UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-15087 HEARTLAND EXPRESS INC. (Exact Name of Registrant as Specified in Its Charter) Nevada 93-0926999 (State or Other Jurisdicti ...

Financial Performance - Operating revenues for Q1 2025 were $219.4 million, down from $270.3 million in Q1 2024, representing a decrease of approximately 18.8%[2] - The net loss for Q1 2025 was $13.9 million, an improvement from a net loss of $15.1 million in Q1 2024, indicating a reduction of about 8%[2] - Basic loss per share was $0.18 in Q1 2025, compared to $0.19 in the same period of 2024, reflecting a slight improvement[2] - Operating revenue for Q1 2025 was $219,420,000, down from $270,320,000 in Q1 2024, representing a decrease of approximately 18.9%[17] - Operating revenue excluding fuel surcharge revenue was $193,099,000 in Q1 2025, compared to $234,108,000 in Q1 2024, a decline of about 17.5%[17] - Adjusted operating loss for Q1 2025 was $(13,644,000), slightly worse than the $(13,129,000) loss in Q1 2024[17] - The operating loss for Q1 2025 was $(14,898,000), compared to $(14,383,000) in Q1 2024, indicating a slight deterioration in performance[17] Operational Efficiency - The operating ratio for Q1 2025 was 106.8%, compared to 105.3% in Q1 2024, indicating a decline in operational efficiency[2] - The adjusted operating ratio increased to 107.1% in Q1 2025 from 105.6% in Q1 2024, indicating a decline in operational efficiency[17] - Operating expenses for Q1 2025 totaled $234,318,000, down from $284,703,000 in Q1 2024, a reduction of approximately 17.7%[17] Cash Flow and Assets - Cash balances increased to $23.9 million as of March 31, 2025, up by $11.1 million since December 31, 2024[3] - Total assets were reported at $1.3 billion, with stockholders' equity at $807.7 million as of March 31, 2025[3] - Net cash flows from operations for Q1 2025 were $25.8 million, representing 11.8% of operating revenue[5] Capital Expenditures and Dividends - The company expects net capital expenditures of approximately $40 to $50 million for the calendar year 2025[6] - A regular dividend of $0.02 per share was declared and paid during Q1 2025, maintaining a commitment to stockholders[7] Fleet Information - The average age of the consolidated tractor fleet was 2.6 years, while the trailer fleet averaged 7.4 years as of March 31, 2025[6] Non-GAAP Measures - The company emphasizes that non-GAAP measures like adjusted operating income provide better comparability for underlying operations, despite limitations[17] - Management continues to rely primarily on GAAP results while using non-GAAP measures as supplemental information[17] - The company aims to mitigate the volatility of fuel prices in its financial reporting to better reflect operational performance[17] Fuel Surcharge Revenue - The company reported a fuel surcharge revenue of $26,321,000 in Q1 2025, compared to $36,212,000 in Q1 2024, reflecting a decrease of about 27.4%[17]

Core Viewpoint - Heartland Express reported a quarterly loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.13, marking an earnings surprise of -38.46% [1] - The company's revenues for the quarter were $219.42 million, missing the Zacks Consensus Estimate by 9.20% and down from $270.32 million a year ago [2] Financial Performance - Over the last four quarters, Heartland Express has only surpassed consensus EPS estimates once [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] - Year-to-date, Heartland Express shares have declined approximately 30.1%, compared to a 5.5% decline in the S&P 500 [3] Future Outlook - The company's earnings outlook will be crucial for investors, particularly in light of recent earnings report and future expectations [4] - Current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $275.22 million, and for the current fiscal year, it is $0.06 on revenues of $1.07 billion [7] Industry Context - The Transportation - Truck industry, to which Heartland Express belongs, is currently ranked in the bottom 1% of over 250 Zacks industries, indicating a challenging environment [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Heartland Express's stock performance [5][6]

