Financial Data and Key Metrics Changes - Universal reported Q2 2025 operating revenues of $393.8 million, down from $462.2 million in Q2 2024, with net income of $8.3 million or $0.32 per diluted share compared to $30.7 million or $1.17 per share last year [4][12][13] - Operating income for the quarter was $19.9 million, representing a 5.1% operating margin, down from $47.1 million and 10.2% a year earlier [4][13] - EBITDA decreased to $56.2 million or 14.3% of revenue, down from $84.8 million or 18.4% in the same period last year [4][13] Performance by Business Segment - Track logistics segment revenues were $260.6 million, slightly down from Q2 last year, with the integration of Parsec contributing $55 million in revenue [5][14] - Contract Logistics operating income was $21.8 million with an 8.4% margin, down from $52.9 million and 20.1% a year earlier [6][14] - Trucking revenues were $64.1 million, down nearly 30% year over year, with a 22.6% drop in load volumes and an 8.9% decrease in revenue per load, but operating margin improved to 5.2% from 4.8% [7][15] - Intermodal segment revenues were $68.9 million, down 13.5% year over year, but operating loss narrowed to $5.7 million from $10.7 million in Q1 [8][15] Market Data and Key Metrics Changes - The freight market remains challenging, with lower automotive production impacting results, but there are signs of sequential improvement [3][9] - The company is focused on cost discipline and operational execution across all segments to manage through cyclical pressures [9][10] Company Strategy and Industry Competition - The company is enhancing its sales organization and has hired several senior sales directors to strengthen customer relationships in key industries [10] - A new customer relationship management solution is being rolled out to unify sales activity and improve visibility into a $1 billion sales pipeline [10] - The company is committed to optimizing operations and exiting unprofitable business while pursuing new contract opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macro environment but expresses confidence in the team's ability to adapt and execute [11] - There is an expectation of cyclical uplift in intermodal volumes in Q3, with pent-up ordering anticipated from discount retailers [24][25] - The company aims to return the intermodal segment to profitability in Q3 or Q4, depending on sales activity and pricing [27] Other Important Information - Capital expenditures for Q2 were $84.3 million, with expectations for full-year capital expenditures between $100 million and $125 million [17] - The Board of Directors declared a quarterly dividend of $0.01 per share, payable on October 1, 2025 [17] Q&A Session Summary Question: Impact of tariffs on Q2 performance and customer conversations for Q3 - Management noted that tariffs impacted the intermodal division, leading to a fall-off in volumes, particularly from discount retailers [21][22] - There is an expectation of normal cyclical uplift in Q3, with pent-up ordering anticipated [24][25] Question: Progress on profitability initiatives in the intermodal segment - Management aims to return to profitability in the intermodal segment by Q3 or Q4, focusing on sales activity and pricing [27] Question: Outlook for the auto OEM and Class 8 market - Management indicated a negative outlook for the auto OEM and Class 8 market, with significant year-over-year volume declines for key customers [31][32] Question: Growth prospects for the trucking business - Management highlighted the need for a catalyst in the general freight market to drive growth in the trucking business, while specialized segments like wind energy are expected to improve [36][40]

Core Insights - Universal Logistics (ULH) reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.34 per share, and down from $1.17 per share a year ago, indicating a -5.88% earnings surprise [1] - The company posted revenues of $393.79 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.18%, and down from $462.16 million year-over-year [2] - Universal Truckload shares have declined approximately 40.