J.B. Hunt Transport Services (JBHT) Baird 2024 Global Industrials Conference summary

Strategic Overview and Business Model

• Operates across five business units with a decentralized structure and leading positions in Intermodal and Dedicated Contract Services.

• Vision centers on creating the most efficient transportation network in North America, driving long-term value for people, customers, and shareholders.

• Emphasizes solutions-based, mode-neutral sales leveraging the proprietary J.B. Hunt 360 technology platform.

• Maintains a large asset base with nearly 23,000 tractors, 170,000 pieces of equipment, and 34,000 employees.

• Executive leadership team has 373 years of combined experience, with several key appointments effective December 2024.

Market Conditions and Industry Analysis

• Navigating the longest and deepest freight recession in decades, with signs of improvement expected by 2025.

• Holds leading positions in large, addressable markets, with a $600B addressable market out of a $1.5T U.S. transportation sector.

• Increasing supply chain complexity is driving demand for engineered, sustainable, and comprehensive solutions.

• Customers are becoming more predictable in their shipping patterns, aiding network efficiency.

• Forward-looking statements highlight ongoing risks and uncertainties, with reference to SEC filings for further details.

Segment Performance and Growth Initiatives

• Intermodal: Largest domestic fleet with over 121,000 containers and 100,000 chassis, aiming for 150,000 containers by 2027; growth in Eastern network and strong West Coast demand.

• Dedicated: Manages over 12,700 trucks and 31,900 trailers, focusing on private fleet conversions, engineering, and technology for efficiency and growth.

• Highway (JBT/ICS): Asset-light, scalable model with access to 400,000+ trucks and 108,000+ carriers, targeting small and mid-sized customers.

• Final Mile: Among the largest in the U.S., offering nationwide delivery, LTL options, and customized solutions; margins remain strong despite soft demand.

• Margin recovery and profitability are expected as the market recovers and as new business matures.