Hub (US:HUBG)2025-11-05 19:44Revenue Performance - Total operating revenue decreased by 5% to $934 million in Q3 2025 from $987 million in Q3 2024[81] - Total operating revenue decreased by 7% to $2.76 billion in 2025 from $2.97 billion in 2024[97] - Intermodal and Transportation Solutions (ITS) revenue increased slightly to $561 million, while Logistics revenue decreased by 13% to $402 million[82][83] - Intermodal and Transportation Solutions revenue decreased by 3% to $1.62 billion, while operating income increased by 10% to $44 million[99] - Logistics revenue decreased by 13% to $1.22 billion, with operating income remaining consistent at $67 million[100] Operating Income and Expenses - ITS operating income rose by 17% to $16 million, representing 3% of revenue, compared to 2% of revenue in the prior year[82] - Logistics operating income increased by 27% to $24 million, or 6% of revenue, due to cost controls and exiting unprofitable business[84] - Purchased transportation and warehousing costs decreased by 8% to $684 million in 2025 from $740 million in 2024[86] - Purchased transportation and warehousing costs decreased by 10% to $2.00 billion in 2025 from $2.21 billion in 2024[102] - Salaries and benefits remained consistent at $143 million, but as a percentage of revenue, it increased to 15.3% in 2025 from 14.5% in 2024[88] - Salaries and benefits increased to $436 million in 2025 from $429 million in 2024, representing 15.8% of revenue[103] - Depreciation and amortization expense decreased to $96 million in 2025 from $108 million in 2024, accounting for 3.5% of revenue[105] Net Income and Taxation - Net income for Q3 2025 was $28.9 million, or 3.1% of revenue, compared to $23.6 million, or 2.5% of revenue, in Q3 2024[85] - Net income increased to $81 million in 2025 from $79 million in 2024, representing 3.0% of total revenue[101] - The provision for income taxes increased to $10 million in 2025 from $7 million in 2024, with an effective tax rate of 24.9%[95] Cash Flow and Financial Position - Cash provided by operating activities was $160 million in 2025, a decrease of $34 million compared to 2024[114] - Net cash used in investing activities was $87 million, including capital expenditures of $39 million and container asset purchases of $53 million[115] - As of September 30, 2025, the company had $120 million in cash and cash equivalents, with no borrowings under the Credit Agreement[112][121] Customer Concentration - Hub's top 50 customers accounted for approximately 68% of revenue for the nine months ended September 30, 2025[78] Headcount - Headcount increased to 6,604 as of September 30, 2025, primarily due to the acquisition of EASO[89]