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $426.7 million, and for the current fiscal year, it is $1.95 on revenues of $1.65 billion [7] - The estimate revisions trend for Universal Truckload was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Transportation - Services industry, to which Universal Truckload belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Universal Logistics reported significant Q2 2025 year-over-year declines in net income, EPS, and total operating revenues, with operating and EBITDA margins contracting Key Financial Metrics (Q2) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $393.8M | $462.2M | -14.8% | | Net Income | $8.3M | $30.7M | -73.0% | | Diluted EPS | $0.32 | $1.17 | -$0.85 | Operating Performance (Q2) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Operating Income | $19.9M | $47.1M | -$27.2M | | Operating Margin | 5.1% | 10.2% | -5.1 p.p. | | EBITDA | $56.2M | $84.8M | -$28.6M | | EBITDA Margin | 14.3% | 18.4% | -4.1 p.p. | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Tim Phillips noted Q2 results aligned with guidance, highlighting solid contract logistics and sequential trucking growth despite a weak freight market - The CEO acknowledged the weak freight environment but noted that the **Contract Logistics segment continues to deliver solid results** and the **Trucking segment grew sequentially**[3](index=3&type=chunk) - The intermodal segment continues to underperform, but the company is making progress on profitability initiatives, **narrowing losses on a quarter-over-quarter basis**[3](index=3&type=chunk) - The company remains committed to customer service and strategic investments for long-term growth[3](index=3&type=chunk) [Segment Performance Analysis](index=1&type=section&id=Segment%20Performance%20Analysis) Q2 2025 segment performance was mixed, with Contract Logistics' operating income dropping, Intermodal narrowing its loss, and Trucking facing revenue declines [Contract Logistics](index=1&type=section&id=Contract%20Logistics) Contract Logistics operating revenue decreased slightly, but operating income fell sharply by 58.8% to $21.8 million, significantly contracting the operating margin Contract Logistics Performance (Q2) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $260.6M | $263.6M | -1.1% | | Income from Operations | $21.8M | $52.9M | -58.8% | | Operating Margin | 8.4% | 20.1% | -11.7 p.p. | - The number of managed value-added programs increased to **87 at the end of Q2 2025**, up from 68 in Q2 2024[4](index=4&type=chunk) [Intermodal](index=2&type=section&id=Intermodal) Intermodal segment revenue decreased by 13.5% to $68.9 million due to lower load volumes, yet it successfully narrowed its operating loss Intermodal Performance (Q2) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $68.9M | $79.7M | -13.5% | | Operating Loss | $(5.7)M | $(8.6)M | +$2.9M | | Operating Margin | (8.2)% | (10.8)% | +2.6 p.p. | - Load volumes declined by **12.9% year-over-year**, but average operating revenue per load (excluding fuel surcharges) improved slightly[7](index=7&type=chunk) [Trucking](index=2&type=section&id=Trucking) Trucking segment operating revenues dropped 29.9% to $64.1 million due to decreased load volumes and revenue per load, yet its operating margin slightly improved Trucking Performance (Q2) | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $64.1M | $91.4M | -29.9% | | Income from Operations | $3.3M | $4.4M | -25.0% | | Operating Margin | 5.2% | 4.8% | +0.4 p.p. | - Year-over-year, load volumes fell **22.6%**, and average operating revenue per load (excluding fuel) decreased by **8.9%**[8](index=8&type=chunk) [Financial Position and Shareholder Returns](index=2&type=section&id=Financial%20Position%20and%20Shareholder%20Returns) As of June 28, 2025, Universal held $24.3 million in cash and $798.6 million in debt, maintaining shareholder returns with a declared quarterly cash dividend - The Board of Directors declared a cash dividend of **$0.105 per share**, payable on October 1, 2025, to shareholders of record on September 1, 2025[9](index=9&type=chunk) Balance Sheet Highlights (as of June 28, 2025) | Balance Sheet Item | Amount (Millions USD) | | :--- | :--- | | Cash and cash equivalents | $24.3 million | | Marketable securities | $9.9 million | | Outstanding debt | $798.6 million | | Capital expenditures (YTD) | $84.3 million | [Financial Statements](index=4&type=section&id=Financial%20Statements) This section presents unaudited condensed consolidated financial statements and operating data, reflecting lower Q2 2025 revenues and net income, increased assets and liabilities, and declining segment volumes [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q2 2025, total operating revenues were $393.8 million, a decrease from $462.2 million in Q2 2024, resulting in a significant drop in net income Consolidated Statements of Income (Q2, in thousands USD) | (In thousands) | Thirteen Weeks Ended June 28, 2025 | Thirteen Weeks Ended June 29, 2024 | | :--- | :--- | :--- | | Total operating revenues | $393,794 | $462,164 | | Income from operations | $19,893 | $47,103 | | Net income | $8,316 | $30,734 | | Diluted EPS | $0.32 | $1.17 