results. We believe that using these measures affords a more consistent basis for comparing our results of operations from period to period. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP, is included in the table at the end of this press release. This press release may contain statements that might be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "seek," "expects," "estimates," "anticipates," "projects," "believes," "hopes," "plans," "goals," "intends," "may," "might," "likely," "will," "should," "would," "could," "potential," "predict," "continue," "strategy," "future," "ensure," "outlook," and similar terms and phrases. In this press release, the statements relating to freight supply and demand, our ability to react to and capitalize on changing market conditions, the expected impact of operational improvements and strategic changes, progress toward our goals, future capital expenditures, future dispositions of revenue equipment and property and gains therefrom, future profitability, and future stock repurchases, dividends, and debt repayment are forward-looking statements. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties, and undue reliance should not be placed on such statements. Actual events may differ materially from those set forth in, contemplated by, or underlying such statements as a result of numerous factors, including, without limitation, those specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. The Company assumes no obligation to update any forward-looking statements, which speak as of their respective dates. Contact: Heartland Express, Inc. (319-645-7060) Mike Gerdin, Chief Executive Officer Chris Strain, Chief Financial Officer HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (unaudited) | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | OPERATING REVENUE | | $ | 179,504 | | | $ | 196,547 | | | $ | 539,887 | | | $ | 626,354 | | | | | | | | | OPERATING EXPENSES: | | | | | | | | Salaries, wages, and benefits | | $ | 65,894 | | | $ | 77,253 | | | $ | 204,123 | | | $ | 257,649 | Rent and purchased transportation | | | 9,284 | | | | 12,303 | | | | 30,540 | | | | 39,920 | Fuel | | | 43,236 | | | | 34,081 | | | | 116,523 | | | | 105,708 | Operations and maintenance | | | 12,261 | | | | 15,367 | | | | 36,910 | | | | 50,085 | Operating taxes and licenses | | | 3,759 | | | | 4,241 | | | | 11,476 | | | | 13,404 | Insurance and claims | | | 9,329 | | | | 15,342 | | | | 33,891 | | | | 41,419 | Communications and utilities | | | 1,956 | | | | 2,187 | | | | 5,530 | | | | 6,658 | Depreciation and amortization | | | 30,963 | | | | 38,742 | | | | 98,426 | | | | 121,833 | Other operating expenses | | | 8,357 | | | | 10,971 | | | | 27,116 | | | | 35,501 | Gain on disposal of property and equipment | | | (7,832 | ) | | | (6,688 | ) | | | (40,199 | ) | | | (11,254 | ) | | | | | | | | | | | 177,207 | | | | 203,799 | | | | 524,336 | | | | 660,923 | | | | | | | | | Operating income (loss) | | | 2,297 | | | | (7,252 | ) | | | 15,551 | | | | (34,569 | ) | | | | | | | | Interest income | | | 490 | | | | 235 | | | | 1,067 | | | | 561 | Interest expense | | | (1,589 | ) | | | (2,908 | ) | | | (5,677 | ) | | | (8,974 | ) | | | | | | | | Income (loss) before income taxes | | | 1,198 | | | | (9,925 | ) | | | 10,941 | | | | (42,982 | ) | | | | | | | | Federal and state income tax (benefit) | | | 239 | | | | (1,641 | ) | | | 4,221 | | | | (9,971 | ) | | | | | | | | Net Income (loss) | | $ | 959 | | | $ | (8,284 | ) | | $ | 6,720 | | | $ | (33,011 | ) | | | | | | | | Income (loss) per share | | | | | | | | Basic | | $ | 0.01 | | | $ | (0.11 | ) | | $ | 0.09 | | | $ | (0.42 | ) Diluted | | $ | 0.01 | | | $ | (0.11 | ) | | $ | 0.09 | | | $ | (0.42 | ) | | | | | | | | Weighted average shares outstanding | | | | | | | | Basic | | | 77,317 | | | | 77,465 | | | | 77,392 | | | | 78,024 | Diluted | | | 77,392 | | | | 77,518 | | | | 77,427 | | | | 78,086 | | | | | | | | | Dividends declared per share | | $ | 0.02 | | | $ | 0.02 | | | $ | 0.06 | | | $ | 0.06 | HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) | | September 30, | | December 31, ASSETS | | | 2026 | | | | 2025 | CURRENT ASSETS | | | | Cash and cash equivalents | | $ | 48,503 | | | $ | 18,475 | Trade receivables, net | | | 75,530 | | | | 74,172 | Prepaid tires | | | 11,103 | | | | 11,626 | Other current assets | | | 18,678 | | | | 9,181 | Income taxes receivable | | | — | | | | 1,146 | Total current assets | | | 153,814 | | | | 114,600 | | | | | PROPERTY AND EQUIPMENT | | | 962,225 | | | | 1,148,693 | Less accumulated depreciation | | | 411,637 | | | | 481,471 | | | | 550,588 | | | | 667,222 | GOODWILL | | | 322,597 | | | | 322,597 | OTHER INTANGIBLES, NET | | | 65,749 | | | | 69,512 | OTHER ASSETS | | | 14,772 | | | | 14,686 | DEFERRED INCOME TAXES, NET | | | 1,186 | | | | 1,353 | OPERATING LEASE RIGHT OF USE ASSETS | | | 14,291 | | | | 1,647 | | | $ | 1,122,997 | | | $ | 1,191,617 | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | CURRENT LIABILITIES | | | | Accounts payable and accrued liabilities | | $ | 27,578 | | | $ | 33,479 | Compensation and benefits | | | 24,346 | | | | 25,061 | Insurance accruals | | | 29,579 | | | | 31,437 | Long-term debt and finance lease liabilities - current portion | | | 99,890 | | | | 5,714 | Operating lease liabilities - current portion | | | 3,287 | | | | 1,330 | Other accruals | | | 13,190 | | | | 13,143 | Income taxes payable | | | 2,972 | | | | — | Total current liabilities | | | 200,842 | | | | 110,164 | LONG-TERM LIABILITIES | | | | Income taxes payable | | | 5,906 | | | | 5,427 | Long-term debt and finance lease liabilities less current portion | | | — | | | | 154,059 | Operating lease liabilities less current portion | | | 11,004 | | | | 317 | Deferred income taxes, net | | | 120,738 | | | | 133,629 | Insurance accruals less current portion | | | 30,410 | | | | 32,702 | Total long-term liabilities | | | 168,058 | | | | 326,134 | COMMITMENTS AND CONTINGENCIES | | | | | | | | STOCKHOLDERS' EQUITY | | | | Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2026 and 2025; outstanding 77,203 and 77,445 in 2026 and 2025, respectively | | | 907 | | | | 907 | Additional paid-in capital | | | 2,197 | | | | 2,979 | Retained earnings | | | 967,484 | | | | 965,405 | Treasury stock, at cost; 13,486 and 13,244 in 2026 and 2025, respectively | | | (216,491 | ) | | | (213,972 | ) | | | 754,097 | | | | 755,319 | | | $ | 1,122,997 | | | $ | 1,191,617 | (1) GAAP to Non-GAAP Reconciliation Schedule: | | | | Operating revenue excluding fuel surcharge revenue, adjusted operating expenses, adjusted operating income (loss), and adjusted operating ratio reconciliation (a) | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | 2026 | | | | 2025 | | | | 2026 | | | | 2025 | | | (Unaudited, in thousands) | | (Unaudited, in thousands) | | | | | | | | Operating revenue | | $ | 179,504 | | | $ | 196,547 | | | $ | 539,887 | | | $ | 626,354 | Less: Fuel surcharge revenue | | | 32,723 | | | | 24,122 | | | | 86,909 | | | | 74,952 | Operating revenue, excluding fuel surcharge revenue | | | 146,781 | | | | 172,425 | | | | 452,978 | | | | 551,402 | | | | | | | | | Operating expenses | | | 177,207 | | | | 203,799 | | | | 524,336 | | | | 660,923 | Less: Fuel surcharge revenue | | | 32,723 | | | | 24,122 | | | | 86,909 | | | | 74,952 | Less: Amortization of intangibles | | | 1,254 | | | | 1,254 | | | | 3,763 | | | | 3,763 | Adjusted operating expenses | | | 143,230 | | | | 178,423 | | | | 433,664 | | | | 582,208 | | | | | | | | | Operating income (loss) | | | 2,297 | | | | (7,252 | ) | | | 15,551 | | | | (34,569 | ) Adjusted operating income (loss) | | $ | 3,551 | | | $ | (5,998 | ) | | $ | 19,314 | | | $ | (30,806 | ) | | | | | | | | Operating ratio | | | 98.7 | % | | | 103.7 | % | | | 97.1 | % | | | 105.5 | % Adjusted operating ratio | | | 97.6 | % | | | 103.5 | % | | | 95.7 | % | | | 105.6 | % | | | | | | | | | | | | | | | | (a) Operating revenue excluding fuel surcharge revenue, as reported in this press release is based upon operating revenue minus fuel surcharge revenue. Adjusted operating income (loss) as reported in this press release is based upon operating revenue excluding fuel surcharge revenue, less operating expenses, net of fuel surcharge revenue, and non-cash amortization expense related to intangible assets. Adjusted operating ratio as reported in this press release is based upon operating expenses, net of fuel surcharge revenue, and amortization of intangibles, as a percentage of operating revenue excluding fuel surcharge revenue. We believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are more representative of our underlying operations by excluding the volatility of fuel prices, which we cannot control. Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are not substitutes for operating revenue, operating income (loss), or operating ratio measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio improve comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry if those companies define such measures differently. Because of these limitations, operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

Truckload carrier Heartland Express booked its first net profit since 2023 without the help of outsized gains from equipment and terminal sales. The North Liberty, Iowa-based company reported third-quarter revenue of $179.5 million, a 9% year-over-year decline and below the $191.4 million consensus estimate. (Revenue was 15% lower y/y, excluding fuel surcharges.) Net income of $1 million (1 cent per share) was a turnaround from an $8.3 million loss (11 cents per share) in the year-ago quarter. Analysts were calling for EPS of 3 cents in the period. (Higher gains on sale were a 1-cent y/y EPS tailwind.) "The improved financial results reflect stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions, even though we do not expect the positive impacts of ongoing contract negotiations to be fully reflected in our operating results until 2027," said CEO Mike Gerdin in a news release. Heartland (NASDAQ: HTLD) does not host a quarterly call, nor does it provide operating metrics for utilization and pricing. The company booked a 97.6% adjusted operating ratio (operating expenses expressed as a percentage of revenue), which was 590 basis points better y/y. It called out cost pressures such as fuel, maintenance and repairs, and employee-related expenses during the period. Operating cash flows totaled $55 million for the first nine months of 2026. The company continues to replace equipment, pay a cash dividend and repurchase stock. An average tractor age of 2.3 years was down from 2.6 years in the year-ago quarter. Heartland has nearly paid off its debt since leveraging up to acquire a pair of carriers in the summer of 2022. During the third quarter, it reduced net debt by $21 million to $73 million. It ended the period with $89 million available on an untapped revolving credit facility and was in compliance with financial covenants. Shares of HTLD were off 0.6% at 12:08 p.m. EDT on Tuesday compared to the S&P 500, which was up 0.4%. Why it matters? Heartland's return to profitability through stronger freight volumes and improved pricing rather than asset sales signals that capacity reductions are successfully restoring core operating fundamentals. More FreightWaves articles by Todd Maiden: - Werner Enterprises issues Q3 profit warning - J.B. Hunt experiences growing pains in Q3 - LTL rates hit new high in Q3, moving higher in Q4 The post Heartland Express sees earnings turnaround in Q3 appeared first on FreightWaves.

