Heartland Express Inc Turns Profit in Q2

By Ahmed Jamerson • Wednesday, August 05 16:05 • Permanent Link

Heartland Express swung to a second-quarter profit as operating revenue fell and its operating ratio improved sharply.

For the three months ended June 30, 2026, operating revenue was $184.1 million, down from $210.4 million a year earlier. Net income was $10.6 million, compared with a net loss of $10.9 million in the 2025 second quarter. Basic earnings per share moved to 14 cents from a loss of 14 cents.

The company’s operating ratio improved to 91.0% from 105.9% in the prior-year quarter, a 1,490-basis-point improvement. Fuel surcharge revenue rose to $31.7 million from $24.5 million.

For the first half of 2026, operating revenue was $360.4 million, down from $429.8 million in the same period of 2025. Net income was $5.8 million, versus a net loss of $24.7 million a year earlier. Basic earnings per share improved to 7 cents from a loss of 32 cents.

Six-month operating income turned positive at $13.3 million, compared with an operating loss of $27.3 million in the first half of 2025. The operating ratio improved to 96.3% from 106.4%. Fuel surcharge revenue for the six months rose to $54.2 million from $50.8 million.

Cash increased to $62.4 million at June 30, 2026, up $43.9 million from Dec. 31, 2025. Debt stood at $134.9 million, down from the original $447.3 million of CFI acquisition borrowings and $46.8 million of Smith-related debt and lease obligations assumed in 2022.

Heartland said it used $25 million in the first half to repay debt and finance lease obligations, $3.1 million for dividends, and $2.3 million for share repurchases. Cash from operations totaled $36.0 million, equal to 10.0% of operating revenue.

The company ended the quarter with total assets of $1.2 billion and stockholders’ equity of $756.3 million. It had no borrowings under its unsecured line of credit and $88.8 million of available borrowing capacity after letters of credit.

Fleet age also edged lower. The average tractor fleet age was 2.3 years at June 30, 2026, down from 2.6 years a year earlier. The average trailer fleet age was 7.1 years, down from 7.5 years. Following these announcements, the company's shares moved -0.47%, and are now trading at a price of $12.72. If you want to know more, read the company's complete 8-K report here.

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