Truckload service Heartland Specific posted a sixth straight quarterly internet loss (excluding one-time beneficial properties) however famous some enchancment in fundamentals to this point within the new yr.
North Liberty, Iowa-based Heartland (NASDAQ: HTLD) reported a internet lack of $1.9 million, or 2 cents per share, for the 2024 fourth quarter (only a 1-cent loss when excluding deal-related amortization expense). The consequence was higher than the consensus expectation of a 4-cent loss for the interval.
The service reported headline earnings per share of 6 cents within the prior-year interval. Nevertheless, that quarter included nonrecurring beneficial properties of $25.6 million from the sale of three terminals.
In a Tuesday information launch, CEO Mike Gerdin cautiously famous favorable tendencies to this point within the first quarter with the expectation of momentum constructing all year long.
“Whereas it’s early within the quarter and excessive winter climate situations to this point in 2025 make comparability tough, we’re seeing a optimistic shift in buyer charge and quantity negotiations that we count on to strengthen because the yr unfolds,” Gerdin mentioned.
The fourth quarter included $6 million in beneficial properties on the sale of used gear, that are seen by analysts as a part of regular operations and a recurring offset to working bills. Nevertheless, Heartland’s beneficial properties on gear gross sales in 2024 have been closely weighted to the fourth quarter (80% of the full-year complete) and benefited the interval by roughly 6 cents when utilizing a normalized tax charge.
Fourth-quarter income of $242.6 million was 11.9% decrease yr over yr and eight.9% decrease when excluding the influence of gasoline surcharges. Income excluding gasoline was 5.5% decrease than within the third quarter.
Heartland doesn’t present working metrics for utilization and pricing.
The service booked a 98.9% adjusted working ratio (working bills expressed as a share of income), which was 400 foundation factors worse than the 2023 fourth quarter (inclusive of the actual property beneficial properties) however an enchancment from the 105.8% OR that excluded the beneficial properties.
Salaries, wages and advantages (as a share of income) have been down 60 bps y/y, and rents and bought transportation bills fell 220 bps. Operations and upkeep bills have been 190 bps larger as the typical tractor age elevated to 2.5 years within the quarter from 2.2 years within the year-ago interval.
The corporate’s common tractor age for the present cycle peaked at 2.7 years within the third quarter.
Heartland has seen a chronic stretch of powerful leads to half because of the severity of the freight recession but additionally because it acquired two fleets (Smith Transport and Contract Freighters) in the summertime of 2022 – the early days of the downturn.
