J.B. Hunt's second-quarter profit falls on higher costs

J.B. Hunt Transport Services JBHT on Tuesday reported a drop in second-quarter earnings, as increased expenses for wages and equipment weighed on the U.S. trucking firm's margins.

Shares of the company were down 3.8% in extended trading.

The trucking industry has been in decline since 2022, driven by excess capacity, falling freight rates, and modest growth in shipment volumes.

Experts anticipate the downturn will persist, with tariffs imposed by U.S. President Donald Trump adding pressure and delaying recovery.

J.B. Hunt reported a 5.6% year-over-year increase in intermodal volumes for the reported quarter, which involves transporting goods via two or more modes of transportation, boosting its JBI segment revenues to $1.44 billion.

However, quarterly revenue at its integrated capacity solutions and final mile services segments fell 3.7% and 10.5%, respectively, driven by lower demand.

The Arkansas-based company reported total operating revenue of $2.93 billion for the quarter ended June 30, compared to analysts' estimates of about $2.92 billion, according to data compiled by LSEG.

Its net earnings fell to $128.6 million, or $1.31 per share, compared to $135.9 million, or $1.32 per share, a year ago.