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1. Company Snapshot

1.a. Company Description

J.B. Hunt Transport Services, Inc.provides surface transportation, delivery, and logistic services in North America.It operates through five segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS), and Truckload (JBT).


The JBI segment offers intermodal freight solutions.It operates 104,973 pieces of company-owned trailing equipment; owns and maintains its chassis fleet of 85,649 units; and manages a fleet of 5,612 company-owned tractors, 582 independent contractor trucks, and 6,943 company drivers.The DCS segment designs, develops, and executes supply chain solutions that support various transportation networks.


As of December 31, 2021, it operated 11,139 company-owned trucks, 544 customer-owned trucks, and 6 contractor trucks.The company also operates 21,069 owned pieces of trailing equipment and 7,753 customer-owned trailers.The ICS segment provides freight brokerage and transportation logistics solutions; flatbed, refrigerated, expedited, and less-than-truckload, as well as dry-van and intermodal solutions; an online multimodal marketplace; and logistics management for customers to outsource the transportation functions.


The FMS segment offers delivery services through 1,272 company-owned trucks, 272 customer-owned trucks, and 19 independent contractor trucks; and 1,036 owned pieces of trailing equipment and 185 customer-owned trailers.The JBT segment provides dry-van freight services by utilizing tractors and trailers operating over roads and highways through 734 company-owned tractors and 11,172 company-owned trailers.It also transports or arranges for the transportation of freight, such as general merchandise, specialty consumer items, appliances, forest and paper products, food and beverages, building materials, soaps and cosmetics, automotive parts, agricultural products, electronics, and chemicals.


The company was incorporated in 1961 and is headquartered in Lowell, Arkansas.

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1.b. Last Insights on JBHT

J.B. Hunt Transport Services, Inc.'s recent performance was positively driven by stronger-than-expected Q3 earnings, with EPS of $1.76 surpassing the FactSet analyst consensus estimate of $1.46. The company's cost controls, productivity gains, and improved efficiency across key segments contributed to the beat. A weak freight environment persists, but management's focus on rightsizing its fleet and optimizing capacity helped maintain revenue stability. Several institutional investors, including Allworth Financial LP and American Century Companies Inc., have increased their stakes in the company, citing growth potential.

1.c. Company Highlights

2. J.B. Hunt Transport Services' Q3 2025 Earnings: A Story of Operational Excellence

J.B. Hunt Transport Services, Inc. reported its third-quarter 2025 earnings, with revenue roughly flat year over year at $1.07 billion, while operating income improved 8% to $163 million and diluted earnings per share improved 18% to $1.76, beating analyst estimates of $1.47. The company's productivity and cost management efforts offset inflation in insurance, wages, and employee benefits and equipment costs, as noted by CEO Shelley Simpson, who emphasized the focus on operational excellence, scaling into investments, and repairing margins to drive stronger financial performance.

Publication Date: Oct -17

📋 Highlights
  • Revenue Flat, Operating Income & EPS Up: Revenue roughly flat YoY; operating income +8%, diluted EPS +18%.
  • Cost Management Offsets Inflation: Productivity and cost discipline countered rising insurance, wage, and equipment costs.
  • Share Repurchases and Balance Sheet: Repurchased $780M or 5.4M shares; leverage at 1x EBITDA target, maintaining investment-grade status.
  • Cost-to-Serve Initiative Progress: Aimed at $100M structural savings; achieved $20M in Q3 via service efficiencies and asset utilization.
  • Dedicated Services Strong Demand: Outperformed in tough market; margin improvements from cost reductions and pipeline growth.

Segment Performance

The company's various business segments reported mixed results: Intermodal volumes declined 1% year over year, but held up better relative to the broader truckload market decline. Highway Services and Final Mile business saw soft demand, but the company expects market conditions to remain challenged through at least year-end. Dedicated Contract Services had strong results, with good demand for professional outsourced private fleet solutions and a strong sales pipeline.

Operational Efficiency

The company's "lowering our cost to serve" initiative aims to remove $100 million of structural costs from the business, with over $20 million eliminated in the quarter. Examples of success include service efficiencies, balancing networks, and driving greater asset utilization. The company's maintenance teams have done a great job in lowering costs and increasing equipment uptime.

Valuation and Outlook

With a P/E Ratio of 28.43 and an EV/EBITDA of 11.16, the company's valuation metrics suggest that investors are pricing in a certain level of growth. Analysts estimate next year's revenue growth at 3.8%. The company's focus on operational excellence, cost discipline, and progress on its cost-to-serve initiative is expected to drive stronger financial performance. The current market environment has been challenging, but the company's diversified portfolio and focus on cost-saving measures position it for long-term success.

