PAMT · Pamt Corp.

Revenue for the first quarter of 2026 fell 8.7% to $141.9 million from $155.3 million in the prior year quarter. This decrease stemmed primarily from lower purchased transportation costs, which improved the spread between customer rates and third-party carrier costs. A key driver was the quarter-over-quarter reduction in the percentage of miles driven by third-party owner-operators compared to company-employed drivers, shifting more volume to lower-cost internal operations.

Net income nearly reached breakeven at a $8 thousand loss, a 99.9% improvement from the $8.1 million loss last year, with diluted EPS at $0.00 versus -$0.37. This outcome underscores the benefits of operational shifts and non-operating contributions in a challenging freight environment.

Cash flow from operations was a use of $2.7 million, contrasting with $5.0 million provided last year. This shift relates to the fixed-cost structure of employment expenses against declining top-line results. Capital expenditures rose to $14.4 million from $11.8 million, focused on revenue equipment essential to the trucking business. Resulting free cash flow was -$17.1 million, signaling heavy reinvestment to maintain fleet capacity.

Liquidity remains critical as the business requires and will continue to require significant investments in new revenue equipment. Primary funding sources include operating cash, proceeds from equipment sales, lines of credit, installment notes, margin accounts, and equity issuances. Management intends to retain earnings to finance growth, forgoing dividends to prioritize fleet renewal and expansion in a capital-intensive industry. These dynamics position Pamt Corp. to navigate freight market volatility through internal efficiencies and disciplined capital allocation.