HEARTLAND EXPRESS INC has recently released its 10-Q report. Heartland Express, Inc. and its subsidiaries provide truckload transportation services in the United States, Mexico, and Canada, with most of the business centered on asset-based dry van freight. The company also offers cross-border freight, temperature-controlled truckload service, and Mexico logistics under the Heartland Express, Millis Transfer, Smith Transport, and CFI brands.
In Item 2, management said freight demand remained weak through 2023, 2024, and 2025, while trucking capacity has tightened and freight rates are improving, though it said a meaningful recovery may not fully show up until later in 2026. The company said cost improvements and transportation system changes made in 2025 should support a better cost structure and operating visibility over the next 12 months, but it also pointed to consumer demand swings, tariffs, wars, oil and diesel disruptions, and regulation as sources of volatility.
Heartland said its consolidated average length of haul is under 400 miles and that it earns revenue mainly based on miles per load and revenue per mile or per load. It said its core focus is high-density freight lanes and customer service, and that its operations are managed on a combined basis across the brands by its CEO and president.
The company said it completed ten acquisitions since 1986, including CFI in August 2022 and Smith Transport in May 2022. It said it has historically been debt free, but acquisition-related debt has been reduced significantly, and it does not expect major acquisitions while it is paying down debt.
Driver supply remains a central issue. Heartland said the number of qualified CDL drivers continues to decline across the industry, and it is using higher pay, benefits, equipment, facilities, and training programs to recruit and retain drivers. It said more than 16% of its driver employees have reached 1.0 million or more safe miles.
Fuel costs were another major pressure point. The Department of Energy’s average diesel price was $5.35 per gallon in the quarter ended June 30, 2026, up 50.4% from $3.56 a year earlier. Heartland said year-to-date fuel expense is its second-highest cost after salaries, wages, and benefits, and that it cannot fully recover higher fuel costs because of idling, empty miles, and out-of-route miles.
For the first six months of 2026, operating revenues were $360.4 million, down from $429.8 million a year earlier. Net income was $5.8 million, compared with a net loss of $24.7 million in the first half of 2025, and basic earnings per share were $0.07 versus a basic loss per share of $0.32.
The company’s operating ratio improved to 96.3% for the first half of 2026 from 106.4% in the same period of 2025. On a non-GAAP adjusted basis, the operating ratio was 94.9%, compared with 106.5% a year earlier.
Heartland ended June 30, 2026 with total assets of $1.2 billion. Cash flow from operating activities was $36.0 million for the first six months of 2026, down from $46.8 million a year earlier. Investing activities provided $38.9 million of cash, mainly from property and equipment transactions, while financing activities used $30.6 million, including $24.9 million of debt repayments, $3.1 million in dividends, and $2.3 million in share repurchases.
Cash, cash equivalents and restricted cash rose $44.3 million during the first half of 2026 to $75.8 million at quarter-end, with cash and cash equivalents excluding restricted cash at $62.4 million. The company also said its tractor fleet averaged 2.3 years old at June 30, 2026, down from 2.6 years a year earlier, while the trailer fleet averaged 7.1 years, down from 7.5 years. Today the company's shares have moved -4.29% to a price of $11.81. Check out the company's full 10-Q submission here.
