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

Market and regulatory environment

• Regulatory enforcement and Supreme Court decisions have structurally reduced truckload capacity, with tens of thousands of drivers exiting and further reductions expected through 2027.

• Capacity constraints are compounded by stricter vetting, English proficiency requirements, and barriers for new entrants, making correction more difficult than in past cycles.

• Demand remains solid across customer portfolios, with resilience in both consumer and industrial sectors despite ongoing market changes.

• Spot rates have risen sharply since late 2025, with routing guides failing and widespread network rebids occurring, indicating significant market disruption.

• Industry costs have increased 30%-50% over five years, while rates have lagged, creating a catch-up period for margins and reinvestment.

Business performance and strategy

• Volume is strong across all services, with intermodal seeing record weeks and 7% monthly growth, attributed to operational excellence and market share gains.

• Cost reduction initiatives have achieved a $130 million run rate, supporting margin improvement and structural cost takeout.

• Dedicated business continues double-digit returns, with a robust pipeline targeting 800-1,000 truck growth and benefiting from regulatory changes.

• Intermodal growth is strongest in the East, where the price gap with highway is largest; efforts focus on winning back freight and expanding into shorter hauls.

• Margin improvement targets for intermodal rely on gains from cost, price, and volume, with cost and volume progress ahead of price realization.

Technology and operational outlook

• Autonomous trucks are seen as a long-term opportunity, with near-term benefits expected from integrating safety technology into existing fleets.

• Carrier vetting standards remain stringent, with a 50% reduction in accessible carrier capacity implemented years ago to ensure safety and reliability.

• ICS (brokerage) faces ongoing margin pressure due to rising spot rates and capacity costs, with uncertainty about when market stabilization will occur.

• Capital and capacity have been pre-funded, enabling disciplined pricing and confidence in meeting customer needs as highway-to-intermodal conversions accelerate.