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

Demand and volume trends

• March volumes were up 8%, with continued strength into Q2, especially in the Eastern network.

• Growth in the Eastern network is driven by strong execution and highway-to-rail conversions, while transcontinental volumes were flat in Q1 but may see growth in Q2.

• Customers are not expressing concern about supply chain needs or peak season, indicating a steady but not overheated demand environment.

• Capacity is available to handle potential double-digit volume growth, with rail service described as excellent.

Business segment performance

• Dedicated segment has a strengthening pipeline, with 40 new customers added last year and expectations for fleet and income growth this year.

• JBT and ICS segments have shown four straight quarters of double-digit growth and 10% volume growth in Q1, respectively.

• Dedicated is expected to return to growth this year, targeting 800–1,000 net truck sales annually.

Pricing environment and competitive dynamics

• Intermodal yields ex-fuel were down 2% in Q1, with a current 20% discount to truck in the East, up from 15% in recent weeks.

• Pricing opportunities are expected to improve as the cycle progresses, with the next major cycle in 2027 anticipated to bring both volume and pricing gains.

• The Western market is less influenced by truckload rates, with unique competitive dynamics including all-water and international intermodal competition.

• Head haul pricing is rising first, while back haul remains highly competitive; new incentive programs from competitors have emerged.