Heartland Express, Inc. Reports Net Income and Financial Results for the Second Quarter of 2026

NORTH LIBERTY, Iowa, July 30, 2026 (GLOBE NEWSWIRE) -- Heartland Express, Inc. (Nasdaq: HTLD) announced today financial results for the three and six months ended June 30, 2026.

Three months ended June 30, 2026:

• Operating Revenue of $184.1 million-
• Net Income of $10.6 million-
• Basic Earnings per Share of $0.14-
• Operating Ratio of 91.0% (a 1,490bp improvement to Q2 2025) and 88.3% Non-GAAP Adjusted Operating Ratio⁽¹⁾-
• Purchased 172,061 shares of our common stock for $2.3 million,
• Payments of $15 million to reduce outstanding acquisition-related debt,
• Total Assets of $1.2 billion, including $62.4 million of Cash,
• Stockholders' Equity of $756.3 million-

Six months ended June 30, 2026:

• Operating Revenue of $360.4 million-
• Net Income of $5.8 million-
• Basic Earnings per Share of $0.07-
• Operating Ratio of 96.3% and 94.9% Non-GAAP Adjusted Operating Ratio⁽¹⁾-
• Smith Transport debt and equipment leases eliminated,
• Payments of $25 million to reduce outstanding debt and finance lease obligations. Acquisition-related debt and finance lease obligations reduced from $494 million in 2022 to $135 million.

Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three months ended June 30, 2026, reflect significant operating ratio improvement (91.0%) as compared to the second quarter of 2025 (105.9%) and sequential non-GAAP adjusted operating ratio⁽¹⁾ improvement in each quarter since the first quarter of 2025. We are pleased with our operational improvements and profitability as we continue toward our foundational goal of an operating ratio of 85.0% or lower and return to a debt-free balance sheet. The improved financial results delivered reflect stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions along with reduced operating costs and strategic disposals of under-utilized assets. We expect to rely on our positive cash flows from operations to make a significant investment in our fleet of tractors and trailers over the remainder of the year along with additional reductions of the remaining acquisition-related debt."

Financial Results

For the three months ended June 30, 2026, the Company delivered operating revenues of $184.1 million, compared to $210.4 million in the same period of 2025. Operating revenues for the quarter included fuel surcharge revenues of $31.7 million, compared to $24.5 million in the same period of 2025. Net income was $10.6 million, as compared to a net loss of ($10.9) million in the second quarter of 2025. Basic earnings per share was $0.14 during the quarter, as compared to basic loss per share of $(0.14) in the same period of 2025. The Company posted an operating ratio of 91.0%, non-GAAP adjusted operating ratio⁽¹⁾ of 88.3%, and net income as a percentage of operating revenues of 5.7% in the second quarter of 2026 compared to 105.9%, 106.0%, and (5.2)% (net loss as a percentage of operating revenues) respectively, in the second quarter of 2025.

For the six months ended June 30, 2026, the Company delivered operating revenues of $360.4 million, compared to $429.8 million in the same period of 2025. Operating revenues for the period included fuel surcharge revenues of $54.2 million, compared to $50.8 million in the same period of 2025. Operating income for the six-month period ended June 30, 2026 was $13.3 million, compared to an operating loss of $(27.3) million in the same period of the prior year. Net income was $5.8 million, compared to net loss of $(24.7) million in the same period of the prior year. Basic earnings per share was $0.07 during the six-month period as compared to $(0.32) basic loss per share during the same period of 2025. The Company posted an operating ratio of 96.3%, non-GAAP adjusted operating ratio⁽¹⁾ of 94.9%, and net income as a percentage of operating revenues of 1.6% for the six months ended June 30, 2026 compared to 106.4%, 106.5%, and (5.8)% (net loss as a percentage of operating revenues) respectively, in the same period of the prior year.

Balance Sheet, Liquidity, and Capital Expenditures

As of June 30, 2026, the Company had $62.4 million in cash balances, an increase of $43.9 million since December 31, 2025. Debt of $134.9 million remains at June 30, 2026, down from the initial $447.3 million of borrowings less associated fees for the CFI acquisition in August 2022 along with $46.8 million debt and finance lease obligations assumed from the Smith acquisition in May 2022. The acquisition-related debt and finance lease obligations of Smith Transport were fully retired in the first three months of 2026. There were no borrowings under the Company's unsecured line of credit at June 30, 2026. The Company had $88.8 million in available borrowing capacity on the line of credit as of June 30, 2026 after consideration of $11.2 million of outstanding letters of credit. The Company continues to be in compliance with associated financial covenants. The Company ended the quarter with total assets of $1.2 billion and stockholders' equity of $756.3 million.

