Hub Group Reports Second Quarter 2025 Results

Core Insights - Hub Group, Inc. reported a net income of $25 million for Q2 2025, with diluted earnings per share (EPS) of $0.42, reflecting a decrease in adjusted net income of 6.2% from the previous year [2][4][8] - The company is focused on improving productivity and customer service while navigating challenging market conditions, with a positive outlook on long-term growth opportunities [3][11] Financial Performance - Consolidated revenue for Q2 2025 was $906 million, an 8% decrease from $986 million in Q2 2024, driven by lower revenue per unit in intermodal and brokerage, decreased fuel revenue, and sub-seasonal demand [4][8] - Adjusted operating income for Q2 2025 was $37 million, or 4.1% of revenue, compared to $39.5 million, or 4.0% of revenue, in the prior year [6][9] - The company returned $29 million to shareholders year-to-date through dividends and stock repurchases [10][12] Segment Performance - The Intermodal and Transportation Solutions (ITS) segment generated revenue of $528 million in Q2 2025, down from $561 million in the prior year, with operating income of $14.4 million [7][9] - The Logistics segment reported revenue of $404 million, down from $459 million in the prior year, attributed to lower volume and revenue per load in the brokerage business [8][9] Cost Management - Purchased transportation and warehousing costs were $656 million, a 10% decrease from the prior year, while salaries and benefits increased by 1% to $143 million [5][6] - General and administrative expenses rose due to vendor settlements, while depreciation and amortization costs decreased by 14% to $32 million [5][6] Strategic Initiatives - Hub Group announced an agreement to acquire certain assets from Marten Intermodal, reflecting its opportunistic capital deployment strategy [3][8] - The proposed combination of Union Pacific and Norfolk Southern is viewed as a catalyst for growth, enhancing intermodal transportation capabilities [11] 2025 Outlook - The company expects diluted EPS for 2025 to range from $1.80 to $2.05, with estimated revenue between $3.6 billion and $3.8 billion [12]