Proficient Auto Logistics lit up the tape on Wednesday, November 12, closing up nearly 30% at $8.55 after its third‑quarter call spotlighted a level of free cash generation that surprised even bullish followers. Barrington Research’s Alexander Parris pressed management on why the market hadn’t rewarded that cash profile earlier; investors quickly did. Volume swelled well above normal as shares re‑rated on the day.
Behind the move were hard numbers. For the quarter ended September 30, Proficient posted $114.3 million in operating revenue, up 24.9% year over year. Adjusted operating ratio improved 250 basis points to 96.3%, and adjusted EBITDA was about $12.0 million (10.5% margin). The company delivered 605,341 units in the period. Most important for investors: roughly $11.5 million of free cash flow and an $11 million reduction in total debt, ending at $79.2 million, with cash of $14.5 million and net leverage at 1.7x trailing adjusted EBITDA.
The operating mix continues to tilt toward company‑owned trucks, a shift that can improve control and consistency in an up‑and‑down market. Company deliveries rose 24.8% year over year to 209,340 units, outpacing 19.4% growth in subhauler activity; revenue per unit rose modestly on the subhaul side and was roughly flat for company trucks. Dedicated fleet revenue was $4.2 million, steady with management’s indicated run‑rate for 2025.
Management also booked a $1.9 million restructuring charge tied to headcount and insurance actions that it says should yield more than $3 million in annual savings, substantially beginning in 2026—another lever supporting cash conversion. Still, a softer October for U.S. light‑vehicle sales (SAAR near 15.3 million) and ongoing pricing discipline across the sector temper the near‑term backdrop. Executives argue the current capacity overhang in auto haul isn’t likely to last as smaller fleets face aging equipment, higher insurance costs and recruiting challenges.
Why this matters for carriers: in a freight environment where rate power is elusive, dependable cash conversion is a strategic weapon. Proficient used third‑quarter cash to lower leverage and clear its revolver, cutting interest expense risk and freeing up balance‑sheet capacity for fleet and maintenance needs. The company’s free‑cash‑flow discussion—and an estimate that full‑year FCF could imply a 20%‑plus yield on its recent market cap—resonates with investors who, for now, are valuing liquidity and self‑funding more than headline GAAP profitability.
What to watch next: management’s near‑term focus is to hold the efficiency gains and keep generating cash in a seasonally slower fourth quarter, while continuing to chip away at debt. Volume sensitivity to OEM production schedules and dealer inventories remains the swing factor; the mix between company and subhaul miles is another. If the savings from restructuring and the mix shift stick, 2026 could see those improvements drop more cleanly to earnings—not just cash flow.
Sources: FreightWaves, GlobeNewswire, TipRanks
This article was prepared exclusively for TruckStopInsider.com. Republishing is permitted only with proper credit and a link back to the original source.
