February 3, 2026 For Immediate Release Press Release Heartland Express, Inc. Reports Fourth Quarter and Annual Financial Results NORTH LIBERTY, IOWA - February 3, 2026 - Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the quarter and year ended December 31, 2025. Three months ended December 31, 2025: Twelve months ended December 31, 2025: Heartland Express Chief Executive Officer, Mike Gerdin, commented on the quarterly operating results and ongoing initiatives of the Company, " ...

Core Insights - Heartland Express (HTLD) reported a revenue of $179.36 million for the quarter ended December 2025, reflecting a year-over-year decline of 26.1% [1] - The earnings per share (EPS) for the same period was -$0.06, compared to -$0.02 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $185.76 million, resulting in a surprise of -3.45% [1] - The company achieved an EPS surprise of +14.29%, with the consensus EPS estimate being -$0.07 [1] Financial Performance Metrics - The operating ratio was reported at 112.7%, significantly higher than the estimated 101.8% by analysts [4] - Fuel surcharge revenue was $21.68 million, slightly below the estimated $22.03 million, marking a -22.6% change compared to the year-ago quarter [4] - Operating revenue, excluding fuel surcharge revenue, was $157.68 million, which is lower than the estimated $163.72 million, representing a -26.5% change year-over-year [4] Stock Performance - Heartland Express shares have returned +9.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - Heartland Express, Inc. is facing macroeconomic challenges but shows potential for recovery due to insider buying and an upward trend in price targets among analysts [2][3][5]. Group 1: Company Overview - Heartland Express, Inc. is a significant player in the trucking industry, providing short-to-medium haul truckload services across the U.S. and Canada, primarily serving sectors like consumer goods, appliances, food products, and automotive industries [1]. Group 2: Price Target and Analyst Sentiment - The consensus price target for Heartland Express has increased from $9.25 a quarter ago to $10.50, indicating growing optimism among analysts about the company's future performance [2]. - Analyst Brandon Oglenski from Barclays has set a price target of $17 for the stock, reflecting confidence in its future growth despite current challenges [4]. Group 3: Financial Performance and Challenges - Heartland Express is expected to report negative earnings in its upcoming quarterly release due to weak demand and oil price volatility affecting revenue [3]. - The company is focusing on improving efficiency through effective cost controls while maintaining a strong balance sheet, stable cash flow, and low leverage [3]. Group 4: Stock Valuation and Insider Activity - The stock is currently trading below its book value and historical averages, suggesting that the recent downtrend may be overdone, presenting an attractive upside potential for investors [4]. - Notable insider trading activity has been observed, with insiders purchasing shares, indicating confidence in the company's prospects despite mixed analyst reports [5][6].

Core Viewpoint - The company's stock has been declining for nearly a decade, but there has been a recent temporary increase, likely due to long-only investment strategies focusing on operational aspects rather than market-driven dynamics [1]. Group 1: Investment Strategy - The investment approach emphasizes evaluating companies from an operational and buy-and-hold perspective, focusing on long-term earnings potential and competitive dynamics within industries [1]. - The strategy involves holding most companies, with only a small fraction deemed suitable for purchase at any given time, promoting a healthy skepticism in a generally bullish market [1]. Group 2: Market Dynamics - The articles produced by Quipus Capital do not prioritize future price movements but rather the operational fundamentals of companies, which is intended to provide valuable insights for future investors [1].

