Hub Group Reports Second Quarter 2025 Results

Highlights:

• GAAP diluted earnings per share (EPS) of $0.42 for the second quarter
• Second quarter revenue of $905.6 million
• Non-GAAP adjusted EPS of $0.45, which excludes adjustments for vendor settlements in the quarter
• Operating income of $34 million or 3.8% of revenue, adjusted operating income (non-GAAP) of $36.9 million or 4.1% of revenue
• Returned $29 million to shareholders year-to-date through dividend payments of $15 million and stock repurchases of $14 million
• Strong balance sheet with net debt/EBITDA LTM (non-GAAP) of 0.3x as of June 30, 2025
• Proposed Union Pacific and Norfolk Southern combination a catalyst for growth
  
  

OAK BROOK, Ill., July 31, 2025 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced second quarter 2025 net income of $25 million and diluted earnings per share of $0.42. Adjusting for vendor settlement expenses of $2.6 million (pre-tax), second quarter 2025 adjusted net income (non-GAAP) of $27.0 million decreased 6.2% from the prior year net income of $29.0 million. Adjusted EPS (non-GAAP) of $0.45 per diluted share decreased $0.02 from $0.47 EPS reported in the second quarter of 2024.

“The team continues to navigate this operating environment with a focus on serving customers, improving productivity, and leveraging growth investments. Intermodal margin performance and new customer wins for the Final Mile business reflect success with our approach. Hub Group has made progress with cost-saving initiatives and remains opportunistic with capital deployment as reflected in the announced agreement to acquire certain assets from Marten Intermodal. Although market conditions remain challenging, higher margin and free cash flow performance from cycle trough-to-trough highlight the benefits of our strategy and execution, and we remain optimistic on the long-term growth opportunity,” said Phil Yeager, Hub Group’s President, Chief Executive Officer and Vice Chairman.

Second Quarter 2025 Results

Consolidated revenue for the second quarter of 2025 was $906 million, an 8% decrease from $986 million reported in the second quarter of 2024. Intermodal volume growth of 2% was offset by lower revenue per unit in intermodal and brokerage, decreased fuel revenue, and sub-seasonal demand across segments.

Purchased transportation and warehousing costs of $656 million were 10% lower than prior year. Salaries and benefits of $143 million were 1% higher than prior year driven by additional warehouse and driver team members and the EASO acquisition. Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined 3% from prior year. Depreciation and amortization of $32 million decreased 14% from prior year. Insurance and claims of $11 million decreased 16% due to lower claims costs in the quarter. General and administrative expenses increased from prior year due to the impact from vendor settlements in the quarter.

GAAP operating income for the second quarter was $34 million or 3.8% of revenue and adjusted operating income (non-GAAP) was $37 million or 4.1% of revenue. Prior year operating income was $39.5 million or 4.0% of revenue. Adjusted EBITDA (non-GAAP) for the second quarter was $85 million. Net debt/EBITDA LTM (non-GAAP) was 0.3x for the second quarter, below the leverage target range of 0.75 to 1.25x.

Intermodal and Transportation Solutions (“ITS”) Segment revenue was $528 million in the second quarter, down from $561 million in the prior year due to intermodal mix, price and fuel impacts, along with lower dedicated revenue. ITS operating income was $14.4 million, or 2.7% of revenue, up from $13.6 million in the prior year.

Second quarter Logistics Segment revenue was $404 million, down from $459 million in the prior year due to lower volume and revenue per load in our brokerage business, exiting of unprofitable business in consolidation and fulfilment, and sub-seasonal demand in managed transportation and final mile businesses. GAAP Logistics operating income was $20 million, or 4.9% of revenue. Adjusted Logistics operating income (non-GAAP) was $23 million, or 5.6% of revenue, down from $26 million in the prior year, due to a lower brokerage margin.

Capital expenditures for the second quarter of 2025 totaled $11 million and decreased sequentially due to lower tractor fleet investment. As of June 30, 2025, we had cash and restricted cash of $164 million. Year-to-date the company returned $29 million to shareholders through dividend payments of $15 million and stock repurchases of $14 million.

Proposed Union Pacific and Norfolk Southern Combination

We are supportive of our rail partners Union Pacific and Norfolk Southern in their announced plan to form America’s first transcontinental railroad. Throughout Hub Group’s history, we have remained committed to serving customers and realizing the potential of intermodal transportation. The announced transaction would further accelerate our long-term growth opportunity. Specifically, a transcontinental network removes friction in gateways, reduces transit times, provides access to new markets, and increases competition with truck volume through new single-line service. We remain focused on executing our strategy and will stay in close communication with our rail partners.

