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What changed in MARTEN TRANSPORT LTD's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of MARTEN TRANSPORT LTD's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+175 added−174 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-28)

Top changes in MARTEN TRANSPORT LTD's 2025 10-K

175 paragraphs added · 174 removed · 152 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeOur Intermodal segment transports our customers’ freight within the United States utilizing our refrigerated containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers. 1 Our Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which was established in 2007 and operates pursuant to brokerage authority granted by the United States Department of Transportation, or DOT.
Biggest changeOur agreements with customers range from three to five years and are subject to annual rate reviews. 1 Our Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which was established in 2007 and operates pursuant to brokerage authority granted by the United States Department of Transportation, or DOT.
Examples of the technologies we employ include: ● Terrestrial-based tracking and messaging that allows us to communicate with our drivers, obtain load position updates, provide our customers with freight visibility, and download operating information such as fuel mileage and idling time for the tractor engines and temperature setting and run time for the temperature-control units on our trailers. ● Electronic data interchange and internet communication with customers concerning freight tendering, invoices, shipment status and other information. ● Electronic logging devices in our tractors to monitor drivers’ hours of service. ● Auxiliary power units installed on our company-owned tractors that allow us to decrease fuel costs associated with idling our tractors. 2 ● Fuel-routing software that optimizes the fuel stops for each trip to take advantage of volume discounts available in our fuel network.
Examples of the technologies we employ include: ● Terrestrial-based tracking and messaging that allows us to communicate with our drivers, obtain load position updates, provide our customers with freight visibility, and download operating information such as fuel mileage and idling time for the tractor engines and temperature setting and run time for the temperature-control units on our trailers. ● Electronic data interchange and internet communication with customers concerning freight tendering, invoices, shipment status and other information. ● Electronic logging devices in our tractors to monitor drivers’ hours of service. 2 ● Auxiliary power units installed on our company-owned tractors that allow us to decrease fuel costs associated with idling our tractors. ● Fuel-routing software that optimizes the fuel stops for each trip to take advantage of volume discounts available in our fuel network.
These fuel surcharges, which adjust with the cost of fuel, enable us to recover a substantial portion of the higher cost of fuel as prices increase, except for non-revenue miles, out-of-route miles or fuel used while the tractor is idling. As of December 31, 2024, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.
These fuel surcharges, which adjust with the cost of fuel, enable us to recover a substantial portion of the higher cost of fuel as prices increase, except for non-revenue miles, out-of-route miles or fuel used while the tractor is idling. As of December 31, 2025, we had no derivative financial instruments to reduce our exposure to fuel price fluctuations.
We actively manage our fuel costs by purchasing fuel in bulk at a number of our facilities throughout the country and have volume purchasing arrangements with national fuel centers that allow our drivers to purchase fuel at a discount while in transit. During 2024, nearly 100% of our fuel purchases were made at these designated locations.
We actively manage our fuel costs by purchasing fuel in bulk at a number of our facilities throughout the country and have volume purchasing arrangements with national fuel centers that allow our drivers to purchase fuel at a discount while in transit. During 2025, nearly 100% of our fuel purchases were made at these designated locations.
Our marketing efforts are conducted by a staff of 346 sales, customer service and support personnel under the supervision of our senior management team. Marketing personnel travel within their regions to solicit new customers and maintain contact with existing customers. Customer service managers regularly contact customers to solicit additional business on a load-by-load basis.
Our marketing efforts are conducted by a staff of 315 sales, customer service and support personnel under the supervision of our senior management team. Marketing personnel travel within their regions to solicit new customers and maintain contact with existing customers. Customer service managers regularly contact customers to solicit additional business on a load-by-load basis.
We target food and consumer packaged goods companies whose products require temperature-sensitive services and who ship multiple truckloads per week. By emphasizing high-quality service, we seek to become a core carrier for our customers. In 2024, our largest customer was Walmart.
We target food and consumer packaged goods companies whose products require temperature-sensitive services and who ship multiple truckloads per week. By emphasizing high-quality service, we seek to become a core carrier for our customers. In 2025, our largest customer was Walmart.
As of that date, we also contracted with 88 independent contractors. None of our employees are represented by a collective bargaining unit. We consider relations with our employees to be good. We believe our employees are a critical part to the continued success of our operations.
As of that date, we also contracted with 77 independent contractors. None of our employees are represented by a collective bargaining unit. We consider relations with our employees to be good. We believe our employees are a critical part to the continued success of our operations.
Approximately 59% of our Truckload and Dedicated revenue in 2024 resulted from hauling temperature-sensitive products and 41% from hauling dry freight. We operate throughout the United States and in parts of Mexico and Canada, with our revenue primarily generated from within the United States.
Approximately 59% of our Truckload and Dedicated revenue in 2025 resulted from hauling temperature-sensitive products and 41% from hauling dry freight. We operate throughout the United States and in parts of Mexico and Canada, with our revenue primarily generated from within the United States.
In 2010, our top 30 customers accounted for approximately 78% of our revenue. Eight of our top ten customers have been significant customers of ours for the last ten years. We believe we are the largest or second largest temperature-sensitive carrier for seven of our top ten customers.
In 2010, our top 30 customers accounted for approximately 78% of our revenue. Nine of our top ten customers have been significant customers of ours for the last ten years. We believe we are the largest or second largest temperature-sensitive carrier for eight of our top ten customers.
We periodically evaluate and adjust our insurance and claims reserves to reflect our experience. We have $23.1 million in standby letters of credit to guarantee settlement of claims under agreements with our insurance carriers and regulatory authorities.
We periodically evaluate and adjust our insurance and claims reserves to reflect our experience. We have $24.1 million in standby letters of credit to guarantee settlement of claims under agreements with our insurance carriers and regulatory authorities.
We are also subject to various environmental laws and regulations dealing with vehicle emissions and idling, the handling of hazardous materials, fuel storage tanks, air emissions from our facilities and discharge and retention of storm water. These regulations did not have a significant impact on our operations or financial results in 2022 through 2024.
We are also subject to various environmental laws and regulations dealing with vehicle emissions and idling, the handling of hazardous materials, fuel storage tanks, air emissions from our facilities and discharge and retention of storm water. These regulations did not have a significant impact on our operations or financial results in 2023 through 2025.
We provide regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions. Our primary medium-to-long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. In 2024, our average length of haul was 418 miles.
We provide regional truckload carrier services in the Southeast, West Coast, Midwest, South Central and Northeast regions. Our primary medium-to-long-haul traffic lanes are between the Midwest and the West Coast, Southwest, Southeast, and the East Coast, as well as from California to the Pacific Northwest. In 2025, our average length of haul was 405 miles.
For example, we produced a non-revenue mile percentage of 7.6% during 2024, which points to the efficiency of our operations and we believe compares favorably to other temperature-sensitive and dry van trucking companies. Major Customers A significant portion of our revenue is generated from our major customers.
For example, we produced a non-revenue mile percentage of 7.3% during 2025, which points to the efficiency of our operations and we believe compares favorably to other temperature-sensitive and dry van trucking companies. Major Customers A significant portion of our revenue is generated from our major customers.
Independent contractors own their own tractors and are responsible for all associated expenses, including financing costs, fuel, maintenance, insurance and taxes. The percentage of our fleet provided by independent contractors was 2.9% at December 31, 2024, 2.8% at December 31, 2023 and 2.6% at December 31, 2022.
Independent contractors own their own tractors and are responsible for all associated expenses, including financing costs, fuel, maintenance, insurance and taxes. The percentage of our fleet provided by independent contractors was 2.9% at each of December 31, 2025 and December 31, 2024, and 2.8% at December 31, 2023.
We are one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. In 2024, we generated $963.7 million in operating revenue.
We are one of the leading temperature-sensitive truckload carriers in the United States, specializing in transporting and distributing food and other consumer packaged goods that require a temperature-controlled or insulated environment. In 2025, we generated $883.7 million in operating revenue.
We maintain insurance coverage for per-incident and total losses in excess of the amounts for which we self-insure up to specified policy limits with licensed insurance carriers. Insurance carriers have significantly raised premiums for trucking companies, which increases our insurance and claims expense, along with other factors.
We maintain insurance coverage with licensed insurance carriers for per-incident and total losses in excess of the amounts for which we self-insure up to specified policy limits and outside of certain liability tiers for which we retain liability. Insurance carriers have significantly raised premiums for trucking companies, which increases our insurance and claims expense, along with other factors.
We have been testing at a rate in excess of 50%, including when the requirement was at least 25%, and tested 57% in 2022, 67% in 2023 and 74% in 2024. The impact of the clearinghouse has been significant, with a total of approximately 181,000 drivers removed from the trucking industry from January 2020 through December 2024.
We have been testing at a rate in excess of 50%, including when the requirement was at least 25%, and tested 67% in 2023, 74% in 2024 and 76% in 2025. The impact of the clearinghouse has been significant, with a total of approximately 202,000 drivers removed from the trucking industry from January 2020 through December 2025.
In 2024, our top 30 customers accounted for approximately 69% of our revenue excluding fuel surcharges, and our top ten customers accounted for 48% of our revenue. We have emphasized increasing our customer diversity which is shown by the decrease in the portion of our revenue with our top customers.
In 2025, our top 30 customers accounted for approximately 71% of our revenue excluding fuel surcharges, and our top ten customers accounted for 50% of our revenue. We have emphasized increasing our customer diversity which is shown by the decrease in the portion of our revenue with our top customers.
At the same time, operating expenses generally increase, with harsh weather creating higher accident frequency, increased claims, lower fuel efficiency and more equipment repairs. Human Capital As of December 31, 2024, we had 3,776 employees. This total consists of 2,915 drivers, 270 mechanics and maintenance personnel, and 591 support personnel, which includes management and administration.
At the same time, operating expenses generally increase, with harsh weather creating higher accident frequency, increased claims, lower fuel efficiency and more equipment repairs. Human Capital As of December 31, 2025, we had 3,502 employees. This total consists of 2,660 drivers, 275 mechanics and maintenance personnel, and 567 support personnel, which includes management and administration.
ITEM 1. BUSINESS Overview We have strategically transitioned from a refrigerated long-haul carrier to a multifaceted business offering a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across our six distinct business platforms – Temperature-Sensitive and Dry Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico.
ITEM 1. BUSINESS Overview We have strategically transitioned from a refrigerated long-haul carrier to a multifaceted business offering a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across our current five distinct business platforms – Temperature-Sensitive and Dry Truckload, Dedicated, Brokerage and MRTN de Mexico. Our Intermodal operations were sold effective September 30, 2025.
Marten founded in 1946. In 1988, we reincorporated under Delaware law. Our executive offices are located at 129 Marten Street, Mondovi, Wisconsin 54755. Our telephone number is (715) 926-4216. We maintain a website at www.marten.com .
Organized under Wisconsin law in 1970, we are a successor to a sole proprietorship Roger R. Marten founded in 1946. In 1988, we reincorporated under Delaware law. Our executive offices are located at 129 Marten Street, Mondovi, Wisconsin 54755. Our telephone number is (715) 926-4216. We maintain a website at www.marten.com .
As of December 31, 2024, we operated a fleet of 5,440 trailers, consisting of 3,138 refrigerated trailers and 2,302 dry vans. Most of our refrigerated trailers are equipped with Thermo-King refrigeration units, air ride suspensions and anti-lock brakes. The average age of our trailer fleet at December 31, 2024 was approximately 5.3 years.
As of December 31, 2025, we operated a fleet of 5,107 trailers, consisting of 2,863 refrigerated trailers and 2,244 dry vans. Most of our refrigerated trailers are equipped with Thermo-King refrigeration units, air ride suspensions and anti-lock brakes. The average age of our trailer fleet at December 31, 2025 was approximately 4.9 years.
As of December 31, 2024, we operated a fleet of 3,006 tractors, including 2,918 company-owned tractors and 88 tractors supplied by independent contractors. The average age of our company-owned tractor fleet at December 31, 2024 was approximately 1.9 years. In 2024, we replaced our company-owned tractors within an average of 3.9 years after purchase.
