J.B. Hunt's Customers Owe It $451 Million More Than At Year-End As Profit Barely Grows
Third-quarter revenue rose 20%, operating income just 2%, and operating cash flow for nine months fell to $1.11 billion.
J.B. Hunt Transport, the trucking, rail-linked freight and delivery company, grew third-quarter revenue 20% but operating income only 2%, and its latest 10-Q shows trade receivables ballooning to $1.61 billion from $1.16 billion at year-end. The cash that sales did not bring in is visible in the cash flow statement, where nine-month operating cash flow slipped below last year's.
Receivables absorb the cash
Trade receivables stood at $1,611,490 thousand on September 30, against $1,160,371 thousand on December 31, 2025. The cash flow statement shows a $451,119 thousand receivables outflow for the first nine months, versus $7,190 thousand a year earlier.
The second-quarter 10-Q showed a first-half outflow of $300,900 thousand, so roughly $150 million more was absorbed in the third quarter (451,119 less 300,900).
Net cash from operations for the nine months was $1.11 billion, compared with $1.29 billion a year earlier. The company attributes the drop to the timing of general working capital activities, partly offset by higher earnings. Payables rose $193,572 thousand, against $63,212 thousand a year ago.
Pass-through costs squeeze the margin
Revenue reached $3.68 billion, up 20% from $3.05 billion, but excluding fuel surcharges it rose 13%. Fuel surcharge revenue was $670.8 million in the quarter, against $385.6 million a year earlier.
Rents and purchased transportation climbed to 47.8% of revenue from 43.6%, and operating margin slipped to 6.7% from 7.9%. Operating income was $247.1 million, against $242.7 million. Net earnings were $172.4 million, or $1.82 a share, versus $1.76.
Dedicated Contract Services operating income fell 22% to $81.7 million from $104.3 million, which the filing ties to higher driver pay, group medical claims, insurance and equipment costs and new-business onboarding. Integrated Capacity Solutions, the brokerage, saw revenue jump 57% to $434 million and swung to a $9.6 million operating profit from a $0.8 million loss, but its gross margin fell to 14.3% from 15.0%. Intermodal operating income rose 18% to $147.5 million.
Buybacks continue, debt shrinks
J.B. Hunt bought back about 704,000 shares for $173.8 million in the quarter, and had $619.3 million left under its repurchase authorization. Cash on hand was $3.75 million.
The company paid off $700 million of senior notes at maturity in March. Total debt outstanding was about $1.12 billion, against $1.47 billion at year-end, and the senior credit facility balance rose to $379.3 million from $23.6 million.
Net capital spending was $291.1 million for nine months, versus $490.9 million a year earlier. The company expects about $700 million for the full year.
The board declared a $0.45 quarterly dividend on October 21, payable November 20 to holders of record on November 6.
Sources
- 10-Q Filing — J.B. Hunt Transport (JBHT) — SEC EDGAR
- 10-Q Filing — J.B. Hunt Transport (JBHT), Q2 FY2026 filed 2026-07-24 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, ex_1025956.htm) — J.B. Hunt Transport, filed 2026-10-15 — SEC EDGAR
- How Third Quarter Earnings At J.B. Hunt Has Changed Its Investment Story — Yahoo Finance
- J.B. Hunt Transport Services (JBHT) Updates Capital Returns, Is The Stock Still Below Fair Value? — Yahoo Finance
- JB Hunt (JBHT) Grew Sales 20%, but Can Profit Catch Up? — Yahoo Finance
- J.B. Hunt (JBHT) Stock Trades Below Fair Value On Cash Flow — Yahoo Finance
- J.B. Hunt Transport Services, I (JBHT) Stock Forecasts — Yahoo Finance
