Analysts: J.B. Hunt Q1 earnings, revenue to rise

J.B. Hunt Transport Services Inc., a Lowell-based transportation services provider, is expected to post increases in earnings and revenue in the first quarter as the freight market improves, analysts said.

After the markets close April 15, J.B. Hunt is expected to report earnings of $1.45 per share in the first quarter, up 23.9% from $1.17 per share in the same period last year, based on a consensus of 22 analysts. Revenue is projected to increase by 0.85% to $2.95 billion from $2.92 billion.

In a first-quarter preview, analysts Brady Lierz and Reed Seay and senior associate Joe Enderlin, all of Little Rock-based Stephens Inc., said J.B. Hunt’s start to 2026 “has played out relatively in line with expectations with slight volume outperformance in (intermodal) offset by some difficult winter weather and tighter truckload market conditions pressuring (brokerage) results.”

The analysts said the strengthening freight market is expected to support intermodal volumes and pricing and a return to net fleet growth in the dedicated segment as the company continues to focus on reducing operating costs.

“While there are crosscurrents from increasing fuel costs and uncertainty around the consumer/macro environment, (J.B. Hunt) remains one of our favorite names on our list in this improving freight market,” the analysts said.

Stephens maintained its overweight (buy) rating on J.B. Hunt shares and increased the 12-month target price by $5 to $240.

Shares of J.B. Hunt (NASDAQ: JBHT) were trading Wednesday (April 8) at $224.73, up $7.01 or 3.22%. In the past 52 weeks, the stock has ranged between $122.79 and $236.

Following is a preview by company segment.

Intermodal
Rail service recovered quickly after the winter weather, and company leaders said it’s “seeing the best rail service in 30-plus years.” First-quarter volumes are expected to be flat year over year and in line with historical seasonality.

For the remainder of 2026, volumes remain more uncertain, with risks to consumer spending and broader economic activity stemming from higher energy prices. However, truckload rates are rising amid a tightening market, and this, combined with the company’s strong service levels, excess capacity and higher diesel prices, should contribute to highway-to-intermodal conversion opportunities, “which we expect the company to capitalize on in the (second half of 2026) into 2027,” analysts said.

The rise in truckload rates since the start of 2026 is expected to affect intermodal rates, and with capacity continuing to exit the market, intermodal prices are projected to increase in the low single digits year over year in the second half of 2026.

The intermodal segment comprised 55% of J.B. Hunt’s total operating income and half of its revenue in 2025.

Dedicated
Analysts said the segment continues to perform well “through the prolonged, nearly four-year freight recession.” The segment is expected to see net fleet growth in 2026. While this growth will impact margins, analysts said “investors should be more focused on the positive momentum associated with the return to net fleet growth.”

For the remainder of 2026 and into 2027, analysts said they “see a positive setup driven by both the tightening truckload market and the recent crackdown by the administration on non-domiciled CDL/ELP regulations. The latter of which we expect to result in increasingly difficult conditions for private fleets to source both legal and well-qualified drivers, improving (the dedicated segment’s) value proposition to customers.”

The segment comprised 40% of J.B. Hunt’s total operating income and 27% of its total revenue in 2025.

Brokerage
With the continued rise in truckload spot rates in the first quarter, analysts said they expect the segment to report an operating loss in the period as gross margins are squeezed. But as the truckload market improves, the segment is expected to return to load growth in 2026. This should slightly offset the gross margin squeeze created by the increase in spot rates.

Final Mile Services
The market remains challenging amid weak demand for big and bulky products, analysts said. The segment is projecting a $90 million revenue headwind in 2026, resulting from a loss of legacy appliance-related business. Segment results are expected to be “relatively muted for the foreseeable future or until we see a more robust U.S. housing market.”

Truckload
The segment is expected to benefit from an improving truckload market and the company’s focus on costs in 2026. “Near-term results will take a step down from the strong (second half of 2025) levels due to the tighter market conditions,” analysts said.