Heartland Express (HTLD) Q1 2026 earnings summary

Executive summary

• Operating revenue for Q1 2026 was $176.3 million, down 19.7% year-over-year due to strategic fleet changes and weak freight demand.

• Net loss for Q1 2026 was $4.8 million, a significant improvement from a $13.9 million net loss in Q1 2025.

• Operating ratio improved to 101.9% from 106.8% year-over-year, with a non-GAAP adjusted operating ratio of 101.3%.

• Consolidation of CFI domestic operations completed, with successful driver retention and expanded freight options.

• March 2026 saw improved freight volumes and driver utilization, offset by higher fuel prices.

Financial highlights

• Operating revenue decreased by $43.1 million (19.7%) year-over-year, primarily due to fewer drivers and lower total miles.

• Fuel surcharge revenue fell 14.7% to $22.4 million, reflecting lower loaded miles despite higher fuel prices.

• Salaries, wages, and benefits dropped 25.9% to $69.1 million, driven by reduced driver payroll and headcount.

• Depreciation and amortization expense decreased 15.5% to $35.2 million due to ongoing fleet replacement.

• Gain on disposal of property and equipment rose to $7.3 million, mainly from real estate and trailer sales.

• Interest expense declined to $2.2 million, reflecting debt repayments.

• Effective tax rate was 9.0% for Q1 2026, down from 22.4% in Q1 2025.

• Basic loss per share: $0.06 (Q1 2026) vs. $0.18 (Q1 2025).

Outlook and guidance

• Management expects continued improvement in freight demand and pricing later in 2026.

• Cost improvements and transportation system changes are anticipated to support a return to operating profitability over the next twelve months.

• Net capital expenditures for 2026 are projected at $10–$20 million, with $25–$35 million in gains on asset disposals.

• Depreciation expense for 2026 is expected to be $125–$135 million.

• Continued focus on debt reduction, cost control, and operational efficiency.