Core Viewpoint - Hub Group reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.47 per share a year ago, indicating a slight decline in year-over-year performance [1][2] Financial Performance - The company posted revenues of $905.65 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.02% and down from $986.49 million in the same quarter last year [2] - Over the last four quarters, Hub Group has surpassed consensus EPS estimates three times but has not beaten consensus revenue estimates [2] Stock Performance - Hub Group shares have declined approximately 21.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Hub Group is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $972.83 million, and for the current fiscal year, it is $1.94 on revenues of $3.79 billion [7] - The trend of estimate revisions for Hub Group was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Transportation - Services industry, to which Hub Group belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]

Financial Data and Key Metrics Changes - Hub Group reported revenue for Q2 2025 at $906 million, an 8% decrease year-over-year and a 1% sequential decline [12] - Adjusted operating income decreased by 7% year-over-year, with an adjusted operating income margin of 4.1%, which is a 10 basis point increase from the previous year [16] - Adjusted EPS for the quarter was $0.45, down from $0.47 in Q2 2024 [17] Business Line Data and Key Metrics Changes - Intermodal Transportation Services (ITS) revenue declined 6% to $528 million, with intermodal volume growth of 2% offset by lower revenue per load and dedicated revenue [12][17] - Logistics segment revenue decreased 12% to $404 million, primarily due to lower brokerage load counts and revenue per load [9][13] - Final Mile division showed significant growth, onboarding $150 million of net new annualized revenue in Q3 and Q4 [10][45] Market Data and Key Metrics Changes - Intermodal volume increased 2% year-over-year, with local East down 1%, local West down 2%, TransCon down 6%, and Mexico up over 300% [7] - The company anticipates strong near-term demand trends off the West Coast, indicating an early peak season [6][20] Company Strategy and Development Direction - Hub Group is focused on executing a strategy of delivering best-in-class services while continuously improving productivity and investing in high-return initiatives [5] - The acquisition of Martin Transport's refrigerated intermodal fleet is aimed at enhancing scale and capacity in a high-growth segment [5][26] - The company plans to continue deploying capital towards long-term growth opportunities and has raised its cost reduction target to $50 million [6][24] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter faced challenges due to tariff-driven adjustments and slower import volumes, but contractual services performed well [4][5] - There is uncertainty regarding the duration of elevated import demand, but management believes they are well-positioned to support customers [7][20] - The company expects full-year EPS in the range of $1.80 to $2.05 and revenue between $3.6 billion to $3.8 billion [18][19] Other Important Information - The merger between Union Pacific and Norfolk Southern is seen as a potential growth catalyst for the intermodal industry, with opportunities for improved service and asset utilization [26][27] - Hub Group's strong balance sheet provides flexibility for value-add acquisitions and investments across business lines [24][25] Q&A Session Summary Question: How significant is the potential for intermodal share gains? - Management indicated that over 30% of their business currently moves in a transcontinental fashion, and they see significant opportunities to improve service and reduce transit times, which could unlock additional value [30][31] Question: How does the company view the guidance for the second half of the year? - Management expects the second half to show similar quarters, with intermodal volumes anticipated to return to a seasonal pattern, supported by new business wins in Final Mile [32][34] Question: What is the impact of the new business onboarding on profitability? - The Final Mile wins are expected to be accretive, with significant revenue contributions anticipated towards the end of Q3 and into Q4 [45][49] Question: How does the company plan to manage costs while preparing for market recovery? - Management emphasized the importance of maintaining a competitive cost structure while identifying additional cost-saving opportunities, ensuring flexibility to respond to market changes [66][67] Question: What is the outlook for the Dedicated segment? - The Dedicated segment faced challenges due to lost sites and equipment count reductions, but management is optimistic about upcoming onboardings and service quality improvements [68][70]

Hub Group Overview - Hub Group is a leading supply chain solutions provider, offering Intermodal transportation and Logistics services[7] - The company's FY 2024 total revenue was $4 billion, with Intermodal & Transportation Solutions contributing 45% and Logistics contributing 55%[14] - In FY 2024, adjusted operating income was $157 million, with Intermodal & Transportation Solutions contributing 62% and Logistics contributing 38%[14] Q2 2025 Performance - Hub Group's Q2 2025 revenue was $906 million[33] - Adjusted diluted earnings per share (EPS) for Q2 2025 was $0.45[33] - Adjusted operating income for Q2 2025 was $37 million, representing 4.1% of revenue[33] - Intermodal & Transportation Solutions revenue in Q2 2025 was $528 million, with operating income of $14 million (2.7% of revenue)[40, 41] - Logistics revenue in Q2 2025 was $404 million, with adjusted operating income of $23 million (5.6% of revenue)[46, 47] Financial Position - As of June 30, 2025, Hub Group had a cash balance of $164 million[33, 54] - Net Debt/Adjusted EBITDA was 0.3x, well below the leverage target of 0.75 to 1.25x[33] 2025 Guidance - Hub Group projects 2025 revenue to be between $3.6 to $3.8 billion[67] - The company anticipates 2025 EPS to be between $1.80 to $2.05 per share[67]

