# J.B. Hunt Transport Services (JBHT) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/JBHT/thesis · /stocks/JBHT/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: JBHT
step: "04"
title: Financial Snapshot — Three-Year P&L
created: 2026-05-29
---

### JBHT — Financial Snapshot

#### Three-Year Income Statement Summary

| Metric | FY2022 (Peak) | FY2023 | FY2024 |
|--------|---------------|--------|--------|
| **Revenue** | $14,814M | $12,854M | $11,930M |
| Revenue Growth YoY | +27.7% | -13.2% | -7.2% |
| **Gross Profit** | ~$2,400M | ~$1,900M | ~$1,750M |
| Gross Margin | ~16.2% | ~14.8% | ~14.7% |
| **Operating Income** | $1,347M | $871M | $672M |
| Operating Margin | 9.1% | 6.8% | 5.6% |
| **Net Income** | $1,029M | $652M | $498M |
| Net Margin | 6.9% | 5.1% | 4.2% |
| **Diluted EPS** | $10.15 | $6.53 | $5.01 |
| EPS Growth YoY | +40.2% | -35.7% | -23.3% |
| **EBITDA** | ~$1,900M | ~$1,450M | ~$1,250M |
| EBITDA Margin | ~12.8% | ~11.3% | ~10.5% |

*Note: FY2022 figures represent cycle peak during the post-pandemic freight supercycle. Gross profit estimates may vary from reported figures depending on segment cost classification.*

#### Segment Operating Income (FY2024 Estimates)

| Segment | Operating Income | Operating Margin |
|---------|-----------------|-----------------|
| JBI (Intermodal) | ~$310M | ~6.0% |
| DCS (Dedicated) | ~$290M | ~7.4% |
| ICS (Brokerage) | ~($10M) | ~-0.8% |
| JBT (Truckload) | ~$30M | ~4.6% |
| FMS (Final Mile) | ~$25M | ~3.6% |
| Corporate/Other | ~($100M) | N/A |
| **Total** | **~$545M** | **~4.6%** |

*Note: Segment totals before corporate allocations; actual consolidated operating income was ~$672M in FY2024 per reported figures.*

#### Key Margin Analysis

##### Gross Margin Trend
JBHT's gross margin (~14-16%) is lower than pure-play asset-light businesses because of the capital and driver costs embedded in the JBI and DCS segments. Gross margin has compressed during the freight recession as:
- Revenue per load declined (pricing pressure)
- Fixed costs (depreciation on containers, driver wages) remained elevated
- ICS brokerage margin near zero

##### Operating Margin Trajectory
Operating margin peaked at ~9.1% in FY2022 and compressed to ~5.6% in FY2024 — representing ~350 basis points of contraction over two years. Key drivers of margin compression:
1. **Volume deleverage in JBI:** Fixed dray costs, ramp fees, and container depreciation don't scale down proportionally with lower load counts
2. **Pricing normalization:** Contract repricings at bid season reduced revenue/load by ~15-20% from peak
3. **ICS losses:** Brokerage segment turned from profit contributor to marginal drag
4. **Wage inflation:** Driver wages remain elevated even as pricing has softened

##### Cost Structure
JBHT's cost base is approximately:
- **Purchased transportation** (rail, third-party carriers): ~45-50% of revenue (largest cost)
- **Compensation** (drivers, employees): ~20-25% of revenue
- **Depreciation** (containers, trailers, trucks): ~5-6% of revenue
- **Operating supplies/fuel:** ~5-7% of revenue
- **Other operating expenses:** ~8-10% of revenue

The high purchased transportation cost reflects rail fees paid to BNSF (for JBI) and carrier payments (for ICS). This is a key variable cost that moves with volume and load mix.

#### Historical EPS Cycle Context

| Year | Diluted EPS | Context |
|------|------------|---------|
| FY2019 | $6.30 | Pre-COVID baseline |
| FY2020 | $5.41 | COVID dislocation |
| FY2021 | $7.27 | Early supercycle |
| FY2022 | $10.15 | Peak supercycle |
| FY2023 | $6.53 | Freight recession onset |
| FY2024 | $5.01 | Trough (below pre-COVID) |
| FY2025E | ~$5.50-6.50 | Early recovery |
| FY2026E | ~$7.00-9.00 | Mid-cycle recovery |

The EPS trough in FY2024 ($5.01) is notable as it fell below pre-COVID FY2019 levels ($6.30), illustrating the severity of the freight recession. However, the business is fundamentally larger (revenue ~60% higher than 2019) — the margin compression is the primary driver of subdued EPS.

#### Tax Rate & Other Items

- Effective tax rate: ~24-25% (consistent with post-TCJA corporate rates)
- Interest expense: ~$60-75M/year (on ~$1.5B of long-term debt)
- Shares outstanding: ~98-100M diluted shares (steady to modest buyback activity)

#### Balance Sheet Highlights (FY2024)

| Item | Value |
|------|-------|
| Cash & Equivalents | ~$250M |
| Total Debt (long-term) | ~$1,500M |
| Net Debt | ~$1,250M |
| Stockholders' Equity | ~$3,200M |
| Total Assets | ~$8,200M |
| Net Debt / EBITDA | ~1.0x |

JBHT maintains a conservative balance sheet for an asset-intensive transportation company, with Net Debt/EBITDA below 1.5x even at cycle trough. The investment-grade credit rating (Baa1/BBB) supports access to capital markets for fleet financing.

#### Key Financial Ratios (FY2024)

| Ratio | FY2024 | FY2022 Peak |
|-------|--------|-------------|
| P/E (trailing) | ~34x | ~17x |
| EV/EBITDA | ~13-14x | ~10x |
| Price/Book | ~5x | ~6x |
| ROE | ~15% | ~35% |
| ROIC | ~10% | ~25% |

The valuation premium (elevated P/E at trough) reflects the market's expectation of a freight cycle recovery that will restore earnings power closer to the cycle peak.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/JBHT/fundamental

## Navigation

- Overview: /stocks/JBHT
- Financials (this page): /stocks/JBHT/financials
- Thesis: /stocks/JBHT/thesis
- Investment Memo: /stocks/JBHT/memo
- Coverage universe: /stocks