Heartland Express reported a net loss of $19.4 million, including a $19 million impairment charge for rebranding CFI fleet. Adjusted EPS showed a 6-cent loss, 2 cents better than estimates. CEO Mike Gerdin believes strategic decisions will improve operating results and capitalize on market improvements in 2026.

The quarter saw $12.2 million in gains on equipment sales, 10 straight net losses, and revenue down 26% year over year. Heartland posted a 101.6% adjusted operating ratio, 270 bps worse y/y but 190 bps better than the third quarter. Revenue was $15 million below consensus estimates.

Heartland now has all fleets operating on the same TMS, rebalanced network, and aims to return to low- to mid-80s ORs with a debt-free balance sheet. Operating cash flows totaled $89 million in 2025, down from $144 million in 2024. The company reduced net debt by $11 million in the fourth quarter.

Heartland’s average tractor age of 2.6 years is higher than historical standards. The company ended the year with $89 million available on an untapped revolving credit facility and was compliant with financial covenants.

Read more at Yahoo Finance: Losses continue at Heartland; margin moves in right direction