J.B. Hunt gains 18% after strong quarterly results 🚀

J.B. Hunt released its Q3 2025 earnings yesterday after the market close. The quarter was solid despite flat revenues, which held steady at $3.05B. Operating income rose 8% to $242.7M, and EPS increased 18% to $1.76. Results were boosted by structural cost reductions, better productivity, and lower external transportation costs, partially offset by higher driver wages and equipment expenses. 

CEO Shelley Simpson reaffirmed confidence in the company’s long-term strategy built on operational excellence, safety, and continued cost discipline.

Key Financial Metrics

• Revenue: $3.05B (≈ flat YoY)
• Operating Income: $242.7M (+8% YoY)
• Earnings per Share (EPS): $1.76 (vs. $1.49; +18%)
• JBI (Intermodal): Revenue $1.52B (-2%); Operating Income $125.0M (+12%); Volume -1% (East +6%, Transcon -6%); Revenue/Load -1%
• DCS (Dedicated Contract Services): Revenue $864M (+2%); Operating Income $104.3M (+9%); Productivity +3%; Truck count -1%; Retention ~95%
• ICS (Integrated Capacity Solutions): Revenue $276M (-1%); Operating Income $(0.8)M (improved from $(3.3)M); Volume -8%; Revenue/Load +9%; Gross Margin 15.0% (from 17.9%); Carrier base +13%
• FMS (Final Mile Services): Revenue $206M (-5%); Operating Income $6.9M (-42%)
• JBT (Truckload): Revenue $190M (+10%); Operating Income $7.4M (-9%); Loads +14%; Revenue/Load ex-fuel -4%; Trailer turns +19%

Trends across segments were mixed but improving, driven by efficiency gains. Management remains focused on network balance (especially Transcon), productivity growth, and cost discipline.

During the press conference, management emphasized a three-pillar strategy — operational excellence, scaling prior investments, and margin repair.
The company’s $100M “lowering cost to serve” program is ahead of schedule, with >$20M realized in Q3, and most savings expected to materialize in 2026.

Technology continues to be widely implemented across the organization. So far, about 50 AI agents have been deployed:

• 60% automated check calls with carriers
• 73% automated order acceptance
• ~80% touchless invoicing
• ~2M dynamic quotes annually
• In total, the company has automated roughly 100,000 labor hours per year.

Challenges

Wages/benefits and insurance costs remain the biggest planning challenges for 2026, and the industry likely needs single-digit price increases to restore profitability.

J.B. Hunt (JBHT.US)

The stock is up nearly 19% today, testing the February highs.