Core Viewpoint - U.S. stock futures showed mixed results, with Dow futures declining approximately 0.1% as Biohaven Ltd's shares fell sharply following disappointing trial results for its depression drug [1] Company-Specific Summary - Biohaven Ltd (NYSE:BHVN) reported that its investigational drug BHV-7000 for major depressive disorder did not meet its primary endpoint in a six-week trial, failing to show a significant reduction in depressive symptoms compared to placebo, as measured by the Montgomery Åsberg Depression Rating Scale [2] - Following the announcement, Biohaven's shares dropped 14.3% to $9.27 in pre-market trading [2] Other Stocks Movement - Heartland Express Inc (NASDAQ:HTLD) saw a decline of 8.9% to $8.40 in pre-market trading after declaring a regular quarterly cash dividend of 2 cents per share [3] - Omeros Corp (NASDAQ:OMER) decreased by 6.8% to $14.32 in pre-market trading, despite a previous surge of over 75% after FDA approval of YARTEMLEA for a specific medical condition [3] - Andersen Group Inc (NYSE:ANDG) fell 4.6% to $24.30 in pre-market trading after a prior gain of 4% [3] - PennyMac Mortgage Investment Trust (NYSE:PMT) declined 2.8% to $12.67, while Black Rock Coffee Bar Inc (NASDAQ:BRCB) and Lifestance Health Group Inc (NASDAQ:LFST) both fell by 2.7% to $22.70 and $6.90 respectively [3] - Kyverna Therapeutics Inc (NASDAQ:KYTX) experienced a decrease of 2.6% to $8.76 in pre-market trading [3]

Core Viewpoint - Heartland Express, Inc. plans to integrate and rebrand the U.S. operations of Contract Freighters, Inc. (CFI) effective December 31, 2025, aiming to enhance consolidated operating and financial performance [1][2]. Group 1: Integration and Rebranding - The integration of CFI into Heartland Express is seen as a logical step following improvements in CFI's operating performance during 2025, supported by a transportation management system conversion and a unified driver electronic logging device [2]. - CFI's Mexican operations will remain unaffected by this integration [2]. - The integration aims to align CFI drivers' pay packages with those of Heartland Express, offering increased compensation and benefits [2]. Group 2: Operational Impact - Current CFI offices in Joplin, Missouri, West Memphis, Arkansas, and Laredo, Texas, will be maintained, and all current CFI employees will have the opportunity to continue their employment with Heartland Express [2]. - Drivers will have the option to choose from various pay packages and can operate within other subsidiaries, Millis Transfer, LLC, or Smith Transport, LLC [2]. - The integration is expected to increase fleet capacity, enhancing service delivery to customers [2]. Group 3: Financial Considerations - The company is assessing the potential impact of the integration and rebranding on the value of goodwill and other intangible assets associated with CFI [3].

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] - The popularity of insurance companies in the Philippines since 2014 indicates a shift in investment strategies among local investors, moving towards a more diversified portfolio [1] - The entry into the US market has provided additional avenues for investment, particularly in sectors such as banking, hotels, and logistics, reflecting a broader trend of globalization in investment strategies [1] Investment Strategies - Initial investments were focused on blue-chip companies, but there has been a diversification into various industries and market capitalizations over time [1] - The approach includes holding stocks for retirement as well as for trading profits, showcasing a balanced investment strategy [1] - The use of platforms like Seeking Alpha has enhanced knowledge and comparative analysis between different markets, particularly between the US and Philippine markets [1]

