HEARTLAND EXPRESS INC recently released its 10-Q report. Heartland Express, Inc. and its subsidiaries provide short-, medium-, and long-haul truckload transportation services in the United States, Mexico, and Canada. The company operates under the Heartland Express, Millis Transfer, Smith Transport, and CFI brand names, with a business centered on dry van freight, cross-border shipments, and a smaller temperature-controlled operation. Its customers include retailers, manufacturers, and parcel carriers in consumer goods, appliances, food products, and automotive markets.
In Item 2, management said freight demand remained weak through 2023, 2024, and 2025, while trucking capacity has tightened and freight rates have begun to improve, though it does not expect a meaningful recovery until later in 2026. The company said cost improvements and transportation system changes implemented during 2025 are intended to support a better cost structure and operating visibility over the next 12 months. It also pointed to continued volatility from consumer demand, tariffs, wars, oil and diesel markets, and regulation as factors that could affect freight demand, capacity, rates, and fuel prices.
Heartland said its consolidated average length of haul is under 400 miles and that it generally earns revenue based on miles per load and revenue per mile or per load. It said customer service and safety depend on experienced drivers and late-model equipment, and that it uses driver training programs at Millis Training Institute and Heartland Training Institute to expand recruiting beyond experienced over-the-road drivers.
The company said driver supply remains tight, with a shrinking pool of qualified CDL drivers across the industry. It said more than 16% of its driver employees have reached 1.0 million or more safe miles, and that its compensation and benefits program includes pay increases tied to years of service, accident-free miles, detention pay, and other programs for delays outside drivers’ control.
Fuel remained a major cost pressure. Heartland said the Department of Energy’s average diesel price was $5.35 per gallon for the three months ended June 30, 2026, up 50.4% from $3.56 a year earlier. It said year-to-date fuel expense was its second-highest expense after salaries, wages, and benefits, and that it cannot fully pass through fuel increases because of idling, empty miles, and out-of-route miles.
For the first six months of 2026, Heartland reported operating revenues of $360.4 million, net income of $5.8 million, and basic earnings per share of $0.07, compared with operating revenues of $429.8 million, a net loss of $24.7 million, and a basic loss per share of $0.32 in the same period of 2025. Its operating ratio improved to 96.3% from 106.4%, and its adjusted operating ratio improved to 94.9% from 106.5%.
The company said total assets were $1.2 billion at June 30, 2026. Cash flow from operating activities for the first half was $36.0 million, down from $46.8 million a year earlier. Investing activities provided $38.9 million, mainly from property and equipment transactions, while financing activities used $30.6 million, including $24.9 million of debt repayments tied to the 2022 acquisitions, $3.1 million in dividends, and $2.3 million in share repurchases. Cash, cash equivalents, and restricted cash rose by $44.3 million to $75.8 million at quarter-end, with cash and cash equivalents excluding restricted cash at $62.4 million. Today the company's shares have moved -1.38% to a price of $12.17. For more information, read the company's full 10-Q submission here.
