Heartland Express (HTLD) Q2 Update

Lots to like: Share repurchases, insider buying, and a compelling valuation.

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Disclosure: Long HTLD

Prior Posts on Heartland Express

Substack

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Q2 2025 Update

• Heartland continues to report modest losses but positive operating cash flow as it weathers the deepest and longest freight recession.

• Q2 net loss was $10.9mm, bringing the YTD net loss to $24.7mm.

• The company is selectively shrinking its fleet to right-size it to current demand, and is making operational changes such as exiting unprofitable freight lanes.

• Operating cash flow is positive because of depreciation and was 10.9% of revenue YTD. Net of dispositions and capex, free cash flow was $35.6mm YTD.

• HTLD repurchased 1mm shares for $8.9mm in Q2 ($8.90/sh or $700mm market cap); repurchases continue into Q3

• The CEO and largest shareholder is buying shares

• Shares appear attractive at current levels (valuation discussion below).