Financial Performance - Operating revenues for the first nine months of 2025 were $626.4 million, down from $804.9 million in the same period of 2024, representing a decrease of approximately 22.1%[78] - The company reported a net loss of $33.0 million for the first nine months of 2025, compared to a net loss of $27.9 million in the same period of 2024, indicating a worsening financial position[78] - Operating revenue decreased by $178.5 million (22.2%), totaling $626.4 million for the nine months ended September 30, 2025, compared to $804.9 million in the same period of 2024[97] - Net loss was $33.0 million for the nine months ended September 30, 2025, compared to a net loss of $27.9 million in the same period of 2024[96] - Adjusted operating loss for the three months ended September 30, 2025 was $5.998 million, compared to an adjusted operating loss of $5.885 million in the same period of 2024[1] Operating Efficiency - The operating ratio for the nine months ended September 30, 2025, was 105.5%, compared to 102.6% for the same period in 2024, reflecting increased operating expenses relative to revenues[78] - The operating ratio was 103.7% for the three months ended September 30, 2025, compared to 102.7% in the same period of 2024[83] Cash Flow and Liquidity - Cash flow from operating activities for the nine months ended September 30, 2025, was $74.4 million, which is 11.9% of operating revenues, down from $106.6 million or 13.2% in the same period of 2024[78] - Cash flow from operating activities for the nine months ended September 30, 2025, was $74.4 million, a decrease from $106.6 million in the same period of 2024, representing 11.9% of operating revenues compared to 13.2% in 2024[122] - The company ended the third quarter of 2025 with cash, cash equivalents, and restricted cash of $45.6 million, an increase of $19.3 million during the nine months[78] - The company had $32.7 million in cash and cash equivalents and $179.4 million in outstanding debt as of September 30, 2025[119] Expenses and Cost Management - Salaries, wages, and benefits decreased by $72.6 million (22.0%), totaling $257.6 million for the nine months ended September 30, 2025, down from $330.2 million in 2024[99] - Fuel expenses decreased by $9.7 million (22.2%) to $34.1 million for the three months ended September 30, 2025, compared to $43.8 million in 2024[88] - Insurance and claims expense increased to $15.3 million during the three months ended September 30, 2025, compared to $11.3 million in 2024[91] - Interest expense decreased by $5.1 million, totaling $9.0 million during the nine months ended September 30, 2025, down from $14.1 million in 2024[108] - Interest expense decreased by $1.3 million to $2.9 million during the three months ended September 30, 2025, from $4.2 million in 2024[95] Market and Operational Challenges - The company anticipates ongoing challenges in attracting and retaining experienced drivers, which is critical for operational efficiency[71] - The number of loaded miles decreased due to a weak freight environment, leading to a decline in trucking and other revenues of $54.7 million (24.1%)[84] Acquisitions and Growth Strategy - The company has completed ten acquisitions since 1986, with the most recent being CFI on August 31, 2022, and Smith Transport on May 31, 2022, to expand its market presence[70] Fuel and Price Sensitivity - The average diesel fuel price per gallon for the three months ended September 30, 2025, was $3.76, a 1.8% increase from $3.69 in the same period of 2024[76] - A $1.00 increase in the average price of fuel per gallon would decrease income before income taxes by approximately $14.4 million in 2025[130] - A 10% increase in tire prices would increase tire purchase expenses by $2.2 million, resulting in a corresponding decrease in income before income taxes[130] Tax and Debt Management - The effective tax rate was 23.2% for the nine months ended September 30, 2025, compared to 19.1% in 2024[109] - The company has $179.4 million in outstanding debt and $5.9 million in finance lease liabilities as of September 30, 2025, with $174.9 million subject to variable interest rates[129] - A 1.0% increase in the SOFR rate would decrease income before income taxes by approximately $1.7 million annually based on current variable rate debt[129] Capital Expenditures and Commitments - Total estimated purchase commitments for tractors and trailer equipment as of September 30, 2025, was $36.0 million, extending into 2026[121] - Cash used in investing activities was $24.2 million during the nine months ended September 30, 2025, compared to cash provided of $1.5 million in 2024, primarily due to a $25.8 million increase in net property and equipment cash used[123] - Cash used in financing activities decreased by $73.9 million during the nine months ended September 30, 2025, mainly due to a $78.5 million decrease in repayments of finance leases and debt[124] Shareholder Actions - The company repurchased 1.2 million shares during the nine months ended September 30, 2025, compared to 0.6 million shares in the same period of 2024[125] - Income tax payments net of refunds were $6.9 million for the nine months ended September 30, 2025, down from $10.0 million in 2024, primarily due to 100% bonus depreciation enacted in 2025[126]

