Heartland Express, Inc. Reports Operating Results for the First Quarter of 2026
Rhea-AI Summary
Heartland Express (Nasdaq: HTLD) reported Q1 2026 results: operating revenue $176.3M, net loss $4.8M (basic loss per share $0.06), and an operating ratio of 101.9% (101.3% non-GAAP adjusted).
Cash was $44.5M, total assets $1.18B, stockholders' equity $749.0M, and acquisition-related debt reduced to $149.9M; Smith Transport acquisition debt eliminated.
Positive
- Operating ratio improved to 101.9% (490 bps vs Q1 2025)
- Non-GAAP adjusted operating ratio of 101.3%
- Acquisition-related debt reduced to $149.9M
- Smith Transport acquisition debt and leases eliminated
- Cash balance increased to $44.5M from $18.5M at year-end
Negative
- Net loss of $4.8M (basic loss per share $0.06)
- Operating revenue declined to $176.3M from $219.4M
- Operating loss of $3.3M for the quarter
- Trailer fleet average age 7.3 years (limited disposal progress)
News Market Reaction – HTLD
On the day this news was published, HTLD gained 3.80%, reflecting a moderate positive market reaction. Argus tracked a peak move of +8.1% during that session. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $37M to the company's valuation, bringing the market cap to $1.02B at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
HTLD was at $11.58 (pre-news change -2.03%) while peers were mixed: ULH up 0.21%, but CVLG, MRTN, ARCB, and WERN down between about 1–2%, suggesting stock-specific focus on these earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 03 | Quarter & annual results | Negative | +2.9% | Weak Q4 and 2025 results with higher losses and 112.7% operating ratio. |
| Oct 31 | Quarterly earnings | Negative | +3.2% | Q3 2025 net loss and operating ratio above 103% despite debt reduction. |
| Jul 24 | Quarterly earnings | Negative | -4.4% | Challenging Q2 2025 with $10.9M net loss and 105.9% operating ratio. |
| Apr 30 | Quarterly earnings | Negative | -3.1% | Q1 2025 loss amid weak freight, adverse weather, and higher operating costs. |
| Jan 28 | Quarter & annual results | Negative | -2.2% | Q4 2024 small net loss but improved 99.6% operating ratio and debt paydown. |
Recent earnings have often reported net losses; market reactions have been mixed, with three negative and two positive moves following the last five earnings releases.
Over the last five earnings reports through Q4 2025, Heartland Express has consistently reported operating revenue in the $179–242M quarterly range but remained loss-making, with operating ratios generally above 100%. Management has emphasized debt reduction from 2022 acquisition levels and improving operating ratios across brands. The current Q1 2026 release continues this theme: revenue declined versus Q1 2025, yet the operating ratio improved and net loss narrowed, extending a gradual efficiency-improvement narrative.
Historical Comparison
Across the last five earnings releases, average next-day move was -0.72%. Each update featured net losses but gradual operating-ratio gains and ongoing debt reduction.
Earnings since early 2024 show a progression of ongoing net losses but steady operating-ratio improvement and significant acquisition-related debt reduction, with Q1 2026 extending that efficiency and deleveraging trend.
Market Pulse Summary
This announcement highlights Q1 2026 results with operating revenue of $176.3M, an improved operating ratio of 101.9%, and a narrowed net loss of $4.8M. Management emphasized positive operating cash flow of $23.2M, a higher cash balance of $44.5M, and reduced acquisition-related debt of $149.9M. Compared with prior earnings, the story remains one of gradual efficiency gains and deleveraging amid a still-challenging freight environment and ongoing integration efforts.
Key Terms
operating ratio financial
non-GAAP financial
fuel surcharge revenue financial
amortization of intangibles financial
operating lease financial
right of use assets financial
AI-generated analysis. Not financial advice.
NORTH LIBERTY, Iowa, April 23, 2026 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three months ended March 31, 2026.
