J.B. Hunt Warns of 5% to 10% Sequential Earnings Drop as Diesel Costs and Driver Expenses Surge

J.B. Hunt Transport Services issued a rare midquarter earnings update on September 16, warning that third-quarter earnings would fall between 5% and 10% sequentially from the second quarter, well below prior expectations. The company cited two primary cost pressures: roughly $25 million in higher drayage driver expenses, including hiring, sign-on and retention bonuses, advertising and training costs as it ramps capacity to meet growing intermodal demand, and an additional approximately $10 million fuel headwind tied to diesel prices rising about 30% since July 1 to $6.27 per gallon.

Management characterized much of the pressure as timing-related and described the driver spending as strategic investment ahead of the upcoming intermodal bid season. The market reacted sharply regardless, with shares falling more than 10% during the session and closing down roughly 13%, making JBHT the worst performer in the S&P 500 on the day.