Net cash flows from operations for the first six months of 2026 were $36.0 million or 10.0% of operating revenue. The primary uses of cash for financing activities were $25 million used for repayment of debt and financing leases along with $3.1 million for dividends paid and $2.3 million for repurchases of common stock. Cash provided by investing activities included $39.2 million from net property and equipment transactions.

The average age of the Company's consolidated tractor fleet was 2.3 years as of June 30, 2026 compared 2.6 years as of June 30, 2025. The average age of the Company's consolidated trailer fleet was 7.1 years as of June 30, 2026 compared to 7.5 years as of June 30, 2025. We expect to continue to dispose of excess trailers within our fleet as used equipment market conditions improve. For the remainder of 2026, we currently expect net capital expenditures to be approximately $8 to $14 million and $13 to $19 million of gains on disposal of property and equipment.

The Company continues its commitment to stockholders through the payment of cash dividends. Our regular dividend of $0.02 per share was declared during the second quarter of 2026 and paid on July 6, 2026. The Company has now paid cumulative cash dividends of $564.5 million, including four special dividends, ($2.00 in 2007, $1.00 in 2010, $1.00 in 2012, and $0.50 in 2021) over the past ninety-two consecutive quarters since 2003. Our outstanding shares at June 30, 2026 were 77.3 million. A total of 3.0 million shares of common stock have been repurchased for $37.0 million over the past five years. The Company has the ability to repurchase an additional 4.7 million shares under the current authorization which would result in 72.7 million outstanding shares if fully executed.

Other Information

During the second quarter of 2026, our family of operating brands continued to deliver award-winning service and earn corporate trust as Millis Transfer was recognized by Newsweek as one of America's Greatest Midsize Workplaces for Culture, Belonging & Community in 2026.

Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are non-GAAP financial measures and are not intended to replace financial measures calculated in accordance with GAAP. These non-GAAP financial measures supplement our GAAP results. We believe that using these measures affords a more consistent basis for comparing our results of operations from period to period. The information required by Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934, including a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP, is included in the table at the end of this press release.

This press release may contain statements that might be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "seek," "expects," "estimates," "anticipates," "projects," "believes," "hopes," "plans," "goals," "intends," "may," "might," "likely," "will," "should," "would," "could," "potential," "predict," "continue," "strategy," "future," "ensure," "outlook," and similar terms and phrases. In this press release, the statements relating to freight supply and demand, our ability to react to and capitalize on changing market conditions, the expected impact of operational improvements and strategic changes, progress toward our goals, future capital expenditures, future dispositions of revenue equipment and property and gains therefrom, future profitability, and future stock repurchases, dividends, and debt repayment are forward-looking statements. Such statements are based on management's belief or interpretation of information currently available. These statements and assumptions involve certain risks and uncertainties, and undue reliance should not be placed on such statements. Actual events may differ materially from those set forth in, contemplated by, or underlying such statements as a result of numerous factors, including, without limitation, those specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. The Company assumes no obligation to update any forward-looking statements, which speak as of their respective dates.

Contact: Heartland Express, Inc. (319-645-7060)

Mike Gerdin, Chief Executive Officer
Chris Strain, Chief Financial Officer

HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
			2026				2025				2026				2025
OPERATING REVENUE		-	184,126			-	210,387			-	360,383			-	429,807
OPERATING EXPENSES:
Salaries, wages, and benefits		-	69,135			-	87,159			-	138,230			-	180,396
Rent and purchased transportation			10,791				13,343				21,256				27,617
Fuel			40,549				33,709				73,286				71,627
Operations and maintenance			12,784				17,439				24,649				34,718
Operating taxes and licenses			3,765				4,422				7,717				9,163
Insurance and claims			11,783				14,154				24,562				26,076
Communications and utilities			1,977				2,206				3,574				4,471
Depreciation and amortization			32,306				41,463				67,463				83,091
Other operating expenses			9,537				11,693				18,759				24,531
Gain on disposal of property and equipment			(25,050	-			(2,782	-			(32,367	-			(4,566	-
			167,577				222,806				347,129				457,124
Operating income (loss)			16,549				(12,419	-			13,254				(27,317	-
Interest income			370				198				578				326
Interest expense			(1,878	-			(2,962	-			(4,088	-			(6,066	-
Income (loss) before income taxes			15,041				(15,183	-			9,744				(33,057	-
Federal and state income tax (benefit)			4,458				(4,328	-			3,982				(8,329	-
Net Income (loss)		-	10,583			-	(10,855	-		-	5,762			-	(24,728	-
Income (loss) per share
Basic		-	0.14			-	(0.14	-		-	0.07			-	(0.32	-
Diluted		-	0.14			-	(0.14	-		-	0.07			-	(0.32	-
Weighted average shares outstanding
Basic			77,404				78,079				77,430				78,308
Diluted			77,437				78,142				77,463				78,375
Dividends declared per share		-	0.02			-	0.02			-	0.04			-	0.04

