Heartland Express (HTLD) investor relations material

Executive summary

• Operating revenues for the six months ended June 30, 2026 were $360.4 million, down 16.2% year-over-year, reflecting strategic fleet reductions and a weak freight environment, partially offset by higher fuel surcharge revenues.

• Net income for the six months was $5.8 million, a turnaround from a net loss of $24.7 million in the prior year period, driven by improved freight volumes, pricing, and asset disposals.

• Net income for Q2 2026 was $10.6 million, compared to a net loss of $10.9 million in Q2 2025.

• Operating ratio improved to 96.3% (GAAP) and 94.9% (adjusted) for the six months, and to 91.0% (GAAP) and 88.3% (adjusted) for Q2 2026, reflecting cost improvements and strategic changes.

• Significant improvement in operating ratio, reflecting operational efficiencies and cost reductions.

Financial highlights

• Operating revenue for Q2 2026 was $184.1 million, down 12.5% from Q2 2025, with fuel surcharge revenue up 29.5% to $31.7 million.

• Basic earnings per share for the six months was $0.07, compared to a loss per share of $0.32 in the prior year.

• Q2 2026 basic EPS was $0.14, compared to a loss per share of $0.14 in Q2 2025.

• Cash flow from operating activities was $36.0 million for the six months, representing 10.0% of operating revenues.

• Gains on disposal of property and equipment were $32.4 million for the six months, up $27.8 million year-over-year, primarily from real estate and equipment sales.

Outlook and guidance

• Management expects continued fleet modernization, with net capital expenditures of $8–14 million and $13–19 million in gains on asset disposals for the remainder of 2026.

• No significant acquisitions or large share repurchases are planned while debt is being paid down; regular quarterly dividends will continue.

• Plans to invest significantly in fleet upgrades and further reduce acquisition-related debt using positive cash flows.

• Continues to target an operating ratio of 85.0% or lower and a debt-free balance sheet.

• Fuel prices are expected to remain elevated, impacting operating results until market conditions improve.