Heartland Express Reports 18.8% Revenue Decline and Net Loss in Q1 2025

Heartland Express, Inc. reported a decline in financial performance for the first quarter of 2025, with operating revenues of $219.4 million, down 18.8% from $270.3 million in the same period of 2024. The company experienced a net loss of $13.9 million, or $0.18 per share, compared to a net loss of $15.1 million, or $0.19 per share, in the prior year. The decrease in revenue was attributed to a weak freight environment, reduced driver availability, and significant winter weather disruptions that impacted total miles driven. Fuel surcharge revenues also fell by 27.3%, reflecting lower average diesel prices and decreased loaded miles.

In terms of operational metrics, Heartland Express faced challenges with underutilized assets and rising operating costs, leading to an operating ratio of 106.8% for the quarter, compared to 105.3% in the previous year. The company reported a decrease in salaries, wages, and benefits by 17.3% to $93.2 million, primarily due to reduced driver payroll linked to lower company miles. However, the percentage of salaries relative to gross revenues increased, indicating ongoing pressures in the labor market. The company also noted a decrease in fuel expenses, which fell by 19.9% to $37.9 million, driven by lower diesel prices.

Strategically, Heartland Express has been focusing on right-sizing its fleet in response to freight demand and has made efforts to enhance driver compensation and benefits to attract and retain qualified drivers. The company has completed two significant acquisitions in recent years, including CFI and Smith Transport, which have expanded its operational scale and service offerings. However, the integration of these acquisitions has faced challenges due to the current freight market conditions.

Looking ahead, Heartland Express anticipates continued challenges in the freight market, particularly in the first half of 2025, as it navigates uncertainties related to tariff policies and overall economic conditions. The company plans to maintain its focus on operational efficiency and cost management while exploring opportunities for growth through strategic acquisitions. Heartland Express remains committed to improving its service quality and maintaining strong relationships with its customers, despite the ongoing volatility in the trucking industry.