Jack Cooper closure creates auto-hauling opportunities for Proficient and competitors
With storied competitor Jack Cooper Transport Co.—the No. 2 player in the auto hauler sector—winding down its operations after key customer losses, Proficient Auto Logistics Inc. executives expect to pick up plenty of business. But they added that gains will likely spread out over several quarters as the market dust settles.
Jack Cooper CEO Sarah Amico told employees of the 97-year-old company this past weekend that the recent loss of business with both Ford Motor Co. and General Motors Corp. means the end of the road. The planned closure is expected to cost 2,500 workers their jobs, although other carriers will likely pick up some of them.
Speaking on February 11, after they reported fourth-quarter results, Proficient CEO Rick O’Dell and President and COO Amy Rice told analysts their team is well positioned to add some of the business—estimated at 10% to 15% of the market—that’s up for grabs as a result of Jack Cooper’s closure. Giving them confidence, they said, is the capacity Florida-based Proficient added last year through about $30 million of equipment investments.
Rice noted that some of that spending was more maintenance-focused than purely growth-oriented. But those investments—made when the broader auto haul sector appeared healthier than it has turned out to be as auto manufacturers have trimmed production—now look set to pay off in a different way for Proficient, which last year said it ranked third in terms of fleet size behind United Road and Jack Cooper.
“We do have open assets available,” Rice said. “We will be hiring for those assets and deploying those assets into the market,” where there are opportunities to pick up Jack Cooper business.
Both Rice and O’Dell said that Jack Cooper’s exit from the market won’t result in a sudden influx of business for rivals—although Precision Vehicle Holdings already took on more Ford work. Instead, O’Dell said, it’s likely many auto OEMs will, for continuity’s sake, turn first to backup carriers they’ve already lined up and only later put contracts out to bid. He added that a two-step dynamic is also likely as some fleets attempting to quickly fill Jack Cooper’s shoes might stumble and lead OEMs to come back to the broader market.
“We’re positioned to react quickly,” he added.
In the last three months of 2024, Proficient—which went public in May and immediately afterward acquired five regional companies before adding a sixth a few months later—posted a pre-tax loss of $3.8 million on revenues of $95.1 million. The company and its subhaulers delivered about 521,000 vehicles during the quarter, down nearly 4% compared to what Proficient’s component companies did in late 2023. However, because it handled less spot business and the spot premium fell dramatically, total revenue slid 16% year over year.
On the conference call, Rice said the spot premium over contract rates—16% in Q4 after topping 100% last spring—is typically between 25% and 40%. But there’s another wrinkle in the market, she added: Several other OEM superregional and national contracts are going through the bid process. That work, she noted, will be awarded anywhere between this spring and the beginning of 2026, possibly adding to market-share changes.
“We’re also trying to figure out what a normal auto haul market looks like,” Rice said after being asked about spot and contract dynamics.
Analysts at Stifel said the Q4 results are essentially “meaningless” because of the market upheaval. Instead, the focus is on Proficient’s opportunity to add to its business with Ford and GM, which trail only Mercedes in terms of tenure with Proficient.
“The company has been executing on the idiosyncratic part of its thesis, in our view—the part that it can control—but weak market fundamentals had put significant pressure on the growth outlook...until now,” researchers led by Bruce Chan told clients February 12. “With Proficient positioned as one of few carriers that has consistently invested in service and capacity, we think the earnings growth trajectory is restored...and then some.”
Investors—who bid up shares of Proficient (Ticker: PAL) by about 25% on the news of Jack Cooper’s serious troubles—also appear to be looking past the Q4 numbers and thinking of the market share it could soon add. In afternoon trading February 12, shares were changing hands at $10.72, down slightly on the day. That is, however, still well below the $15 at which they went public nine months ago.
