Heartland Express | 10-Q: FY2025 Q3 Revenue Misses Estimate at USD 196.55 M

Revenue: As of FY2025 Q3, the actual value is USD 196.55 M, missing the estimate of USD 209.68 M.

EPS: As of FY2025 Q3, the actual value is USD -0.11, beating the estimate of USD -0.1332.

EBIT: As of FY2025 Q3, the actual value is USD -4.579 M.

Segment Revenue

• Operating revenue for the three months ended September 30, 2025 was $196.5 million, a decrease from $259.9 million for the same period in 2024.
• Operating revenue for the nine months ended September 30, 2025 was $626.4 million, down from $804.9 million for the same period in 2024.

Operational Metrics

• Operating loss for the three months ended September 30, 2025 was $7.3 million, compared to $7.1 million in 2024.
• Operating loss for the nine months ended September 30, 2025 was $34.6 million, compared to $21.3 million in 2024.
• Net loss for the three months ended September 30, 2025 was $8.3 million, compared to $9.3 million in 2024.
• Net loss for the nine months ended September 30, 2025 was $33.0 million, compared to $27.9 million in 2024.

Cash Flow

• Net cash provided by operating activities for the nine months ended September 30, 2025 was $74.4 million, compared to $106.6 million in 2024.
• Net cash used in investing activities for the nine months ended September 30, 2025 was $24.2 million, compared to cash provided by investing activities of $1.5 million in 2024.
• Net cash used in financing activities for the nine months ended September 30, 2025 was $30.9 million, compared to $104.8 million in 2024.

Unique Metrics

• Fuel surcharge revenues for the three months ended September 30, 2025 were $24.1 million, down from $32.8 million in 2024.
• Fuel surcharge revenues for the nine months ended September 30, 2025 were $75.0 million, down from $105.9 million in 2024.

Future Outlook and Strategy

Core Business Focus

• The company plans to continue paying down debt incurred from recent acquisitions while maintaining regular quarterly dividends and funding ongoing capital expenditure needs.
• Heartland Express, Inc. expects to continue evaluating acquisition candidates but does not anticipate significant acquisitions while paying down debt.

Non-Core Business

• The company does not expect material improvements in freight demand until sometime in 2026 and has strategically reduced underperforming lanes of freight and overall fleet size to better align with current demand.

Priority

• The company anticipates net capital expenditures of approximately $27 to $30 million and gains on disposal of property and equipment of $21 to $24 million during the calendar year of 2025.