Executive Summary
JB Hunt Transport Services Inc. reported QQ3 2025 results reflecting durable profitability amid a freight market with modest top-line growth. Revenue of $3.0529 billion declined 0.5% year over year but rose 4.26% quarter over quarter, underscoring seasonal and demand-driven variability within an otherwise diversified portfolio. Gross profit of $340.5 million yielded a gross margin of 11.15%, while EBITDA reached $421.8 million for an EBITDA margin of 13.81%. Operating income was $242.66 million (operating margin 7.95%), and net income totaled $170.85 million (net margin 5.60%), with diluted EPS of $1.76. The quarter benefited from disciplined cost management and favorable mix across segments, contributing to a 8.28% year-over-year and 23.01% quarter-over-quarter rise in operating income, and a 12.35% YoY and 32.83% QoQ increase in net income. Operating cash flow per share stood at $4.94, with free cash flow per share of $3.58, highlighting robust cash generation despite a modest liquidity profile. The balance sheet shows prudent leverage (debt ratio ~0.198; debt to capitalization ~0.31) and strong interest coverage (~13.6x), supported by a cash-efficient operating model. Near-term liquidity metrics are more constrained (current ratio 0.867; cash ratio 0.0271), suggesting working capital sensitivity to demand fluctuations.
Looking ahead, management did not publish explicit forward guidance in the provided data. The company’s diversified exposure—Intermodal, JBI, ICS, DCS, FMS, and JBT—positions JB Hunt to navigate cyclical freight dynamics, capitalize on capacity-solutions demand, and improve asset utilization. The investment thesis rests on continued cash flow resilience, potential margin discipline, and strategic growth within capacity solutions and logistics management, while monitoring macro freight activity, driver availability, and fuel cost volatility.
Key Performance Indicators
QoQ: -33.71% | YoY:-35.94%
Key Insights
Revenue: $3,052,897,000; YoY -0.5%; QoQ +4.26%
Gross Profit: $340,469,000; YoY -35.94%; QoQ -33.71%
Operating Income: $242,658,000; YoY +8.28%; QoQ +23.01%
Net Income: $170,849,000; YoY +12.35%; QoQ +32.83%
EPS (GAAP): $1.74; EPS Diluted: $1.76; YoY +16.0%; QoQ +31.82%
Gross Profit Margin: 11.15%; Operating Margin: 7.95%; Net Margin: 5.60%
Effective Tax Rate: 24.0%
Return on Assets: 2.11%; Return on Equity: 4.78%; Return on Capital Employed: 3.93%
Debt Ratio (financial leverage): 0.198; Debt to ...
Financial Highlights
Revenue: $3,052,897,000; YoY -0.5%; QoQ +4.26%
Gross Profit: $340,469,000; YoY -35.94%; QoQ -33.71%
Operating Income: $242,658,000; YoY +8.28%; QoQ +23.01%
Net Income: $170,849,000; YoY +12.35%; QoQ +32.83%
EPS (GAAP): $1.74; EPS Diluted: $1.76; YoY +16.0%; QoQ +31.82%
Gross Profit Margin: 11.15%; Operating Margin: 7.95%; Net Margin: 5.60%
Effective Tax Rate: 24.0%
Return on Assets: 2.11%; Return on Equity: 4.78%; Return on Capital Employed: 3.93%
Debt Ratio (financial leverage): 0.198; Debt to Capitalization: 0.310; Long-Term Debt to Capitalization: 0.202
Interest Coverage: 13.58x; Cash Flow per Share (OCF): $4.94; Free Cash Flow per Share: $3.58
Cash per Share: $0.531; Dividend Payout Ratio: 24.9%; Dividend Yield: 0.322%
Price/Book: 3.70; Price/Earnings: 19.32; Price/Sales: 4.33; Enterprise Value Multiple: 34.98
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.05B |
-0.50% |
4.26% |
| Gross Profit |
340.47M |
-35.94% |
-33.71% |
| Operating Income |
242.66M |
8.28% |
23.01% |
| Net Income |
170.85M |
12.35% |
32.83% |
| EPS |
1.74 |
16.00% |
31.82% |
Key Financial Ratios
operatingProfitMargin
7.95%
operatingCashFlowPerShare
$4.94
freeCashFlowPerShare
$3.58
dividendPayoutRatio
24.9%
Management Commentary
No earnings call transcript provided for QQ3 2025; unable to extract management quotes or themes from a transcript in the current data set. Investors should monitor forthcoming management commentary for explicit guidance and strategic emphasis. In the context of the reported numbers, potential themes to watch in any transcript would include: segment mix commentary (Intermodal, ICS, DCS, FMS, JBT) and volume trends; pricing discipline and cost controls; capital allocation decisions (capex vs. buybacks/dividends); and trajectory of free cash flow generation versus debt levels.
Forward Guidance
No formal forward guidance is present in the supplied data. Based on QQ3 2025 results, the company appears to be focused on sustaining margin discipline and leveraging its diversified segment mix to weather freight-cycle volatility. Investors should watch: (1) trajectory of Intermodal and capacity-solutions demand (ICS/DCS) and whether QoQ momentum persists into Q4 and 2025-2026; (2) fuel cost dynamics and driver availability impacting operating metrics; (3) cash flow generation versus working capital needs given the relatively low cash ratio; (4) capital allocation policies including potential share repurchases, dividends, or selective fleet investments; (5) competitive dynamics with other large freight/logistics providers.