Shares of J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) tumbled 6.22% in after-hours trading on Wednesday following the release of the company's first-quarter 2025 earnings report. The transportation and logistics giant reported lower profits and revenue compared to the same period last year, while also highlighting ongoing challenges related to trade tensions and industry-wide pressures.

For the first quarter ended March 31, J.B. Hunt reported earnings per share of $1.17, down from $1.22 in the same quarter of 2024. Total revenue for the period declined 1% year-over-year to $2.92 billion. The company's performance was impacted by decreased activity across several business segments, including a 5% reduction in average truck count in its Dedicated Contract Services unit and a 15% drop in Final Mile Services stops.

J.B. Hunt's management highlighted the ongoing challenges faced by the transportation industry, including what they termed a multi-year "freight recession" marked by higher costs and lower demand. The company also pointed to the impact of U.S.-led trade tensions, particularly with China, which are creating uncertainty for its customers. Spencer Frazier, J.B. Hunt's executive vice president of sales and marketing, noted that "most of them are waiting for the dust to settle to determine how tariffs might influence and change their short- and long-term business strategies."

Despite the overall decline, J.B. Hunt's Intermodal segment, which accounts for nearly half of its revenue, saw a 5% increase driven by an 8% rise in load volume. However, this growth was offset by lower yields and increased costs in other areas of the business. The company's management emphasized their focus on cost management and productivity improvements to navigate the challenging environment.

As J.B. Hunt continues to adapt to market conditions, investors will be closely watching how the company manages its diverse service offerings and leverages technology to maintain its competitive edge in the transportation sector. The ongoing trade discussions and potential shifts in global supply chains are likely to remain key factors influencing the company's performance in the coming quarters.