Heartland Express returns to a small profit on better pricing, but says contracts won't fully show until 2027

Heartland Express posted a small third-quarter profit on Oct. 20, and the carrier's own explanation is worth reading closely: higher prices from customers, helped by fewer trucks on the road. The company also said the full effect of its contract talks will not show up until 2027.

According to Heartland's earnings release filed with the SEC on Oct. 20, net income for the three months ended Sept. 30 was $1.0 million, or 1 cent a share. FreightWaves reported on Oct. 20 that the company lost $8.3 million in the same quarter a year earlier, and that analysts had expected 3 cents a share.

The numbers behind the turn

Operating revenue was $179.5 million, which FreightWaves said was 9% lower than a year ago and below the consensus estimate of $191.4 million. Revenue excluding fuel surcharges fell to $146.8 million from $172.4 million, per the Heartland release. Fuel surcharge revenue went the other way, rising to $32.7 million from $24.1 million, a reminder of how much of the top line is now diesel pass-through.

The operating ratio was 98.7%, compared with 103.7% in the third quarter of 2025. Heartland's adjusted operating ratio was 97.6%, against 103.5% a year earlier. Over nine months, the adjusted ratio was 95.7%, per the release.

CEO Mike Gerdin credited "stronger freight volumes and improved customer pricing resulting from ongoing industry capacity reductions," in the company's release. He also said costs were hit by rising fuel and by inflation in maintenance, repairs and employee-related expenses.

What it means for carriers

A carrier with a 98.7% operating ratio is barely making money, and Heartland is not claiming otherwise. The point is the direction. Fleets still running are getting paid more as capacity leaves, but fuel, repairs and driver pay are absorbing much of the gain. Gerdin said the full benefit of current contract negotiations will not be reflected until 2027, which suggests that bid-season increases take time to reach the income statement.

What shippers and brokers should watch

Large asset carriers are now saying in earnings releases what the spot market has shown for weeks: pricing power is shifting to the supply side. Shippers heading into 2027 bids should expect carriers to push for rate increases that cover fuel and maintenance, not just a margin rebuild. Brokers buying capacity from asset carriers should expect firmer quotes on contract-adjacent freight.

Heartland also paid down $35 million of acquisition-related debt in the quarter, bringing that debt to $99.9 million from $494.1 million in 2022, the release said. Less debt gives a carrier more room to hold out for better rates in bid season.