Core Insights - Universal Logistics Holdings reported a significant net loss of $74.8 million, or $2.84 per share, primarily due to an $81.2 million impairment charge related to customer relationships [1][2] - The company indicated potential for further impairments in a filing with the Securities and Exchange Commission [1] Financial Performance - Excluding the impairment charge, consolidated operating income was $7 million, reflecting an 85% decrease year-over-year [2] - Adjusted operating margin fell to 1.8%, down 910 basis points year-over-year [2] - Adjusted EBITDA decreased by 44% year-over-year to $43 million [2] - Consolidated revenue was $397 million, a 7% decline year-over-year [3] Segment Performance - The contract logistics unit generated $264 million in revenue, an 8% increase year-over-year, with value-added services revenue up 13% [4] - The unit's operating margin was 5.2%, down over 13 percentage points year-over-year [5] - Intermodal revenue decreased by 17% year-over-year to $65 million, with a $10.7 million adjusted operating loss [6] - The trucking unit reported $68 million in revenue, a 22% decline year-over-year, with a 5.8% operating margin, down 240 basis points year-over-year [7] Management Commentary - CEO Tim Phillips emphasized that despite the non-cash impairment charges, the core business model remains intact [2] - The company is focused on operational improvements in the intermodal segment to return it to profitability [6] - The strong demand for specialized heavy-haul services is helping to mitigate the impact of a weak trucking market [7]

Earnings Performance - Universal Logistics (ULH) reported quarterly earnings of $0.24 per share, exceeding the Zacks Consensus Estimate of $0.18 per share, but down from $1.01 per share a year ago, indicating an earnings surprise of +33.33% [1] - The company posted revenues of $396.79 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.95% and down from $426.83 million year-over-year [2] Stock Performance - Universal Truckload shares have declined approximately 65.6% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] - The current Zacks Rank for Universal Truckload is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $422.8 million, and for the current fiscal year, it is $1.00 on revenues of $1.6 billion [7] - The Transportation - Services industry is currently ranked in the bottom 10% of over 250 Zacks industries, which may negatively impact stock performance [8]

Core Insights - Universal Logistics Holdings, Inc. reported consolidated operating revenues of $396.8 million for Q3 2025, with a net loss of $74.8 million and earnings per share of $(2.84) [1][9]. Financial Performance - The reported loss includes non-cash impairment charges of $81.2 million, primarily from the intermodal segment, which consisted of $58.0 million in goodwill impairment and $23.2 million related to customer-relationship intangible assets [2]. - For comparison, Q3 2024 showed total operating revenues of $426.8 million, net income of $26.5 million, and earnings per share of $1.01, with prior impairment charges of $3.7 million [3]. - Excluding impairment charges, adjusted income from operations was $7.0 million, with an adjusted operating margin of 1.8%, down from 10.9% in Q3 2024 [4]. - Adjusted EBITDA for Q3 2025 was $43.3 million, with an adjusted EBITDA margin of 10.9%, compared to $76.6 million and 18.0% in the same period last year [5]. Segment Performance - In the contract logistics segment, operating revenues increased by 7.8% to $264.4 million, with a decrease in income from operations to $13.7 million from $45.6 million year-over-year [8][10]. - The intermodal segment saw a 16.7% decrease in operating revenues to $64.7 million, with an operating loss of $(92.0) million, significantly impacted by impairment charges [12][17]. - The trucking segment's operating revenues decreased by 22.2% to $67.7 million, with an operating income of $3.9 million, down from $7.1 million in the previous year [13][18]. Cash and Dividends - The company declared a cash dividend of $0.105 per share, payable on January 2, 2026, to shareholders of record as of December 1, 2025 [14]. Future Outlook - For Q4 2025, the company expects operating revenues between $365 million and $385 million, with operating margins ranging from 4% to 6% and EBITDA margins between 12% and 14% [15].

Core Points - Universal Logistics Holdings, Inc. has postponed the release of its third quarter financial results for the period ended September 27, 2025, which was originally scheduled for October 23, 2025, to allow additional time for financial reporting procedures related to non-cash impairment charges on intangible assets in its intermodal segment [1] - The investor conference call that was set for October 24, 2025, at 10:00 a.m. ET has also been postponed [1] - A new date and time for the earnings release and conference call will be announced once the financial reporting process is complete [2] Company Overview - Universal Logistics Holdings, Inc. is a holding company with subsidiaries providing customized transportation and logistics solutions across the United States, Mexico, Canada, and Colombia [3] - The company offers a wide range of supply chain solutions that can be scaled to meet changing demands, including value-added, dedicated, intermodal, and trucking services [3]

Core Points - Universal Logistics Holdings, Inc. plans to release its third quarter 2025 financial results on October 23, 2025, after market close [1] - The quarterly earnings conference call is scheduled for October 24, 2025, at 10:00 a.m. Eastern Time [1] - The company provides a variety of customized transportation and logistics solutions across the United States, Mexico, Canada, and Colombia [2] Financial Information - The company reported a consolidated net income of $8.3 million for the second quarter of 2025, equating to $0.32 per basic share [6]

Core Insights - Universal Logistics Holdings reported significant declines in net income and operating income for fiscal Q2 2025, with net income dropping to $8.3 million from $30.7 million in the same quarter last year, reflecting ongoing financial pressures across its segments [4][26][11] Financial Performance - Net income for Q2 2025 was $8.3 million, or 32¢ per diluted share, down from $30.7 million, or $1.17 per share in Q2 2024 [4][26] - Operating income decreased to $19.9 million from $47.1 million year-over-year, resulting in an operating margin of 5.1% compared to 10.2% in Q2 2024 [4][26] - EBITDA fell to $56.2 million, down $28.6 million from $84.8 million in the prior year, with an EBITDA margin of 14.3%, down from 18.4% [5][26] Segment Performance - The contract logistics segment generated $260.6 million in revenue, with operating income of $21.8 million (8.4% margin), down from $263.6 million and $52.9 million (20.1% margin) in Q2 2024 [5][27] - Trucking revenues decreased to $64.1 million from $91.4 million, driven by a 22.6% drop in load volumes and an 8.9% decrease in revenue per load, while operating margin improved to 5.2% from 4.8% [6][20] - The intermodal segment saw revenues decline to $68.9 million from $79.7 million, with load volumes down nearly 13% year-over-year, but the operating loss narrowed to $5.7 million from $10.7 million in the previous quarter [7][21] Strategic Initiatives - The company is focusing on cost discipline and operational streamlining, with an expanded sales organization and a new customer relationship management platform to enhance visibility into a $1 billion sales pipeline [8][24] - Management anticipates Q3 2025 revenues between $390 million and $410 million, with operating margins of 5%-7% and EBITDA margins of 14%-16% [8][30] - Capital expenditures for 2025 are projected at $100 million to $125 million for equipment and $50 million to $65 million for real estate [9][30] Market Outlook - Management expects a cyclical uplift in intermodal volume in Q3 2025, driven by potential pent-up ordering from discount retailers, although visibility beyond this period remains limited [14][12] - The company aims to return the intermodal segment to profitability by Q3 or Q4 2025, contingent on sales execution and cost rationalization [13][12] - The trucking segment is expected to face challenges due to a soft market, but there is optimism regarding specialized freight opportunities, particularly in wind energy [20][52]

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]