Heartland Express has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 13% to $12.55 per share while the index has gained 11.6%. Is now the time to buy Heartland Express, or should you be careful about including it in your portfolio? See what our analysts have to say in our full research report, it’s free. We don’t have much confidence in Heartland Express. Here are three reasons we avoid HTLD, plus one stock we’d rather own. A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Heartland Express’s 3.3% annualized revenue growth over the last five years was sluggish. This fell short of our benchmark for the industrials sector. Free cash flow isn’t a prominently featured metric in company financials and earnings releases, but we think it’s telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Heartland Express’s margin dropped by 14.5 percentage points over the last five years. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal it is in the middle of an investment cycle. Heartland Express’s free cash flow margin for the trailing 12 months was 14.8%. A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity). Over the last few years, Heartland Express’s ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. We see the value of companies helping their customers, but in the case of Heartland Express, we’re out. That said, the stock currently trades at 50.9× forward P/E (or $12.55 per share). This valuation tells us it’s a bit of a market darling with a lot of good news priced in - we think other companies feature superior fundamentals at the moment. We’d suggest looking at a safe-and-steady industrials business benefiting from an upgrade cycle. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Freight delivery company Heartland Express (NASDAQ:HTLD) missed Wall Street’s revenue expectations in Q2 CY2026, with sales falling 12.5% year on year to $184.1 million. Its non-GAAP profit of $0.14 per share was significantly above analysts’ consensus estimates. Is now the time to buy Heartland Express? Find out in our full research report. Revenue: $184.1 million vs analyst estimates of $188.3 million (12.5% year-on-year decline, 2.2% miss) Adjusted EPS: $0.14 vs analyst estimates of -$0.01 (significant beat) Operating Margin: 9%, up from -5.9% in the same quarter last year Market Capitalization: $1.01 billion Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three months ended June 30, 2026, reflect significant operating ratio improvement (91.0%) as compared to the second quarter of 2025 (105.9%) and sequential non-GAAP adjusted operating ratio(1) improvement in each quarter since the first quarter of 2025. We are pleased with our operational improvements and profitability as we continue toward our foundational goal of an operating ratio of 85.0% or lower and return to a debt-free balance sheet. The improved financial results delivered reflect stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions along with reduced operating costs and strategic disposals of under-utilized assets. We expect to rely on our positive cash flows from operations to make a significant investment in our fleet of tractors and trailers over the remainder of the year along with additional reductions of the remaining acquisition-related debt." Founded by the son of a trucker, Heartland Express (NASDAQ:HTLD) offers full-truckload deliveries across the United States and Mexico. A company’s long-term sales performance is one signal of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Heartland Express’s sales grew at a sluggish 3.3% compounded annual growth rate over the last five years. This was below our standard for the industrials sector and is a rough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Heartland Express’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 18.8% annually. This quarter, Heartland Express missed Wall Street’s estimates and reported a rather uninspiring 12.5% year-on-year revenue decline, generating $184.1 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 2.8% over the next 12 months. While this projection suggests its newer products and services will catalyze better top-line performance, it is still below average for the sector. ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Heartland Express was profitable over the last five years but held back by its large cost base. Its average operating margin of 4.8% was weak for an industrials business. This result isn’t too surprising given its low gross margin as a starting point. Looking at the trend in its profitability, Heartland Express’s operating margin decreased by 31.5 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Heartland Express’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. This quarter, Heartland Express generated an operating margin profit margin of 9%, up 14.9 percentage points year on year. The increase was solid, especially since its revenue fell, showing it was more efficient because it scaled down its expenses. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. Sadly for Heartland Express, its EPS declined by 16% annually over the last five years while its revenue grew by 3.3%. This tells us the company became less profitable on a per-share basis as it expanded due to non-fundamental factors such as interest expenses and taxes. Diving into the nuances of Heartland Express’s earnings can give us a better understanding of its performance. As we mentioned earlier, Heartland Express’s operating margin expanded this quarter but declined by 31.5 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Heartland Express, its two-year annual EPS growth of 45.7% was higher than its five-year trend. Its improving earnings are an encouraging data point, but a caveat is that its EPS is still in the red. In Q2, Heartland Express reported adjusted EPS of $0.14, up from negative $0.14 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street is optimistic. Analysts forecast Heartland Express’s full-year EPS will flip from negative $0.09 to positive $0.22. It was good to see Heartland Express beat analysts’ EPS expectations this quarter. On the other hand, its revenue missed. Overall, this quarter could have been better. The stock closed down 2% today. Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