[Hub Group Second Quarter 2025 Financial and Operational Highlights](index=1&type=section&id=Hub%20Group%20Second%20Quarter%202025%20Financial%20and%20Operational%20Highlights) Hub Group reported an 8% revenue decline to $906 million in Q2 2025, with GAAP net income of $25 million, amidst market challenges [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) Hub Group reported a challenging second quarter in 2025, with consolidated revenue declining 8% year-over-year to $906 million due to lower revenue per unit and sub-seasonal demand Q2 2025 Financial Performance | Financial Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $905.6M | $986.5M | -8.2% | | **Operating Income (GAAP)** | $34.3M | $39.5M | -13.1% | | **Adjusted Operating Income (Non-GAAP)** | $36.9M | $39.5M | -6.6% | | **Net Income (GAAP)** | $25.0M | $29.0M | -13.8% | | **Adjusted Net Income (Non-GAAP)** | $27.0M | $29.0M | -6.2% | | **Diluted EPS (GAAP)** | $0.42 | $0.47 | -$0.05 | | **Adjusted EPS (Non-GAAP)** | $0.45 | $0.47 | -$0.02 | - CEO Phil Yeager highlighted the company's focus on customer service, productivity improvements, and cost-saving initiatives amidst a challenging market, noting progress in intermodal margin performance and new customer wins in the Final Mile business[3](index=3&type=chunk) - The company maintained a strong balance sheet with a **Net Debt/EBITDA LTM (non-GAAP) ratio of 0.3x** as of June 30, 2025, which is below the target range of 0.75 to 1.25x[6](index=6&type=chunk)[8](index=8&type=chunk) - Year-to-date, Hub Group returned **$29 million to shareholders**, consisting of **$15 million in dividend payments** and **$14 million in stock repurchases**[8](index=8&type=chunk)[10](index=10&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) This chapter details the financial performance of Hub Group's Intermodal and Transportation Solutions and Logistics segments in Q2 2025 [Intermodal and Transportation Solutions (ITS) Segment](index=1&type=section&id=Intermodal%20and%20Transportation%20Solutions%20%28ITS%29%20Segment) The ITS segment's revenue declined to $528 million due to unfavorable intermodal mix, pricing, and fuel impacts, though operating income slightly increased to $14.4 million ITS Segment Performance | ITS Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $528M | $561M | -5.9% | | **Operating Income** | $14.4M | $13.6M | +5.9% | | **Operating Margin** | 2.7% | 2.4% | +30 bps | [Logistics Segment](index=2&type=section&id=Logistics%20Segment) The Logistics segment's revenue decreased to $404 million due to lower volume and unprofitable business exits, resulting in an 11.5% drop in adjusted operating income Logistics Segment Performance | Logistics Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $404M | $459M | -12.0% | | **Operating Income (GAAP)** | $20M | $26M | -23.1% | | **Adjusted Operating Income (Non-GAAP)** | $23M | $26M | -11.5% | | **Adjusted Operating Margin** | 5.6% | 5.7% | -10 bps | [Company Outlook & Strategic Developments](index=2&type=section&id=Company%20Outlook%20%26%20Strategic%20Developments) This chapter outlines Hub Group's full-year 2025 financial guidance and its strategic support for the proposed Union Pacific and Norfolk Southern merger [2025 Full Year Outlook](index=2&type=section&id=2025%20Full%20Year%20Outlook) Hub Group projects full-year 2025 diluted EPS between $1.80 and $2.05, with revenue expected to range from $3.6 billion to $3.8 billion 2025 Full Year Guidance | 2025 Full Year Guidance | Range | | :--- | :--- | | **Diluted EPS** | $1.80 - $2.05 | | **Revenue** | $3.6B - $3.8B | | **Capital Expenditures** | $40M - $50M | | **Effective Tax Rate** | ~24.5% | [Proposed Union Pacific and Norfolk Southern Combination](index=2&type=section&id=Proposed%20Union%20Pacific%20and%20Norfolk%20Southern%20Combination) Hub Group strongly supports the proposed merger of Union Pacific and Norfolk Southern, anticipating it will create the first transcontinental railroad and accelerate long-term growth - The company is supportive of the plan to form America's first transcontinental railroad, viewing the transaction as a catalyst that