Core Viewpoint - Heartland Express, Inc. reported financial results for Q1 2025, highlighting challenges such as adverse weather, tariff uncertainties, and operating cost inflation that outpaced freight demand and rate improvements [1][2]. Financial Results - Operating revenues for Q1 2025 were $219.4 million, down from $270.3 million in Q1 2024 [2]. - Fuel surcharge revenues were $26.3 million, compared to $36.2 million in the same period of 2024 [2]. - The net loss was $13.9 million, an improvement from a net loss of $15.1 million in Q1 2024 [2]. - Basic loss per share was $0.18, compared to $0.19 in Q1 2024 [2]. - The operating ratio was 106.8%, with a non-GAAP adjusted operating ratio of 107.1%, compared to 105.3% and 105.6% respectively in Q1 2024 [2]. Balance Sheet, Liquidity, and Capital Expenditures - As of March 31, 2025, cash balances increased to $23.9 million, up by $11.1 million since December 31, 2024 [3]. - Debt and financing lease obligations were $199.6 million, down from $447.3 million at the time of the CFI acquisition in August 2022 [3]. - The company had $88.3 million in available borrowing capacity on its unsecured line of credit as of March 31, 2025 [3]. - Total assets were reported at $1.3 billion, with stockholders' equity of $807.7 million [3]. Cash Flows - Net cash flows from operations for Q1 2025 were $25.8 million, representing 11.8% of operating revenue [4]. - Cash used for financing activities included $1.3 million for debt repayment and $1.6 million for dividends [4]. - The primary cash outflow for investing activities was $11.7 million for net property and equipment transactions [4]. Fleet Information - The average age of the consolidated tractor fleet was 2.6 years as of March 31, 2025, compared to 2.4 years in the previous year [5]. - The average age of the consolidated trailer fleet was 7.4 years as of March 31, 2025, down from 6.7 years in 2024 [6]. Dividends and Share Repurchase - A regular dividend of $0.02 per share was declared and paid on April 4, 2025 [7]. - Cumulative cash dividends paid amounted to $556.8 million since 2003 [7]. - No shares were repurchased in Q1 2025 or the same period in 2024, with the ability to repurchase an additional 6.0 million shares under current authorization [7]. Awards and Recognition - The company and its employees received awards for service and fleet safety, including the PepsiCo - 2024 Carrier of the Year (West) and TCA Fleet Safety Award 2024 - 2nd Place [10].

Wall Street expects a year-over-year increase in earnings on lower revenues when Heartland Express (HTLD) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock m ...

We have been in a trucking downcycle for three years. As freight rates stabilize and ultimately tick up, the "hated" industry could see substantial upside. Heartland Express's equity price will be turbocharged by its integration andAfter graduated from MIT with a PhD degree in 2017, with a dissertation that focuses on leveraging data analytics to understand and dissect the commodities structural market, I started managing third party money at a $1+ billion hedge fund under a profit-sharing agreement in Chin ...

Financial Performance - In 2024, the company generated operating revenues of $1.0 billion, a decrease from $1.2 billion in 2023, with a net loss of $29.7 million compared to a net income of $14.8 million in the previous year[190]. - The operating ratio for 2024 was 101.9%, significantly higher than 96.5% in 2023, indicating increased operating expenses relative to revenues[190]. - Operating income was negative at (1.9%) for 2024, compared to a positive 3.5% in 2023[202]. - Operating revenue decreased by $160.0 million (13.2%) to $1.0 billion for the year ended December 31, 2024, from $1.2 billion in 2023, primarily due to a weak freight environment[203]. - Cash flow from operating activities for 2024 was $144.3 million, representing 13.8% of operating revenues, compared to $165.3 million or 13.7% in 2023[192]. - Operating cash flow for 2024 was $144.3 million, a decrease of $21.0 million compared to $165.3 million in 2023, primarily due to a $41.2 million decrease in net income[231]. Expenses and Cost Management - Fuel expenses decreased by $35.0 million (16.5%) to $177.2 million in 2024, driven by a 10.8% decrease in average diesel prices per gallon[208]. - Salaries, wages, and benefits decreased by $47.1 million (9.9%) to $427.7 million in 2024, reflecting lower company miles and a reduction in office and shop employees[206]. - Depreciation and amortization decreased by $17.5 million (8.8%) to $181.5 million in 2024, attributed to ongoing fleet replacement strategies[209]. - Insurance and claims expense increased by $5.6 million (12.3%) to $50.9 million in 2024, due to unfavorable claim severity and frequency[212]. - Significant inflation has impacted operating expenses, particularly in driver compensation and equipment costs, with the average age of revenue equipment being in the top tier of the industry[217]. Debt and Financing - The company repaid almost $300 million of debt and capitalized leases since acquiring CFI and Smith Transport in 2022, while maintaining a relatively young fleet[188]. - The company had $184.0 million outstanding on the Term Facility and no outstanding borrowings under the Revolving Facility as of December 31, 2024[227]. - The weighted average interest rate on outstanding borrowings under the Credit Facilities was 6.0% as of December 31, 2024[227]. - Interest expense decreased by $6.6 million (27.3%) to $17.6 million in 2024, reflecting debt repayments made during the year[215]. - A 1.0% increase in the SOFR rate would result in an additional $1.8 million in annual interest expense based on current variable rate debt[249]. Investments and Acquisitions - The company has made ten acquisitions since 1986, with the most recent being CFI on August 31, 2022, aimed at expanding service offerings and market reach[195]. - The company entered into a $550.0 million unsecured credit facility, including a $100.0 million revolving line of credit and $450.0 million in term loans, to support business growth[219]. - The company anticipates net capital expenditures for revenue equipment and terminal properties in 2025 to be between $55.0 million to $65.0 million[232]. - Cash flows used in investing activities decreased to $46.5 million in 2024 from $67.9 million in 2023, mainly due to $24.7 million less net cash used for property and equipment[232]. Operational Strategy - The company aims to achieve an operating ratio in the low to mid 80s and to grow revenue profitably through both organic growth and acquisitions[186]. - The driver compensation and benefits program has been enhanced to attract and retain qualified drivers, resulting in lower turnover rates compared to industry averages[194]. - Over 96% of total miles are driven by company drivers operating revenue equipment, with tractors and trailers having estimated useful lives of 5 and 7 years respectively[242]. Tax and Valuation - The effective tax rate decreased to 19.0% in 2024 from 25.6% in 2023, primarily due to permanent differences reducing the rate[216]. - The company has not recorded a valuation allowance against deferred tax assets, believing it is more likely than not that remaining deferred tax assets will be utilized[245]. - Goodwill from acquisitions is subject to impairment testing and is influenced by the valuation estimates of other acquired long-lived assets[244]. Risk Management - The company does not currently use derivative financial instruments for risk management, although it has in the past for fuel price risk management[248]. - Management estimates accruals for self-insured auto liability and workers' compensation claims based on historical development trends and individual case evaluations[243].