As of December 31, 2025, we operated a fleet of 2,654 tractors, including 2,577 company-owned tractors and 77 tractors supplied by independent contractors. The average age of our company-owned tractor fleet at December 31, 2025 was approximately 2.3 years. In 2025, we replaced our company-owned tractors within an average of 4.2 years after purchase.
With our fleet of 3,006 company and independent contractor tractors, we offer service levels that include up to 99% on-time performance and delivery within the narrow time windows often required when shipping perishable commodities. We have four reporting segments – Truckload, Dedicated, Intermodal and Brokerage.
With our fleet of 2,654 company and independent contractor tractors, we offer service levels that include up to 99% on-time performance and delivery within the narrow time windows often required when shipping perishable commodities. We have four reporting segments – Truckload, Dedicated and Brokerage, along with our Intermodal operations which were sold effective September 30, 2025.
CSA’s Motor Carrier Safety Measurement System replaced the former SafeStat system and has removed a number of drivers from the industry as carriers are less willing to hire and retain drivers with marginal ratings, which has increased competition for qualified drivers. The FMCSA is currently putting in place changes to generally simplify the agency’s safety and fitness regulations.
CSA’s Motor Carrier Safety Measurement System replaced the former SafeStat system and has removed a number of drivers from the industry as carriers are less willing to hire and retain drivers with marginal ratings, which has increased competition for qualified drivers.
We retain the billing, collection and customer management responsibilities. Operating results of our MRTN de Mexico business which offers our customers door-to-door service between the United States and Mexico with our Mexican partner carriers is reported within our Truckload and Brokerage segments. Organized under Wisconsin law in 1970, we are a successor to a sole proprietorship Roger R.
We retain the billing, collection and customer management responsibilities. Operating results of our MRTN de Mexico business, which offers our customers door-to-door service between the United States and Mexico with our Mexican partner carriers, is reported within our Truckload and Brokerage segments.
We also compensate drivers for all detention time, for inclement weather and for road service delays. Total weekly compensation is also subject to a guaranteed minimum amount. We pay independent contractors a fixed rate per mile. Independent contractors pay for their own fuel, insurance, maintenance and repairs. 3 The health and well-being of our employees is paramount to our success.
Total weekly compensation is also subject to a guaranteed minimum amount. We pay independent contractors a fixed rate per mile. Independent contractors pay for their own fuel, insurance, maintenance and repairs. 3 The health and well-being of our employees is paramount to our success. We sponsor a wellness program designed to enhance the well-being of each of our employees.
Our Dedicated segment provides customized transportation solutions tailored to meet each individual customer’s requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States. Our agreements with customers range from three to five years and are subject to annual rate reviews.
Our Dedicated segment provides customized transportation solutions tailored to meet each individual customer’s requirements, utilizing temperature-controlled trailers, dry vans and other specialized equipment within the United States.
In 2024, we replaced our company-owned trailers within an average of 8.4 years after purchase. As of December 31, 2024, we operated a fleet of 786 refrigerated containers for use on railroad flatcars as compared to a fleet of 787 refrigerated containers as of December 31, 2023.
In 2025, we replaced our company-owned trailers within an average of 8.1 years after purchase. As of December 31, 2024, we operated a fleet of 786 refrigerated containers for use on railroad flatcars. All of our Intermodal Operations, including our fleet of refrigerated containers, were sold effective September 30, 2025.
The FMCSA issued final revisions to the hours-of-service requirements for drivers in September 2020. The revisions allow drivers more flexibility with their 30-minute rest breaks and with dividing their time in the sleeper berth.
The FMCSA is currently putting in place changes to generally simplify the agency’s safety and fitness regulations using an enhanced safety prioritization methodology. The FMCSA issued final revisions to the hours-of-service requirements for drivers in September 2020. The revisions allow drivers more flexibility with their 30-minute rest breaks and with dividing their time in the sleeper berth.
As part of those efforts, we are also committed to hiring, developing and supporting a diverse and inclusive workplace. We believe we provide our employees with compensation and benefits that are competitive with or exceed our industry peers. We primarily pay company-employed drivers a fixed rate per mile. The rate increases based on length of service.
We believe we provide our employees with compensation and benefits that are competitive with or exceed our industry peers. We primarily pay company-employed drivers a fixed rate per mile. The rate increases based on length of service. We also compensate drivers for all detention time, for inclement weather and for road service delays.
Removed
We sponsor a wellness program designed to enhance the well-being of each of our employees. The COVID-19 pandemic has also heightened our responsibility of ensuring our employees have a safe work environment and we have implemented numerous efforts to keep our valued employees safe, healthy and informed.
Added
Our Intermodal segment transported our customers’ freight within the United States utilizing our refrigerated containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers. Our Intermodal operations were sold effective September 30, 2025.
Removed
In September 2020, the United States Department of Health and Human Services proposed mandatory guidelines for federal workplace drug testing programs using hair follicles, which is a more strenuous test than current requirements. The FMCSA has not issued proposed regulations.
Added
Additionally, the Trump administration’s recent immigration enforcement efforts including stricter standards for non-domiciled commercial driver’s licenses and entry-level driver training programs, along with increased enforcement of English Language Proficiency and B-1 visa regulations, are expected to decrease industry capacity.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeIt is not possible to predict the effects of actual or threatened armed conflicts or terrorist attacks, efforts to combat terrorism, military action against any foreign state, heightened security requirements or other related events and the subsequent effects on the economy or on consumer confidence in the United States, or the impact, if any, on our future results of operations. 6 We operate in a highly competitive and fragmented industry, and numerous competitive factors could impair our ability to maintain our current profitability .
Biggest changeSuch cost increases for our revenue equipment suppliers would likely be passed on to us, and to the extent fuel prices increase, we may not be able to fully recover such increases through rate increases or our fuel surcharge programs, either of which could have an adverse effect on our business. 6 Lastly, it is not possible to predict the effects of actual or threatened armed conflicts or terrorist attacks, efforts to combat terrorism, military action against any foreign state, heightened security requirements or other related events and the subsequent effects on the economy or on consumer confidence in the United States, or the impact, if any, on our future results of operations.
In addition, increased public and political concern over climate change could result in new legal or regulatory requirements designed to mitigate the effects of climate change and greenhouse gas emissions such as carbon dioxide, a by-product of burning fossil fuels such as those used in our tractors and in the refrigeration units on our trailers and containers, which could include the adoption of more stringent environmental laws and regulations or stricter enforcement of existing laws and regulations.
In addition, increased public and political concern over climate change could result in new legal or regulatory requirements designed to mitigate the effects of climate change and greenhouse gas emissions such as carbon dioxide, a by-product of burning fossil fuels such as those used in our tractors and in the refrigeration units on our trailers and formerly on our containers, which could include the adoption of more stringent environmental laws and regulations or stricter enforcement of existing laws and regulations.
A reduction in or termination of our services by one or more of our major customers could have a materially adverse effect on our business and operating results. Ongoing insurance and claims expenses could significantly affect our earnings . Our future insurance and claims expense might exceed historical levels, which could reduce our earnings.
A reduction in or termination of our services by one or more of our major customers could have a materially adverse effect on our business and operating results. 7 Ongoing insurance and claims expenses could significantly affect our earnings . Our future insurance and claims expense might exceed historical levels, which could reduce our earnings.
Additionally, a number of trucking companies, including us, have been subject to lawsuits alleging violations of various federal and state wage and hour laws. A number of these lawsuits have resulted in the payment of substantial settlements or damages by the defendants.
Additionally, a number of trucking companies, including us, have been subject to lawsuits, including class action lawsuits, alleging violations of various federal and state wage and hour laws. A number of these lawsuits have resulted in the payment of substantial settlements or damages by the defendants.
We have been testing at a rate in excess of 50%, including when the requirement was at least 25%, and tested 57% in 2022, 67% in 2023 and 74% in 2024. The impact of the clearinghouse has been significant, with a total of approximately 181,000 drivers removed from the trucking industry from January 2020 through December 2024.
We have been testing at a rate in excess of 50%, including when the requirement was at least 25%, and tested 67% in 2023, 74% in 2024 and 76% in 2025. The impact of the clearinghouse has been significant, with a total of approximately 202,000 drivers removed from the trucking industry from January 2020 through December 2025.
For example, severe sustained heat in multiple regions of the United States during the summer of 2023 resulted in increased fuel expense due to decreased engine fuel efficiency and increased idling, along with additional damage and wear on tires.
For example, severe sustained heat in multiple regions of the United States during recent years has resulted in increased fuel expense due to decreased engine fuel efficiency and increased idling, along with additional damage and wear on tires.
COVID-19, which was initially declared a pandemic by the World Health Organization on March 11, 2020 and was declared no longer a global health emergency on May 5, 2023, negatively affected economic conditions, supply chains, labor markets and demand for certain shipped goods. 9 The extent to which our business, results of operations and financial condition may be negatively affected by the COVID-19 pandemic or future pandemics, epidemics or other outbreaks of infectious diseases is highly uncertain and will depend on numerous evolving factors that we cannot predict, including, but not limited to (i) the duration and severity of the infectious disease outbreak; (ii) the imposition of restrictive measures to combat the outbreak and slow disease transmission; (iii) the introduction of financial support measures to reduce the impact of the outbreak on the economy; (iv) volatility in the demand for and price of oil and gas; (v) shortages or reductions in the supply of essential goods, services or labor; and (vi) fluctuations in general economic or financial conditions tied to the outbreak, such as a sharp increase in interest rates or reduction in the availability of credit.
The COVID-19 pandemic, for example, negatively affected economic conditions, supply chains, labor markets and demand for certain shipped goods. 9 The extent to which our business, results of operations and financial condition may be negatively affected by pandemics, epidemics or other outbreaks of infectious diseases is highly uncertain and will depend on numerous evolving factors that we cannot predict, including, but not limited to (i) the duration and severity of the infectious disease outbreak; (ii) the imposition of restrictive measures to combat the outbreak and slow disease transmission; (iii) the introduction of financial support measures to reduce the impact of the outbreak on the economy; (iv) volatility in the demand for and price of oil and gas; (v) shortages or reductions in the supply of essential goods, services or labor; and (vi) fluctuations in general economic or financial conditions tied to the outbreak, such as a sharp increase in interest rates or reduction in the availability of credit.
We cannot predict the effect that an outbreak of a new COVID-19 variant or strain, or any future infectious disease outbreak, pandemic or epidemic may have on our business, results of operations and financial condition, which could be material and adverse.
We cannot predict the effect that an outbreak of any future infectious disease outbreak, pandemic or epidemic may have on our business, results of operations and financial condition, which could be material and adverse.
CSA’s Motor Carrier Safety Measurement System replaced the former SafeStat system and has removed a number of drivers from the industry as carriers are less willing to hire and retain drivers with marginal ratings, which has increased competition for qualified drivers. The FMCSA is currently putting in place changes to generally simplify the agency’s safety and fitness regulations.
CSA’s Motor Carrier Safety Measurement System replaced the former SafeStat system and has removed a number of drivers from the industry as carriers are less willing to hire and retain drivers with marginal ratings, which has increased competition for qualified drivers.
The conflict between Russia and Ukraine, the conflict between Israel and Hamas, and the expansion of such conflicts to other areas or countries or similar conflicts could adversely impact our business and financial results.
The conflict between Russia and Ukraine, conflicts in the Middle East, potential conflict between China and Taiwan and the expansion of such conflicts to other areas or countries or similar conflicts could adversely impact our business and financial results.
We are highly dependent upon the services of our executive officers and key management employees, including our Chief Executive Officer. Currently, we do not have employment agreements with these employees and the loss of their services for any reason could have a materially adverse effect on our operations and future profitability.
Currently, we do not have employment agreements with these employees and the loss of their services for any reason could have a materially adverse effect on our operations and future profitability.
Reduced demand for used equipment could result in a lower volume of sales or lower sales prices, either of which could negatively affect our gains on sales of assets.
Reduced demand for used equipment could result in a lower volume of sales or lower sales prices, either of which could negatively affect our gains on sales of assets. We have seen a softening of the used equipment market, which could lead to a lower gain on sale.
