Heartland Express Reports Q4 Loss, Notes Improvement in Fundamentals
Heartland Express (NASDAQ: HTLD) reported a net loss of $1.9 million, or 2 cents per share, for the 2024 fourth quarter, excluding one-time gains. This beat consensus expectations of a 4-cent loss.
In the prior-year period, the carrier reported earnings per share of 6 cents, but this included nonrecurring gains of $25.6 million from terminal sales.
CEO Mike Gerdin highlighted favorable trends in the first quarter, indicating momentum building throughout the year.
Fourth-quarter revenue of $242.6 million decreased 11.9% year-over-year (excluding fuel surcharges). Heartland does not provide utilization and pricing metrics.
Operating expenses increased as a percentage of revenue, resulting in an adjusted operating ratio of 98.9%, a 400 basis point deterioration from the prior year.
Despite challenges due to the freight recession and recent acquisitions, Heartland's legacy operations reported a 96.3% OR.
Heartland aims to return to a low- to mid-80s operating ratio, expand revenue, and eliminate debt. It repaid $100 million in debt in 2024, reducing its net debt to $187.9 million.
The Outbound Tender Reject Index (OTRI) suggests improved truck capacity compared to 2023 and 2024.