J.B. Hunt Transport Services has recently released its 10-Q report, detailing its financial performance for the second quarter of 2024. The company operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT). J.B. Hunt provides surface transportation, delivery, and logistics services in the United States, offering a wide range of transportation, brokerage, and delivery services to a diverse group of customers and consumers throughout the continental United States, Canada, and Mexico.
In the second quarter of 2024, J.B. Hunt reported total consolidated operating revenues of $2.93 billion, representing a 7% decrease from $3.13 billion in the second quarter of 2023. This decrease was primarily due to decreased revenue per load in JBI and lower volumes in ICS, JBT, and DCS, partially offset by revenue growth in FMS from new contracts implemented over the past year. Total consolidated operating revenue, excluding fuel surcharge revenue, decreased by 6%.
The JBI segment's revenue decreased by 5% to $1.41 billion in the second quarter of 2024, with load volumes down 1% compared to the same period in 2023. The segment's operating income decreased by 31% to $99.2 million, primarily due to the decrease in revenue and higher driver and non-driver wages, increased maintenance and equipment-related costs, and higher insurance premiums expense.
DCS segment revenue decreased by 4% to $851 million in the second quarter of 2024, with productivity decreasing by 3% compared to the second quarter of 2023. The segment's operating income decreased by 15% to $96.4 million, primarily due to decreased revenue, increased insurance premium expense, increased equipment-related costs, higher bad debt expense, and higher new account start-up costs.
The ICS segment reported a 21% decrease in revenue to $270 million in the second quarter of 2024, with an operating loss of $13.3 million, compared to an operating loss of $4.4 million in 2023. The increase in operating loss is primarily due to a decrease in gross profit, higher insurance and claims expense, and integration and transition costs related to the purchase of the brokerage assets of BNSF Logistics, LLC.
FMS segment revenue increased by 5% to $235 million in the second quarter of 2024, with operating income increasing to $19.8 million, primarily due to increased revenue, decreased personnel, equipment-related, and bad debt expenses, and a net benefit from two offsetting claim settlements.
JBT segment revenue decreased by 12% to $168 million in the second quarter of 2024, with operating income decreasing to $3.5 million, primarily due to the decrease in revenue and higher insurance premiums expense.
Today the company's shares have moved 0.8% to a price of $172.12. For more information, read the company's full 10-Q submission here.