Growth Opportunities

The company sees significant growth opportunities in its Eastern network, particularly in converting highway to rail. The Eastern network, which includes Mexico, has shown solid growth, particularly with northbound loads from Mexico. The company expects to continue growing in the East due to the large number of loads that can still be converted from highway to intermodal.

3. NewsRoom

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5 Transport Stocks Are Spiking After Slumps. Analysts Debate Their Future.

Dec -03

Source:

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Edgestream Partners L.P. Boosts Holdings in J.B. Hunt Transport Services, Inc. $JBHT

Dec -03

Source: defenseworld.net

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J.B. Hunt Transport Services, Inc. (JBHT) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -02

Source: seekingalpha.com

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American Century Companies Inc. Raises Stake in J.B. Hunt Transport Services, Inc. $JBHT

Dec -01

Source: defenseworld.net

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J.B. Hunt Transport Services, Inc. (JBHT) Presents at Stephens Annual Investment Conference 2025 Transcript

Nov -18

Source: seekingalpha.com

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Allworth Financial LP Has $437,000 Stock Holdings in J.B. Hunt Transport Services, Inc. $JBHT

Nov -17

Source: defenseworld.net

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Worried About an AI Bubble? Here Are BofA's Top Stock Picks to Diversify Your Portfolio

Nov -13

Source: investopedia.com

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J.B. Hunt Transport Services, Inc. (JBHT) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.22%)

6. Segments

Intermodal

Expected Growth: 9%

J.B. Hunt's Intermodal segment growth is driven by increasing demand for efficient and cost-effective transportation solutions, strategic investments in technology and infrastructure, and a strong network of rail and highway carriers. Additionally, the company's focus on customer service, capacity expansion, and competitive pricing also contribute to its 9% growth.

Dedicated Contract Services

Expected Growth: 7%

Dedicated Contract Services' 7% growth driven by increasing demand for customized logistics solutions, expansion of e-commerce, and rising need for supply chain efficiency. Additionally, J.B. Hunt's investments in technology and capacity expansion, as well as its strong relationships with major retailers, contribute to the segment's growth.

Integrated Capacity Solutions

Expected Growth: 8%

Integrated Capacity Solutions' 8% growth driven by increasing demand for supply chain visibility, rising adoption of digital brokerage platforms, and J.B. Hunt's strategic investments in technology and capacity expansion, enabling shippers to optimize their logistics operations and improve efficiency.

Final Mile Services

Expected Growth: 10%

J.B. Hunt's Final Mile Services growth is driven by increasing e-commerce demand, rising need for last-mile delivery efficiency, and growing demand for heavy goods delivery. Additionally, strategic partnerships, investments in technology, and expansion into new markets contribute to the 10% growth rate.

Truckload

Expected Growth: 6%

J.B. Hunt's Truckload segment growth is driven by increasing demand for dedicated capacity, strategic fleet expansion, and investments in digital brokerage platform, JBT. Additionally, the company's focus on customer relationships, operational efficiency, and cost savings initiatives contribute to the 6% growth rate.

Intersegment Eliminations

Expected Growth: 5%

J.B. Hunt Transport Services, Inc.'s 5% growth in Intersegment Eliminations is driven by increased operational efficiency, higher volumes in its Dedicated Contract Carriage and Integrated Capacity Solutions segments, and strategic pricing initiatives. Additionally, the company's investments in technology and digitalization have improved its ability to optimize routes and reduce costs, contributing to the growth.

7. Detailed Products

Dedicated

Customized transportation solutions for high-volume shippers, providing dedicated capacity and equipment

Truckload

Long-haul trucking services for shippers who need to move large quantities of goods

Intermodal

Rail and truck transportation services for shippers who need to move goods over long distances

Less Than Truckload (LTL)

Smaller shipments consolidated with other shipments to reduce costs and increase efficiency

Refrigerated

Temperature-controlled transportation services for perishable goods

Flatbed

Specialized transportation services for oversized or heavy cargo

Final Mile

Delivery services for the last leg of the transportation journey, from the distribution center to the customer's doorstep

Freight Brokerage

Third-party logistics services that connect shippers with qualified carriers

Warehouse and Distribution

Warehousing and distribution services for shippers who need to store and manage inventory

8. J.B. Hunt Transport Services, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for J.B. Hunt Transport Services, Inc. is medium due to the availability of alternative transportation modes such as air and sea freight, but the company's strong network and logistics capabilities mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's diverse customer base and the lack of concentration of customers, which reduces their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few large suppliers for fuel and equipment, but the company's scale and negotiating power mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the transportation industry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the transportation industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.00%
Debt Cost 4.39%
Equity Weight 71.00%
Equity Cost 9.81%
WACC 8.24%
Leverage 40.84%

11. Quality Control: J.B. Hunt Transport Services, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.9/10

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Quality: 5.4

Yield: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

188.41$

Current Price

188.41$

Potential

-0.00%

Expected Cash-Flows