Three months ended March 31, 2026:
- Operating Revenue of
$176.3 million , - Net Loss of
$4.8 million ($0.06 Basic Loss per Share), - Operating Ratio of
101.9% (a 490bp improvement to Q1 2025) and101.3% Non-GAAP Adjusted Operating Ratio(1), - Acquisition-related debt and finance lease obligations reduced from
$494.1 million in 2022 to$149.9 million , - Smith Transport debt and equipment leases eliminated,
- Total Assets of
$1.2 billion , including$44.5 million of Cash, - Stockholders' Equity of
$749.0 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 March 31, 2026, reflect significant operating ratio improvement (
During the first quarter of 2026, we completed the previously announced consolidation of the domestic operations of CFI into Heartland Express, including corporate and tractor rebranding efforts. We have been pleased with our ability to retain drivers during the transition, and we have been able to identify additional freight options not previously available to CFI as a result of this change. We continue to focus our operational efforts on driver utilization, reduction of unproductive miles, and other cost control initiatives. We have begun to see some encouraging signs related to market capacity reductions and freight demand improvements. We believe that meaningful improvements in freight demand and freight pricing have started, but may not fully materialize until later in 2026."
Financial Results
For the three months ended March 31, 2026, the Company delivered operating revenues of
Balance Sheet, Liquidity, and Capital Expenditures
As of March 31, 2026, the Company had
Net cash flows from operations for the first three months of 2026 were
The average age of the Company's consolidated tractor fleet was 2.6 years as of March 31, 2026 and March 31, 2025. The average age of the Company's consolidated trailer fleet was 7.3 years as of March 31, 2026 compared to 7.4 years as of March 31, 2025. We expect to continue to dispose of excess trailers within our fleet as used equipment market conditions improve. During the calendar year of 2026, we currently expect net capital expenditures of approximately
The Company continues its commitment to stockholders through the payment of cash dividends. Our regular dividend of
Other Information
During the first quarter of 2026, our family of operating brands continued to deliver award-winning service and corporate trust as evidenced by the following awards for our company and our employees:
- Pepsico Transportation - 2025 Carrier of the Year - WHD West Division
- Unilever - 2025 Carrier of the Year - Over-the-Road Asset
- Newsweek's 2026 Most Trustworthy Companies (4 times in 5 years)
In addition, we are extremely proud to recognize professional driver Richard Fertig (Smith Transport), as one of five Professional Drivers of the Year honored by the Truckload Carriers Association (TCA) at their 2026 Annual Convention.
Operating revenue excluding fuel surcharge revenue, adjusted operating 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 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 . 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 March 31, | ||||||||
| 2026 | 2025 | |||||||
| OPERATING REVENUE | $ | 176,256 | $ | 219,420 | ||||
| OPERATING EXPENSES: | ||||||||
| Salaries, wages, and benefits | $ | 69,095 | $ | 93,237 | ||||
| Rent and purchased transportation | 10,464 | 14,274 | ||||||
| Fuel | 32,738 | 37,918 | ||||||
| Operations and maintenance | 11,865 | 17,279 | ||||||
| Operating taxes and licenses | 3,951 | 4,741 | ||||||
| Insurance and claims | 12,779 | 11,922 | ||||||
| Communications and utilities | 1,596 | 2,266 | ||||||
| Depreciation and amortization | 35,158 | 41,628 | ||||||
| Other operating expenses | 9,222 | 12,837 | ||||||
| Gain on disposal of property and equipment | (7,317 | ) | (1,784 | ) | ||||
| 179,551 | 234,318 | |||||||
| Operating loss | (3,295 | ) | (14,898 | ) | ||||
| Interest income | 207 | 129 | ||||||
| Interest expense | (2,210 | ) | (3,105 | ) | ||||
| Loss before income taxes | (5,298 | ) | (17,874 | ) | ||||
