Universal(ULH) - 2025 Q2 - Quarterly Results

Financial Highlights 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 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] - The intermodal segment continues to underperform, but the company is making progress on profitability initiatives, narrowing losses on a quarter-over-quarter basis[3] - The company remains committed to customer service and strategic investments for long-term growth[3] Segment Performance Analysis Q2 2025 segment performance was mixed, with Contract Logistics' operating income dropping, Intermodal narrowing its loss, and Trucking facing revenue declines Contract Logistics 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] 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] 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] Financial Position and Shareholder Returns 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] 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 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 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 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 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 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][26] 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% |