Dive Brief:
- Heartland Express reported a net loss of $1.9 million for Q4, its fourth consecutive loss — but its least painful quarter of 2024.
- The Iowa-headquartered TL carrier reported a full-year operating ratio of 101.9% for 2024, up from 96.5% in 2023.
- “Even in this challenging and prolonged negative operating environment, we continued to generate positive operating cash flows,” CEO Mike Gerdin said in an earnings announcement.
Dive Insight:
Heartland has worked to integrate massive acquisitions during a two-year freight recession.
The Cass Freight Shipment Index in Q4 2024 was down 3.2% YoY, hitting its lowest Q4 reading that the industry has seen in the last 15 years, C.H. Robinson President of North American Surface Transportation Michael Castagnetto said on an earnings call last week.
In 2022, Heartland bought Roaring Spring, Pennsylvania-based Smith Transport, and the carrier then acquired TFI International’s non-dedicated dry van and reefer Contract Freighters business along with CFI Logistica operations in Mexico.
Since then, Heartland has noted challenges in bringing those brands into a target operating ratio involving the low-80s, but the carrier carrier improved earnings in both its legacy and acquired brands in 2024. The OR for its legacy brands was 96.3% in Q4, a 3.6 percentage point improvement compared to Q1, and its CFI and Smith OR was 102.6%, a 7.1 percentage point improvement.
“While it is early in the quarter and extreme winter weather conditions so far in 2025 make comparison difficult, we are seeing a positive shift in customer rate and volume negotiations that we expect to strengthen as the year unfolds,” Gerdin said.
In Q4 2023, the carrier received a boost in cash through the sale of three terminals, landing $25.6 million. As of Dec. 31, 2024, the company had $12.8 million in cash balances — a $15.3 million decline compared to the prior year.