Financial Performance - Operating revenue for Q4 2024 was $242.6 million, a decrease from $275.3 million in Q4 2023, representing a decline of 11.9%[5] - Net loss for Q4 2024 was $1.9 million, compared to a net income of $5.1 million in Q4 2023, resulting in a basic loss per share of $0.02[5] - For the twelve-month period ended December 31, 2024, operating revenues were $1.0 billion, down 13.2% from $1.2 billion in 2023[6] - Adjusted operating income for Q4 2024 was $2.276 million, down from $11.967 million in Q4 2023, indicating a decrease of 81.0%[21] - Total operating expenses for Q4 2024 were $241.554 million, down 8.7% from $264.642 million in Q4 2023[18] - Operating ratio for Q4 2024 was 99.6%, up from 96.1% in Q4 2023, reflecting increased operational inefficiencies[21] Assets and Equity - Total assets at December 31, 2024, were $1.3 billion, with stockholders' equity of $822.6 million[8] - Total current assets fell to $129.448 million in Q4 2024, down 23.5% from $169.272 million in Q4 2023[20] - Total stockholders' equity decreased to $822.599 million in Q4 2024 from $865.260 million in Q4 2023, a decline of 4.9%[20] - Long-term debt decreased to $191.707 million in Q4 2024 from $290.696 million in Q4 2023, a reduction of 34.1%[20] Cash Flow and Dividends - Operating cash flow margin for Q4 2024 was 15.6%, with net cash flows from operations for the twelve-month period at $144.3 million, representing 13.8% of operating revenues[9] - Cash and cash equivalents decreased to $12.812 million in Q4 2024 from $28.123 million in Q4 2023, a decline of 54.4%[20] - Regular dividends of $0.02 per share were declared during each quarter of 2024, contributing to cumulative cash dividends of $555.2 million since 2003[11] - The company declared dividends of $0.02 per share for both Q4 2024 and Q4 2023, maintaining consistency[18] Operational Efficiency - The company achieved a consolidated operating ratio of 99.6% in Q4 2024, an improvement of 570 basis points from Q1 2024[2] - The company continues to focus on cost improvements and operational integrations, anticipating a favorable increase in overall freight demand[4] - The average age of the tractor fleet was 2.5 years as of December 31, 2024, compared to 2.2 years at the end of 2023[10] Debt Management - The company paid down $100.3 million in debt during 2024, totaling $295.9 million since acquisitions in 2022[3]

Group 1 - Heartland Express reported revenue of $242.58 million for the quarter ended December 2024, reflecting a year-over-year decline of 11.9% [1] - The company's EPS for the same period was -$0.02, compared to $0.06 a year ago, indicating a significant drop in profitability [1] - The reported revenue fell short of the Zacks Consensus Estimate of $254.84 million, resulting in a surprise of -4.81% [1] Group 2 - Heartland Express delivered an EPS surprise of +50.00%, with the consensus EPS estimate being -$0.04 [1] - The operating ratio for the company was reported at 99.6%, which is better than the average estimate of 101.4% based on two analysts [4] - Fuel surcharge revenue was $28 million, significantly lower than the average estimate of $33.20 million, representing a year-over-year decline of 29.5% [4] Group 3 - Operating revenue, excluding fuel surcharge revenue, was $214.58 million, compared to the average estimate of $221.65 million, marking a year-over-year change of -8.9% [4] - Over the past month, shares of Heartland Express have returned +6.4%, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Heartland Express (HTLD) came out with a quarterly loss of $0.02 per share versus the Zacks Consensus Estimate of a loss of $0.04. This compares to earnings of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this trucking and logistics company would post a loss of $0.02 per share when it actually produced a loss of $0.12, delivering a surprise of -500%.Over the last four quarters, ...