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 28, 2025, total assets increased to $1.91 billion from $1.79 billion at year-end 2024, with total liabilities also rising to $1.26 billion Consolidated Balance Sheets (as of, in thousands USD) | (In thousands) | June 28, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $393,385 | $409,813 | | Total assets | $1,909,707 | $1,786,837 | | Total liabilities | $1,256,014 | $1,139,814 | | Total shareholders' equity | $653,693 | $647,023 | [Summary of Operating Data](index=6&type=section&id=Summary%20of%20Operating%20Data) Q2 2025 operational data shows increased active value-added programs in Contract Logistics, but declining load volumes in both Intermodal and Trucking segments Operating Metrics by Segment (Q2) | Operating Metric (Q2) | 2025 | 2024 | | :--- | :--- | :--- | | **Contract Logistics:** | | | | Number of active value-added programs | 87 | 68 | | **Intermodal:** | | | | Number of loads | 94,327 | 108,326 | | **Trucking:** | | | | Number of loads | 31,451 | 40,620 | Income from Operations by Segment (Q2, in thousands USD) | Income from Operations by Segment (Q2, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Contract logistics | $21,770 | $52,901 | | Intermodal | $(5,676) | $(8,639) | | Trucking | $3,340 | $4,384 | | **Total** | **$19,893** | **$47,103** | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) The company provides EBITDA as a supplemental non-GAAP measure, which for Q2 2025 was $56.2 million, a decrease from $84.8 million in the prior-year period, with a corresponding EBITDA margin of 14.3% - The company presents EBITDA and EBITDA margin to assist investors in comparing performance across reporting periods by excluding items not indicative of core operating performance[24](index=24&type=chunk)[26](index=26&type=chunk) Reconciliation to EBITDA (Q2, in thousands USD) | Reconciliation to EBITDA (Q2, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $8,316 | $30,734 | | Income tax expense | $2,874 | $10,384 | | Interest expense, net | $8,852 | $6,883 | | Depreciation | $30,596 | $32,052 | | Amortization | $5,607 | $4,757 | | **EBITDA** | **$56,245** | **$84,810** | | **EBITDA margin** | **14.3%** | **18.4%** |

Core Insights - Universal Logistics Holdings, Inc. reported a net income of $8.3 million for Q2 2025, a significant decrease from $30.7 million in Q2 2024, with total operating revenues falling to $393.8 million from $462.2 million [1][7][18] - The company's operating income decreased by $27.2 million to $19.9 million, resulting in an operating margin of 5.1%, down from 10.2% year-over-year [2][7] - EBITDA for Q2 2025 was $56.2 million, down from $84.8 million in the same quarter last year, with an EBITDA margin of 14.3% compared to 18.4% [2][22] Segment Performance Contract Logistics - Operating revenues in the contract logistics segment decreased by 1.1% to $260.6 million, with a significant drop in operating income to $21.8 million from $52.9 million, leading to an operating margin of 8.4% compared to 20.1% [4][8] - The segment included $55.0 million from the acquisition of Parsec, while last year's revenues included $44.6 million from a completed specialty project [4] Intermodal - The intermodal segment saw a 13.5% decrease in operating revenues to $68.9 million, with load volumes declining by 12.9% [5][9] - Operating loss in this segment improved to $(5.7) million from $(8.6) million year-over-year, with an operating margin of (8.2)% compared to (10.8)% [5][9] Trucking - Trucking segment revenues fell by 29.9% to $64.1 million, with load volumes down 22.6% and average operating revenue per load declining by 8.9% [10][16] - Operating income in the trucking segment decreased to $3.3 million, resulting in an operating margin of 5.2%, slightly up from 4.8% last year [10][16] Financial Metrics - Total operating revenues for Q2 2025 were $393.8 million, a decrease of 14.8% from the previous year [7] - The company declared a quarterly dividend of $0.105 per share, payable on October 1, 2025 [11] - As of June 28, 2025, Universal held cash and cash equivalents of $24.3 million, with outstanding debt totaling $798.6 million [12][19]

Group 1 - Universal Logistics Holdings, Inc. plans to release its second quarter 2025 financial results after market close on July 24, 2025 [1] - The quarterly earnings conference call is scheduled for July 25, 2025, at 10:00 a.m. Eastern Time [1] - A replay of the conference call will be available until August 1, 2025, with specific dial-in details provided [1] Group 2 - Universal Logistics Holdings, Inc. operates as a holding company with subsidiaries that offer customized transportation and logistics solutions across the United States, Mexico, Canada, and Colombia [2] - The company provides a wide range of supply chain solutions, including value-added, dedicated, intermodal, and trucking services [2]

