Heartland Express (CCJ Top 250, No. 28) reported a return to profitability in the second quarter of 2026, benefiting from operational cost cuts and higher freight pricing despite lower overall operating revenue.
The truckload carrier recorded net income of $10.6 million for the three months ended June 30. That compares with a net loss of $10.9 million during the same period last year.
Operating revenue fell to $184.1 million from $210.4 million a year earlier, though fuel surcharge revenue rose to $31.7 million from $24.5 million.
Chief Executive Officer Mike Gerdin credited the quarterly turnaround to tighter industry capacity, improved customer pricing, reduced operating costs, and strategic asset disposals.
"We are pleased with our operational improvements and profitability as we continue toward our foundational goal of an operating ratio of 85% or lower and return to a debt-free balance sheet," Gerdin said in a statement.
The average age of the company's consolidated tractor fleet was 2.3 years as of June 30, compared 2.6 years as of June 30, 2025. The average age of the company's consolidated trailer fleet was 7.1 years as of June 30, compared to 7.5 years as of June 30, 2025. "We expect to continue to dispose of excess trailers within our fleet as used equipment market conditions improve," the company noted in its earnings release.
Heartland's operating ratio improved significantly to 91% from 105.9% in the second quarter of 2025.
For the first six months of 2026, Heartland generated $360.4 million in operating revenue, down from $429.8 million in the prior-year period. Net income for the six-month period reached $5.8 million, or 7 cents per share, recovering from a net loss of $24.7 million, or 32 cents per share, in the first half of 2025.
The company continued to trim debt incurred from past acquisitions. Heartland paid down $25 million in debt and finance leases during the first half of the year, bringing total acquisition-related obligations down to $135 million. That total is down from $494 million in 2022 and includes the full retirement of debt and leases linked to its Smith Transport acquisition.
Heartland ended the quarter with $62.4 million in cash, total assets of $1.2 billion, and no outstanding borrowings under its unsecured line of credit.
Looking ahead, management expects to use cash flow from operations to make significant investments in its tractor and trailer fleets while continuing to pay down remaining debt. Net capital expenditures for the remainder of 2026 are projected between $8 million and $14 million.
