J.B. Hunt Transport Services (JBHT) investor relations material

Executive summary

• First quarter 2026 revenue rose 5% year-over-year to $3.06 billion, with net earnings up 20% to $141.6 million and diluted EPS up 27% to $1.49 per share, driven by higher load volumes, improved productivity, and disciplined execution.

• Operating income increased 16% to $207.0 million, with margin improvement and cost elimination initiatives supporting growth.

• All business segments except Final Mile Services posted revenue growth; FMS saw a 6% decline due to lost business and demand stabilization.

• Strong operational execution and market share gains achieved despite challenging weather and dynamic demand.

• Focused on long-term value creation through investments in people, technology, and capacity.

Financial highlights

• Operating margin improved to 6.8% from 6.1% year-over-year; net margin increased to 4.6% from 4.0%.

• Net cash provided by operating activities was $353.0 million; net capital expenditures were $70.7 million, down significantly year-over-year.

• Over $30 million in structural costs eliminated in the quarter, progressing toward a $100 million annual target.

• Effective income tax rate decreased to 25.2% from 26.5% year-over-year.

• Net interest expense decreased 4% due to lower debt and interest rates.

Outlook and guidance

• Annual effective tax rate for 2026 expected between 24.0% and 25.0%.

• Net capital expenditures for 2026 projected in the range of $600 million to $800 million.

• Management expects sufficient liquidity from operations and credit facilities for foreseeable needs.

• Anticipate further margin restoration as pricing improves and cost initiatives continue.

• Continued benefit expected from investments in technology and capacity, especially in intermodal.