would accelerate its long-term growth opportunity[11](index=11&type=chunk) - Key expected benefits of the merger include: - Removal of friction in gateways - Reduced transit times - Access to new markets - Increased competition with truck volume through new single-line service[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) This chapter presents Hub Group's consolidated statements of earnings, balance sheets, and cash flows for the reported periods [Consolidated Statements of Earnings](index=3&type=section&id=Consolidated%20Statements%20of%20Earnings) Q2 2025 operating revenue decreased to $905.6 million, with net income attributable to Hub Group falling to $25.2 million, or $0.42 per diluted share Three Months Ended June 30 (in thousands) | Three Months Ended June 30 (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating revenue** | $905,648 | $986,495 | | **Operating income** | $34,348 | $39,528 | | **Net income attributable to Hub Group** | $25,247 | $29,015 | | **Diluted EPS** | $0.42 | $0.47 | Six Months Ended June 30 (in thousands) | Six Months Ended June 30 (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Operating revenue** | $1,820,864 | $1,985,988 | | **Operating income** | $71,687 | $76,667 | | **Net income attributable to Hub Group** | $52,095 | $56,068 | | **Diluted EPS** | $0.86 | $0.91 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $2.80 billion, with cash increasing to $137.0 million, and total stockholders' equity growing to $1.73 billion Balance Sheet Items (in thousands) | Balance Sheet Items (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $745,439 | $768,329 | | **Total Assets** | $2,800,051 | $2,868,343 | | **Total Current Liabilities** | $525,928 | $579,481 | | **Total Liabilities** | $1,073,843 | $1,176,392 | | **Total Stockholders' Equity** | $1,726,208 | $1,691,951 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operating activities for the first six months of 2025 was $131.5 million, with $68.4 million used in financing activities, including $13.8 million in stock repurchases Six Months Ended June 30 (in thousands) | Six Months Ended June 30 (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $131,536 | $150,465 | | **Net cash used in investing activities** | $(26,424) | $(21,804) | | **Net cash used in financing activities** | $(68,441) | $(95,664) | | **Cash and cash equivalents end of period** | $163,601 | $220,247 | [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This chapter provides reconciliations of GAAP to non-GAAP earnings and calculates the net debt to Adjusted EBITDA leverage ratio [Reconciliation of GAAP to Non-GAAP Earnings](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Earnings) For Q2 2025, a $2.6 million pre-tax adjustment for vendor settlements increased GAAP diluted EPS of $0.42 to a non-GAAP adjusted EPS of $0.45 Q2 2025 Reconciliation (in millions, except per share) | Q2 2025 Reconciliation (in millions, except per share) | Pre-Tax | After-Tax | Per Share | | :--- | :--- | :--- | :--- | | **GAAP Earnings** | $32.9 | $25.0 | $0.42 | | Vendor settlements | $2.6 | $2.0 | $0.03 | | **Non-GAAP Adjusted Earnings** | $35.5 | $27.0 | $0.45 | - The vendor settlements are related to disputes arising from the company's network alignment consolidation activities[39](index=39&type=chunk) [Reconciliation of Net Income to EBITDA and Net Debt / EBITDA Leverage](index=9&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDA%20and%20Net%20Debt%20%2F%20EBITDA%20Leverage) Adjusted EBITDA for the last twelve months ending Q2 2025 was $343.4 million, resulting in a low Net Debt / Adjusted EBITDA LTM ratio of 0.3x LTM Ended Q2 2025 (in thousands) | LTM Ended Q2 2025 (in thousands) | Amount | | :--- | :--- | | **Net Income** | $100,200 | | Interest Expense, net | $7,312 | | Depreciation and Amortization | $187,910 | | Provision for Income Taxes | $28,890 | | **EBITDA** | $324,312 | | Adjustments (Network, Transaction, etc.) | $19,039 | | **Adjusted EBITDA** | $343,351 | - The **Net Debt / Adjusted EBITDA LTM ratio** for Q2 2025 was **0.3x**, indicating low financial leverage[44](index=44&type=chunk)

