J.B. Hunt Transport Services, Inc. (JBHT) Bundle
A Brief History of J.B. Hunt Transport Services, Inc.
J.B. Hunt Transport Services, Inc. (JBHT) is a leading transportation and logistics company based in the United States, known for its innovative approach to freight transportation. As of 2024, JBHT operates through five main business segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT).
Financial Performance Overview
In the first nine months of 2024, JBHT reported total operating revenues of $8.94 billion, a decrease of 6% from $9.53 billion during the same period in 2023. The operating income for this period was $624.2 million, down from $789.9 million in 2023. The following table summarizes the operating results for each segment:
| Segment | Operating Revenues (2024) | Operating Income (2024) | Operating Revenues (2023) | Operating Income (2023) |
|---|---|---|---|---|
| Intermodal (JBI) | $4.36 billion | $312.9 million | $4.58 billion | $439.5 million |
| Dedicated Contract Services (DCS) | $2.56 billion | $285.6 million | $2.66 billion | $318.6 million |
| Integrated Capacity Solutions (ICS) | $834 million | ($34.1 million) | $1.03 billion | ($19.2 million) |
| Final Mile Services (FMS) | $683 million | $46.9 million | $675 million | $34.4 million |
| Truckload (JBT) | $519 million | $12.9 million | $594 million | $16.5 million |
| Total | $8.94 billion | $624.2 million | $9.53 billion | $789.9 million |
Segment Analysis
The JBI segment experienced a 5% decrease in revenue to $4.36 billion in 2024, with a corresponding 29% drop in operating income to $312.9 million. This decline was attributed to higher driver wages and increased maintenance costs.
The DCS segment also reported a 4% decrease in revenue to $2.56 billion, with operating income falling to $285.6 million. The productivity, defined as revenue per truck per week, decreased by 2%.
In contrast, the FMS segment saw a slight revenue increase of 1% to $683 million and a notable rise in operating income to $46.9 million, benefiting from new customer contracts.
Cost Structure and Expenses
In terms of expenses, total operating expenses for the first nine months of 2024 were $8.32 billion, a 4.8% decrease compared to $8.73 billion in 2023. The breakdown of operating expenses is as follows:
| Expense Category | 2024 Amount | 2023 Amount | Percentage Change |
|---|---|---|---|
| Rents and Purchased Transportation | $3.93 billion | $4.31 billion | (8.8%) |
| Salaries, Wages, and Employee Benefits | $2.43 billion | $2.45 billion | (1.2%) |
| Depreciation and Amortization | $555.6 million | $543.5 million | 2.2% |
| Fuel and Fuel Taxes | $494.4 million | $561.4 million | (11.9%) |
| Insurance and Claims | $224.5 million | $194.5 million | 15.5% |
| Total Operating Expenses | $8.32 billion | $8.73 billion | (4.8%) |
Debt and Liquidity
As of September 30, 2024, JBHT's total long-term debt stood at $1.03 billion, a decrease from $1.33 billion at the end of 2023. The company's revolving line of credit allows for borrowings of up to $1.5 billion, with $335 million drawn as of the latest reporting date.
Net cash provided by operating activities totaled $1.17 billion for the first nine months of 2024, compared to $1.53 billion in the same period of 2023. Net cash used in investing activities was $477.5 million in 2024, a decrease from $1.40 billion in 2023.
Outlook and Future Strategies
JBHT continues to focus on enhancing operational efficiency and customer service, while navigating challenges such as fluctuating demand and rising operational costs. The company is committed to investing in technology and infrastructure to support its growth and maintain its competitive position in the logistics industry.
