J.B. Hunt Transport Services (JBHT) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and strategy

• Focused on building the most efficient transportation network, leveraging people, technology, and operational excellence to drive long-term value for stakeholders.

• Operates across five business units with significant market share in intermodal and dedicated contract services, targeting a $600 billion addressable market.

• Maintains a strong culture with high employee tenure and no mass layoffs during downturns, emphasizing people as a key differentiator.

• Prioritizes disciplined growth, operational excellence, and cost rigor to ensure accretive growth for customers, employees, and shareholders.

• Celebrating 65 years in business, with 31,000 employees across 400 locations in North America.

Market conditions and industry trends

• Market remains fragile with supply-side constraints, including regulatory crackdowns on non-domiciled drivers, trucking schools, and ELD enforcement.

• Significant capacity is exiting the market due to enforcement actions, with estimates of up to 600,000 drivers potentially impacted.

• Legislation such as Dalilah's Law could accelerate capacity reductions, affecting the timing of driver exits.

• Capacity tightening is evident through increased mini-bids, routing guide failures, and repricing activity.

• Cabotage enforcement is reducing available trucks in key regions, further tightening supply.

Growth opportunities and competitive positioning

• Pre-funded growth and investments during the downturn position the company to benefit from a market upturn without needing to retrain staff.

• Dedicated Contract Services remains resilient, maintaining margin targets throughout the recession.

• External surveys rate the company highest in intermodal service, with a Net Promoter Score of 58, far ahead of competitors.

• Significant slack capacity exists in intermodal, with low box turns and additional containers from a Walmart fleet acquisition yet to be fully utilized.

• Incremental growth is expected to drive strong free cash flow, as much of the required investment has already been made.