Financial Data and Key Metrics Changes - Universal reported total operating revenue of $382.4 million for Q1 2025, a decline from $491.9 million in the same period last year [21] - Net income was $6 million or $0.23 per share, down from $52.5 million or $1.99 per share year-over-year [21] - Operating margin for the quarter was 4.1%, compared to 15.3% in Q1 2024 [23] - EBITDA decreased to $51.7 million from $96.9 million year-over-year [22] Business Line Data and Key Metrics Changes - Contract logistics segment generated $255.9 million in revenue with a 9.3% operating margin, down from $313.5 million and 26% respectively in Q1 2024 [24] - Trucking revenues decreased to $55.6 million, down 20.2% from the prior year, with operating income of $2.2 million and a margin of 3.9% [11][26] - Unimodal segment revenues fell to $70.7 million, reporting an operating loss of $10.7 million, compared to a loss of $8.3 million in Q1 2024 [13][26] Market Data and Key Metrics Changes - Auto production volumes improved significantly in February and March, with production up 29% in February and 67.1% in March compared to January [37] - Intermodal volumes increased by 13% in February and 53% in March from January [37] - Inventory levels in the automotive sector decreased from 3.1 million units to 2.6 million units, a reduction of 16% [43] Company Strategy and Development Direction - The company is focused on optimizing its Parsec acquisition and expanding its contract logistics revenue, expecting to book over $1.1 billion in contract logistics revenue in 2025 [8] - Strategic actions are being taken to improve underperforming operations while maintaining disciplined growth [15] - The company is actively engaging customers regarding manufacturing capabilities and storage solutions in response to tariff impacts [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a sluggish freight environment but expressed confidence in the resilience of the business model and long-term strategic direction [4][5] - The company expects the second half of 2025 to show marked improvement compared to the first quarter [16] - Management is closely monitoring the impact of tariffs and is prepared to adapt to changes in customer needs [17] Other Important Information - Capital expenditures for Q1 2025 were $52.6 million, with full-year expectations for equipment between $100 million and $125 million [28] - The Board of Directors declared a regular quarterly dividend of $0.105 per share, payable on July 1, 2025 [29] Q&A Session Summary Question: Trends with auto OEMs and expectations for the rest of the year - Management noted a slow start in January but significant improvement in February and March, with auto production and cross stock tonnage increasing substantially [35][37] Question: Inventory management and wait-and-see approach - Management confirmed a wait-and-see approach among customers regarding tariffs, with no definitive outlook for Q2, Q3, or Q4 yet [47][48] Question: Geographical dispersion of facilities - The company has a national presence with facilities near major ports and rail networks on both coasts, enhancing its logistics capabilities [51][52] Question: Potential reduction in imports - Management is preparing for a potential 15% reduction in imports starting mid to late May, as indicated by the National Retail Federation [55] Question: Impact of flatbed market tightening - Management observed stable pricing in the flatbed market with no significant upward lift, although there has been some expansion in the heavy haul business [59]

Financial Data and Key Metrics Changes - Universal reported total operating revenue of $382.4 million for Q1 2025, a decline from $491.9 million in the same period last year [4][14] - Net income was $6 million or $0.23 per share, down from $52.5 million or $1.99 per share year-over-year [13][14] - Operating margin for the quarter was 4.1%, compared to 15.3% in Q1 2024 [14] - EBITDA decreased to $51.7 million from $96.9 million year-over-year, reflecting a significant decline [14] Business Line Data and Key Metrics Changes - **Contract Logistics**: Revenue was $255.9 million with a 9.3% operating margin, down from $313.5 million and 26% margin last year. The decline was attributed to a lack of specialty project revenue and lower auto production volumes [5][15] - **Trucking**: Revenue decreased by 20.2% to $55.6 million, with a 3.9% operating margin, down from 