A Who Owns J.B. Hunt Transport Services, Inc. (JBHT)
Ownership Structure
As of 2024, J.B. Hunt Transport Services, Inc. (JBHT) has a diverse ownership structure, primarily consisting of institutional investors, mutual funds, and individual shareholders. The latest data indicates that approximately 85% of the company's shares are held by institutional investors.
| Owner Type | Percentage of Shares Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 85% | ~73 million shares |
| Mutual Funds | 15% | ~13 million shares |
| Individual Shareholders | Less than 5% | ~4 million shares |
Top Institutional Shareholders
The following table lists the top institutional shareholders of J.B. Hunt as of 2024:
| Institution | Percentage of Total Shares | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | ~7.3 million shares |
| BlackRock, Inc. | 7.8% | ~6.7 million shares |
| State Street Corporation | 5.5% | ~4.8 million shares |
| Wellington Management Group LLP | 4.2% | ~3.6 million shares |
| Invesco Ltd. | 3.1% | ~2.7 million shares |
Executive Ownership
Key executives and board members also hold significant shares in J.B. Hunt. The following table summarizes their ownership:
| Name | Title | Shares Owned |
|---|---|---|
| John N. Roberts III | President and CEO | ~250,000 shares |
| Kirk Thompson | Chairman | ~150,000 shares |
| David W. Wingo | Chief Financial Officer | ~100,000 shares |
| Other Executives | N/A | ~500,000 shares |
Market Capitalization
The market capitalization of J.B. Hunt Transport Services, Inc. as of early 2024 is approximately $10.6 billion, based on a stock price of around $90 per share.
Recent Stock Performance
In the last quarter of 2023, J.B. Hunt's stock exhibited a downward trend, with a year-to-date performance decline of approximately 12% as of December 2023. The stock closed at $90.00 on December 31, 2023, down from $102.00 at the beginning of the year. This reflects broader market conditions and operational challenges faced by the company during this period.
| Quarter | Stock Price Start | Stock Price End | Percentage Change |
|---|---|---|---|
| Q1 2024 | $90.00 | $90.00 | 0% |
| Q4 2023 | $102.00 | $90.00 | -11.76% |
| Q3 2023 | $98.00 | $102.00 | 4.08% |
Dividends
J.B. Hunt has consistently paid dividends to its shareholders, with the latest dividend declared at $0.43 per share in Q3 2024. The company has a history of increasing dividends annually, reflecting a commitment to returning value to shareholders.
| Year | Dividend per Share | Dividend Yield |
|---|---|---|
| 2024 | $1.72 | 1.9% |
| 2023 | $1.65 | 1.6% |
| 2022 | $1.55 | 1.5% |
J.B. Hunt Transport Services, Inc. (JBHT) Mission Statement
Current Mission Statement
The mission of J.B. Hunt Transport Services, Inc. is centered on providing the most efficient and reliable transportation and logistics services to customers while ensuring the safety of its employees and the environment. The company aims to maximize value for its customers, employees, and shareholders through innovative solutions and state-of-the-art technology.
Core Values
- Integrity: Conducting business ethically and transparently.
- Customer Focus: Prioritizing customer needs and satisfaction.
- Innovation: Embracing technology and creative solutions to enhance services.
- Safety: Ensuring a safe working environment for all employees.
- Respect: Valuing diversity and fostering a respectful workplace.
Financial Overview
As of the third quarter of 2024, J.B. Hunt reported total operating revenues of $3.07 billion, a decrease of 3% from $3.16 billion in the same period in 2023. The operating income for the same period was $224.1 million, down from $241.7 million year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Operating Revenues | $3.07 billion | $3.16 billion | (3.0%) |
| Operating Income | $224.1 million | $241.7 million | (7.3%) |
| Net Earnings | 5.0% | 5.9% | (18.9%) |
| Effective Income Tax Rate | 25.2% | 18.2% | 38.5% |
Operating Segments Performance
In Q3 2024, the performance of J.B. Hunt's operating segments showed varied results, with the Intermodal segment (JBI) generating revenues of $1.56 billion, unchanged from the previous year. However, the Dedicated Contract Services (DCS) segment saw a decrease in revenue to $846 million from $892 million in Q3 2023.
| Operating Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Operating Income (Q3 2024) | Operating Income (Q3 2023) |
|---|---|---|---|---|
| JBI | $1.56 billion | $1.56 billion | $111.8 million | $128.0 million |
| DCS | $846 million | $892 million | $95.5 million | $102.4 million |
| ICS | $278 million | $298 million | ($3.3 million) | ($9.4 million) |
| FMS | $218 million | $226 million | $12.0 million | $13.0 million |
| JBT | $173 million | $196 million | $8.2 million | $7.7 million |
Strategic Initiatives
J.B. Hunt is focused on enhancing its technology capabilities through the J.B. Hunt 360 platform, which aims to streamline operations and improve customer experience. The company is also committed to sustainability practices as part of its mission to minimize environmental impact.
