Heartland Express, Inc. Reports Net Income and Financial Results for the Second Quarter of 2026
Rhea-AI Summary
Heartland Express (Nasdaq: HTLD) reported Q2 2026 operating revenue of $184.1 million (vs. $210.4 million in Q2 2025) and net income of $10.6 million versus a prior-year net loss of $10.9 million. Basic EPS was $0.14 compared to a loss of $(0.14).
The Q2 2026 operating ratio improved to 91.0% from 105.9%, with a non-GAAP adjusted operating ratio of 88.3%. For the first six months of 2026, operating revenue was $360.4 million (vs. $429.8 million), net income was $5.8 million (vs. $(24.7) million), and operating income was $13.3 million (vs. $(27.3) million). As of June 30, 2026, cash increased to $62.4 million, acquisition-related debt and finance lease obligations declined to $135 million from $494 million in 2022, and stockholders’ equity was $756.3 million. The company generated $36.0 million in operating cash flow, paid $3.1 million in dividends, repurchased $2.3 million of stock, and plans 2026 net capital expenditures of $8–$14 million with expected gains on asset disposals of $13–$19 million, according to Heartland Express.
Positive
- Return to profitability: Q2 2026 net income $10.6M vs. $(10.9)M Q2 2025
- Operating ratio improvement: 91.0% in Q2 2026 vs. 105.9% in Q2 2025
- Six-month turnaround: $13.3M operating income vs. $(27.3)M in prior-year period
- Debt reduction: acquisition-related debt and finance lease obligations down to $135M from $494M in 2022
- Stronger liquidity: cash balance $62.4M, up $43.9M since December 31, 2025
- Solid operating cash flow: $36.0M in first six months of 2026, equal to 10.0% of operating revenue
Negative
- Revenue decline: Q2 2026 operating revenue $184.1M vs. $210.4M in Q2 2025
- Lower year-to-date revenue: $360.4M in six months 2026 vs. $429.8M in 2025 period
- High year-to-date cost level: 2026 six-month operating ratio 96.3%, despite improvement vs. 106.4% in 2025
- Modest profitability year-to-date: net income margin 1.6% for first six months 2026 vs. (5.8)% in 2025
News Explained
Heartland Express repurchased
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 23 | 1Q26 earnings report | Negative | +3.8% | Quarterly net loss despite improved operating ratio and reduced acquisition-related debt |
| Feb 03 | 4Q25 earnings report | Negative | +2.9% | Quarterly and annual net losses accompanied by impairment and elevated operating ratios |
| Oct 31 | 3Q25 earnings report | Negative | +3.2% | Quarterly net loss and high operating ratio amid balance-sheet and fleet actions |
| Jul 24 | 2Q25 earnings report | Negative | -4.4% | Quarterly net loss and 105.9% operating ratio during difficult freight-market conditions |
| Apr 30 | 1Q25 earnings report | Negative | -3.1% | Quarterly net loss driven by adverse weather, tariffs, and underutilized assets |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed three positive reactions to negative earnings reports and two reactions aligned with negative earnings results.
Key Terms
operating ratio financial
non-gaap adjusted operating ratio financial
fuel surcharge revenue financial
forward-looking statements regulatory
regulation s-k regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
NORTH LIBERTY, Iowa, July 30, 2026 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three and six months ended June 30, 2026.
Three months ended June 30, 2026:
- Operating Revenue of
$184.1 million , - Net Income of
$10.6 million , - Basic Earnings per Share of
$0.14 , - Operating Ratio of
91.0% (a 1,490bp improvement to Q2 2025) and88.3% Non-GAAP Adjusted Operating Ratio(1), - Purchased 172,061 shares of our common stock for
$2.3 million , - Payments of
$15 million to reduce outstanding acquisition-related debt, - Total Assets of
$1.2 billion , including$62.4 million of Cash, - Stockholders' Equity of
$756.3 million .
Six months ended June 30, 2026:
- Operating Revenue of
$360.4 million , - Net Income of
$5.8 million , - Basic Earnings per Share of
$0.07 , - Operating Ratio of
96.3% and94.9% Non-GAAP Adjusted Operating Ratio(1), - Smith Transport debt and equipment leases eliminated,
- Payments of
$25 million to reduce outstanding debt and finance lease obligations. Acquisition-related debt and finance lease obligations reduced from$494 million in 2022 to$135 million .
Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three months ended June 30, 2026, reflect significant operating ratio improvement (
Financial Results
For the three months ended June 30, 2026, the Company delivered operating revenues of
For the six months ended June 30, 2026, the Company delivered operating revenues of
Balance Sheet, Liquidity, and Capital Expenditures
As of June 30, 2026, the Company had
Net cash flows from operations for the first six months of 2026 were
The average age of the Company's consolidated tractor fleet was 2.3 years as of June 30, 2026 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, 2026 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. For the remainder of 2026, we currently expect net capital expenditures to be approximately
The Company continues its commitment to stockholders through the payment of cash dividends. Our regular dividend of
Other Information
During the second quarter of 2026, our family of operating brands continued to deliver award-winning service and earn corporate trust as Millis Transfer was recognized by Newsweek as one of America's Greatest Midsize Workplaces for Culture, Belonging & Community in 2026.
Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are non-GAAP financial measures and are not intended to replace financial measures calculated in accordance with GAAP. These non-GAAP financial measures supplement our GAAP results. We believe that using these measures affords a more consistent basis for comparing our results of operations from period to period. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP, is included in the table at the end of this press release.
This press release may contain statements that might be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as “seek,” “expects,” “estimates,” “anticipates,” “projects,” “believes,” “hopes,” “plans,” “goals,” “intends,” “may,” “might,” “likely,” “will,” “should,” “would,” “could,” “potential,” “predict,” “continue,” “strategy,” “future,” “ensure,” “outlook,” and similar terms and phrases. In this press release, the statements relating to freight supply and demand, our ability to react to and capitalize on changing market conditions, the expected impact of operational improvements and strategic changes, progress toward our goals, future capital expenditures, future dispositions of revenue equipment and property and gains therefrom, future profitability, and future stock repurchases, dividends, and debt repayment are forward-looking statements. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties, and undue reliance should not be placed on such statements. Actual events may differ materially from those set forth in, contemplated by, or underlying such statements as a result of numerous factors, including, without limitation, those specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. The Company assumes no obligation to update any forward-looking statements, which speak as of their respective dates.
| Contact: Heartland Express, Inc. (319-645-7060) Mike Gerdin, Chief Executive Officer Chris Strain, Chief Financial Officer |
| HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| OPERATING REVENUE | $ | 184,126 | $ | 210,387 | $ | 360,383 | $ | 429,807 | ||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Salaries, wages, and benefits | $ | 69,135 | $ | 87,159 | $ | 138,230 | $ | 180,396 | ||||||||
| Rent and purchased transportation | 10,791 | 13,343 | 21,256 | 27,617 | ||||||||||||
| Fuel | 40,549 | 33,709 | 73,286 | 71,627 | ||||||||||||
| Operations and maintenance | 12,784 | 17,439 | 24,649 | 34,718 | ||||||||||||
| Operating taxes and licenses | 3,765 | 4,422 | 7,717 | 9,163 | ||||||||||||
| Insurance and claims | 11,783 | 14,154 | 24,562 | 26,076 | ||||||||||||
| Communications and utilities | 1,977 | 2,206 | 3,574 | 4,471 | ||||||||||||
| Depreciation and amortization | 32,306 | 41,463 | 67,463 | 83,091 | ||||||||||||
| Other operating expenses | 9,537 | 11,693 | 18,759 | 24,531 | ||||||||||||
| Gain on disposal of property and equipment | (25,050 | ) | (2,782 | ) | (32,367 | ) | (4,566 | ) | ||||||||
| 167,577 | 222,806 | 347,129 | 457,124 | |||||||||||||
| Operating income (loss) | 16,549 | (12,419 | ) | 13,254 | (27,317 | ) | ||||||||||
| Interest income | 370 | 198 | 578 | 326 | ||||||||||||
| Interest expense | (1,878 | ) | (2,962 | ) | (4,088 | ) | (6,066 | ) | ||||||||
| Income (loss) before income taxes | 15,041 | (15,183 | ) | 9,744 | (33,057 | ) | ||||||||||
| Federal and state income tax (benefit) | 4,458 | (4,328 | ) | 3,982 | (8,329 | ) | ||||||||||
| Net Income (loss) | $ | 10,583 | $ | (10,855 | ) | $ | 5,762 | $ | (24,728 | ) | ||||||
| Income (loss) per share | ||||||||||||||||
| Basic | $ | 0.14 | $ | (0.14 | ) | $ | 0.07 | $ | (0.32 | ) | ||||||
| Diluted | $ | 0.14 | $ | (0.14 | ) | $ | 0.07 | $ | (0.32 | ) | ||||||
| Weighted average shares outstanding | ||||||||||||||||
| Basic | 77,404 | 78,079 | 77,430 | 78,308 | ||||||||||||
| Diluted | 77,437 | 78,142 | 77,463 | 78,375 | ||||||||||||
| Dividends declared per share | $ | 0.02 | $ | 0.02 | $ | 0.04 | $ | 0.04 | ||||||||
| HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) | ||||||||
| June 30, | December 31, | |||||||
| ASSETS | 2026 | 2025 | ||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 62,385 | $ | 18,475 | ||||
| Trade receivables, net | 76,658 | 74,172 | ||||||
| Prepaid tires | 11,055 | 11,626 | ||||||
| Other current assets | 35,696 | 9,181 | ||||||
| Income taxes receivable | — | 1,146 | ||||||
