01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
J.B.
Hunt Transport Services, Inc. (JBHT) reported total operating revenues of $12.09 billiona for 2024, down 5.8% from $12.83 billion in 2023, as lower volume in DCS, ICS and JBT and lower revenue per load in JBI and JBT drove the decline. Fuel surcharge revenues fell 17.4% to $1.53 billion. Operating income declined to $831 million from $993 million, and the operating ratio rose to 93.1% from 92.3%.
Net earnings fell to $570.9 millionb from $728.3 million, and diluted earnings per share were $5.56 versus $6.97 in 2023. Management attributed the decline to lower volumes and rates across segments, higher insurance premiums, and integration costs related to the BNSF Logistics acquisition. Cash flow from operations was $1.48 billion, down from $1.74 billion.
Capital spending was lower, with additions to property and equipment of $865 millionc versus $1.86 billion in 2023. The company repurchased $513.9 million of common stock and paid $175.5 million in dividends. Net cash used in financing activities was $826 million.
At year-end, the company had $280.0 milliond outstanding on its revolving credit line, $500.0 million of term loans, and $700 million of 3.875% senior notes due March 2026, with $882.1 million remaining under its repurchase authorization. The board raised the quarterly dividend from $0.43 to $0.44 per share in January 2025.
The filing reports that management concluded internal control over financial reporting was effective as of December 31, 2024, and PricewaterhouseCoopers LLP issued an unqualified opinion on both the financial statements and internal control. The filing also discloses revisions to the December 31, 2023 balance sheet to correct the classification of claims accruals and insurance receivables, and an error in the deferred tax asset calculation for insurance accruals, which management determined were not material.
02—Key points
Key Highlights
- Total operating revenues fell 5.8% to $12.09 billion in 2024, with fuel surcharge revenues down 17.4% to $1.53 billion.
- Operating income decreased to $831 million from $993 million, and the operating ratio rose to 93.1% from 92.3%.
- Net earnings were $570.9 million, or $5.56 diluted EPS, compared with $728.3 million, or $6.97 diluted EPS, in 2023.
- JBI, the largest segment at $5.96 billion in revenue, saw operating income fall to $430 million from $569 million; ICS posted an operating loss of $56 million.
- Operating cash flow was $1.48 billion versus $1.74 billion, while capital expenditures fell to $865 million from $1.86 billion.
- The company repurchased $513.9 million of stock in 2024 and has $882.1 million remaining under its repurchase authorization.
- The quarterly dividend was increased to $0.44 per share from $0.43, and the company had $47 million of cash at year-end.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $12.09B$12.83B | −5.8% |
| Operating Expenses | $11.26B$11.84B | −4.9% |
| Operating Income | $831.23M$993.20M | −16.3% |
| Interest Expense | $79.02M$65.93M | +19.8% |
| Net Income | $570.89M$728.29M | −21.6% |
| EPS (Basic) | $5.60$7.04 | −20.5% |
| EPS (Diluted) | $5.56$6.97 | −20.2% |
| Shares Outstanding (Basic) | 101.95M103.44M | −1.4% |
| Shares Outstanding (Diluted) | 102.75M104.45M | −1.6% |
05—Questions
Frequently Asked Questions
Why did JBHT's revenue and earnings decline in 2024?
Total operating revenues decreased 5.8% to $12.09 billion, primarily due to lower volume within DCS, ICS and JBT, decreased revenue per load within JBI and JBT, and decreased revenue and stop counts in FMS. Operating expenses fell 4.9%, but not enough to offset the revenue decline, so operating income dropped to $831 million.
How did the segments perform?
JBI revenue fell 4% to $5.96 billion and operating income fell to $430 million from $569 million. DCS revenue fell 4% to $3.40 billion with operating income of $376 million, down from $405 million. ICS revenue fell 18% to $1.14 billion and posted a $56 million operating loss, partly due to $26 million of BNSFL integration-related impairments and accelerated amortization. FMS operating income rose to $60 million, and JBT operating income rose to $21 million.
How strong is the company's liquidity and balance sheet?
At December 31, 2024, the company had $47 million of cash, $280.0 million outstanding on its $1.0 billion revolving line of credit, and $500.0 million of term loans at an average rate of 5.48%. The $700 million of 3.875% senior notes mature in March 2026. Management stated that liquid assets, operating cash flow and the revolver are expected to provide sufficient funds for the foreseeable future, and the company was in compliance with all covenants.
How is the company returning capital to shareholders?
In 2024, JBHT purchased approximately 3,040,000 shares for $513.9 million and paid $175.5 million in dividends. The board authorized up to $1 billion of repurchases in August 2024, with $882.1 million remaining. In January 2025 the quarterly dividend was raised to $0.44 per share from $0.43, paid February 21, 2025.
Did the company identify any accounting errors or internal control issues?
The company revised its December 31, 2023 balance sheet to correct the classification of $326.9 million of claims accruals and $173.6 million of insurance receivables, and to correct a $49.9 million deferred tax asset calculation for insurance accruals. Management determined these errors were not material. Management concluded internal control over financial reporting was effective as of December 31, 2024, and PricewaterhouseCoopers LLP provided an unqualified opinion on it.
06—Continue