Dividend and Shareholder Returns
In Q3 2024, J.B. Hunt declared a cash dividend of $1.29 per share, reflecting a commitment to returning value to shareholders while maintaining financial health.
| Dividend Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividend per Share | $1.29 | $1.26 |
| Dividend Payout Ratio | Approximately 26.0% | Approximately 25.0% |
Future Outlook
Looking ahead, J.B. Hunt aims to continue leveraging its technology and operational efficiencies to adapt to market changes and meet customer demands while focusing on sustainable growth strategies.
How J.B. Hunt Transport Services, Inc. (JBHT) Works
Overview of Operations
J.B. Hunt Transport Services, Inc. (JBHT) operates through several segments, including Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and J.B. Hunt Transport (JBT). Each of these segments contributes to the company's overall revenue and operational strategy.
Financial Performance in 2024
For the third quarter of 2024, JBHT reported total consolidated operating revenues of $3.07 billion, a 3% decrease from $3.16 billion in the same quarter of 2023. The operating income for the quarter was $224.1 million, down from $241.7 million year-over-year.
| Segment | Operating Revenues (Q3 2024) | Operating Income (Q3 2024) | Operating Revenues (Q3 2023) | Operating Income (Q3 2023) |
|---|---|---|---|---|
| JBI | $1.56 billion | $111.8 million | $1.55 billion | $128.0 million |
| DCS | $846 million | $95.5 million | $892 million | $102.4 million |
| ICS | $278 million | $(3.3) million | $298 million | $(9.4) million |
| FMS | $218 million | $12.0 million | $226 million | $13.0 million |
| JBT | $173 million | $8.2 million | $196 million | $7.7 million |
| Total | $3.07 billion | $224.1 million | $3.16 billion | $241.7 million |
Segment Performance
The JBI segment's revenue remained flat at $1.56 billion, with load volume increasing by 5% but offset by a 5% decrease in revenue per load. Operating income decreased by 13% due to increased costs associated with network imbalances and driver wages.
The DCS segment saw a revenue decline of 5% to $846 million, with operating income down 7% to $95.5 million. Productivity, measured as revenue per truck per week, decreased 3% year-over-year.
In the ICS segment, revenue dropped 7% to $278 million, with an operating loss of $3.3 million. The overall volume decreased by 10%, but revenue per load increased 3% due to better contractual rates.
FMS revenue decreased 3% to $218 million, while operating income fell to $12.0 million. The JBT segment reported a revenue decrease of 12% to $173 million but improved operating income to $8.2 million from $7.7 million.
Operating Expenses
Total operating expenses for Q3 2024 were $2.84 billion, down 2.7% from the previous year. Major components included:
- Rents and purchased transportation: 45.0% of revenues, down 4.4%.
- Salaries, wages, and employee benefits: 26.4% of revenues, up 0.8%.
- Fuel and fuel taxes: 5.2% of revenues, down 19.0%.
- Insurance and claims: 2.6% of revenues, up 25.2%.
- General and administrative expenses: 2.2% of revenues, up 4.3%.
| Operating Expense Item | Percentage of Total Operating Revenues (Q3 2024) | Percentage Change from Q3 2023 |
|---|---|---|
| Rents and purchased transportation | 45.0% | -4.4% |
| Salaries, wages, and employee benefits | 26.4% | +0.8% |
| Fuel and fuel taxes | 5.2% | -19.0% |
| Operating supplies and expenses | 4.2% | -2.3% |
| Insurance and claims | 2.6% | +25.2% |
| General and administrative expenses | 2.2% | +4.3% |
Cash Flow and Capital Expenditures
Net cash provided by operating activities totaled $1.17 billion during the first nine months of 2024, compared to $1.53 billion in the same period of 2023. Net cash used in investing activities was $477.5 million, down from $1.40 billion in 2023. Capital expenditures for the year are expected to reach approximately $625 million.
