Financial Data and Key Metrics Changes - For the full year, Hub Group generated revenue of $4 billion, a 6% decrease from the prior year [13] - Fourth quarter revenue was $1 billion, a decline of 1% compared to last year's quarterly revenue [13] - Adjusted operating income margin for the fourth quarter was 3.9%, an increase of 40 basis points over the prior year [15] - Adjusted EPS for the fourth quarter was $0.48, with adjusted cash EPS of $0.59 [17] - The company returned nearly $100 million to shareholders through dividends and stock repurchases in 2024 [17] Segment Performance Changes - Intermodal segment revenue was $570 million, down 1% from the prior year, despite a 14% increase in intermodal volume [14] - Logistics revenue was $429 million, compared to $438 million in the prior year, with a 20 basis point improvement in operating margins [10][14] - Dedicated segment increased revenue per truck per day by 13%, meeting surging customer demand [9] Market Data and Key Metrics Changes - Intermodal volumes increased 14% year over year in the fourth quarter, with Local East up 25% and Local West up 11% [8] - Revenue per load declined 9% year over year but was up 4% sequentially due to peak surcharges [8] - The company anticipates high single-digit intermodal volume growth and low single-digit price increases for the full year [20] Company Strategy and Industry Competition - The company is focused on controlling costs and enhancing efficiency while investing in future growth through joint ventures [6] - Strategic investments and exceptional service levels are expected to drive growth and improve profitability [11][22] - The company plans to continue pursuing M&A opportunities, particularly in non-asset logistics segments [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about industry trends, with capacity exiting the market and consumer resilience [6] - The company expects earnings to step down slightly from Q4 to Q1 due to lower peak season demand, followed by profitability increases as the year progresses [21] - Management highlighted strong demand in intermodal and logistics, with expectations for improved margins and revenue growth [11][20] Other Important Information - The company completed its warehouse network alignment, improving utilization and service levels [11] - Full year CapEx was $51 million, in line with estimates, and net debt was $167 million [17][18] - The company expects capital expenditures in the range of $50 million to $70 million for 2025 [19] Q&A Session Summary Question: Can you help shape the year? - Management expects intermodal volume to be comparable to Q4, with some headwinds from lower peak season surcharges and increased costs [25][27] Question: How do you view intermodal margins and pricing? - Management anticipates low single-digit price increases in intermodal, with a focus on network-friendly business [30][32] Question: What is the outlook for logistics margins? - Management expects to achieve a 100 basis point improvement in logistics margins, driven by restructuring efforts [39][41] Question: How is the M&A pipeline looking? - Management has a strong M&A pipeline focused on non-asset logistics segments and sees active opportunities [44][45] Question: What are the expectations for brokerage volume? - Management anticipates mid-single-digit volume growth in brokerage, with strong performance in LTL and specialized areas [111] Question: How is the company positioned for potential demand pull forward? - Management is monitoring customer demand closely and sees opportunities for conversion from truck to intermodal [52][102]