NORTH LIBERTY, Iowa, July 30, 2026 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three and six months ended June 30, 2026. Three months ended June 30, 2026: Operating Revenue of $184.1 million, Net Income of $10.6 million, Basic Earnings per Share of $0.14, Operating Ratio of 91.0% (a 1,490bp improvement to Q2 2025) and 88.3% Non-GAAP Adjusted Operating Ratio(1), Purchased 172,061 shares of our common stock for $2.3 million, Payments of $15 million to reduce outstanding acquisition-related debt, Total Assets of $1.2 billion, including $62.4 million of Cash, Stockholders' Equity of $756.3 million. Six months ended June 30, 2026: Operating Revenue of $360.4 million, Net Income of $5.8 million, Basic Earnings per Share of $0.07, Operating Ratio of 96.3% and 94.9% Non-GAAP Adjusted Operating Ratio(1), Smith Transport debt and equipment leases eliminated, Payments of $25 million to reduce outstanding debt and finance lease obligations. Acquisition-related debt and finance lease obligations reduced from $494 million in 2022 to $135 million. Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three months ended June 30, 2026, reflect significant operating ratio improvement (91.0%) as compared to the second quarter of 2025 (105.9%) and sequential non-GAAP adjusted operating ratio(1) improvement in each quarter since the first quarter of 2025. We are pleased with our operational improvements and profitability as we continue toward our foundational goal of an operating ratio of 85.0% or lower and return to a debt-free balance sheet. The improved financial results delivered reflect stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions along with reduced operating costs and strategic disposals of under-utilized assets. We expect to rely on our positive cash flows from operations to make a significant investment in our fleet of tractors and trailers over the remainder of the year along with additional reductions of the remaining acquisition-related debt." Financial Results For the three months ended June 30, 2026, the Company delivered operating revenues of $184.1 million, compared to $210.4 million in the same period of 2025. Operating revenues for the quarter included fuel surcharge revenues of $31.7 million, compared to $24.5 million in the same period of 2025. Net income was $10.6 million, as compared to a net loss of ($10.9) million in the second quarter of 2025. Basic earnings per share was $0.14 during the quarter, as compared to basic loss per share of $(0.14) in the same period of 2025. The Company posted an operating ratio of 91.0%, non-GAAP adjusted operating ratio(1) of 88.3%, and net income as a percentage of operating revenues of 5.7% in the second quarter of 2026 compared to 105.9%, 106.0%, and (5.2)% (net loss as a percentage of operating revenues) respectively, in the second quarter of 2025. For the six months ended June 30, 2026, the Company delivered operating revenues of $360.4 million, compared to $429.8 million in the same period of 2025. Operating revenues for the period included fuel surcharge revenues of $54.2 million, compared to $50.8 million in the same period of 2025. Operating income for the six-month period ended June 30, 2026 was $13.3 million, compared to an operating loss of $(27.3) million in the same period of the prior year. Net income was $5.8 million, compared to net loss of $(24.7) million in the same period of the prior year. Basic earnings per share was $0.07 during the six-month period as compared to $(0.32) basic loss per share during the same period of 2025. The Company posted an operating ratio of 96.3%, non-GAAP adjusted operating ratio(1) of 94.9%, and net income as a percentage of operating revenues of 1.6% for the six months ended June 30, 2026 compared to 106.4%, 106.5%, and (5.8)% (net loss as a percentage of operating revenues) respectively, in the same period of the prior year. Balance Sheet, Liquidity, and Capital Expenditures As of June 30, 2026, the Company had $62.4 million in cash balances, an increase of $43.9 million since December 31, 2025. Debt of $134.9 million remains at June 30, 2026, down from the initial $447.3 million of borrowings less associated fees for the CFI acquisition in August 2022 along with $46.8 million debt and finance lease obligations assumed from the Smith acquisition in May 2022. The acquisition-related debt and finance lease obligations of Smith Transport were fully retired in the first three months of 2026. There were no borrowings under the Company's unsecured line of credit at June 30, 2026. The Company had $88.8 million in available borrowing capacity on the line of credit as of June 30, 2026 after consideration of $11.2 million of outstanding letters of credit. The Company continues to be in compliance with associated financial covenants. The Company ended the quarter with total assets of $1.2 billion and stockholders' equity of $756.3 million. Net cash flows from operations for the first six months of 2026 were $36.0 million or 10.0% of operating revenue. The primary uses of cash for financing activities were $25 million used for repayment of debt and financing leases along with $3.1 million for dividends paid and $2.3 million for repurchases of common stock. Cash provided by investing activities included $39.2 million from net property and equipment transactions. The average age of the Company's consolidated tractor fleet was 2.3 years as of June 30, 2026 compared 2.6 years as of June 30, 2025. The average age of the Company's consolidated trailer fleet was 7.1 years as of June 30, 2026 compared to 7.5 years as of June 30, 2025. We expect to continue to dispose of excess trailers within our