HEARTLAND EXPRESS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) (unaudited)
		June 30,				December 31,
ASSETS			2026				2025
CURRENT ASSETS
Cash and cash equivalents		-	62,385			-	18,475
Trade receivables, net			76,658				74,172
Prepaid tires			11,055				11,626
Other current assets			35,696				9,181
Income taxes receivable			-				1,146
Total current assets			185,794				114,600
PROPERTY AND EQUIPMENT			1,003,181				1,148,693
Less accumulated depreciation			432,010				481,471
			571,171				667,222
GOODWILL			322,597				322,597
OTHER INTANGIBLES, NET			67,003				69,512
OTHER ASSETS			15,402				14,686
DEFERRED INCOME TAXES, NET			1,311				1,353
OPERATING LEASE RIGHT OF USE ASSETS			11,513				1,647
		-	1,174,791			-	1,191,617
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities		-	34,253			-	33,479
Compensation and benefits			25,387				25,061
Insurance accruals			28,761				31,437
Long-term debt and finance lease liabilities - current portion			-				5,714
Operating lease liabilities - current portion			3,202				1,330
Other accruals			14,691				13,143
Income taxes payable			10,935				-
Total current liabilities			117,229				110,164
LONG-TERM LIABILITIES
Income taxes payable			5,839				5,427
Long-term debt and finance lease liabilities less current portion			134,890				154,059
Operating lease liabilities less current portion			8,311				317
Deferred income taxes, net			122,550				133,629
Insurance accruals less current portion			29,695				32,702
Total long-term liabilities			301,285				326,134
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital stock, common, $.01 par value; authorized 395,000 shares; issued 90,689 in 2026 and 2025; outstanding 77,328 and 77,445 in 2026 and 2025, respectively			907				907
Additional paid-in capital			2,588				2,979
Retained earnings			968,070				965,405
Treasury stock, at cost; 13,361 and 13,244 in 2026 and 2025, respectively			(215,288	-			(213,972	-
			756,277				755,319
		-	1,174,791			-	1,191,617

(1) GAAP to Non-GAAP Reconciliation Schedule: Operating revenue excluding fuel surcharge revenue, adjusted operating expenses, adjusted operating income (loss), and adjusted operating ratio reconciliation (a)
		Three Months Ended June 30,								Six Months Ended June 30,
			2026				2025				2026				2025
		(Unaudited, in thousands)								(Unaudited, in thousands)
Operating revenue		-	184,126			-	210,387			-	360,383			-	429,807
Less: Fuel surcharge revenue			31,743				24,509				54,186				50,830
Operating revenue, excluding fuel surcharge revenue			152,383				185,878				306,197				378,977
Operating expenses			167,577				222,806				347,129				457,124
Less: Fuel surcharge revenue			31,743				24,509				54,186				50,830
Less: Amortization of intangibles			1,254				1,254				2,509				2,509
Adjusted operating expenses			134,580				197,043				290,434				403,785
Operating income (loss)			16,549				(12,419	-			13,254				(27,317	-
Adjusted operating income (loss)		-	17,803			-	(11,165	-		-	15,763			-	(24,808	-
Operating ratio			91.0	-			105.9	-			96.3	-			106.4	-
Adjusted operating ratio			88.3	-			106.0	-			94.9	-			106.5	-

(a) Operating revenue excluding fuel surcharge revenue, as reported in this press release is based upon operating revenue minus fuel surcharge revenue. Adjusted operating income (loss) as reported in this press release is based upon operating revenue excluding fuel surcharge revenue, less operating expenses, net of fuel surcharge revenue, and non-cash amortization expense related to intangible assets. Adjusted operating ratio as reported in this press release is based upon operating expenses, net of fuel surcharge revenue, and amortization of intangibles, as a percentage of operating revenue excluding fuel surcharge revenue. We believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are more representative of our underlying operations by excluding the volatility of fuel prices, which we cannot control. Operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio are not substitutes for operating revenue, operating income (loss), or operating ratio measured in accordance with GAAP. There are limitations to using non-GAAP financial measures. Although we believe that operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio improve comparability in analyzing our period-to-period performance, they could limit comparability to other companies in our industry if those companies define such measures differently. Because of these limitations, operating revenue excluding fuel surcharge revenue, adjusted operating income (loss), and adjusted operating ratio should not be considered measures of income generated by our business or discretionary cash available to us to invest in the growth of our business. Management compensates for these limitations by primarily relying on GAAP results and using non-GAAP financial measures on a supplemental basis.