J.B. Hunt Transport Services enters new $1.7 billion credit agreement

J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) announced it has entered into a $1.7 billion Second Amended and Restated Credit Agreement, according to a press release statement filed with the Securities and Exchange Commission. The transportation company, currently valued at $17.6 billion, has been operating with a moderate level of debt, with a debt-to-equity ratio of 0.53 as of the most recent quarter.

The agreement, dated November 25, 2025, was established between J.B. Hunt Transport, Inc. as borrower, J.B. Hunt Transport Services, Inc. as parent guarantor, a group of lenders, and Bank of America, N.A. as administrative agent. The new facility extends the maturity date of the company’s existing $1.0 billion revolving line of credit for a new five-year term, now expiring on November 25, 2030. The agreement also includes the option for two one-year extensions, which, if fully exercised and agreed to by the lenders, would extend the expiration to November 25, 2032.

The amended credit agreement increases the accordion feature, allowing the company to request an increase in the total commitment by up to $400 million, up from the previous $300 million. If fully exercised, this would bring the revolving line of credit to $1.4 billion.

Additionally, the facility provides for lender commitments to fund up to $700 million in term loans during the six-month period beginning November 25, 2025. These term loans, if drawn, would mature on November 25, 2028. This replaces the $500 million in term loans previously borrowed and fully repaid in March 2025.

Borrowing costs under the amended facility are based on the Secured Overnight Financing Rate (SOFR) or a base rate, plus an applicable margin and fees. The agreement requires the company to maintain certain covenants and financial ratios, and includes standard default provisions.

J.B. Hunt stated that proceeds from the credit facility may be used for equipment purchases, repurchases of common stock, refinancing of existing senior debt, and other working capital needs.

The new agreement supersedes the company’s previous $1.5 billion credit agreement dated September 27, 2022.

In other recent news, J.B. Hunt Transport Services reported third-quarter earnings that significantly exceeded analyst expectations. The company posted earnings per share of $1.76, surpassing the consensus estimate of $1.46. UBS highlighted this strong performance by raising its price target for J.B. Hunt to $174 from $157, citing the company’s intermodal strength. DA Davidson also increased its price target to $175 from $165, maintaining a Buy rating due to the company’s meaningful earnings beat and improved operational execution. Benchmark reiterated its Buy rating with a $165 price target following the earnings report. Meanwhile, TD Cowen maintained its Hold rating with a price target of $152 after a recent investor day. Additionally, J.B. Hunt’s Board of Directors declared a quarterly dividend of $0.44 per share and approved a new $1 billion share repurchase program. The dividend is scheduled to be paid on November 21, 2025, to stockholders of record as of November 7, 2025.

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