Highlights: Purchased transportation and warehousing costs of $656 million were 10% lower than prior year. Salaries and benefits of $143 million were 1% higher than prior year driven by additional warehouse and driver team members and the EASO acquisition. Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined 3% from prior year. Depreciation and amortization of $32 million decreased 14% from prior year. Insurance and claims of $11 million decreased 16% due t ...

Company Overview - Hub Group (HUBG) is expected to report a year-over-year decline in earnings, with a projected EPS of $0.44, reflecting a decrease of 6.4% compared to the previous year [3] - Revenues are anticipated to be $914.96 million, down 7.3% from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 2.71% lower in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +0.39% suggests that analysts have recently become more optimistic about Hub Group's earnings prospects, despite the company holding a Zacks Rank of 4, which complicates predictions of an earnings beat [12] Historical Performance - In the last reported quarter, Hub Group exceeded the expected EPS of $0.42 by delivering $0.44, resulting in a surprise of +4.76% [13] - Over the past four quarters, the company has beaten consensus EPS estimates two times [14] Industry Context - C.H. Robinson Worldwide (CHRW), another player in the transportation services industry, is expected to post earnings of $1.17 per share, indicating a year-over-year change of +1.7% [18] - C.H. Robinson's revenues are projected to be $4.22 billion, down 5.9% from the previous year [19]

Core Viewpoint - Marten Transport, Ltd. has entered into an agreement to sell its intermodal business assets to Hub Group, Inc. for $51.8 million in cash, reflecting a strategic focus on core operations and growth opportunities [1][2][3]. Company Overview - Marten Transport is a leading temperature-sensitive truckload carrier in the United States, specializing in transporting food, beverages, and consumer packaged goods that require temperature control [5]. - The company operates across the United States, Mexico, and Canada, focusing on expedited movements for high-volume customers [5]. Transaction Details - The transaction involves the sale of over 1,200 refrigerated containers and related contracts, expected to close by the end of the third quarter, subject to customary closing conditions [2]. - Legal counsel for the transaction is provided by Fox Rothschild LLP [4]. Strategic Focus - Executive Chairman Randolph L. Marten emphasized that the transaction aligns with the company's integrated business strategy, allowing for investment in core operations and capitalizing on profitable organic growth opportunities [3].

Core Viewpoint - Hub Group, Inc. has announced the acquisition of Marten Transport's intermodal assets, significantly enhancing its temperature-controlled intermodal service capabilities and scale [3][5]. Transaction Highlights - The acquisition involves an asset purchase of intermodal equipment and contracts for $51.8 million in cash, expected to close by the end of Q3 2025, subject to customary closing conditions [5]. - The deal includes approximately 1,200 refrigerated containers, positioning Hub Group as the second largest provider of temperature-controlled intermodal solutions in North America [9]. - Marten Intermodal generated $51.5 million in revenue over the trailing twelve months ending June 30, 2025 [9]. Strategic Implications - The acquisition is expected to double Hub Group's temperature-controlled container fleet and leverage its existing intermodal network to serve Marten Intermodal's customers [5]. - The transaction aligns with Hub Group's long-term investment strategy, aiming to expand margins and maintain capital flexibility [5]. - The deal is anticipated to be immediately accretive to Hub Group's fourth quarter 2025 EPS and also accretive to 2026 EPS, contributing positively to long-term returns on invested capital [9]. Operational Synergies - The acquisition is expected to create operational synergies through increased scale and network density [9]. - There are cross-sell opportunities with additional refrigerated customers across various business lines [9].

Company Overview - Hub Group, Inc. is a publicly traded company on Nasdaq (HUBG) with approximately $4 billion in revenue and nearly 6,000 employees globally [5]. Upcoming Conference Call - Hub Group will hold a conference call on July 31, 2025, at 5:00 p.m. Eastern Time to discuss its second quarter 2025 results, which will be announced via press release after market close on the same day [1]. - The conference call will be accessible via webcast through the Investors link on Hub Group's website, and it will be a listen-only session [2]. Participation Details - Interested participants must pre-register to receive the dial-in number and unique PIN for the conference call, which is limited to 60 minutes, including a question-and-answer session [3]. - An audio replay of the call will be available for 30 days through the Investors link on the company's website [4].

Core Viewpoint - Homerun Resources Inc. has launched a new website and "The HUB," an AI-powered platform for energy management, aimed at transforming energy generation, storage, consumption, and trading across complex systems [1][2]. Group 1: The HUB Platform - The HUB is designed to address the complexities of modern energy systems, integrating various technologies such as solar PV, storage systems, and electric vehicles [3][6]. - Key features of The HUB include real-time optimization, predictive maintenance, and unified control, which enhance the efficiency of energy operations [6][9]. - The platform operates on multiple levels of AI intelligence, enabling real-time energy optimization and insights from big data [9]. Group 2: Business Development and Market Reach - Homerun Energy is actively developing business opportunities in regions including the EU, UK, North America, and South America [2]. - The company is positioned to capitalize on high-growth global energy transition markets through its vertically integrated strategy, which includes advanced materials and energy solutions [10][13]. Group 3: Commitment to Sustainability and Innovation - Homerun maintains a strong commitment to ESG principles, utilizing sustainable production technologies and benefiting local communities [14]. - The company is pioneering new technologies in solar glass manufacturing and energy management systems, including partnerships with academic and governmental institutions [17].