| Federal and state income tax benefit | (477 | ) | (4,001 | ) | ||||
| Net loss | $ | (4,821 | ) | $ | (13,873 | ) | ||
| Loss per share | ||||||||
| Basic | $ | (0.06 | ) | $ | (0.18 | ) | ||
| Diluted | $ | (0.06 | ) | $ | (0.18 | ) | ||
| Weighted average shares outstanding | ||||||||
| Basic | 77,457 | 78,540 | ||||||
| Diluted | 77,489 | 78,610 | ||||||
| Dividends declared per share | $ | 0.02 | $ | 0.02 | ||||
| HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited) | ||||||||
| March 31, | December 31, | |||||||
| ASSETS | 2026 | 2025 | ||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 44,490 | $ | 18,475 | ||||
| Trade receivables, net | 77,843 | 74,172 | ||||||
| Prepaid tires | 11,162 | 11,626 | ||||||
| Other current assets | 9,706 | 9,181 | ||||||
| Income taxes receivable | — | 1,146 | ||||||
| Total current assets | 143,201 | 114,600 | ||||||
| PROPERTY AND EQUIPMENT | 1,105,686 | 1,148,693 | ||||||
| Less accumulated depreciation | 478,559 | 481,471 | ||||||
| 627,127 | 667,222 | |||||||
| GOODWILL | 322,597 | 322,597 | ||||||
| OTHER INTANGIBLES, NET | 68,257 | 69,512 | ||||||
| OTHER ASSETS | 15,229 | 14,686 | ||||||
| DEFERRED INCOME TAXES, NET | 1,235 | 1,353 | ||||||
| OPERATING LEASE RIGHT OF USE ASSETS | 3,273 | 1,647 | ||||||
| $ | 1,180,919 | $ | 1,191,617 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued liabilities | $ | 40,682 | $ | 33,479 | ||||
| Compensation and benefits | 25,351 | 25,061 | ||||||
| Insurance accruals | 30,456 | 31,437 | ||||||
| Long-term debt and finance lease liabilities - current portion | — | 5,714 | ||||||
| Operating lease liabilities - current portion | 1,865 | 1,330 | ||||||
| Other accruals | 13,981 | 13,143 | ||||||
| Income taxes payable | 227 | — | ||||||
| Total current liabilities | 112,562 | 110,164 | ||||||
| LONG-TERM LIABILITIES | ||||||||
| Income taxes payable | 5,564 | 5,427 | ||||||
| Long-term debt and finance lease liabilities less current portion | 149,890 | 154,059 | ||||||
| Operating lease liabilities less current portion | 1,408 | 317 | ||||||
| Deferred income taxes, net | 131,362 | 133,629 | ||||||
| Insurance accruals less current portion | 31,102 | 32,702 | ||||||
| Total long-term liabilities | 319,326 | 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 77,467 and 77,445 in 2026 and 2025, respectively | 907 | 907 | ||||||
| Additional paid-in capital | 2,600 | 2,979 | ||||||
| Retained earnings | 959,034 | 965,405 | ||||||
| Treasury stock, at cost; 13,222 and 13,244 in 2026 and 2025, respectively | (213,510 | ) | (213,972 | ) | ||||
| 749,031 | 755,319 | |||||||
| $ | 1,180,919 | $ | 1,191,617 | |||||
(1)
| GAAP to Non-GAAP Reconciliation Schedule: | ||||||||
| Operating revenue excluding fuel surcharge revenue, adjusted operating expenses, adjusted operating loss, and adjusted operating ratio reconciliation (a) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| (Unaudited, in thousands) | ||||||||
| Operating revenue | $ | 176,256 | $ | 219,420 | ||||
| Less: Fuel surcharge revenue | 22,443 | 26,321 | ||||||
| Operating revenue, excluding fuel surcharge revenue | 153,813 | 193,099 | ||||||
| Operating expenses | 179,551 | 234,318 | ||||||
| Less: Fuel surcharge revenue | 22,443 | 26,321 | ||||||
| Less: Amortization of intangibles | 1,254 | 1,254 | ||||||
| Adjusted operating expenses | 155,854 | 206,743 | ||||||
| Operating loss | (3,295 | ) | (14,898 | ) | ||||
| Adjusted operating loss | $ | (2,041 | ) | $ | (13,644 | ) | ||
| Operating ratio | 101.9 | % | 106.8 | % | ||||
| Adjusted operating ratio | 101.3 | % | 107.1 | % | ||||
(a) Operating revenue excluding fuel surcharge revenue, as reported in this press release is based upon operating revenue minus fuel surcharge revenue. Adjusted operating 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 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 loss, and adjusted operating ratio are not substitutes for operating revenue, operating 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 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 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.
