Cost pressures sink Marten Transport’s Q3

Marten Transport's refrigerated carrier shares fell 7% in early trading on Friday following a weak third-quarter report. Despite improved supply-demand fundamentals, higher fuel and health insurance costs dampened the results. The company reported a net income of $2.9 million, or 4 cents per share, for the quarter, slightly above the previous year but 2 cents below analyst estimates.

Higher fuel and payroll costs, including driver pay increases, were only partially offset by gains on equipment sales, leading to a $3.7 million net income hit. Consolidated revenue increased 1% year-over-year to $223 million. The 2025 sale of its intermodal unit to Hub Group created a $9.9 million revenue drag during the quarter.

Truckload and dedicated revenues rose 12% year-over-year to $117 million, excluding fuel surcharges. Excluding fuel, revenue per tractor per week increased 15% as the fleet shrank 9%. Deadhead declined 0.3% year-over-year to 10.7%, and revenue per loaded mile (excluding fuel) grew 14% year-over-year to $3.02. The unit remained unprofitable at a 100.2% operating ratio, worse than the previous year by 2.8%.

Freight market tightening, resulting from stricter enforcement of federal and state laws, removed noncompliant and unqualified driver capacity, forcing Marten to charge higher prices for premium services. Truckload revenue declined 9% year-over-year, while the dedicated segment saw a 11% decline in revenue (excluding fuel), despite a 2% increase in revenue per tractor (excluding fuel).