Hub (HUBG) - 2025 Q3 - Quarterly Results

Financial Performance - Hub Group reported third quarter 2025 net income of $29 million, with diluted earnings per share (EPS) of $0.47, a decrease from $0.52 in Q3 2024[2][8] - Consolidated revenue for Q3 2025 was $934 million, down 5% from $987 million in Q3 2024, attributed to lower Dedicated and Logistics revenue[4][8] - Adjusted net income (non-GAAP) for Q3 2025 was $30 million, a 6% decrease from $32 million in the prior year[2][4] - Operating income for Q3 2025 was $39 million, representing 4.2% of revenue, with adjusted operating income of $41 million or 4.4% of revenue[6][8] - Net income for the nine months ended September 30, 2025, was $81,153 thousand, compared to $79,671 thousand for the same period in 2024, reflecting an increase of 1.8%[28] - Total operating revenue for the nine months ended September 30, 2025, was $2,755,360 thousand, down from $2,972,880 thousand in 2024, indicating a decrease of 7.3%[33] - Total operating income for the nine months ended September 30, 2025, was $111,129 thousand, compared to $119,155 thousand in 2024, a decline of 6.7%[33] Segment Performance - Intermodal and Transportation Solutions (ITS) segment revenue was $561 million, stable compared to $560 million in the prior year, with adjusted operating income of $16 million[7][8] - Logistics segment revenue decreased to $402 million from $461 million in the prior year, due to lower volume and revenue per load[8][9] - GAAP operating income for the three months ended September 30, 2025, was $15.9 million for ITS Logistics and $23.6 million consolidated[41] - Non-GAAP adjusted operating income for the same period was $16.1 million for ITS Logistics and $24.6 million consolidated[41] Cash and Capital Management - Capital expenditures for Q3 2025 totaled $9 million, with cash and restricted cash of $147 million as of September 30, 2025[10][8] - Cash and cash equivalents at the end of the period increased to $146,505 thousand from $126,948 thousand at the beginning, marking a rise of 15.4%[29] - Total current liabilities decreased to $535,001 thousand in September 2025 from $579,481 thousand in December 2024, a reduction of 7.7%[25] - The company repurchased treasury stock costing $13,814 thousand during the nine months ended September 30, 2025, compared to $68,273 thousand in the same period of 2024, a decrease of 79.7%[29] Debt and Equity - Net debt/EBITDA LTM (non-GAAP) was 0.4x for Q3 2025, below the leverage target range of 0.75x to 1.25x[6][8] - The company reported a total stockholders' equity of $1,755,555 thousand in September 2025, up from $1,691,951 thousand in December 2024, an increase of 3.8%[26] - The company’s accounts receivable trade, net, increased to $592,202 thousand in September 2025 from $581,516 thousand in December 2024, a rise of 1.2%[25] - Adjusted EBITDA for the last twelve months (LTM) was $342.292 million, with a net debt of $135.798 million[47] - The net debt to EBITDA LTM ratio was 0.4, indicating a stable leverage position[47] Future Outlook - Hub Group expects 2025 diluted EPS to range from $1.80 to $1.90, with estimated revenue of approximately $3.6 billion to $3.7 billion for the full year[11][8] Acquisitions and Expenses - The company closed on the acquisitions of Marten Transport Intermodal assets and SITH, LLC, enhancing its refrigerated intermodal business[3][8] - The company incurred $2.575 million in vendor settlements related to network alignment consolidation activities[47] - Transaction-related expenses included $1.298 million for the acquisition of SITH, LLC in 2025[50] Depreciation and Amortization - Depreciation and amortization for the nine months ended September 30, 2025, was $96,356 thousand, down from $108,489 thousand in 2024, a decrease of 11.2%[33] Earnings Summary - For the three months ended September 30, 2025, GAAP earnings were $38.5 million pre-tax and $28.9 million after-tax, with diluted earnings per share of $0.47[35] - Non-GAAP adjusted earnings for the same period were $39.7 million pre-tax and $29.8 million after-tax, with diluted earnings per share of $0.49[35] - For the nine months ended September 30, 2025, GAAP earnings totaled $107.1 million pre-tax and $81.2 million after-tax, with diluted earnings per share of $1.34[35] - Non-GAAP adjusted earnings for the nine months were $110.9 million pre-tax and $84.1 million after-tax, with diluted earnings per share of $1.39[35]