Hub Group Reports Fourth Quarter 2024 Results

Core Insights - Hub Group, Inc. reported a fourth quarter 2024 net income of $24 million, with diluted earnings per share (EPS) of $0.40. Adjusted net income for the quarter was $29 million, leading to an adjusted EPS of $0.48 [2][8] - The company experienced a full year 2024 net income of $104 million, or $1.70 per diluted share, with adjusted full year net income of $117 million, or $1.91 per diluted share [2][8] - The company anticipates 2025 revenue between $4.0 billion and $4.3 billion, with expected EPS ranging from $1.90 to $2.40 [12][8] Financial Performance - Fourth quarter consolidated revenue was $974 million, a 1% decline from $985 million in Q4 2023. Full year revenue decreased by 6% to $3.95 billion from $4.20 billion in 2023 [4][8] - The fourth quarter operating income was $32 million, representing 3.2% of revenue, with adjusted operating income of $38 million, or 3.9% of revenue, showing improvements from the previous year [6][8] - The company returned nearly $100 million to shareholders in 2024 through share repurchases and dividends [11][8] Segment Performance - The Intermodal and Transportation Solutions (ITS) segment reported fourth quarter revenue of $570 million, a 1% decline year-over-year, but operating income increased to $17 million, or 2.9% of revenue [7][8] - The Logistics segment's fourth quarter revenue was $429 million, down 2% from the prior year, with adjusted operating income of $20 million, or 4.6% of revenue, reflecting a 3% improvement [10][8] Cost Management - Fourth quarter purchased transportation and warehousing costs decreased by $19 million to $723 million, attributed to lower rail and third-party warehouse costs [5][8] - Salaries and benefits increased by $13 million to $148 million due to acquisitions and normalized bonus expenses, while total legacy headcount declined by 3% [5][8] Strategic Initiatives - The company completed a joint venture with EASO to enhance intermodal capabilities in Mexico, aiming for long-term growth [3][8] - Hub Group's strategic priorities focus on disciplined market approaches and operational efficiencies to drive future growth [3][8]