The transportation industry has historically experienced substantial difficulty in attracting and retaining qualified drivers, including independent contractors. With the current increased competition for drivers, including the impact that regulatory changes have had on the number of drivers in the transportation industry, we could experience greater difficulty in attracting sufficient numbers of qualified drivers.
With the current increased competition for drivers, including the impact that regulatory changes have had on the number of drivers in the transportation industry, we could experience greater difficulty in attracting sufficient numbers of qualified drivers. In addition, the available pool of independent contractor drivers is smaller than it has been historically.
For 2024, our top 30 customers, based on revenue excluding fuel surcharges, accounted for approximately 69% of our revenue; our top ten customers accounted for approximately 48% of our revenue; our top five customers accounted for approximately 36% of our revenue; our top two customers accounted for approximately 27% of our revenue; and our largest customer accounted for approximately 20% of our revenue.
For 2025, our top 30 customers, based on revenue excluding fuel surcharges, accounted for approximately 71% of our revenue; our top ten customers accounted for approximately 50% of our revenue; our top five customers accounted for approximately 38% of our revenue; our top two customers accounted for approximately 28% of our revenue; and our largest customer accounted for approximately 20% of our revenue.
However, ultimate results may differ from our estimates, which could result in losses over our reserved amounts. We maintain insurance above the amounts for which we self-insure with licensed insurance carriers. Although we believe the aggregate insurance limits should be sufficient to cover reasonably expected claims, it is possible that one or more claims could exceed our aggregate coverage limits.
We maintain insurance with licensed insurance carriers above the amounts for which we self-insure and outside of certain liability tiers for which we retain liability. Although we believe the aggregate insurance limits should be sufficient to cover reasonably expected claims, it is possible that one or more claims could exceed our aggregate coverage limits.
The FMCSA issued final revisions to the hours-of-service requirements for drivers in September 2020. The revisions allow drivers more flexibility with their 30-minute rest breaks and with dividing their time in the sleeper berth.
The FMCSA is currently putting in place changes to generally simplify the agency’s safety and fitness regulations using an enhanced safety prioritization methodology. The FMCSA issued final revisions to the hours-of-service requirements for drivers in September 2020. The revisions allow drivers more flexibility with their 30-minute rest breaks and with dividing their time in the sleeper berth.
We have experienced higher prices for new tractors and trailers over the past few years, primarily as a result of higher commodity prices and government regulations applicable to newly manufactured tractors and trailers. We expect to continue to pay increased prices for revenue equipment for the foreseeable future.
Increased prices and restricted availability of new revenue equipment could cause our financial condition, results of operations and cash flows to suffer . We have experienced higher prices for new tractors and trailers over the past few years, primarily as a result of higher commodity prices and government regulations applicable to newly manufactured tractors and trailers.
In addition, our industry suffers from high turnover rates of drivers. Our turnover rate requires us to recruit a substantial number of drivers. Moreover, our turnover rate could increase. If we are unable to continue to attract drivers and contract with independent contractors, we could be required to continue adjusting our driver compensation package or let trucks sit idle.
Moreover, our turnover rate could increase. If we are unable to continue to attract drivers and contract with independent contractors, we could be required to continue adjusting our driver compensation package or let trucks sit idle. An increase in our expenses or in the number of tractors without drivers could materially and adversely affect our growth and profitability.
To the extent we experience claims that are uninsured, exceed our coverage limits or cause increases in future premiums, the resulting expense could have a materially adverse effect on our business and operating results. Risks Related to Our Human Capital Increases in compensation or difficulty in attracting drivers could affect our profitability and ability to grow .
To the extent we experience claims that are uninsured, exceed our coverage limits, involve significant aggregate use of our self-insured retention amounts or cause increases in future premiums, the resulting expense could have a materially adverse effect on our business and operating results.
Our business could be harmed if we are unable to continue to obtain an adequate supply of new tractors and trailers or if we are required to pay increased prices for new revenue equipment. 7 We derive a significant portion of our revenue from our major customers, the loss of one or more of which could have a materially adverse effect on our business .
We expect to continue to pay increased prices for revenue equipment for the foreseeable future. Our business could be harmed if we are unable to continue to obtain an adequate supply of new tractors and trailers or if we are required to pay increased prices for new revenue equipment.
In addition, we must continue to develop and retain a core group of managers if we are to realize our goal of expanding our operations and continuing our growth. While our Board regularly engages in succession planning for our Chief Executive Officer and executive leadership team, there is no guarantee that a candidate or plan will be successful.
While our Board regularly engages in succession planning for our Chairman of the Board and Chief Executive Officer and executive leadership team, there is no guarantee that a candidate or plan will be successful.
The State of California recently passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act that will impose broad climate-related disclosure obligations on certain companies doing business in California, including us, starting in 2026. Additionally, on March 6, 2024, the SEC adopted climate-related disclosure rules, which could increase compliance burdens and associated regulatory costs and complexity.
In October 2023, the State of California passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act that will impose broad climate-related disclosure obligations on certain companies doing business in California, including us.
Our operations are subject to risks related to pandemics, epidemics or other infectious disease outbreaks and government responses thereto.
We are subject to risks associated with public health crises, such as pandemics and epidemics, which could negatively impact our business and results of operations. Our operations are subject to risks related to pandemics, epidemics or other infectious disease outbreaks and government responses thereto.
In addition, the available pool of independent contractor drivers is smaller than it has been historically. Accordingly, we may face difficulty in attracting and retaining drivers for all of our current tractors and for those we may add. Additionally, we may face difficulty in increasing the number of our independent contractor drivers.
Accordingly, we may face difficulty in attracting and retaining drivers for all of our current tractors and for those we may add. Additionally, we may face difficulty in increasing the number of our independent contractor drivers. In addition, our industry suffers from high turnover rates of drivers. Our turnover rate requires us to recruit a substantial number of drivers.
An increase in our expenses or in the number of tractors without drivers could materially and adversely affect our growth and profitability. If we are unable to retain our executive officers and key management employees, our business, financial condition and results of operations could be adversely affected.
If we are unable to retain our executive officers and key management employees, our business, financial condition and results of operations could be adversely affected. We are highly dependent upon the services of our executive officers and key management employees, including our Chairman of the Board and Chief Executive Officer.
We can also suffer short-term impacts from weather-related events such as hurricanes, blizzards, ice-storms and floods that could harm our results or make our results more volatile. We are subject to risks associated with public health crises, such as pandemics and epidemics, which could negatively impact our business and results of operations.
At the same time, operating expenses generally increase, with harsh weather creating higher accident frequency, increased claims and more equipment repairs. We can also suffer short-term impacts from weather-related events such as hurricanes, blizzards, ice-storms and floods that could harm our results or make our results more volatile.
Seasonality and the impact of weather can affect our profitability . Our tractor productivity generally decreases during the winter season because inclement weather impedes operations and some shippers reduce their shipments. At the same time, operating expenses generally increase, with harsh weather creating higher accident frequency, increased claims and more equipment repairs.
Costs associated with future climate change concerns or environmental laws and regulations and sustainability requirements could have a material adverse effect on our operations and operating results. Seasonality and the impact of weather can affect our profitability . Our tractor productivity generally decreases during the winter season because inclement weather impedes operations and some shippers reduce their shipments.
Economic conditions may adversely affect our customers and their ability to pay for our services.
Economic conditions may adversely affect our customers and their ability to pay for our services. During 2025, the Trump administration has imposed new and increased tariff rates on imported goods from a number of countries.
A significant portion of our revenue is generated from our major customers.
We derive a significant portion of our revenue from our major customers, the loss of one or more of which could have a materially adverse effect on our business . A significant portion of our revenue is generated from our major customers.
Removed
Lack of capacity, changes in equipment requirements and service instability in the railroad industry could increase our operating costs and reduce our ability to offer intermodal services, which could adversely affect our revenue, results of operations and customer relationships . Our Intermodal segment is dependent on railroad services and their capacity to transport freight for our customers.
Added
Although it is difficult to forecast the depth and duration of the resulting impact since the tariff policies have rapidly evolved and changed, such trade policies and tariff implementations, and any related retaliatory trade policies and tariff implementations by foreign governments, may result in decreased shipping volumes and have an adverse impact on our revenue and results of operations.
Removed
We expect our dependence on railroads will continue to increase as we expand our intermodal services. We compete for the availability of railroad services with other intermodal operators as well as certain industries reliant on the use of rail cars, such as oil and agricultural, whose consumption of railroad capacity has significantly fluctuated over the past several years.
Added
In addition, the imposition of additional tariffs or quotas or changes to certain trade agreements, or retaliatory trade policies could, among other things, increase the cost of the materials used by our suppliers to produce new revenue equipment, limit the availability of new revenue equipment, or increase the price of fuel.
Removed
In most markets, rail service is limited to a few railroads or even a single railroad.
Added
We operate in a highly competitive and fragmented industry, and numerous competitive factors could impair our ability to maintain our current profitability .
Removed
Any capacity constraints, changes in equipment requirements, threatened or actual rail worker strikes, service problems or reduction in service by the railroads with which we have, or in the future may have, relationships is likely to increase the cost of the rail-based services we provide and reduce the reliability, timeliness and overall attractiveness of our rail-based services, which could adversely affect our revenue, results of operations and customer relationships.
Added
However, ultimate results may differ from our estimates, which could result in losses over our reserved amounts. For a detailed discussion of our self-insurance programs, including self-insurance retention limits, please refer to Note 1 to the consolidated financial statements, included in Part II, Item 8 of this Annual Report.
Removed
Furthermore, railroads are relatively free to adjust shipping rates up or down as market conditions permit. Price increases could result in higher costs to our customers and reduce or eliminate our ability to offer intermodal services.
Added
Following legal challenges and due to a high volume of public comments, the California Air Resources Board, has delayed issuing draft regulations pursuant to these laws until the first quarter of 2026. Additionally, on March 6, 2024, the SEC adopted climate-related disclosure rules which became the subject of a number of legal challenges.
Removed
In addition, we cannot assure you that we will be able to negotiate additional contracts with railroads to expand our capacity, add additional routes or obtain multiple providers, which could limit our ability to provide this service. Increased prices and restricted availability of new revenue equipment could cause our financial condition, results of operations and cash flows to suffer .
Added
On March 27, 2025 the SEC voted to end its defense of the proposed rules, though the rules have not been formally withdrawn. While we are continuing to monitor the evolution of these rules, it is difficult to predict when and to what extent they may impact us.
Removed
Following a number of petitions for review filed against the SEC, on April 4, 2024, the SEC issued an order staying the rules pending judicial review. Costs associated with future climate change concerns or environmental laws and regulations and sustainability requirements could have a material adverse effect on our operations and operating results.
Added
Additionally, the Trump administration’s recent immigration enforcement efforts including stricter standards for non-domiciled commercial driver’s licenses and entry-level driver training programs, along with increased enforcement of English Language Proficiency and B-1 visa regulations, are expected to decrease industry capacity. From time to time, various federal, state or local taxes are increased, including taxes on fuels.
Removed
In September 2020, the United States Department of Health and Human Services proposed mandatory guidelines for federal workplace drug testing programs using hair follicles, which is a more strenuous test than the current requirements. The FMCSA has not yet issued proposed regulations. From time to time, various federal, state or local taxes are increased, including taxes on fuels.
Added
Risks Related to Our Human Capital Increases in compensation or difficulty in attracting drivers could affect our profitability and ability to grow . The transportation industry has historically experienced substantial difficulty in attracting and retaining qualified drivers, including independent contractors.
Added
In addition, we must continue to develop and retain a core group of managers if we are to realize our goal of expanding our operations and continuing our growth.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe operate facilities in or near the following cities at which we primarily perform operations and maintenance activities: ● Mondovi, Wisconsin ● Atlanta, Georgia ● Memphis, Tennessee ● Phoenix, Arizona ● Indianapolis, Indiana ● Desoto, Texas ● Jurupa Valley, California ● Kansas City, Kansas ● Laredo, Texas ● Otay Mesa, California ● Portland, Oregon ● Colonial Heights, Virginia ● Tampa, Florida ● Carlisle, Pennsylvania ● Rio Grande Valley, Texas Our Truckload, Dedicated and Brokerage segments operate out of a majority of our facilities while our Intermodal segment operates out of a small number of our locations.
