J.B. Hunt Transport Services, Inc.

Overall results: growth, but margin pressured by transitory cost headwinds - GAAP: Total revenue +20% YoY, operating income +2%, diluted EPS +3%. - Sequential: Operating income -5% QoQ (at the better end of guidance). - Management emphasized strong demand + disciplined execution, but profitability was held back by near-term cost pressures and a pricing lag.

Biggest negative: ~$50M+ of cost headwinds in Q3 (driver, fuel, claims/medical) - Brad Delco cited three main cost buckets impacting operating income by over $50M vs Q2, including: - Driver-related investments (recruiting/onboarding/training/sign-on bonuses/targeted wage actions) - Volatile fuel (timing mismatch with surcharge recovery) - Claims + medical costs (including cargo casualty + medical; medical alone >$16M of the increase; elevated train derailments drove cargo claims). - These are characterized as more cyclical/unpredictable than structural, but not “one-and-done” completely—some costs persist into Q4 / early next year.

Key opportunity: pricing discipline and bid-cycle repricing to repair margins - CEO/Execs stressed that the largest opportunity is ensuring pricing reflects the value (capacity, reliability, professional drivers, execution) J.B. Hunt provides. - Spencer Frazier: market is shifting from repricing transactional capacity to repricing contractual capacity; customers are increasingly prioritizing provider resiliency and execution (not just the lowest procurement rate). - Intermodal pricing cadence (quantified by Darren Field): - J.B. Hunt expects to implement ~10% of volume in Q4 - and ~30% of volume in each of the first three quarters of the year (for 2027 bid season effects). - Darren would not quantify pricing increases but said early 2027 results show needs-driven bigger rate increases than already seen, and margin repair is a top focus.