5.3% last year. A 31.3% drop in volumes was noted, although revenue per load excluding fuel surcharges increased by over 24% [7][17] - **Intermodal**: Revenue fell to $70.7 million, resulting in an operating loss of $10.7 million, compared to a loss of $8.3 million last year. The segment faced a 3.4% drop in volumes and an 8.7% decline in rate per load [9][17] Market Data and Key Metrics Changes - The automotive sector showed a sluggish start in January but improved significantly in February and March, with auto production volumes increasing by 29% in February and 67.1% in March compared to January [6][27] - Intermodal volumes also improved, with a 13% increase in February and a 53% increase in March from January [27] Company Strategy and Development Direction - The company is focused on transforming underperforming segments and optimizing operations while maintaining a disciplined growth strategy [10] - There is a commitment to enhancing customer relationships and expanding logistics solutions, particularly in the automotive sector [30][32] - The company is actively monitoring tariff impacts and is prepared to adapt its strategies accordingly [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the transportation and logistics landscape but expressed confidence in the company's resilience and long-term strategic direction [3] - The outlook for the second half of 2025 is expected to improve, driven by increased production and operational adjustments [10][32] - Management noted a significant reduction in automotive inventory levels, which could lead to improved production numbers in the latter half of the year [32] Other Important Information - Capital expenditures for 2025 are projected to be between $100 million and $125 million, with real estate investments between $55 million and $65 million [18] - A quarterly dividend of $1.05 per share was declared, payable on July 1, 2025 [19] Q&A Session Summary Question: Trends with auto OEMs and expectations for the rest of the year - Management noted a slow start in January with a loss, but significant improvements were seen in February and March, indicating a rebound in auto production and logistics volumes [25][27] Question: Inventory management and tariff impacts - A wait-and-see approach is observed among customers regarding inventory and sourcing strategies due to tariff uncertainties [34][35] Question: Geographical dispersion of facilities - The company has a national presence with facilities near major ports and rail networks on both coasts, enhancing its logistics capabilities [37] Question: Potential reduction in imports - Management is aware of a projected 15% reduction in imports starting mid to late May and is monitoring its impact on the intermodal business [39] Question: Impact of flatbed market tightening - The heavy haul business has seen some expansion, but overall pricing in flatbed transportation remains stable without significant upward movement [42]

Core Viewpoint - Universal Logistics (ULH) reported quarterly earnings of $0.23 per share, significantly missing the Zacks Consensus Estimate of $0.48 per share, and down from $1.99 per share a year ago, indicating a substantial earnings surprise of -52.08% [1] Financial Performance - The company posted revenues of $382.39 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.55%, and down from $491.91 million year-over-year [2] - Over the last four quarters, Universal Logistics has surpassed consensus EPS estimates only once [2] Stock Performance - Universal Truckload shares have declined approximately 41.3% since the beginning of the year, compared to a decline of -8.6% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $432.3 million, and for the current fiscal year, it is $2.81 on revenues of $1.74 billion [7] Industry Outlook - The Transportation - Services industry, to which Universal Truckload belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Universal Truckload's stock performance [5][6]

