PAMT Corp Reports 15% Revenue Decline and Increased Losses in Q1 2025

PAMT Corp reported a significant decline in financial performance for the first quarter of 2025, with total operating revenues of $155.3 million, down 15% from $182.6 million in the same period last year. The company experienced an operating loss of $9.2 million compared to a loss of $0.7 million in the first quarter of 2024. The net loss for the quarter was approximately $8.1 million, translating to a loss per share of $0.37, a stark contrast to a net income of $0.3 million, or $0.01 per share, in the prior year.

The decrease in revenue was primarily attributed to a decline in both truckload and brokerage services. Truckload services revenue, before fuel surcharges, fell by 9.6% to $92.4 million, driven by a 6.5% decrease in total miles traveled and a 3.3% drop in the rate per mile. Similarly, brokerage and logistics services revenue decreased by 24.7% to $44.3 million, largely due to a 28% reduction in the number of brokered loads. The company noted that the freight market remains challenging, characterized by an oversupply of available trucks compared to freight demand.

Operationally, PAMT Corp's total assets decreased to $712.6 million as of March 31, 2025, down from $741.7 million at the end of 2024. Current liabilities increased to $126.6 million, up from $118.8 million, while long-term debt decreased to $309.2 million from $325.6 million. The company’s cash and cash equivalents also fell to $57.1 million, down from $68.1 million. The decline in cash was attributed to significant capital expenditures, including the purchase of new trucks and trailers, which amounted to approximately $11.8 million during the quarter.

In terms of strategic developments, PAMT Corp has initiated a tender offer to repurchase up to 435,000 shares of its common stock, reflecting its commitment to returning value to shareholders. The company plans to continue investing in its fleet, with expectations to purchase approximately 282 new trucks and 775 new trailers throughout 2025. Despite the current challenges, management remains focused on improving operational efficiency and adapting to market conditions, with a forward-looking statement indicating a cautious optimism for recovery as market dynamics evolve.

Overall, PAMT Corp's first-quarter results highlight the impact of a challenging freight market on its financial performance, with significant declines in revenue and increased operational costs. The company is actively pursuing strategies to enhance its market position while managing its financial resources prudently in anticipation of future growth opportunities.