| Total current assets | 185,794 | 114,600 | ||||||
| PROPERTY AND EQUIPMENT | 1,003,181 | 1,148,693 | ||||||
| Less accumulated depreciation | 432,010 | 481,471 | ||||||
| 571,171 | 667,222 | |||||||
| GOODWILL | 322,597 | 322,597 | ||||||
| OTHER INTANGIBLES, NET | 67,003 | 69,512 | ||||||
| OTHER ASSETS | 15,402 | 14,686 | ||||||
| DEFERRED INCOME TAXES, NET | 1,311 | 1,353 | ||||||
| OPERATING LEASE RIGHT OF USE ASSETS | 11,513 | 1,647 | ||||||
| $ | 1,174,791 | $ | 1,191,617 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued liabilities | $ | 34,253 | $ | 33,479 | ||||
| Compensation and benefits | 25,387 | 25,061 | ||||||
| Insurance accruals | 28,761 | 31,437 | ||||||
| Long-term debt and finance lease liabilities - current portion | — | 5,714 | ||||||
| Operating lease liabilities - current portion | 3,202 | 1,330 | ||||||
| Other accruals | 14,691 | 13,143 | ||||||
| Income taxes payable | 10,935 | — | ||||||
| Total current liabilities | 117,229 | 110,164 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Income taxes payable | 5,839 | 5,427 | ||||||
| Long-term debt and finance lease liabilities less current portion | 134,890 | 154,059 | ||||||
| Operating lease liabilities less current portion | 8,311 | 317 | ||||||
| Deferred income taxes, net | 122,550 | 133,629 | ||||||
| Insurance accruals less current portion | 29,695 | 32,702 | ||||||
| Total long-term liabilities | 301,285 | 326,134 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2026 and 2025; outstanding 77,328 and 77,445 in 2026 and 2025, respectively | 907 | 907 | ||||||
| Additional paid-in capital | 2,588 | 2,979 | ||||||
| Retained earnings | 968,070 | 965,405 | ||||||
| Treasury stock, at cost; 13,361 and 13,244 in 2026 and 2025, respectively | (215,288 | ) | (213,972 | ) | ||||
| 756,277 | 755,319 | |||||||
| $ | 1,174,791 | $ | 1,191,617 | |||||
| (1) GAAP to Non-GAAP Reconciliation Schedule: Operating revenue excluding fuel surcharge revenue, adjusted operating expenses, adjusted operating income (loss), and adjusted operating ratio reconciliation (a) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (Unaudited, in thousands) | (Unaudited, in thousands) | |||||||||||||||
| Operating revenue | $ | 184,126 | $ | 210,387 | $ | 360,383 | $ | 429,807 | ||||||||
| Less: Fuel surcharge revenue | 31,743 | 24,509 | 54,186 | 50,830 | ||||||||||||
| Operating revenue, excluding fuel surcharge revenue | 152,383 | 185,878 | 306,197 | 378,977 | ||||||||||||
| Operating expenses | 167,577 | 222,806 | 347,129 | 457,124 | ||||||||||||
| Less: Fuel surcharge revenue | 31,743 | 24,509 | 54,186 | 50,830 | ||||||||||||
| Less: Amortization of intangibles | 1,254 | 1,254 | 2,509 | 2,509 | ||||||||||||
| Adjusted operating expenses | 134,580 | 197,043 | 290,434 | 403,785 | ||||||||||||
| Operating income (loss) | 16,549 | (12,419 | ) | 13,254 | (27,317 | ) | ||||||||||
| Adjusted operating income (loss) | $ | 17,803 | $ | (11,165 | ) | $ | 15,763 | $ | (24,808 | ) | ||||||
| Operating ratio | 91.0 | % | 105.9 | % | 96.3 | % | 106.4 | % | ||||||||
| Adjusted operating ratio | 88.3 | % | 106.0 | % | 94.9 | % | 106.5 | % | ||||||||
(a) Operating revenue excluding fuel surcharge revenue, as reported in this press release is based upon operating revenue minus fuel surcharge revenue. Adjusted operating income (loss) as reported in this press release is based upon operating revenue excluding fuel surcharge revenue, less operating expenses, net of fuel surcharge revenue, and non-cash amortization expense related to intangible assets. Adjusted operating ratio as reported in this press release is based upon operating expenses, net of fuel surcharge revenue, and amortization of intangibles, as a percentage of operating revenue excluding fuel surcharge revenue. We believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are more representative of our underlying operations by excluding the volatility of fuel prices, which we cannot control. Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are not substitutes for operating revenue, operating income (loss), or operating ratio measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio improve comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry if those companies define such measures differently. Because of these limitations, operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.
