Refrigerated service Marten Transport famous a major firming in truckload fundamentals when it reported second-quarter outcomes Thursday after the market closed. A a lot tighter capability backdrop is permitting the corporate to enhance its freight choice and lift charges.
“The freight market has sharply tightened in latest months and is now breaking out from the longest freight market recession on file,” acknowledged CEO Randy Marten in a information launch. He mentioned the regulatory crackdown is “contracting significant ranges of freight capability by eradicating noncompliant and unqualified drivers.”
(The Mondovi, Wisconsin-based firm doesn’t host a quarterly name.)
Income from Marten’s (NASDAQ: MRTN) non-dedicated TL fleet elevated 9% 12 months over 12 months to $116 million, however was flat at $93 million excluding gas surcharges. An 8% decline in common tractors in service was offset by a 9% improve in income per tractor.
Like most massive carriers, Marten has been managing truck counts to enhance asset utilization. Income per loaded mile elevated 6% y/y to $2.81. The unit booked a 97.4% working ratio (ex-fuel), which was 10 foundation factors higher y/y.
The corporate’s smaller devoted phase noticed a 14% y/y decline in income (ex-fuel) as a 17% drop in truck rely was solely partially offset by a 3% improve in income per tractor. Income per loaded mile was down 5% y/y to $2.36. The unit posted a 95.4% OR (ex-fuel), 430 bps worse y/y.
Brokerage income was flat y/y at $40 million, as a 2% improve in masses was offset by a 2% decline in income per load. The phase’s OR worsened 160 bps to 94.8%, however really compares favorably to different comparable brokerages. Third-party capability purchase charges (bought transportation) are a lot larger than in-place promote charges on contractual enterprise given the fast run-up within the broader spot market.
Consolidated income of $224 million was 3% decrease y/y and $4 million gentle of the consensus estimate. (Income excluding gas surcharges was 9% decrease y/y.) The 2025 sale of its intermodal unit to Hub Group (NASDAQ: HUBG) offered an $11.7-million income headwind throughout the quarter.
Marten reported earnings per share of seven cents (internet revenue of $5.3 million), which was 2 cents decrease y/y and a penny gentle of consensus. Earnings per share confronted a 3-cent headwind on account of a $3.5-million y/y drop in positive aspects on tools gross sales.
Money circulate from operations was $61 million for the primary half of 2026, a 12% y/y decline. The corporate maintained a debt-free stability sheet within the quarter.
The typical age of its tractor fleet was 2.5 years in comparison with 2.1 years within the year-ago interval.
Shares of MRTN have been off 2% in early buying and selling on Friday in comparison with the S&P 500, which was off 0.1%.
Why it issues? Marten Transport is seen as a “refrigerated pure play.” It’s the solely public service within the reefer market and its quarterly outcomes function a bellwether for the business. The corporate’s second quarter offered a sign for enhancing fundamentals within the refrigerated freight market.
Extra BigRig articles by Todd Maiden:
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- Cass: TL linehaul charges advance in June, quantity inflection delayed
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