Biggest changeWe own and operate facilities in or near the following cities at which we primarily perform operations and maintenance activities: ● Mondovi, Wisconsin ● Atlanta, Georgia ● Memphis, Tennessee ● Phoenix, Arizona ● Indianapolis, Indiana ● Desoto, Texas ● Jurupa Valley, California ● Kansas City, Kansas ● Laredo, Texas ● Otay Mesa, California ● Portland, Oregon ● Colonial Heights, Virginia ● Tampa, Florida ● Carlisle, Pennsylvania ● Rio Grande Valley, Texas Our Truckload, Dedicated and Brokerage segments operate out of a majority of our facilities while our Intermodal segment operated out of a small number of our locations.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+1 added−4 removed1 unchanged
Biggest changeA waiver allowing stock redemptions and dividends in excess of the 25% limitation in total amounts of up to $80 million in 2022 was obtained from the lender in March 2022. The current and previous credit agreements also contain restrictive covenants which, among other matters, require us to maintain compliance with cash flow leverage and fixed charge coverage ratios.
Biggest changeOur credit agreement effective in August 2022 prohibits us from paying, in any fiscal year, stock redemptions and dividends in excess of $150 million. The current credit agreement also contains restrictive covenants which, among other matters, require us to maintain compliance with cash flow leverage and fixed charge coverage ratios.
As of December 31, 2024, future repurchases of up to $33.2 million, or approximately 2.2 million shares, were available in the share repurchase program. 16 Comparative Stock Performance The graph below compares the cumulative total stockholder return on our common stock with the NASDAQ Market index and the SIC code 4213 (trucking, except local) line-of-business index for the last five years.
As of December 31, 2025, future repurchases of up to $33.2 million, or approximately 2.2 million shares, were available in the share repurchase program. 16 Comparative Stock Performance The graph below compares the cumulative total stockholder return on our common stock with the NASDAQ Market index and the SIC code 4213 (trucking, except local) line-of-business index for the last five years.
Research Data Group, Inc. prepared the line-of-business index. The graph assumes $100 is invested in our common stock, the NASDAQ Stock Market index and the line-of-business index on December 31, 2019, with reinvestment of dividends. The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of our common stock.
Research Data Group, Inc. prepared the line-of-business index. The graph assumes $100 is invested in our common stock, the NASDAQ Stock Market index and the line-of-business index on December 31, 2020, with reinvestment of dividends. The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of our common stock.
Dividend Policy In 2010, we announced a regular cash dividend program to our stockholders, subject to approval each quarter. Quarterly cash dividends of $0.06 per share of common stock were paid in each quarter of 2024 and 2023 which totaled $19.5 million in each year, and in each quarter of 2022 which totaled $19.6 million.
Dividend Policy In 2010, we announced a regular cash dividend program to our stockholders, subject to approval each quarter. Quarterly cash dividends of $0.06 per share of common stock were paid in each quarter of 2025 which totaled $19.6 million, and in each quarter of 2024 and 2023 which totaled $19.5 million in each year.
The share repurchase program allows purchases on the open market or through private transactions in accordance with Rule 10b-18 of the Exchange Act. The timing and extent to which we repurchase shares depends on market conditions and other corporate considerations. The repurchase program does not have an expiration date.
The share repurchase program allows purchases on the open market or through private transactions in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and extent to which we repurchase shares depends on market conditions and other corporate considerations. The repurchase program does not have an expiration date.
ITEM 5. MARKET FOR REGISTRANT ’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the NASDAQ Global Select Market under the symbol “MRTN.” On February 14, 2025, we had 152 record stockholders and approximately 24,701 beneficial stockholders of our common stock.
ITEM 5. MARKET FOR REGISTRANT ’ S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the NASDAQ Global Select Market under the symbol “MRTN.” On February 13, 2026, we had 146 record stockholders and approximately 20,929 beneficial stockholders of our common stock.
The information in the graph below shall be deemed “furnished” and not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. *$100 invested on 12/31/19 in stock or index, including reinvestment of dividends. Fiscal year ending December 31 17
The information in the graph below shall be deemed “furnished” and not “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section. 17
On May 3, 2022, our Board of Directors approved and we announced an additional increase from current availability in our existing share repurchase program providing for the repurchase of up to $50.0 million, or approximately 3.1 million shares, of our common stock.
We were in compliance with all covenants at December 31, 2025 and December 31, 2024. Share Repurchase Program Our existing share repurchase program, which was initially announced in December 2007, currently provides for the repurchase of up to $50.0 million, or approximately 3.1 million shares of our common stock.
Removed
Our credit agreement effective in August 2022 prohibits us from paying, in any fiscal year, stock redemptions and dividends in excess of $150 million. Our previous credit agreement prohibited us from making such payments in excess of 25% of our net income from the prior fiscal year.
Added
We have not repurchased any shares under this program since the second quarter of 2022.
Removed
We were in compliance with all covenants at December 31, 2024 and December 31, 2023.
Removed
Share Repurchase Program In August 2019, our Board of Directors approved and we announced an increase from current availability in our existing share repurchase program providing for the repurchase of up to $34.0 million, or approximately 1.8 million shares, of our common stock, which was increased by our Board of Directors to 2.7 million shares in August 2020 to reflect the three-for-two stock split effected in the form of a stock dividend on August 13, 2020.
Removed
We repurchased and retired 1.3 million shares of common stock for $25.0 million in the first quarter of 2022, and 963,000 shares of common stock for $16.8 million in the second quarter of 2022. We did not repurchase any shares in 2024, in 2023, or in the third or fourth quarters of 2022.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

3 edited+0 added−0 removed4 unchanged
Biggest changeOTHER INFORMATION 54 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 54 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 55 ITEM 11. EXECUTIVE COMPENSATION 55 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 55 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 56 ITEM 14.
Biggest changeOTHER INFORMATION 55 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 55 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 56 ITEM 11. EXECUTIVE COMPENSATION 56 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 56 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 57 ITEM 14.
PRINCIPAL ACCOUNTANT FEES AND SERVICES 56 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 56 ITEM 16. FORM 10-K SUMMARY 61 Signature Page 62 i FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K contains certain forward-looking statements. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
PRINCIPAL ACCOUNTANT FEES AND SERVICES 57 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 57 ITEM 16. FORM 10-K SUMMARY 61 Signature Page 62 i FORWARD-LOOKING INFORMATION This Annual Report on Form 10-K contains certain forward-looking statements. Such statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
ITEM 6. [RESERVED] ITEM 7. MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 30 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 31 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 54 ITEM 9A. CONTROLS AND PROCEDURES 54 ITEM 9B.
ITEM 6. [RESERVED] ITEM 7. MANAGEMENT ’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 18 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 30 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 31 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 55 ITEM 9A. CONTROLS AND PROCEDURES 55 ITEM 9B.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

78 edited+11 added−8 removed46 unchanged
Biggest changeThe following table sets forth for the years indicated the dollar and percentage increase or decrease of the items in our consolidated statements of operations, and those items as a percentage of operating revenue: Dollar Change Percentage Change Percentage of Operating Revenue (Dollars in thousands) 2023 vs. 2022 2023 vs. 2022 2023 2022 Operating revenue $ (132,423 ) (10.5 )% 100.0 % 100.0 % Operating expenses (income): Salaries, wages and benefits (11,486 ) (2.9 ) 33.5 30.9 Purchased transportation (50,458 ) (20.2 ) 17.6 19.8 Fuel and fuel taxes (38,134 ) (17.4 ) 15.9 17.3 Supplies and maintenance 11,711 21.0 6.0 4.4 Depreciation 5,708 5.1 10.3 8.8 Operating taxes and licenses 290 2.7 1.0 0.9 Insurance and claims 5,501 10.9 5.0 4.0 Communications and utilities 972 10.6 0.9 0.7 Gain on disposition of revenue equipment (233 ) (1.7 ) (1.2 ) (1.1 ) Other (3,060 ) (8.0 ) 3.1 3.0 Total operating expenses (79,189 ) (7.1 ) 92.0 88.7 Operating income (53,234 ) (37.1 ) 8.0 11.3 Other (2,979 ) (360.2 ) (0.3 ) (0.1 ) Income before income taxes (50,255 ) (34.9 ) 8.3 11.4 Income taxes expense (10,274 ) (30.4 ) 2.1 2.7 Net income $ (39,981 ) (36.2 )% 6.2 % 8.7 % Salaries, wages and benefits expense decreased $11.5 million, or 2.9%, in 2023 from 2022.
Biggest changeThe following table sets forth for the years indicated the dollar and percentage increase or decrease of the items in our consolidated statements of operations, and those items as a percentage of operating revenue: Dollar Change Percentage Change Percentage of Operating Revenue (Dollars in thousands) 2025 vs. 2024 2025 vs. 2024 2025 2024 Operating revenue $ (80,056 ) (8.3 )% 100.0 % 100.0 % Operating expenses (income): Salaries, wages and benefits (29,662 ) (8.7 ) 35.3 35.5 Purchased transportation (10,029 ) (5.9 ) 18.0 17.6 Fuel and fuel taxes (17,144 ) (11.7 ) 14.7 15.3 Supplies and maintenance (2,129 ) (3.4 ) 6.9 6.6 Depreciation (6,261 ) (5.6 ) 11.9 11.6 Operating taxes and licenses (565 ) (5.5 ) 1.1 1.1 Insurance and claims 2,536 4.8 6.3 5.5 Communications and utilities (276 ) (3.1 ) 1.0 0.9 Gain on disposition of revenue equipment (7,096 ) (142.7 ) (1.4 ) (0.5 ) Other 877 2.9 3.5 3.1 Total operating expenses (69,749 ) (7.5 ) 97.4 96.6 Operating income (10,307 ) (31.0 ) 2.6 3.4 Other 1,662 53.2 (0.2 ) (0.3 ) Income before income taxes (11,969 ) (32.9 ) 2.8 3.8 Income taxes expense (2,491 ) (26.4 ) 0.8 1.0 Net income $ (9,478 ) (35.2 )% 2.0 % 2.8 % 22 Salaries, wages and benefits consist of compensation for our employees, including both driver and non-driver employees, employees’ health insurance, 401(k) plan contributions and other fringe benefits.
We have worked diligently to control fuel usage and costs by improving our volume purchasing arrangements and optimizing our drivers’ fuel purchases with national fuel centers, focusing on shorter lengths of haul, installing and tightly managing the use of auxiliary power units in our tractors to minimize engine idling and improving fuel usage in the temperature-control units on our trailers.
We have worked diligently to control fuel usage and costs by improving our volume purchasing arrangements and optimizing our drivers’ fuel purchases with national fuel centers, focusing on shorter lengths of haul, installing and tightly managing the use of auxiliary power units in our tractors to minimize engine idling and improving fuel usage in the temperature-control units on our trailers.
The excess of the insurance and claims accruals over these amounts relates to general liability, cargo and property damage claims, along with reserves for physical damage to our equipment and outstanding employees’ health insurance claims. 29 We reserve for the estimated cost of the uninsured portion of pending auto liability and workers’ compensation claims, including legal costs.
The excess of the insurance and claims accruals over these amounts relates to general liability, cargo and property damage claims, along with reserves for physical damage to our equipment and outstanding employees’ health insurance claims. We reserve for the estimated cost of the uninsured portion of pending auto liability and workers’ compensation claims, including legal costs.
Our estimates require judgments concerning the nature and severity of each claim, historical trends, consultation with actuarial experts, settlement patterns, jury awards, litigation trends and legal interpretations, which are difficult to predict.
Our estimates require judgments concerning the nature and severity of each claim, historical trends, consultation with actuarial experts, settlement patterns, jury awards, litigation trends and legal interpretations, which are difficult to predict. 29
Other than our obligations for revenue equipment and operating lease expenditures, along with our outstanding standby letters of credit to guarantee settlement of self-insurance claims, which are each mentioned above, we did not have any material off-balance sheet arrangements at December 31, 2024.
