Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Heartland Express (NASDAQ: HTLD) and its peers.
The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins.
The 16 ground transportation stocks we track reported a satisfactory Q2. As a group, revenues were in line with analysts’ consensus estimates.
While some ground transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.7% since the latest earnings results.
Weakest Q2: Heartland Express (NASDAQ: HTLD)
Founded by the son of a trucker, Heartland Express (NASDAQ: HTLD) offers full-truckload deliveries across the United States and Mexico.
Heartland Express reported revenues of $210.4 million, down 23.4% year on year. This print fell short of analysts’ expectations by 10.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
Heartland Express Chief Executive Officer Mike Gerdin commented on the quarterly operating results and ongoing initiatives of the Company, "Our consolidated operating results for the three and six months ended June 30, 2025, reflect sequential improvement during a prolonged and challenged industry-wide operating environment where current capacity outpaces weak freight demand. These dynamics coupled with what we perceive as unsustainable pricing in many markets and rising operating costs, continue to be a significant headwind for us and all of those operating in our industry. Despite the operating loss during the quarter, we continue to have positive cash flows from operations. We remain confident in the future and our operating model and as a result we invested in our fleet ($5.8 million, net), reduced our debt and financing leases ($5.6 million paid), and repurchased 1 million shares of our common stock ($8.9 million paid) during the three months ended June 30, 2025.
Heartland Express delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $8.75.
Read our full report on Heartland Express here, it’s free for active Edge members.
Best Q2: Werner (NASDAQ: WERN)
Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.
Werner reported revenues of $753.1 million, down 1% year on year, outperforming analysts’ expectations by 3%. The business had a stunning quarter with a beat of analysts’ EPS and adjusted operating income estimates.
The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $28.83.
Is now the time to buy Werner? Access our full analysis of the earnings results here, it’s free for active Edge members.
Universal Logistics (NASDAQ: ULH)
Founded in 1932, Universal Logistics (NASDAQ: ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.
Universal Logistics reported revenues of $393.8 million, down 14.8% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.
As expected, the stock is down 20.9% since the results and currently trades at $21.70.
Read our full analysis of Universal Logistics’s results here.
RXO (NYSE: RXO)
With access to millions of trucks, RXO (NYSE: RXO) offers full-truckload, less-than-truckload, and last-mile deliveries.
RXO reported revenues of $1.42 billion, up 52.6% year on year. This number came in 1% below analysts' expectations. Zooming out, it was actually an exceptional quarter as it logged a solid beat of analysts’ sales volume and EPS estimates.
RXO achieved the fastest revenue growth among its peers. The stock is up 13.4% since reporting and currently trades at $17.51.
Read our full, actionable report on RXO here, it’s free for active Edge members.
Saia (NASDAQ: SAIA)
Pivoting its business model after realizing there was more success in delivering produce than selling it, Saia (NASDAQ: SAIA) is a provider of freight transportation solutions.
Saia reported revenues of $817.1 million, flat year on year. This print topped analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates.
The stock is flat since reporting and currently trades at $307.88.
Read our full, actionable report on Saia here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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