Marten Transport closed the third quarter with its core truckload operation still running above a 100 operating ratio — a sign the segment isn’t covering its costs — even as the company stayed in the black overall. Segment figures show truckload at a 101.9 operating ratio for the quarter, while dedicated held the line at 94.9, brokerage ran at 95.9 and intermodal improved but remained loss-making at 103.0. Consolidated operating ratio landed at 98.8. These results underscore a familiar 2025 theme: general truckload is still the weak link, while contracted, high-service freight and asset-light brokerage are doing more of the heavy lifting.
Profitability softened versus a year ago as revenue and volumes slipped. Marten reported third-quarter net income of $2.2 million (3 cents per diluted share) on operating revenue of $220.5 million, down 7.1% year over year. The print missed Wall Street’s modest EPS expectation by a penny, reflecting continued pressure from a long-running freight recession and inflationary operating costs.
Under the hood, productivity and mix tell the story. In truckload, average revenue per tractor per week ticked down to $4,129 and average tractors fell to 1,661, but Marten squeezed more efficiency from its network: non-revenue miles improved to 11.0% from 12.2% a year ago. Dedicated continued to be the ballast, with revenue per tractor per week up to $3,776, even as the fleet right-sized. Brokerage volumes held up — loads rose year over year — and intermodal volumes fell into the sale of that business line’s assets to Hub Group, a $51.8 million cash deal effective September 30 that reduces the drag from a persistently triple-digit intermodal operating ratio.
Management leaned into cost discipline and balance-sheet strength to navigate what it called a historically long and deep downcycle. Marten finished the quarter with $49.5 million in cash and reiterated that it carries no long-term debt, positioning the carrier to keep investing in equipment and technology while it waits for a more balanced market. Executives also flagged stepped-up federal enforcement on non‑domiciled commercial driver’s licenses and English language proficiency — along with tighter B-1 visa rules — as potential tailwinds that could trim driver supply and help rates and utilization over time.
The broader backdrop this week supports Marten’s read on truckload softness. Knight‑Swift, one of the industry’s bellwethers, posted third-quarter results on October 22 that missed earnings expectations despite modest top-line growth, with commentary and slide details pointing to persistent truckload headwinds even as its LTL platform expands. The mixed read across the largest diversified carrier’s portfolio reinforces that the path out of the trough is uneven and still toughest in one-way truckload.
What it means: For carriers, a truckload operating ratio north of 100 typically begets more capacity discipline — fewer tractors, tighter networks, and sharper freight selection — until pricing power returns. Marten’s exit from intermodal assets removes a chronic earnings drag and concentrates capital where it can earn better returns, notably dedicated. For shippers, the current dynamic continues to favor long-term, service-driven contracts while spot-exposed freight sees volatile coverage and pricing. Into year-end, watch three needles: contract renewal momentum in dedicated and truckload; utilization and non-revenue miles in truckload; and brokerage gross margins as intermediaries test the market’s fragile equilibrium.
Sources: FreightWaves, GlobeNewswire, Nasdaq (RTTNews), Investing.com
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