[Q1 2025 Financial and Operational Overview](index=1&type=section&id=Universal%20Logistics%20Holdings%20Reports%20First%20Quarter%202025%20Financial%20Results) [Q1 2025 Financial Highlights](index=1&type=section&id=Q1%202025%20Financial%20Highlights) Universal Logistics experienced a significant decline in Q1 2025 financial performance, marked by substantial drops in net income and operating revenues Q1 2025 vs Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Operating Revenues | $382.4M | $491.9M | -22.3% | | Net Income | $6.0M | $52.5M | -88.6% | | Diluted EPS | $0.23 | $1.99 | -$1.76 | | Operating Income | $15.7M | $75.1M | -$59.4M | | Operating Margin | 4.1% | 15.3% | -11.2 p.p. | | EBITDA | $51.7M | $96.9M | -$45.2M | | EBITDA Margin | 13.5% | 19.7% | -6.2 p.p. | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Tim Phillips attributed the weak Q1 performance to a sluggish start, lower auto production, and persistent freight market weakness - The CEO identified several factors for the poor Q1 results: - A sluggish start to 2025 - Lower auto production - Sustained weakness in the freight market[3](index=3&type=chunk) - The company is implementing corrective measures, including improving underperforming operations and focusing on strategic customer acquisition to drive profitable growth[3](index=3&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Information) [Contract Logistics](index=1&type=section&id=Contract%20Logistics) The Contract Logistics segment saw an **18.4%** revenue decrease and a sharp decline in operating income, primarily due to a completed high-margin project Contract Logistics Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Revenues | $255.9M | $313.5M | | Income from Operations | $23.9M | $81.5M | | Operating Margin | 9.3% | 26.0% | - The recent acquisition of Parsec contributed **$56.4 million** to Q1 2025 revenues[4](index=4&type=chunk) - The decrease in operating income and margin is primarily attributed to the completion of a high-margin specialty development project in Stanton, TN, which contributed **$95.3 million** in revenue in Q1 2024[4](index=4&type=chunk) [Intermodal](index=2&type=section&id=Intermodal) The Intermodal segment experienced a **9.8%** revenue decline and a wider operating loss, driven by reduced load volumes and lower average revenue per load Intermodal Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Revenues | $70.7M | $78.4M | | Operating (Loss) | $(10.7)M | $(8.3)M | | Operating Margin | (15.1)% | (10.6)% | - Performance was negatively impacted by a **3.4%** decline in load volumes and an **8.7%** decrease in average operating revenue per load (excluding fuel)[7](index=7&type=chunk) [Trucking](index=2&type=section&id=Trucking) The Trucking segment's operating revenues decreased by **20.2%**, largely due to a significant drop in brokerage services revenue and lower load volumes Trucking Performance (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Operating Revenues | $55.6M | $69.7M | | Income from Operations | $2.2M | $3.7M | | Operating Margin | 3.9% | 5.3% | - Brokerage services revenue, included in this segment, decreased to **$18.0 million** from **$28.6 million** in the prior year[8](index=8&type=chunk) - Load volumes declined by **31.3%**, while average operating revenue per load (excluding fuel) increased by **24.3%**[8](index=8&type=chunk) [Shareholder Returns and Financial Position](index=2&type=section&id=Shareholder%20Returns%20and%20Financial%20Position) [Cash Dividend](index=2&type=section&id=Cash%20Dividend) The Board of Directors declared a quarterly cash dividend of **$0.105** per share, consistent with the prior year - A cash dividend of **$0.105** per share was declared[9](index=9&type=chunk) - The dividend is payable on July 1, 2025, to shareholders of record at the close of business on June 2, 2025[9](index=9&type=chunk) [Financial Position](index=2&type=section&id=Other%20Matters) As of March 29, 2025, Universal Logistics maintained **$20.6 million** in cash and **$740.0 million** in outstanding debt Financial Position as of March 29, 2025 | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $20.6M | | Marketable securities | $12.0M | | Outstanding debt | $740.0M | | Capital expenditures (Q1) | $52.6M | [Financial Statements](index=4&type=section&id=Financial%20Statements) [Unaudited Condensed Consolidated Statements of Income](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Income) The income statement for Q1 2025 shows a significant drop in total operating revenues and net income compared to the prior year Q1 2025 Condensed Income Statement (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total operating revenues | $382,390 | $491,907 | | Total operating expenses | $366,710 | $416,815 | | Income from operations | $15,680 | $75,092 | | Net income | $6,014 | $52,457 | | Diluted EPS | $0.23 | $1.99 | [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of March 29, 2025, indicates a slight increase in total assets, with total liabilities rising and shareholders' equity remaining stable Condensed Balance Sheet (in thousands) | Line Item | March 29, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets | $389,093 | $409,813 | | Total assets | $1,800,205 | $1,786,837 | | Total liabilities | $1,153,803 | $1,139,814 | | Total shareholders' equity | $646,402 | $647,023 | [Unaudited Summary of Operating Data](index=6&type=section&id=Unaudited%20Summary%20of%20Operating%20Data) This section details key operational metrics, including increased active programs in Contract Logistics and decreased load volumes in Intermodal and Trucking Q1 2025 vs Q1 2024 Key Operating Metrics | Segment & Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Contract Logistics** | | | | Number of active value-added programs | 87 | 71 | | **Intermodal** | | | | Number of loads | 101,470 | 105,037 | | Avg. revenue per load (ex-fuel) | $517 | $566 | | **Trucking** | | | | Number of loads | 28,622 | 41,691 | | Avg. revenue per load (ex-fuel) | $1,874 | $1,508 | [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) [EBITDA Reconciliation](index=8&type=section&id=EBITDA%20Reconciliation) The EBITDA reconciliation shows a significant decrease in Q1 2025 EBITDA and margin compared to Q1 2024, reflecting core operational performance EBITDA Reconciliation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $6,014 | $52,457 | | Income tax expense | $2,020 | $17,660 | | Interest expense, net | $8,224 | $6,079 | | Depreciation | $29,989 | $15,902 | | Amortization | $5,499 | $4,799 | | **EBITDA** | **$51,746** | **$96,897** | | **EBITDA margin** | **13.5%** | **19.7%** | - The company states that it presents EBITDA because it believes the measure helps investors and analysts compare performance on a consistent basis by excluding items not indicative of core operating performance[26](index=26&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) [Conference Call Information](index=3&type=section&id=Conference%20call) The company will host a conference call on April 25, 2025, to discuss the quarterly results, with dial-in details provided for participation - An earnings conference call is scheduled for 10:00 a.m. ET on Friday, April 25, 2025[13](index=13&type=chunk) [About Universal & Forward-Looking Statements](index=3&type=section&id=About%20Universal%20%26%20Forward%20Looking%20Statements) Universal Logistics Holdings provides customized transportation and logistics solutions, with the report including standard forward-looking statement disclaimers - Universal provides a variety of customized transportation and logistics solutions, including value-added, dedicated, intermodal, and trucking services throughout the United States, Mexico, Canada, and Colombia[14](index=14&type=chunk) - The press release includes forward-looking statements that are subject to risks and uncertainties, and the company assumes no obligation to update them[15](index=15&type=chunk)

Core Insights - Universal Logistics Holdings, Inc. reported a significant decline in net income for the first quarter of 2025, with net income of $6.0 million, down from $52.5 million in the same period last year, reflecting a decrease in operating revenues from $491.9 million to $382.4 million [1][6]. Financial Performance - Total operating revenues for the first quarter of 2025 were $382.4 million, representing a 22.3% decrease compared to the previous year [6]. - Operating income fell by $59.4 million to $15.7 million, with an operating margin of 4.1%, down from 15.3% year-over-year [2][6]. - EBITDA decreased by $45.2 million to $51.7 million, with an EBITDA margin of 13.5%, down from 19.7% in the prior year [2][24]. Segment Performance Contract Logistics - Operating revenues in the contract logistics segment decreased by 18.4% to $255.9 million, with income from operations down $57.6 million to $23.9 million, resulting in an operating margin of 9.3%, down from 26.0% [4][7]. Intermodal - The intermodal segment saw a 9.8% decrease in operating revenues to $70.7 million, with an operating loss of $(10.7) million, compared to a loss of $(8.3) million the previous year [5][8]. Trucking - Trucking segment revenues decreased by 20.2% to $55.6 million, with income from operations falling to $2.2 million and an operating margin of 3.9%, down from 5.3% [10][16]. Strategic Outlook - The CEO of Universal Logistics indicated that the first quarter performance was impacted by lower auto production and a weak freight market, but expressed confidence in the company's business model and ongoing efforts to improve underperforming operations and acquire strategic customers [3]. Dividend Announcement - The Board of Directors declared a cash dividend of $0.105 per share, payable on July 1, 2025, to shareholders of record as of June 2, 2025 [11]. Balance Sheet Highlights - As of March 29, 2025, the company held cash and cash equivalents of $20.6 million and marketable securities of $12.0 million, with total outstanding debt of $740.0 million [12][19].