Dive Brief:
- Heartland Express projected future turnaround for the industry but not in 2024, according to its Q3 earnings release last week.
- Amid an imbalance of supply and demand for trucking services, the freight market has lacked meaningful, sustained improvement throughout the last two years, Heartland suggested.
- Following the worst year in company history, however, encouraging signs in October showed a path to recovery was in store, the company said.
Dive Insight:
Heartland posted a $7.1 million loss amid continued excess capacity and weak demand in Q3, only slightly better than the $7.4 million loss in the same quarter last year.
The carrier previously noted inflation affecting its operations when it posted $0.3 million in operating income in Q2 and a $15.1 million loss in Q1.
“We believe that the last four quarters of this current freight cycle are arguably the worst four consecutive quarters experienced in the trucking industry over the Company’s 45+ year history,” Heartland CEO Mike Gerdin said in the most recent quarterly update.
The company continued to integrate its Smith Transport and Contract Freighters Inc. acquisitions and also realigned priorities to improve performance despite the challenging environment.
Ryder and analysts have shared similar outlooks for when the market will improve, pointing past 2024.
“We continue to believe that the freight market will improve as more capacity exits the market so the industry as a whole can return to more disciplined operating decisions and improved financial results,” Gerdin said.
