Marten Transport Reports 10.6% Revenue Decline and 55.1% Drop in Net Income for Q1 2025

Marten Transport, Ltd. reported a decline in financial performance for the first quarter of 2025, with operating revenue decreasing by 10.6% to $223.2 million compared to $249.7 million in the same period of 2024. The company's net income also fell significantly, down 55.1% to $4.3 million, or $0.05 per diluted share, from $9.6 million, or $0.12 per diluted share, in the prior year. The decrease in revenue was attributed to a reduction in customer demand and a softer freight market, which impacted all segments of the business, particularly Truckload and Dedicated services.

Operating expenses decreased by 8.5% to $217.3 million, primarily due to lower salaries, wages, and benefits, which fell by 11.2% to $78.8 million. However, the operating income dropped by 52.2% to $5.9 million, resulting in an operating ratio of 97.4%, up from 95.1% in the previous year. The increase in operating ratio indicates that expenses grew relative to revenue, with higher insurance and claims costs contributing to the overall increase in operating expenses.

In terms of operational metrics, the Truckload segment generated $104.4 million in revenue, a decrease of 6.4% from the previous year, while the Dedicated segment saw a more significant decline of 14.8%, bringing in $73.6 million. The Intermodal segment's revenue fell by 24.1% to $12.1 million, and the Brokerage segment decreased by 7.5% to $33.0 million. The company reported a decrease in average fleet size across segments, which contributed to the revenue declines, although average revenue per tractor increased in some areas.

Marten Transport continues to focus on strategic initiatives, including investments in environmentally sustainable solutions and maintaining a strong liquidity position. As of March 31, 2025, the company had $39.9 million in cash and cash equivalents and no long-term debt. The company anticipates capital expenditures of approximately $107 million for the remainder of 2025, primarily for new revenue equipment. Despite the current challenges, Marten Transport believes its liquidity sources are adequate to meet operational needs for the foreseeable future, and it plans to continue paying quarterly dividends of $0.06 per share.