Other than our obligations for revenue equipment and operating lease expenditures, along with our outstanding standby letters of credit to guarantee settlement of self-insurance claims, which are each mentioned above, we did not have any material off-balance sheet arrangements at December 31, 2025.
Quarterly cash dividends of $0.06 per share of common stock were paid in each quarter of 2024 and 2023 which totaled $19.5 million in each year, and in each quarter of 2022 which totaled $19.6 million. We currently expect to continue to pay quarterly cash dividends in the future.
Quarterly cash dividends of $0.06 per share of common stock were paid in each quarter of 2025 which totaled $19.6 million, and in each quarter of 2024 and 2023 which totaled $19.5 million in each year. We currently expect to continue to pay quarterly cash dividends in the future.
There were no changes to our methodology used to estimate our ultimate claims losses in 2024 or 2023. Projection of losses is subject to a high level of estimation uncertainty and actual results could differ from these current estimates.
There were no changes to our methodology used to estimate our ultimate claims losses in 2025 or 2024. Projection of losses is subject to a high level of estimation uncertainty and actual results could differ from these current estimates.
Our Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which was established in 2007 and operates pursuant to brokerage authority granted by the United States Department of Transportation, or DOT.
Our Brokerage segment develops contractual relationships with and arranges for third-party carriers to transport freight for our customers in temperature-controlled trailers and dry vans within the United States and into and out of Mexico through Marten Transport Logistics, LLC, which was established in 2007 and operates pursuant to brokerage authority granted by the DOT.
The share repurchase program allows purchases on the open market or through private transactions in accordance with Rule 10b-18 of the Exchange Act. The timing and extent to which we repurchase shares depends on market conditions and other corporate considerations. The repurchase program does not have an expiration date.
The share repurchase program allows purchases on the open market or through private transactions in accordance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and extent to which we repurchase shares depends on market conditions and other corporate considerations. The repurchase program does not have an expiration date.
Independent contractors provided 88, 94 and 96 tractors as of December 31, 2024, 2023 and 2022, respectively. 20 Comparison of Year Ended December 31, 2024 to Year Ended December 31, 2023 The following table sets forth for the years indicated our operating revenue, operating income and operating ratio by segment, along with the change for each component: Dollar Change Percentage Change (Dollars in thousands) 2024 2023 2024 vs. 2023 2024 vs. 2023 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 377,452 $ 395,565 $ (18,113 ) (4.6 )% Truckload fuel surcharge revenue 62,340 69,910 (7,570 ) (10.8 ) Total Truckload revenue 439,792 465,475 (25,683 ) (5.5 ) Dedicated revenue, net of fuel surcharge revenue 267,077 334,962 (67,885 ) (20.3 ) Dedicated fuel surcharge revenue 52,058 73,310 (21,252 ) (29.0 ) Total Dedicated revenue 319,135 408,272 (89,137 ) (21.8 ) Intermodal revenue, net of fuel surcharge revenue 49,468 75,887 (26,419 ) (34.8 ) Intermodal fuel surcharge revenue 9,286 16,191 (6,905 ) (42.6 ) Total Intermodal revenue 58,754 92,078 (33,324 ) (36.2 ) Brokerage revenue 146,027 165,630 (19,603 ) (11.8 ) Total operating revenue $ 963,708 $ 1,131,455 $ (167,747 ) (14.8 )% Operating income/(loss): Truckload $ 3,283 $ 24,835 $ (21,552 ) (86.8 )% Dedicated 23,037 48,377 (25,340 ) (52.4 ) Intermodal (3,922 ) (156 ) (3,766 ) (2,414.1 ) Brokerage 10,822 17,054 (6,232 ) (36.5 ) Total operating income $ 33,220 $ 90,110 $ (56,890 ) (63.1 )% Operating ratio: Truckload 99.3 % 94.7 % Dedicated 92.8 88.2 Intermodal 106.7 100.2 Brokerage 92.6 89.7 Consolidated operating ratio 96.6 % 92.0 % Operating ratio, net of fuel surcharges: Truckload 99.1 % 93.7 % Dedicated 91.4 85.6 Intermodal 107.9 100.2 Brokerage 92.6 89.7 Consolidated operating ratio, net of fuel surcharges 96.0 % 90.7 % Our operating revenue decreased $167.7 million, or 14.8%, to $963.7 million in 2024 from $1.131 billion in 2023.
As a result of the factors described above, net income declined 35.2% to $17.4 million, or $0.21 per diluted share, in 2025 from $26.9 million, or $0.33 per diluted share, in 2024. 24 Comparison of Year Ended December 31, 2024 to Year Ended December 31, 2023 The following table sets forth for the years indicated our operating revenue, operating income and operating ratio by segment, along with the change for each component: Dollar Change Percentage Change (Dollars in thousands) 2024 2023 2024 vs. 2023 2024 vs. 2023 Operating revenue: Truckload revenue, net of fuel surcharge revenue $ 377,452 $ 395,565 $ (18,113 ) (4.6 )% Truckload fuel surcharge revenue 62,340 69,910 (7,570 ) (10.8 ) Total Truckload revenue 439,792 465,475 (25,683 ) (5.5 ) Dedicated revenue, net of fuel surcharge revenue 267,077 334,962 (67,885 ) (20.3 ) Dedicated fuel surcharge revenue 52,058 73,310 (21,252 ) (29.0 ) Total Dedicated revenue 319,135 408,272 (89,137 ) (21.8 ) Intermodal revenue, net of fuel surcharge revenue 49,468 75,887 (26,419 ) (34.8 ) Intermodal fuel surcharge revenue 9,286 16,191 (6,905 ) (42.6 ) Total Intermodal revenue 58,754 92,078 (33,324 ) (36.2 ) Brokerage revenue 146,027 165,630 (19,603 ) (11.8 ) Total operating revenue $ 963,708 $ 1,131,455 $ (167,747 ) (14.8 )% Operating income/(loss): Truckload $ 3,283 $ 24,835 $ (21,552 ) (86.8 )% Dedicated 23,037 48,377 (25,340 ) (52.4 ) Intermodal (3,922 ) (156 ) (3,766 ) (2,414.1 ) Brokerage 10,822 17,054 (6,232 ) (36.5 ) Total operating income $ 33,220 $ 90,110 $ (56,890 ) (63.1 )% Operating ratio: Truckload 99.3 % 94.7 % Dedicated 92.8 88.2 Intermodal 106.7 100.2 Brokerage 92.6 89.7 Consolidated operating ratio 96.6 % 92.0 % Operating ratio, net of fuel surcharges: Truckload 99.1 % 93.7 % Dedicated 91.4 85.6 Intermodal 107.9 100.2 Brokerage 92.6 89.7 Consolidated operating ratio, net of fuel surcharges 96.0 % 90.7 % Our operating revenue decreased $167.7 million, or 14.8%, to $963.7 million in 2024 from $1.131 billion in 2023.
We estimate that capital expenditures, net of proceeds from dispositions, will be approximately $150 million in 2025. Quarterly cash dividends of $0.06 per share of common stock were paid in each quarter of 2024 which totaled $19.5 million. We believe our sources of liquidity are adequate to meet our current and anticipated needs for at least the next twelve months.
We estimate that capital expenditures, net of proceeds from dispositions, will be approximately $92 million in 2026. Quarterly cash dividends of $0.06 per share of common stock were paid in each quarter of 2025 which totaled $19.6 million. We believe our sources of liquidity are adequate to meet our current and anticipated needs for at least the next twelve months.
Fuel surcharges passed through to independent contractors, outside drayage carriers and railroads decreased to $10.0 million from $16.0 million in 2023. The United States Department of Energy, or DOE, national average cost of fuel decreased to $3.76 per gallon from $4.21 per gallon in 2023.
Fuel surcharges passed through to independent contractors, outside drayage carriers and railroads decreased to $10.0 million from $16.0 million in 2023. The DOE national average cost of fuel decreased to $3.76 per gallon from $4.21 per gallon in 2023.
In addition to the factors discussed above, our operating revenue is also affected by, among other things, the United States economy, inventory levels, the level of truck and rail capacity in the transportation market, a contracting driver market, severe weather conditions and specific customer demand. 18 Our operating revenue decreased $167.7 million, or 14.8%, in 2024 from 2023.
In addition to the factors discussed above, our operating revenue is also affected by, among other things, the United States economy, inventory levels, the level of truck and rail capacity in the transportation market, a contracting driver market, severe weather conditions and specific customer demand. 18 Our operating revenue decreased $80.1 million, or 8.3%, in 2025 from 2024.
The following table sets forth for the years indicated the dollar and percentage increase or decrease of the items in our consolidated statements of operations, and those items as a percentage of operating revenue: Dollar Change Percentage Change Percentage of Operating Revenue (Dollars in thousands) 2024 vs. 2023 2024 vs. 2023 2024 2023 Operating revenue $ (167,747 ) (14.8 )% 100.0 % 100.0 % Operating expenses (income): Salaries, wages and benefits (37,086 ) (9.8 ) 35.5 33.5 Purchased transportation (30,192 ) (15.1 ) 17.6 17.6 Fuel and fuel taxes (33,294 ) (18.5 ) 15.3 15.9 Supplies and maintenance (4,074 ) (6.0 ) 6.6 6.0 Depreciation (5,069 ) (4.3 ) 11.6 10.3 Operating taxes and licenses (751 ) (6.8 ) 1.1 1.0 Insurance and claims (2,905 ) (5.2 ) 5.5 5.0 Communications and utilities (1,120 ) (11.0 ) 0.9 0.9 Gain on disposition of revenue equipment 8,641 63.5 (0.5 ) (1.2 ) Other (5,007 ) (14.3 ) 3.1 3.1 Total operating expenses (110,857 ) (10.6 ) 96.6 92.0 Operating income (56,890 ) (63.1 ) 3.4 8.0 Other 680 17.9 (0.3 ) (0.3 ) Income before income taxes (57,570 ) (61.3 ) 3.8 8.3 Income taxes expense (14,119 ) (60.0 ) 1.0 2.1 Net income $ (43,451 ) (61.7 )% 2.8 % 6.2 % 22 Salaries, wages and benefits consist of compensation for our employees, including both driver and non-driver employees, employees’ health insurance, 401(k) plan contributions and other fringe benefits.
The following table sets forth for the years indicated the dollar and percentage increase or decrease of the items in our consolidated statements of operations, and those items as a percentage of operating revenue: Dollar Change Percentage Change Percentage of Operating Revenue (Dollars in thousands) 2024 vs. 2023 2024 vs. 2023 2024 2023 Operating revenue $ (167,747 ) (14.8 )% 100.0 % 100.0 % Operating expenses (income): Salaries, wages and benefits (37,086 ) (9.8 ) 35.5 33.5 Purchased transportation (30,192 ) (15.1 ) 17.6 17.6 Fuel and fuel taxes (33,294 ) (18.5 ) 15.3 15.9 Supplies and maintenance (4,074 ) (6.0 ) 6.6 6.0 Depreciation (5,069 ) (4.3 ) 11.6 10.3 Operating taxes and licenses (751 ) (6.8 ) 1.1 1.0 Insurance and claims (2,905 ) (5.2 ) 5.5 5.0 Communications and utilities (1,120 ) (11.0 ) 0.9 0.9 Gain on disposition of revenue equipment 8,641 63.5 (0.5 ) (1.2 ) Other (5,007 ) (14.3 ) 3.1 3.1 Total operating expenses (110,857 ) (10.6 ) 96.6 92.0 Operating income (56,890 ) (63.1 ) 3.4 8.0 Other 680 17.9 (0.3 ) (0.3 ) Income before income taxes (57,570 ) (61.3 ) 3.8 8.3 Income taxes expense (14,119 ) (60.0 ) 1.0 2.1 Net income $ (43,451 ) (61.7 )% 2.8 % 6.2 % 26 Salaries, wages and benefits expense decreased $37.1 million, or 9.8%, in 2024 from 2023.
