J.B. Hunt Transport Services, Inc. has recently released its 10-Q report, detailing its operations and financial performance for the third quarter of 2024. The company provides surface transportation, delivery, and logistics services in the United States, operating through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT).
In the third quarter of 2024, J.B. Hunt reported total consolidated operating revenues of $3.07 billion, representing a 3% decrease from $3.16 billion in the third quarter of 2023. This decline was primarily attributed to decreased revenue per load in JBI and JBT, lower volumes in ICS, JBT, and DCS, and a decrease in stops in FMS compared to the same period in 2023. However, total consolidated operating revenue, excluding fuel surcharge revenue, decreased by less than 1%.
The Intermodal (JBI) segment reported revenue of $1.56 billion in the third quarter of 2024, remaining flat compared to the same period in 2023. The segment's operating income decreased by 13% to $111.8 million in the third quarter of 2024 from $128.0 million in 2023, primarily due to increased network imbalance and repositioning costs, higher driver wages, maintenance and equipment-related costs, insurance premiums, and other personnel-related expenses.
The Dedicated Contract Services (DCS) segment saw a 5% decrease in revenue, amounting to $846 million in the third quarter of 2024, compared to $892 million in 2023. The segment's operating income also decreased by 7% to $95.5 million in the third quarter of 2024 from $102.4 million in 2023, primarily due to decreased revenue, increased insurance premium and claims expenses, and higher new account start-up costs.
The Integrated Capacity Solutions (ICS) segment reported a 7% decrease in revenue, amounting to $278 million in the third quarter of 2024, compared to $298 million in 2023. The segment's operating loss decreased to $3.3 million in the third quarter of 2024 from $9.4 million in 2023, driven primarily by a 31% increase in gross profit, lower cargo claims expense, and lower personnel-related expenses.
The Final Mile Services (FMS) segment experienced a 3% decrease in revenue, amounting to $218 million in the third quarter of 2024, compared to $226 million in 2023. The segment's operating income decreased to $12.0 million in the third quarter of 2024 from $13.0 million in 2023, primarily due to decreased revenue, higher purchased transportation costs, and higher insurance premiums expense.
Lastly, the Truckload (JBT) segment saw a 12% decrease in revenue, amounting to $173 million in the third quarter of 2024, compared to $196 million in 2023. However, the segment's operating income increased to $8.2 million in 2024 from $7.7 million in 2023, primarily due to improved network balance and overall cost management initiatives.
The market has reacted to these announcements by moving the company's shares -0.6% to a price of $174.83. Check out the company's full 10-Q submission here.