Financial Performance - Operating revenue for Q3 2025 was $196.5 million, down from $259.9 million in Q3 2024, reflecting a decrease of approximately 24.4%[8] - Net loss for Q3 2025 was $8.3 million, compared to a net loss of $9.3 million in Q3 2024, showing an improvement of 10.8%[8] - The operating ratio for Q3 2025 was 103.7%, compared to 102.7% in Q3 2024, indicating a decline in operational efficiency[8] - Operating revenue for the three months ended September 30, 2025, was $196,547 thousand, a decrease of 24.4% compared to $259,861 thousand in the same period of 2024[21] - Adjusted operating loss for the three months ended September 30, 2025, was $(5,998) thousand, compared to $(5,885) thousand in the same period of 2024, indicating a slight deterioration[21] - Operating expenses for the three months ended September 30, 2025, were $203,799 thousand, down from $267,000 thousand in 2024, a reduction of 23.6%[21] - The adjusted operating ratio for the three months ended September 30, 2025, was 103.5%, slightly higher than 102.6% in the same period of 2024[21] Assets and Liabilities - Total assets as of September 30, 2025, were $1.3 billion, with stockholders' equity at $775.6 million[9] - Long-term debt and finance lease liabilities decreased to $177,546 thousand as of September 30, 2025, from $191,707 thousand in December 2024, a reduction of 7.4%[20] - Total long-term liabilities decreased to $360,546 thousand in September 2025, down from $392,034 thousand in December 2024, a decline of 8.0%[20] - Trade receivables, net, decreased to $79,996 thousand in September 2025 from $91,620 thousand in December 2024, a decline of 12.7%[20] - Retained earnings decreased to $986,396 thousand in September 2025 from $1,024,081 thousand in December 2024, a decrease of 3.7%[20] Cash Flow and Capital Management - Cash balances increased by $19.9 million to $32.7 million since December 31, 2024[9] - Cash and cash equivalents significantly increased to $32,688 thousand in September 2025, compared to $12,812 thousand in December 2024, marking a growth of 154.7%[20] - Debt and financing lease obligations were reduced from $494 million in 2022 to $185 million as of September 30, 2025, a reduction of $309 million over three years[5] - The company expects net capital expenditures of approximately $27 to $30 million for 2025[12] Shareholder Returns - The company repurchased 175,000 shares for $1.4 million in Q3 2025 and a total of 1.8 million shares for $17.6 million over the past three years[3] - A regular dividend of $0.02 per share was declared during Q3 2025, maintaining a consistent dividend payment history[13] Fleet Management - The average age of the consolidated tractor fleet was 2.6 years as of September 30, 2025, compared to 2.7 years in the previous year[11] Current Assets - Total current assets increased to $138,128 thousand in September 2025, up from $129,448 thousand in December 2024, representing a growth of 6.1%[20]

Core Insights - Heartland Express, Inc. reported financial results for the three and nine months ended September 30, 2025, showing sequential improvement in operating ratios despite ongoing challenges in the freight industry [1][2][3] Financial Performance - For the three months ended September 30, 2025, operating revenue was $196.5 million, down from $259.9 million in the same period of 2024. The net loss was $8.3 million, compared to a net loss of $9.3 million in Q3 2024 [5][6] - For the nine months ended September 30, 2025, operating revenue totaled $626.4 million, a decrease from $804.9 million in the same period of 2024. The net loss for this period was $33.0 million, compared to a net loss of $27.9 million in the prior year [6][8] Operating Ratios - The operating ratio for Q3 2025 was 103.7%, compared to 102.7% in Q3 2024. The non-GAAP adjusted operating ratio was 103.5% for Q3 2025, compared to 102.6% in the same quarter of the previous year [5][6] - For the nine-month period, the operating ratio was 105.5%, up from 102.6% in the same period of 2024, with a non-GAAP adjusted operating ratio of 105.6% [6][8] Cash Flow and Debt Management - The company generated positive cash flows from operations amounting to $74.4 million for the first nine months of 2025, representing 11.9% of operating revenue. Cash was utilized for debt repayment, stock repurchases, and dividends [8][10] - Debt and financing lease obligations were reduced from $494 million in 2022 to $185 million as of September 30, 2025, with $309 million repaid over three years [4][7] Fleet and Operational Efficiency - All four operating brands are now on a common transportation management system, expected to enhance driver utilization and operational collaboration [3][4] - The average age of the consolidated tractor fleet was 2.6 years as of September 30, 2025, while the trailer fleet averaged 7.5 years [9] Shareholder Returns - The company declared a regular dividend of $0.02 per share during Q3 2025, maintaining a commitment to shareholder returns with cumulative cash dividends of $559.9 million since 2003 [10][11]