These expenses vary depending upon the size of our Truckload, Dedicated and Intermodal tractor fleets, the ratio of company drivers to independent contractors, our efficiency, our experience with employees’ health insurance claims, changes in health care premiums and other factors. Salaries, wages and benefits expense decreased $37.1 million, or 9.8%, in 2024 from 2023.
These expenses vary depending upon the size of our Truckload, Dedicated and formerly our Intermodal tractor fleets, the ratio of company drivers to independent contractors, our efficiency, our experience with employees’ health insurance claims, changes in health care premiums and other factors. Salaries, wages and benefits expense decreased $29.7 million, or 8.7%, in 2025 from 2024.
The interest rate for the facility that would apply to outstanding principal balances was 7.5% at December 31, 2024. Our credit agreement effective in August 2022 prohibits us from paying, in any fiscal year, stock redemptions and dividends in excess of $150 million.
The interest rate for the facility that would apply to outstanding principal balances was 6.75% at December 31, 2025. 28 Our credit agreement effective in August 2022 prohibits us from paying, in any fiscal year, stock redemptions and dividends in excess of $150 million.
Our Intermodal segment transports our customers’ freight within the United States utilizing our refrigerated containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers. The main factors that affect our Intermodal revenue are the rate per mile and other charges we receive from our customers.
Our Intermodal segment transported our customers’ freight within the United States utilizing our refrigerated containers on railroad flatcars for portions of trips, with the balance of the trips using our tractors or, to a lesser extent, contracted carriers. The main factors that affected our Intermodal revenue were the rate per mile and other charges we received from our customers.
Dedicated segment revenue decreased $89.1 million, or 21.8%, to $319.1 million in 2024 from $408.3 million in 2023. Dedicated segment revenue, net of fuel surcharges, decreased 20.3%, primarily due to decreases in both our average fleet size and our average revenue per tractor. The operating ratio increased to 92.8% in 2024 from 88.2% in 2023.
Dedicated segment revenue, net of fuel surcharges, decreased 20.3%, primarily due to decreases in both our average fleet size and our average revenue per tractor. The operating ratio increased to 92.8% in 2024 from 88.2% in 2023.
The current and previous credit agreements also contain restrictive covenants which, among other matters, require us to maintain compliance with cash flow leverage and fixed charge coverage ratios. We were in compliance with all covenants at December 31, 2024 and December 31, 2023.
The current credit agreement also contains restrictive covenants which, among other matters, require us to maintain compliance with cash flow leverage and fixed charge coverage ratios. We were in compliance with all covenants at December 31, 2025 and December 31, 2024.
The total auto liability and workers’ compensation claims reserves within the insurance and claims accruals in our consolidated balance sheets were $37.5 million and $40.3 million as of December 31, 2024 and 2023, respectively.
The total auto liability and workers’ compensation claims reserves within the insurance and claims accruals in our consolidated balance sheets were $35.9 million and $37.5 million as of December 31, 2025 and 2024, respectively.
Future gains or losses on dispositions of revenue equipment will be impacted by the market for used revenue equipment, which is beyond our control. 23 Our operating income declined 63.1% to $33.2 million in 2024 from $90.1 million in 2023 as a result of the foregoing factors.
Future gains or losses on dispositions of revenue equipment will be impacted by the market for used revenue equipment, which is beyond our control. 23 Our operating income declined 31.0% to $22.9 million in 2025 from $33.2 million in 2024 as a result of the foregoing factors.
Our operating expenses as a percentage of operating revenue, or “operating ratio,” was 96.6% in 2024 and 92.0% in 2023. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, increased to 96.0% in 2024 from 90.7% in 2023.
Our operating expenses as a percentage of operating revenue, or “operating ratio,” was 97.4% in 2025 and 96.6% in 2024. Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, increased to 97.1% in 2025 from 96.0% in 2024.
We estimate that capital expenditures, net of proceeds from dispositions, will be approximately $150 million in 2025. This amount includes commitments to purchase $191.2 million of new revenue equipment, prior to considering proceeds from dispositions. Additionally, operating lease obligations total $627,000 through 2028.
We estimate that capital expenditures, net of proceeds from dispositions, will be approximately $92 million in 2026. This amount includes commitments to purchase $31.1 million of new revenue equipment, prior to considering proceeds from dispositions. Additionally, operating lease obligations total $510,000 through 2028.
As a result of the factors described above, net income declined 36.2% to $70.4 million, or $0.86 per diluted share, in 2023 from $110.4 million, or $1.35 per diluted share, in 2022. 27 Liquidity and Capital Resources Our business requires substantial ongoing capital investments, particularly for new tractors and trailers.
As a result of the factors described above, net income declined 61.7% to $26.9 million, or $0.33 per diluted share, in 2024 from $70.4 million, or $0.86 per diluted share, in 2023. 27 Liquidity and Capital Resources Our business requires substantial ongoing capital investments, particularly for new tractors and trailers.
Truckload segment revenue decreased $25.7 million, or 5.5%, to $439.8 million in 2024 from $465.5 million in 2023. Truckload segment revenue, net of fuel surcharges, decreased $18.1 million, or 4.6%, to $377.5 million in 2024 from $395.6 million in 2023, primarily due to a decrease in our average revenue per tractor, despite an increase in our average fleet size.
Truckload segment revenue, net of fuel surcharges, decreased $18.1 million, or 4.6%, to $377.5 million in 2024 from $395.6 million in 2023, primarily due to a decrease in our average revenue per tractor, despite an increase in our average fleet size. The operating ratio increased to 99.3% in 2024 from 94.7% in 2023.
This category will vary depending upon the amount and rates, including fuel surcharges, we pay to third-party railroad and motor carriers, the ratio of company drivers versus independent contractors and the amount of fuel surcharges passed through to independent contractors. Purchased transportation expense decreased $30.2 million in total, or 15.1%, in 2024 from 2023.
This category will vary depending upon the amount and rates, including fuel surcharges, we pay to motor carriers and third-party railroads, the ratio of company drivers versus independent contractors and the amount of fuel surcharges passed through to independent contractors. Purchased transportation expense decreased $10.0 million in total, or 5.9%, in 2025 from 2024.
For our Intermodal and Brokerage segments, our profitability is impacted by the percentage of revenue which is payable to the providers of the transportation services we arrange. This expense is included within purchased transportation in our consolidated statements of operations. Our operating income declined 63.1% to $33.2 million in 2024 from $90.1 million in 2023.
For our Brokerage segment and formerly our Intermodal segment, our profitability is impacted by the percentage of revenue which is payable to the providers of the transportation services we arrange. This expense is included within purchased transportation in our consolidated statements of operations. Our operating income declined 31.0% to $22.9 million in 2025 from $33.2 million in 2024.
Our net income declined 61.7% to $26.9 million, or $0.33 per diluted share, in 2024 from $70.4 million, or $0.86 per diluted share, in 2023. Our business requires substantial ongoing capital investments, particularly for new tractors and trailers.
Our net income declined 35.2% to $17.4 million, or $0.21 per diluted share, in 2025 from $26.9 million, or $0.33 per diluted share, in 2024. Our business requires substantial ongoing capital investments, particularly for new tractors and trailers.
Our operating expenses as a percentage of operating revenue, or “operating ratio,” was 96.6% in 2024 and 92.0% in 2023.
Our operating expenses as a percentage of operating revenue, or “operating ratio,” was 97.4% in 2025 and 96.6% in 2024.
Our supplies and maintenance expense decreased $4.1 million, or 6.0%, from 2023 primarily due to lower outside repair and loading/unloading costs. Depreciation relates to owned tractors, trailers, containers, auxiliary power units, communication units, terminal facilities and other assets.
Our supplies and maintenance expense decreased $2.1 million, or 3.4%, from 2024 primarily due to lower tire, tolls and loading/unloading costs. Depreciation relates to owned tractors, trailers, auxiliary power units, communication units, terminal facilities, other assets and formerly containers.
The $5.1 million, or 4.3%, decrease in depreciation in 2024 was primarily due to a decrease in our average tractor fleet size, partially offset by higher prices of new equipment.
The $6.3 million, or 5.6%, decrease in depreciation in 2025 was primarily due to a decrease in our average tractor, trailer and refrigerated container fleet size, partially offset by higher prices of new equipment.
For example, fuel prices have significantly fluctuated over the past several years. We manage our exposure to changes in fuel prices primarily through fuel surcharge programs with our customers, as well as through volume fuel purchasing arrangements with national fuel centers and bulk purchases of fuel at our terminals.
We manage our exposure to changes in fuel prices primarily through fuel surcharge programs with our customers, as well as through volume fuel purchasing arrangements with national fuel centers and bulk purchases of fuel at our terminals.
We renewed our liability insurance policies effective June 1, 2024 and are responsible for the first $2.0 million on each auto liability claim with an annual $5.0 million aggregate for claims between $10.0 million and $20.0 million.
For the policy year effective June 1, 2024, we are responsible for the first $2.0 million on each auto liability claim. For both policy years, we are also responsible for an annual $5.0 million aggregate for claims between $10.0 million and $20.0 million.
We transport food and other consumer packaged goods that require a temperature-controlled or insulated environment, along with dry freight, across the United States and into and out of Mexico and Canada. Our agreements with customers are typically for one year.
Our Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services. We transport food and other consumer packaged goods that require a temperature-controlled or insulated environment, along with dry freight, across the United States and into and out of Mexico and Canada. Our agreements with customers are typically for one year.
The credit agreement amends, restates and continues in its entirety our previous credit agreement, as amended. At December 31, 2024, there was no outstanding principal balance on the facility. As of that date, we had outstanding standby letters of credit to guarantee settlement of self-insurance claims of $23.1 million and remaining borrowing availability of $6.9 million.
As of that date, we had outstanding standby letters of credit to guarantee settlement of self-insurance claims of $24.1 million and remaining borrowing availability of $5.9 million. At December 31, 2024, there was also no outstanding principal balance on the facility. As of that date, we had outstanding standby letters of credit of $23.1 million on the facility.
Our operating revenue, net of fuel surcharges, decreased $132.0 million, or 13.6%, compared with 2023. Truckload segment revenue, net of fuel surcharges, decreased 4.6% from 2023, primarily due to a decrease in our average revenue per tractor, despite an increase in our average fleet size.
Our operating revenue, net of fuel surcharges, decreased $61.0 million, or 7.3%, compared with 2024. Truckload segment revenue, net of fuel surcharges, decreased 3.6% from 2024, primarily due to a decrease in our average fleet size, partially offset by an increase in our average revenue per tractor.
Our operating income declined 37.1% to $90.1 million in 2023 from $143.3 million in 2022 as a result of the foregoing factors. Our operating expenses as a percentage of operating revenue, or “operating ratio,” was 92.0% in 2023 and 88.7% in 2022.
Our operating income declined 63.1% to $33.2 million in 2024 from $90.1 million in 2023 as a result of the foregoing factors. Our operating expenses as a percentage of operating revenue, or “operating ratio,” was 96.6% in 2024 and 92.0% in 2023.
Fuel surcharge revenue decreased to $123.7 million in 2024 from $159.4 million in 2023. 21 In addition to the factors discussed below, our profitability across each segment in 2024 was impacted by a freight market which has considerably softened from the conditions during 2023.
In addition to the factors discussed below, our profitability across each segment in 2024 was impacted by a freight market which has considerably softened from the conditions during 2023. 25 Truckload segment revenue decreased $25.7 million, or 5.5%, to $439.8 million in 2024 from $465.5 million in 2023.
The operating ratio increased to 99.3% in 2024 from 94.7% in 2023. Impacting the 2024 operating ratio was the decrease in our average revenue per tractor along with higher company driver compensation, depreciation, maintenance and a lower gain on disposition of revenue equipment, as a percentage of revenue.
Impacting the 2024 operating ratio was the decrease in our average revenue per tractor along with higher company driver compensation, depreciation, maintenance and a lower gain on disposition of revenue equipment, as a percentage of revenue. Dedicated segment revenue decreased $89.1 million, or 21.8%, to $319.1 million in 2024 from $408.3 million in 2023.
