ICS segment revenue decreased by 18% to $1.14 billion in 2024, from $1.39 billion in 2023, primarily due to overall volume decrease of 20%.

The decrease in ICS revenue was partially offset by additional revenue from the acquisition of the brokerage assets of BNSFL in the third quarter 2023.

Approximately $396 million of ICS revenue for 2024 was executed through the Marketplace for J.B. Hunt 360 compared to $766 million in 2023.

DCS segment productivity, defined as revenue per truck per week, decreased 2% compared to 2023, indicating challenges in asset utilization.

JBT segment operating income increased to $21 million in 2024, from $16 million in 2023, driven by lower personnel expenses, lower equipment-related costs and overall cost management initiatives.

General and administrative expenses increased 11.6% from 2023, primarily due to an increase in building and yard rental expense, higher agent services expense, increased technology costs, and higher bad debt expense.

The company states that future insurance and claims expenses might exceed historical levels, which could reduce earnings. They have experienced substantial increases in the severity of auto liability claims which have exceeded their insurance coverage layers.

The company acknowledges that if they are unable to attract and retain the necessary quality and number of employees, they could be required to significantly increase employee compensation package, let revenue equipment sit idle, dispose of the equipment altogether, or rely more on higher-cost third-party carriers.

The company relies on information technology throughout all areas of their business and states that a significant disruption, failure or security breach in their information technology systems could have a material adverse effect on their business, which could include operational disruptions, loss of confidential information, external reporting delays or errors, legal claims, or damage to their business reputation.

JBI segment revenue decreased 4% primarily due to a 6% decrease in revenue per load, reflecting competitive pressures and changes in freight mix.

ICS's carrier base decreased 10% when compared to 2023, primarily due to changes in carrier qualification requirements, potentially impacting capacity and service offerings.

The freight transportation markets in which the company operates are frequently referred to as highly fragmented and competitive. The company competes with other transportation service providers of varying sizes and, to a lesser extent, with LTL carriers and railroads.

DCS segment productivity, defined as revenue per truck per week, decreased 2% compared to 2023, indicating less efficient use of assets.

Operating income of the JBI segment decreased due to increased maintenance and equipment-related costs, indicating potential inefficiencies.

Operating supplies and expenses decreased 2.7% in 2024 compared with 2023, driven primarily by lower equipment maintenance costs.

Our ICS segment had an operating loss of $56 million in 2024 compared to an operating loss of $44 million in 2023, primarily due to integration costs related to the BNSFL acquisition, which included the impairment or accelerated amortization of certain acquired intangible, information system, and lease assets totaling $26 million.

The company relies significantly on its information technology systems, and a disruption, failure, or security breach could have a material adverse effect on its business.

Approximately $396 million of ICS revenue for 2024 was executed through the Marketplace for J.B. Hunt 360 compared to $766 million in 2023.

Net cash used in financing activities increased due to an increase in current year treasury stock purchases, indicating a focus on returning capital to shareholders.

The company announced an increase in their quarterly cash dividend from $0.43 to $0.44 per share, demonstrating a commitment to returning value to shareholders.

Net cash used in investing activities decreased primarily from a decrease in equipment purchases, reflecting ongoing investments in the fleet.

The company's vision focuses on delivering energy-efficient transportation solutions to reduce both cost and greenhouse-gas emissions.

The company's operations are subject to various environmental laws and regulations, including legislative and regulatory responses to climate change, and compliance could result in significant expenditures.

The health and well-being of the workforce has always been a priority as safety is ingrained into our corporate culture and is a company value.

The company's business can be significantly impacted by economic conditions, customer business cycles, government policies, and seasonal factors.

Rapid changes in fuel costs could impact the company's periodic financial results.

The company depends on third parties in the operation of its business, particularly rail service providers, transportation equipment manufacturers, third party carriers and independent contractors.