Heartland Express sees earnings turnaround in Q3

North Liberty, Iowa-based Heartland Express reported a third-quarter net profit, its first since 2023 that was not driven by large gains from selling equipment and terminals, according to FreightWaves. The truckload carrier posted net income of $1 million, or 1 cent per share, compared with an $8.3 million loss, or 11 cents per share, in the year-ago quarter, the report said. Revenue was $179.5 million, down 9% year over year and below the $191.4 million consensus estimate, according to FreightWaves. Excluding fuel surcharges, revenue was 15% lower year over year, according to the report.

CEO Mike Gerdin said in a news release that the improved financial results reflected stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions, the report said. Analysts had expected EPS of 3 cents, and higher gains on sale were a 1-cent year-over-year EPS tailwind, according to FreightWaves.

Heartland recorded a 97.6% adjusted operating ratio, 590 basis points better year over year, the report said. FreightWaves reported that the company cited cost pressures from fuel, maintenance and repairs, and employee-related expenses during the period. Operating cash flows totaled $55 million for the first nine months of 2026, and the company reduced net debt by $21 million in the third quarter to $73 million, ending the period with $89 million available on an untapped revolving credit facility, according to FreightWaves. For sourcing professionals, the timing of ongoing contract negotiations is relevant because the report said their positive impacts were not expected to be fully reflected in Heartland’s operating results until 2027.