The $5.5 million, or 10.9% increase in insurance and claims in 2023 was primarily due to increases in our self-insured cost of physical damage claims related to our revenue equipment, self-insured workers’ compensation claim costs and insurance premiums, partially offset by a reduction in our self-insured auto liability claim costs.
The $2.5 million, or 4.8%, increase in insurance and claims in 2025 was primarily due to increases in both our self-insured auto liability and brokerage claim costs, partially offset by lower self-insured costs of physical damage claims related to our revenue equipment and workers’ compensation claims.
At December 31, 2024, we had $17.3 million of cash and cash equivalents, $767.9 million in stockholders’ equity and no long-term debt outstanding.
At December 31, 2025, we had $48.3 million of cash and cash equivalents and an escrow deposit, $767.6 million in stockholders’ equity and no long-term debt outstanding.
Results of Operations The following table sets forth for the years indicated certain operating statistics regarding our revenue and operations: 2024 2023 2022 Truckload Segment: Revenue (in thousands) $ 439,792 $ 465,475 $ 500,462 Average revenue, net of fuel surcharges, per tractor per week (1) $ 4,123 $ 4,377 $ 4,898 Average tractors (1) 1,751 1,733 1,611 Average miles per trip 533 519 510 Total miles (in thousands) 158,985 155,929 149,868 Dedicated Segment: Revenue (in thousands) $ 319,135 $ 408,272 $ 429,092 Average revenue, net of fuel surcharges, per tractor per week (1) $ 3,767 $ 3,936 $ 3,963 Average tractors (1) 1,356 1,632 1,631 Average miles per trip 319 335 341 Total miles (in thousands) 110,681 133,163 136,310 Intermodal Segment: Revenue (in thousands) $ 58,754 $ 92,078 $ 129,765 Loads 16,975 25,160 31,862 Average tractors 110 159 175 Brokerage Segment: Revenue (in thousands) $ 146,027 $ 165,630 $ 204,559 Loads 89,138 91,077 95,615 (1) Includes tractors driven by both company-employed drivers and independent contractors.
Results of Operations The following table sets forth for the years indicated certain operating statistics regarding our revenue and operations: 2025 2024 2023 Truckload Segment: Revenue (in thousands) $ 421,729 $ 439,792 $ 465,475 Average revenue, net of fuel surcharges, per tractor per week (1) $ 4,184 $ 4,123 $ 4,377 Average tractors (1) 1,668 1,751 1,733 Average miles per trip 520 533 519 Total miles (in thousands) 153,699 158,985 155,929 Dedicated Segment: Revenue (in thousands) $ 278,426 $ 319,135 $ 408,272 Average revenue, net of fuel surcharges, per tractor per week (1) $ 3,825 $ 3,767 $ 3,936 Average tractors (1) 1,186 1,356 1,632 Average miles per trip 299 319 335 Total miles (in thousands) 96,356 110,681 133,163 Intermodal Segment: (2) Revenue (in thousands) $ 33,671 $ 58,754 $ 92,078 Loads 10,168 16,975 25,160 Average tractors 56 110 159 Brokerage Segment: Revenue (in thousands) $ 149,826 $ 146,027 $ 165,630 Loads 95,951 89,138 91,077 (1) Includes tractors driven by both company-employed drivers and independent contractors.
The variable costs include fuel expense, driver-related expenses, such as wages, benefits, training and recruitment, and independent contractor costs, which are recorded under purchased transportation. Expenses that have both fixed and variable components include maintenance and tire expense and our cost of insurance and claims.
Our profitability is impacted by the variable costs of transporting freight for our customers, fixed costs, and expenses containing both fixed and variable components. The variable costs include fuel expense, driver-related expenses, such as wages, benefits, training and recruitment, and independent contractor costs, which are recorded under purchased transportation.
Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 90.7% in 2023 and 86.4% in 2022. Other non-operating income increased to $3.8 million from $827,000 in 2022 due to increased interest income earned on our cash and cash equivalents.
Operating expenses as a percentage of operating revenue, with both amounts net of fuel surcharges, was 97.1% in 2025 and 96.0% in 2024. Other non-operating income decreased to $1.5 million from $3.1 million in 2024 due to decreased interest income earned on our cash and cash equivalents.
Net fuel expense (fuel and fuel taxes net of fuel surcharge revenue and surcharges passed through to independent contractors, outside drayage carriers and railroads) increased $5.2 million, or 16.2%, to $37.1 million in 2023 from $31.9 million in 2022. Fuel surcharges passed through to independent contractors, outside drayage carriers and railroads decreased to $16.0 million from $23.8 million in 2022.
Fuel and fuel taxes decreased by $17.1 million, or 11.7%, in 2025 from 2024. Net fuel expense (fuel and fuel taxes net of fuel surcharge revenue and surcharges passed through to independent contractors, outside drayage carriers and railroads) decreased $2.0 million, or 6.0%, to $31.4 million in 2025 from $33.5 million in 2024.
As of December 31, 2024, future repurchases of up to $33.2 million, or approximately 2.2 million shares, were available in the share repurchase program.
We have not repurchased any shares under this program since the second quarter of 2022. As of December 31, 2025, future repurchases of up to $33.2 million, or approximately 2.2 million shares, were available in the share repurchase program.
Overview We have strategically transitioned from a refrigerated long-haul carrier to a multifaceted business offering a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across our six distinct business platforms – Temperature-Sensitive and Dry Truckload, Dedicated, Intermodal, Brokerage and MRTN de Mexico. Our Truckload segment provides a combination of regional short-haul and medium-to-long-haul full-load transportation services.
Overview We have strategically transitioned from a refrigerated long-haul carrier to a multifaceted business offering a network of time and temperature-sensitive and dry truck-based transportation and distribution capabilities across our current five distinct business platforms – Temperature-Sensitive and Dry Truckload, Dedicated, Brokerage and MRTN de Mexico. As discussed in Note 13, our Intermodal operations were sold effective September 30, 2025.
This increase was due to higher costs across most areas of the segment, partially offset by a decrease in the amounts payable to carriers for transportation services which we arranged as a percentage of our Brokerage revenue.
This increase was primarily due to higher insurance and claims costs and an increase in the amounts payable to carriers for transportation services which we arranged, both as a percentage of revenue.
Our supplies and maintenance expense increased $11.7 million, or 21.0%, from 2022 primarily due to higher outside repair, loading/unloading and parts costs. The $5.7 million, or 5.1%, increase in depreciation in 2023 was primarily due to an increase in our average tractor fleet size during the year, along with higher prices of new equipment.
Our supplies and maintenance expense decreased $4.1 million, or 6.0%, from 2023 primarily due to lower outside repair and loading/unloading costs. The $5.1 million, or 4.3%, decrease in depreciation in 2024 was primarily due to a decrease in our average tractor fleet size, partially offset by higher prices of new equipment.
Our effective income tax rate increased to 25.1% in 2023 from 23.5% in 2022 primarily due to increases in per diem and other non-deductible expenses.
Our effective income tax rate increased to 28.4% in 2025 from 25.9% in 2024 primarily due to increases in per diem and other non-deductible expenses as a percentage of earnings.
Based upon anticipated cash flows, existing cash and cash equivalents balances, current borrowing availability and other sources of financing we expect to be available to us, we do not anticipate any significant liquidity constraints in the foreseeable future. 19 We continue to invest considerable time and capital resources to actively implement and promote long-term environmentally sustainable solutions that drive reductions in our fuel and electricity consumption and decrease our carbon footprint.
Based upon anticipated cash flows, existing cash and cash equivalents balances, current borrowing availability and other sources of financing we expect to be available to us, we do not anticipate any significant liquidity constraints in the foreseeable future.
This decrease resulted primarily from both lower company driver compensation expense of $29.5 million and non-driver compensation expense of $3.6 million. Purchased transportation consists of amounts payable to railroads and carriers for transportation services we arrange in connection with Brokerage and Intermodal operations and to independent contractor providers of revenue equipment.
Purchased transportation consists of amounts payable to carriers and railroads for transportation services we arrange in connection with our Brokerage and formerly our Intermodal operations, and to independent contractor providers of revenue equipment.
In 2024, net cash flows provided by operating activities of $134.8 million were primarily used to purchase new revenue equipment, net of proceeds from dispositions, in the amount of $146.8 million, to pay cash dividends of $19.5 million and to construct and upgrade regional operating facilities in the amount of $4.3 million, resulting in a $35.9 million decrease in cash and cash equivalents.
In 2025, net cash flows provided by operating activities of $93.5 million were primarily used to purchase new revenue equipment, net of proceeds from dispositions, in the amount of $40.0 million, to pay cash dividends of $19.6 million and to purchase other assets in the amount of $2.9 million, resulting in a $31.0 million increase in cash and cash equivalents and an escrow deposit.
In 2022, net cash flows provided by operating activities of $219.5 million were primarily used to purchase new revenue equipment, net of proceeds from dispositions, in the amount of $120.9 million, to repurchase and retire 2.3 million shares of our common stock for $41.8 million, to pay cash dividends of $19.6 million and to construct and upgrade regional operating facilities in the amount of $11.2 million, resulting in a $23.6 million increase in cash and cash equivalents.
In 2025, net cash flows provided by operating activities of $93.5 million were primarily used to purchase new revenue equipment, net of proceeds from dispositions, in the amount of $40.0 million, to pay cash dividends of $19.6 million and to purchase other assets in the amount of $2.9 million, resulting in a $31.0 million increase in cash and cash equivalents and an escrow deposit.
Additionally, we are an active participant in the United States Environmental Protection Agency, or EPA, SmartWay Transport Partnership, in which freight shippers, carriers, logistics companies and other voluntary stakeholders partner with the EPA to measure, benchmark and improve logistics operations to reduce their environmental footprint.
Additionally, we are an active participant in the United States Environmental Protection Agency, or EPA, SmartWay Transport Partnership, in which freight shippers, carriers, logistics companies and other voluntary stakeholders partner with the EPA to measure, benchmark and improve logistics operations to reduce their environmental footprint. 19 This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes discussions of operating revenue, net of fuel surcharge revenue; Truckload, Dedicated and Intermodal revenue, net of fuel surcharge revenue; operating expenses as a percentage of operating revenue, each net of fuel surcharge revenue; and net fuel expense (fuel and fuel taxes net of fuel surcharge revenue and surcharges passed through to independent contractors, outside drayage carriers and railroads).
Auto Liability and Workers ’ Compensation Claims Reserves. We self-insure for our portion of claims exposure resulting from auto liability and workers’ compensation claims.
Auto Liability and Workers ’ Compensation Claims Reserves. We self-insure for our portion of claims exposure resulting from auto liability and workers’ compensation claims. We renewed our liability insurance policies effective June 1, 2025, and are responsible for the first $3.0 million on each auto liability claim.
Truckload segment revenue decreased $35.0 million, or 7.0%, to $465.5 million in 2023 from $500.5 million in 2022. Truckload segment revenue, net of fuel surcharges, decreased $15.9 million, or 3.9%, to $395.6 million in 2023 from $411.4 million in 2022 primarily due to a decrease in our average revenue per tractor, despite an increase in our average fleet size.
Truckload segment revenue, net of fuel surcharges, decreased $13.5 million, or 3.6%, to $363.9 million in 2025 from $377.5 million in 2024, primarily due to a decrease in our average fleet size, partially offset by an increase in our average revenue per tractor. The operating ratio was 99.8% in 2025 and 99.3% in 2024.
Our operating revenue, net of fuel surcharges, decreased $81.4 million, or 7.7%, to $972.0 million in 2023 from $1.053 billion in 2022.
Our operating revenue, net of fuel surcharges, decreased $61.0 million, or 7.3%, to $779.0 million in 2025 from $840.0 million in 2024.
Dedicated segment revenue, net of fuel surcharges, decreased 20.3% from 2023, primarily due to decreases in both our average fleet size and our average revenue per tractor. Intermodal segment revenue, net of fuel surcharges, decreased 34.8% from 2023, primarily due to decreases in both our number of loads and our revenue per load.
