Truckload carrier Marten Transport reported earnings for the fourth quarter that reflected the first stirrings of freight market economics improvement that were evident at the end of 2025.
While the company’s net income and operating ratios were weaker than in the fourth quarter of 2024, sequentially Marten (NASDAQ: MRTN) had mostly better numbers than the third quarter, which it touted in the prepared statement issued in conjunction with the earnings release.
“We are encouraged by the sequential improvement in our profitability,” chairman and CEO Randolph Marten said in the statement. “Our people also drove sequential increases this quarter in our revenue per tractor, rate per total mile and miles per tractor within each of our truckload and dedicated operations.”
Sequentially, Marten posted net income of 5 cents/share in the fourth quarter, up from 3 cts/share in the third quarter. Net income in the fourth quarter of 2024 was 7 cents/share.
One reason for the improved profitability: cost control.
Third quarter revenue was $220.4 million, dropping to $210.1 million in the fourth quarter. But salaries, wages and benefits declined sequentially to $75.7 million from $79 million, and purchased transportation dropped to $36 million from $42.3 million. That helped overcome a decline in revenue to $210.1 million from $220.4 million in the third quarter.
The cost control was also evident in year-on-year comparisons. Salaries, wages and benefits were down 8.6% year-on-year, and purchased transportation was down 8.1%.
But year-on-year, that drop in expenses could not overcome an 8.6% decline in revenue. The end result was that fourth quarter 2025 net income of $3.7 million was a 34% decline in net income year-on-year from $5.6 million a year earlier.
The biggest improvement sequentially at Marten was in its operating ratio (OR) net of fuel for its Truckload segment. That figure was 102.2% in the third quarter but improved to 99.1% in the fourth quarter. The Truckload segment turned a third quarter operating loss of just over $2 million into a $783,000 operating profit in the fourth quarter.
The sequential improvement was not across the board. In Marten’s Dedicated segment, a third quarter OR net of fuel of 94% deteriorated slightly to 94.6%. There also was a deterioration in the company’s OR in brokerage, widening out to 98% from 95.9% in the third quarter.
Dedicated operating income was $3.42 million in the third quarter. In the fourth quarter, that number slid to just over $3 million. Brokerage declined to a fourth quarter operating income of $774,000, down from $1.6 million in the third quarter.
Marten does not hold an earnings call with analysts.
Randolph Marten, in his prepared comments, took a long-term view since like most truckload carriers the freight business has been historically weak for going on four years.
“Our unique multifaceted business model’s value continued to be highlighted by the operating results of our dedicated and brokerage operations throughout the last two years,” Marten said. “Our earnings have been heavily pressured by the historic duration and depth of the freight market recession’s oversupply and weak demand — and the cumulative impact of inflationary operating costs, freight rate reductions and freight network disruptions.”
Footprint shrinks
In the last year, Marten has become a smaller company by several operating measures.
The average number of tractors between the fourth quarter of 2025 and 2024 dropped slightly, down 1.4%. Average number of miles per trip for the Truckload segment was down about 4.5%, with total miles down about 2.6%.
The average number of tractors in Dedicated fell 14.36% and the average miles per trip declined 5.43%. Total miles in Dedicated was down about 15%.
Marten’s fourth quarter earnings report was the first since it completed the divestiture of its intermodal unit to Hub Group (NASDAQ: HUBG). The sale closed October 1.
The industry consensus that the fourth quarter was particularly tough for brokers because of rising spot rates against often lower-priced contractual commitments was somewhat evident in the numbers for the Marten brokerage unit. While the number of loads it handled rose 17.25%, its OR net of fuel deteriorated 500 bps from a year ago.
Marten’s cash position has strengthened significantly. At the close of 2025, it had $43.3 million in cash and equivalents. A year earlier, that figure was $17.3 million. However, cash and equivalents were higher at the end of the third quarter at $49.5 million.
Marten carries no debt on its balance sheet.
Marten stock is down about 23.6% in the last 52 weeks. However, in the last month it is up about 9%.
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