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Hub Group Reports First Quarter 2025 Results
Globenewswireยท 2025-05-08 20:05
Core Insights - Hub Group, Inc. reported first quarter 2025 net income of $27 million, maintaining diluted earnings per share at $0.44, consistent with the same quarter in 2024 [2][11] - The company achieved an operating income margin of 4.1%, reflecting a 40-basis point improvement year-over-year, driven by yield management and cost containment efforts [3][6] Financial Performance - Consolidated revenue for Q1 2025 was $915 million, an 8% decline from $999 million in Q1 2024, primarily due to lower revenue per unit in intermodal and brokerage, decreased fuel revenue, and slowing shipping patterns [4][11] - Purchased transportation and warehousing costs decreased by 11% to $658 million, while salaries and benefits increased by 3% to $149 million [5] - Operating income for the quarter was $37 million, representing 4.1% of revenue, with EBITDA reported at $85 million [6][11] Segment Performance - The Intermodal and Transportation Solutions (ITS) segment generated revenue of $530 million, down from $552 million in the prior year, but operating income increased to $14 million due to cost control measures [7] - The Logistics segment reported revenue of $411 million, down from $480 million, with operating income improving to $23 million, reflecting positive contributions from consolidation and fulfillment despite lower brokerage margins [8] Capital and Outlook - Capital expenditures for Q1 2025 totaled $19 million, with cash reserves at $141 million as of March 31, 2025 [9][11] - The company projects diluted earnings per share for 2025 to range from $1.75 to $2.25, with estimated revenue between $3.6 billion and $4.0 billion [12]