fleet as used equipment market conditions improve. For the remainder of 2026, we currently expect net capital expenditures to be approximately $8 to $14 million and $13 to $19 million of gains on disposal of property and equipment. The Company continues its commitment to stockholders through the payment of cash dividends. Our regular dividend of $0.02 per share was declared during the second quarter of 2026 and paid on July 6, 2026. The Company has now paid cumulative cash dividends of $564.5 million, including four special dividends, ($2.00 in 2007, $1.00 in 2010, $1.00 in 2012, and $0.50 in 2021) over the past ninety-two consecutive quarters since 2003. Our outstanding shares at June 30, 2026 were 77.3 million. A total of 3.0 million shares of common stock have been repurchased for $37.0 million over the past five years. The Company has the ability to repurchase an additional 4.7 million shares under the current authorization which would result in 72.7 million outstanding shares if fully executed. Other Information During the second quarter of 2026, our family of operating brands continued to deliver award-winning service and earn corporate trust as Millis Transfer was recognized by Newsweek as one of America's Greatest Midsize Workplaces for Culture, Belonging & Community in 2026. Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are non-GAAP financial measures and are not intended to replace financial measures calculated in accordance with GAAP. These non-GAAP financial measures supplement our GAAP results. We believe that using these measures affords a more consistent basis for comparing our results of operations from period to period. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP, is included in the table at the end of this press release. This press release may contain statements that might be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “seek,” “expects,” “estimates,” “anticipates,” “projects,” “believes,” “hopes,” “plans,” “goals,” “intends,” “may,” “might,” “likely,” “will,” “should,” “would,” “could,” “potential,” “predict,” “continue,” “strategy,” “future,” “ensure,” “outlook,” and similar terms and phrases. In this press release, the statements relating to freight supply and demand, our ability to react to and capitalize on changing market conditions, the expected impact of operational improvements and strategic changes, progress toward our goals, future capital expenditures, future dispositions of revenue equipment and property and gains therefrom, future profitability, and future stock repurchases, dividends, and debt repayment are forward-looking statements. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties, and undue reliance should not be placed on such statements. Actual events may differ materially from those set forth in, contemplated by, or underlying such statements as a result of numerous factors, including, without limitation, those specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. The Company assumes no obligation to update any forward-looking statements, which speak as of their respective dates. (a) Operating revenue excluding fuel surcharge revenue, as reported in this press release is based upon operating revenue minus fuel surcharge revenue. Adjusted operating income (loss) as reported in this press release is based upon operating revenue excluding fuel surcharge revenue, less operating expenses, net of fuel surcharge revenue, and non-cash amortization expense related to intangible assets. Adjusted operating ratio as reported in this press release is based upon operating expenses, net of fuel surcharge revenue, and amortization of intangibles, as a percentage of operating revenue excluding fuel surcharge revenue. We believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are more representative of our underlying operations by excluding the volatility of fuel prices, which we cannot control. Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are not substitutes for operating revenue, operating income (loss), or operating ratio measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio improve comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry if those companies define such measures differently. Because of these limitations, operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.

ArcBest (ARCB) came out with quarterly earnings of $2.38 per share, beating the Zacks Consensus Estimate of $2.3 per share. This compares to earnings of $1.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.48%. A quarter ago, it was expected that this freight transportation and logistics company would post earnings of $0.27 per share when it actually produced earnings of $0.32, delivering a surprise of +18.52%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. ArcBest, which belongs to the Zacks Transportation - Truck industry, posted revenues of $1.18 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.79%. This compares to year-ago revenues of $1.02 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ArcBest shares have added about 101.5% since the beginning of the year versus the S&P 500's gain of 8.5%. While ArcBest has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ArcBest was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.34 on $1.2 billion in revenues for the coming quarter and $6.62 on $4.51 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Truck is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Heartland Express (HTLD), is yet to report results for the quarter ended June 2026. This trucking and logistics company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has been revised 137.5% higher over the last 30 days to the current level. Heartland Express' revenues are expected to be $189.59 million, down 9.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcBest Corporation (ARCB) : Free Stock Analysis Report Heartland Express, Inc. (HTLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research