Debt and Liquidity
At September 30, 2024, JBHT had a total long-term debt of $1.03 billion, down from $1.33 billion at the end of 2023. The company had $120 million in cash and $335 million outstanding on its revolving line of credit. The average interest rate on term loans was 6.07%.
Customer Base and Market Trends
JBHT's customer retention rate is approximately 87%, with the company facing challenges related to customer account losses and fleet downsizing. The company continues to adapt to changes in freight demand and market conditions, focusing on improving service quality and operational efficiency.
How J.B. Hunt Transport Services, Inc. (JBHT) Makes Money
Overview of Revenue Streams
J.B. Hunt Transport Services, Inc. operates primarily through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). Each segment contributes to the overall revenue and profitability of the company.
Financial Performance for 2024
As of the third quarter of 2024, J.B. Hunt reported total consolidated operating revenues of $3.07 billion, reflecting a 3% decrease from $3.16 billion in the same quarter of 2023. The operating income also decreased to $224.1 million from $241.7 million year-over-year.
Segment Revenue and Operating Income
| Segment | Operating Revenues (Q3 2024) | Operating Income (Q3 2024) | Operating Revenues (Q3 2023) | Operating Income (Q3 2023) |
|---|---|---|---|---|
| Intermodal (JBI) | $1,557 million | $111.8 million | $1,555 million | $128.0 million |
| Dedicated Contract Services (DCS) | $846 million | $95.5 million | $892 million | $102.4 million |
| Integrated Capacity Solutions (ICS) | $278 million | $(3.3) million | $298 million | $(9.4) million |
| Final Mile Services (FMS) | $218 million | $12.0 million | $226 million | $13.0 million |
| Truckload (JBT) | $173 million | $8.2 million | $196 million | $7.7 million |
| Total | $3,068 million | $224.1 million | $3,164 million | $241.7 million |
Operational Metrics
In the first nine months of 2024, the total consolidated operating revenues were $8.94 billion, down 6% from $9.53 billion in the same period of 2023. The operating income for the same period decreased from $789.9 million in 2023 to $624.2 million in 2024.
Cost Structure
J.B. Hunt's cost structure primarily includes the following:
| Cost Category | Percentage of Total Operating Revenues (Q3 2024) | Percentage Change (Q3 2024 vs. Q3 2023) |
|---|---|---|
| Rents and Purchased Transportation | 45.0% | (4.4%) |
| Salaries, Wages, and Employee Benefits | 26.4% | 0.8% |
| Depreciation and Amortization | 6.1% | 0.1% |
| Fuel and Fuel Taxes | 5.2% | (19.0%) |
| Operating Supplies and Expenses | 4.2% | (2.3%) |
| Insurance and Claims | 2.6% | 25.2% |
| General and Administrative Expenses | 2.2% | 4.3% |
| Total Operating Expenses | 92.7% | (2.7%) |
Capital Expenditures
For the first nine months of 2024, J.B. Hunt's net capital expenditures amounted to $488.1 million, a decrease from $1.32 billion in the same period of 2023. The company anticipates spending approximately $625 million for net capital expenditures in the full calendar year of 2024.
Debt and Financing
As of September 30, 2024, J.B. Hunt had total long-term debt of $1,032.3 million, which includes a senior credit facility with an outstanding balance of $833.5 million and senior notes totaling $698.8 million. The average interest rate on the term loans was approximately 6.07%.
Cash Flow
Net cash provided by operating activities totaled $1.17 billion during the first nine months of 2024, compared with $1.53 billion for the same period in 2023. This decrease was primarily due to decreased earnings, partially offset by the timing of general working capital activities.
Conclusion
The financial performance of J.B. Hunt Transport Services, Inc. reflects the complexities of the transportation and logistics sector. The company continues to adapt its strategies to navigate through market fluctuations and operational challenges.
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Article updated on 8 Nov 2024
Resources:
- J.B. Hunt Transport Services, Inc. (JBHT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of J.B. Hunt Transport Services, Inc. (JBHT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View J.B. Hunt Transport Services, Inc. (JBHT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.