Dedicated segment revenue, net of fuel surcharges, decreased 11.4% from 2024, primarily due to a decrease in our average fleet size, partially offset by an increase in our average revenue per tractor. Intermodal segment revenue, net of fuel surcharges, decreased 41.9% from 2024, primarily due to a decrease in our number of loads.
This decrease resulted primarily from a $9.6 million decrease in bonus compensation expense for our non-driver employees and lower company driver compensation expense of $4.6 million, partially offset by a $4.7 million increase in non-driver compensation expense. 26 Purchased transportation expense decreased $50.5 million in total, or 20.2%, in 2023 from 2022.
This decrease resulted primarily from both lower company driver compensation expense of $29.5 million and non-driver compensation expense of $3.6 million. Purchased transportation expense decreased $30.2 million in total, or 15.1%, in 2024 from 2023.
These expenses generally vary with the miles we travel, but also have a controllable component based on safety, fleet age, efficiency and other factors. Our main fixed costs relate to the acquisition and subsequent depreciation of long-term assets, such as revenue equipment and operating terminals.
Expenses that have both fixed and variable components include maintenance and tire expense and our cost of insurance and claims. These expenses generally vary with the miles we travel, but also have a controllable component based on safety, fleet age, efficiency and other factors.
This decrease in 2023 was due to a $38.9 million decrease in Brokerage revenue, a $24.6 million decrease in Intermodal revenue, net of fuel surcharges, a $15.9 million decrease in Truckload revenue, net of fuel surcharges, and a $2.0 million decrease in Dedicated revenue, net of fuel surcharges.
This decrease in 2025 was primarily due to a $30.6 million decrease in Dedicated revenue, net of fuel surcharges, a $20.7 million decrease in Intermodal revenue, net of fuel surcharges, and a $13.5 million decrease in Truckload revenue, net of fuel surcharges, along with a $3.8 million increase in Brokerage revenue.
Additionally, we have $23.1 million in standby letters of credit to guarantee settlement of claims under agreements with our insurance carriers and regulatory authorities. We maintain insurance coverage for per-incident and total losses in excess of these risk retention levels in amounts we consider adequate based upon historical experience and our ongoing review.
Additionally, we have $24.1 million in standby letters of credit to guarantee settlement of claims under agreements with our insurance carriers and regulatory authorities.
(In thousands) 2024 2023 2022 Net cash flows provided by operating activities $ 134,814 $ 164,378 $ 219,489 Net cash flows used for investing activities (152,138 ) (172,540 ) (134,958 ) Net cash flows used for financing activities (18,622 ) (19,225 ) (60,926 ) In August 2019, our Board of Directors approved and we announced an increase from current availability in our existing share repurchase program providing for the repurchase of up to $34.0 million, or approximately 1.8 million shares, of our common stock, which was increased by our Board of Directors to 2.7 million shares in August 2020 to reflect the three-for-two stock split effected in the form of a stock dividend on August 13, 2020.
(In thousands) 2025 2024 2023 Net cash flows provided by operating activities $ 93,488 $ 134,814 $ 164,378 Net cash flows used for investing activities (42,877 ) (152,138 ) (172,540 ) Net cash flows used for financing activities (19,600 ) (18,622 ) (19,225 ) Our existing share repurchase program, which was initially announced in December 2007, currently provides for the repurchase of up to $50.0 million, or approximately 3.1 million shares of our common stock.
Based upon anticipated cash flows, existing cash and cash equivalents balances, current borrowing availability and other sources of financing we expect to be available to us, we do not anticipate any significant liquidity constraints in the foreseeable future. 28 In August 2022, we entered into a credit agreement that provides for an unsecured committed credit facility with an aggregate principal amount of $30.0 million which matures in August 2027.
We believe our sources of liquidity are adequate to meet our current and anticipated needs for at least the next twelve months. Based upon anticipated cash flows, existing cash and cash equivalents balances, current borrowing availability and other sources of financing we expect to be available to us, we do not anticipate any significant liquidity constraints in the foreseeable future.
Gain on disposition of revenue equipment was $13.6 million in 2023, up slightly from $13.4 million in 2022 primarily due to an increase in the number of units sold, offset by a decrease in the average gain for our tractor and trailer sales.
Gain on disposition of revenue equipment increased to $12.1 million in 2025 from $5.0 million in 2024 due to increases in the average gain for our tractor and trailer sales and in the number of units sold.
Fuel surcharge revenue decreased to $159.4 million in 2023 from $210.4 million in 2022. 25 In addition to the factors discussed below, our profitability across each segment in 2023 was impacted by a freight market which has considerably softened from the exceptionally tight conditions during 2022.
Fuel surcharge revenue decreased to $104.7 million in 2025 from $123.7 million in 2024. In addition to the factors discussed below, our profitability across each segment in 2025 was impacted by a weaker freight market. 21 Truckload segment revenue decreased $18.1 million, or 4.1%, to $421.7 million in 2025 from $439.8 million in 2024.
We expect our annual cost of tractor and trailer ownership will increase in future periods as a result of higher prices of new equipment, along with any increases in fleet size. Although certain factors affecting our expenses are beyond our control, we monitor them closely and attempt to anticipate changes in these factors in managing our business.
Our main fixed costs relate to the acquisition and subsequent depreciation of long-term assets, such as revenue equipment and operating terminals. We expect our annual cost of tractor and trailer ownership will increase in future periods as a result of higher prices of new equipment, along with any increases in fleet size.
Amounts payable to carriers for transportation services we arranged in our Brokerage segment decreased $34.1 million to $136.1 million in 2023 from $170.1 million in 2022, primarily due to decreases in both our cost per load and number of loads.
Amounts payable to carriers for transportation services we arranged in our Brokerage segment increased $4.9 million to $127.3 million in 2025 from $122.4 million in 2024, primarily due to an increase in our number of loads.
Dedicated segment revenue decreased $20.8 million, or 4.9%, to $408.3 million in 2023 from $429.1 million in 2022. Dedicated segment revenue, net of fuel surcharges, decreased 0.6% primarily due to a decrease in our average revenue per tractor. The operating ratio was 88.2% in each of 2023 and 2022.
Dedicated segment revenue, net of fuel surcharges, decreased 11.4%, primarily due to a decrease in our average fleet size, partially offset by an increase in our average revenue per tractor. The operating ratio increased to 94.0% in 2025 from 92.8% in 2024.
The operating ratio for our Truckload segment was 94.7% in 2023 and 88.1% in 2022, for our Dedicated segment was 88.2% in each of 2023 and 2022, for our Intermodal segment was 100.2% in 2023 and 91.8% in 2022, and for our Brokerage segment was 89.7% in 2023 and 88.9% in 2022.
The operating ratio for our Truckload segment was 99.8% in 2025 and 99.3% in 2024, for our Dedicated segment was 94.0% in 2025 and 92.8% in 2024, for our Intermodal segment was 105.6% in 2025 and 106.7% in 2024, and for our Brokerage segment was 95.2% in 2025 and 92.6% in 2024.
The portion of purchased transportation expense related to independent contractors within our Truckload and Dedicated segments, including fuel surcharges, increased $1.3 million in 2023. Fuel and fuel taxes decreased by $38.1 million, or 17.4%, in 2023 from 2022.
Amounts payable to railroads and drayage carriers for transportation services within our Intermodal segment decreased to $18.8 million in 2025 from $31.6 million in 2024, primarily due to a decrease in our number of loads. The portion of purchased transportation expense related to independent contractors within our Truckload and Dedicated segments, including fuel surcharges, decreased by $2.1 million in 2025.
The operating ratio increased to 94.7% in 2023 from 88.1% in 2022. Impacting the 2023 operating ratio was a decrease in our average revenue per tractor along with higher company driver compensation, depreciation, maintenance and net fuel costs as a percentage of revenue.
Impacting the 2025 operating ratio was higher insurance and claims costs, partially offset by lower company driver compensation and increased gain on disposition of revenue equipment, all as a percentage of revenue, along with improved average revenue per tractor. Dedicated segment revenue decreased $40.7 million, or 12.8%, to $278.4 million in 2025 from $319.1 million in 2024.
The DOE national average cost of fuel decreased to $4.21 per gallon from $4.99 per gallon in 2022. Despite this price decrease, our net fuel expense increased to 4.6% of Truckload, Dedicated and Intermodal segment revenue, net of fuel surcharges, in 2023 from 3.8% in 2022, primarily due to the record heat in the third quarter of 2023.
Despite this price decrease, our net fuel expense was up slightly to 5.0% of Truckload, Dedicated and Intermodal segment revenue, net of fuel surcharges, in 2025 from 4.8% in 2024.
At December 31, 2023, there was also no outstanding principal balance on the facility. As of that date, we had outstanding standby letters of credit of $20.7 million on the facility. This facility bears interest at a variable rate based on the Term SOFR Rate plus applicable margins.
This facility bears interest at a variable rate based on the Term SOFR Rate plus applicable margins.
Brokerage segment revenue decreased 11.8% from 2023, primarily due to a decrease in our revenue per load. Fuel surcharge revenue decreased to $123.7 million in 2024 from $159.4 million in 2023. Our profitability is impacted by the variable costs of transporting freight for our customers, fixed costs, and expenses containing both fixed and variable components.
Brokerage segment revenue increased 2.6% from 2024, primarily due to an increase in our number of loads, partially offset by a decrease in our revenue per load. Fuel surcharge revenue decreased to $104.7 million in 2025 from $123.7 million in 2024.
Brokerage segment revenue decreased $38.9 million, or 19.0%, to $165.6 million in 2023 from $204.6 million in 2022 primarily due to decreases in both our revenue per load and our number of loads. The operating ratio in 2023 of 89.7% was up from 88.9% in 2022.
Our Intermodal operations were sold effective September 30, 2025. Brokerage segment revenue increased $3.8 million, or 2.6%, to $149.8 million in 2025 from $146.0 million in 2024, primarily due to an increase in our number of loads, partially offset by a decrease in our revenue per load. The operating ratio in 2025 of 95.2% was up from 92.6% in 2024.
Impacting the 2023 operating ratio was a decrease in our revenue per load along with higher net fuel, company driver compensation, depreciation, maintenance, purchased transportation and chassis rental costs as a percentage of revenue.
Intermodal segment revenue, net of fuel surcharges, decreased 41.9% from 2024, primarily due to a decrease in our number of loads. The operating ratio in 2025 improved to 105.6% from 106.7% in 2024. Impacting the 2025 operating ratio was lower depreciation and salaries and wages expense, partially offset by higher purchased transportation costs, all as a percentage of revenue.
Removed
This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes discussions of operating revenue, net of fuel surcharge revenue; Truckload, Dedicated and Intermodal revenue, net of fuel surcharge revenue; operating expenses as a percentage of operating revenue, each net of fuel surcharge revenue; and net fuel expense (fuel and fuel taxes net of fuel surcharge revenue and surcharges passed through to independent contractors, outside drayage carriers and railroads).
Added
As discussed in Note 13, our Intermodal operations were sold effective September 30, 2025.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeBased upon our fuel consumption in 2023, a 5% increase in the average cost of diesel fuel would have increased our fuel expense by $8.8 million. Based upon our fuel consumption in 2024, a 5% increase in the average cost of diesel fuel would have increased our fuel expense by $7.2 million.
Biggest changeBased upon our fuel consumption in 2024, a 5% increase in the average cost of diesel fuel would have increased our fuel expense by $7.2 million. Based upon our fuel consumption in 2025, a 5% increase in the average cost of diesel fuel would have increased our fuel expense by $6.3 million.
There were no material quantitative changes in market risk from 2023 to 2024. We have historically been able to pass through a significant portion of long-term increases in diesel fuel prices and related taxes to customers in the form of fuel surcharges. Fuel surcharge programs are widely accepted among our customers, though they can vary somewhat from customer-to-customer.
There were no material quantitative changes in market risk since 2024. We have historically been able to pass through a significant portion of long-term increases in diesel fuel prices and related taxes to customers in the form of fuel surcharges. Fuel surcharge programs are widely accepted among our customers, though they can vary somewhat from customer-to-customer.

Other MRTN 10-K year-over-year comparisons