2025 Outlook

We expect 2025 diluted earnings per share will range from $1.80 to $2.05. We estimate revenue of approximately $3.6 billion to $3.8 billion for the full year. We project an effective tax rate of approximately 24.5% and capital expenditures in the range of $40 million to $50 million for the full year.

Non-GAAP Financial Measures

In this press release, we present certain non-GAAP financial measures, including adjusted EPS, adjusted operating income, adjusted EBITDA, and net debt/EBITDA. As required by the rules of the Securities and Exchange Commission (“SEC”), we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP, along with an explanation why management believes these non-GAAP financial measures provide relevant and useful information. These non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to non-GAAP measures that may be presented by other companies.

Certain Forward-Looking Statements:

Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect Hub Group’s business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in Hub Group’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.

Conference Call

Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on July 31, 2025, to discuss our Second quarter 2025 results. Hosting the conference call will be Phil Yeager, President, CEO and Vice Chairman and Kevin Beth, Executive Vice President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link on Hub Group’s web site at www.hubgroup.com. The webcast is listen-only. Those interested in participating in the question-and-answer session should follow the telephone dial-in instructions below.

To participate in the conference call by telephone, please pre-register https://register-conf.media-server.com/register/BI812532441b224285a8849232f987af30  to receive the dial-in number and unique PIN. On the day of the call, dial in approximately ten minutes prior to the scheduled call time and enter the unique participant PIN received during registration. The call will be limited to 60 minutes, including questions and answers. An audio replay will be available through the Investors link on the Company's web site at www.hubgroup.com. This replay will be available for 30 days.

About Hub Group

Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers’ needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers’ supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with approximately $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of “The Way Ahead” – a commitment to service, integrity and innovation. For more information, visit hubgroup.com.

SOURCE: Hub Group, Inc.
CONTACT: Garrett Holland, GHolland@hubgroup.com

HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
(unaudited)
			Three Months Ended June 30,
				2025						2024
						% of						% of
			Amount			Revenue			Amount			Revenue
Operating revenue			$	905,648		100.0	%		$	986,495		100.0	%
Operating expenses:
	Purchased transportation and warehousing			655,904		72.4	%			727,236		73.7	%
	Salaries and benefits			143,310		15.8	%			141,856		14.4	%
	Depreciation and amortization			32,387		3.6	%			37,772		3.8	%
	Insurance and claims			10,644		1.2	%			12,639		1.3	%
	General and administrative			28,925		3.2	%			27,877		2.8	%
	Loss (gain) on sale of assets, net			130		0.0	%			(413	)	-0.0	%
Total operating expenses				871,300		96.2	%			946,967		96.0	%
Operating income				34,348		3.8	%			39,528		4.0	%
Other income (expense):
	Interest expense, net			(2,129	)	-0.2	%			(1,881	)	-0.2	%
	Other, net			728		-0.0	%			(66	)	-0.0	%
Total other expense, net				(1,401	)	-0.2	%			(1,947	)	-0.2	%
Income before provision for income taxes				32,947		3.6	%			37,581		3.8	%
Provision for income taxes				7,916		0.9	%			8,566		0.9	%
Net income				25,031						29,015
Less: Net loss attributable to non-controlling interests				(216	)					-
Net income attributable to Hub Group, Inc.			$	25,247					$	29,015
Earnings per share
	Basic		$	0.42					$	0.48
	Diluted		$	0.42					$	0.47
Basic weighted average number of shares outstanding				60,002						60,710
Diluted weighted average number of shares outstanding				60,210						61,108

HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
(unaudited)
			Six Months Ended June 30,
				2025						2024
						% of						% of
			Amount			Revenue			Amount			Revenue
Operating revenue			$	1,820,864		100.0	%		$	1,985,988		100.0	%
Operating expenses:
	Purchased transportation and warehousing			1,313,827		72.2	%			1,467,408		73.9	%
	Salaries and benefits			292,723		16.1	%			286,352		14.4	%
	Depreciation and amortization			64,966		3.5	%			76,103		3.8	%
	Insurance and claims			21,526		1.2	%			25,257		1.3	%
	General and administrative			56,070		3.1	%			55,111		2.8	%
	Loss (gain) on sale of assets, net			65		0.0	%			(910	)	-0.1	%
Total operating expenses				1,749,177		96.1	%			1,909,321		96.1	%
Operating income				71,687		3.9	%			76,667		3.9	%
Other income (expense):
	Interest expense, net			(4,121	)	-0.2	%			(4,387	)	-0.2	%
	Other, net			1,023		0.1	%			(236	)	-0.0	%
Total other expense, net				(3,098	)	-0.1	%			(4,623	)	-0.2	%
Income before provision for income taxes				68,589		3.8	%			72,044		3.7	%
Provision for income taxes				16,363		0.9	%			15,976		0.8	%
Net income				52,226						56,068
Less: Net income attributable to non-controlling interests				131						-
Net income attributable to Hub Group, Inc.			$	52,095					$	56,068
Earnings per share
	Basic		$	0.87					$	0.92
	Diluted		$	0.86					$	0.91
Basic weighted average number of shares outstanding				60,096						61,018
Diluted weighted average number of shares outstanding				60,314						61,387

HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
						June 30,				December 31,
							2025				2024
						(unaudited)
ASSETS
	CURRENT ASSETS:
		Cash and cash equivalents				$	137,048			$	98,248
		Restricted cash					26,553				28,700
		Accounts receivable trade, net					541,554				581,516
		Accounts receivable other					11,887				10,880
		Prepaid taxes					11,060				15,115
		Prepaid expenses and other current assets					17,337				33,870
				TOTAL CURRENT ASSETS			745,439				768,329
	Restricted investments						20,005				21,642
	Property and equipment, net						725,200				739,896
	Right-of-use assets - operating leases						219,925				233,651
	Right-of-use assets - financing leases						731				1,062
	Other intangibles, net						259,300				267,357
	Goodwill						804,019				814,309
	Other non-current assets						25,432				22,097
				TOTAL ASSETS		$	2,800,051			$	2,868,343
LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES:
		Accounts payable trade				$	235,295			$	279,982
		Accounts payable other					31,260				29,069
		Accrued payroll					26,820				32,833
		Accrued other					90,337				91,441
		Lease liability - operating leases					44,006				45,492
		Lease liability - financing leases					569				663
		Current portion of long-term debt					97,641				100,001
				TOTAL CURRENT LIABILITIES			525,928				579,481
	Deferred consideration						28,356				30,639
	Long-term debt						134,279				164,361
	Other non-current liabilities						51,551				51,004
	Lease liability - operating leases						186,033				197,664
	Lease liability - financing leases						96				330
	Deferred taxes						147,600				152,913
	STOCKHOLDERS' EQUITY:
		Preferred stock, $.01 par value; 2,000,000 shares authorized;
			no shares issued or outstanding in 2025 and 2024.				-				-
		Common stock
			Class A: $.01 par value; 97,337,700 shares authorized; 72,303,228
				shares issued in both 2025 and 2024; 60,641,237 shares outstanding in 2025
				and 60,746,745 shares outstanding in 2024.			723				723
			Class B: $.01 par value; 662,300 shares authorized; 574,903 shares issued and
				outstanding in both 2025 and 2024.			6				6
		Additional paid-in capital					216,107				222,039
		Retained earnings					2,059,244				2,022,265
		Accumulated other comprehensive loss					2,672				(1,453	)
		Treasury stock; at cost, 11,661,991 shares in 2025 and 11,556,483 shares in 2024					(603,793	)			(598,583	)
			Total Hub Group, Inc. equity				1,674,959				1,644,997
		Non-controlling interests					51,249				46,954
			TOTAL STOCKHOLDERS' EQUITY				1,726,208				1,691,951
				TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,800,051			$	2,868,343

HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
						Six Months Ended June 30,
							2025				2024
Cash flows from operating activities:
	Net income					$	52,226			$	56,068
	Adjustments to reconcile net income
		to net cash provided by operating activities:
			Depreciation and amortization of intangibles and right-of-use assets				94,448				99,100
			Deferred taxes				(4,191	)			(9,249	)
			Non-cash share-based compensation expense				9,345				9,433
			Loss (gain) on sale of assets, net				65				(910	)
	Changes in operating assets and liabilities, net of acquisitions:
			Restricted investments				640				(281	)
			Accounts receivable, net				41,251				15,784
			Prepaid taxes				4,191				4,537
			Prepaid expenses and other current assets				16,910				19,697
			Other non-current assets				(4,445	)			(1,503	)
			Accounts payable				(43,705	)			(14,270	)
			Accrued expenses				(13,552	)			(6,542	)
			Non-current liabilities				(21,647	)			(21,399	)
				Net cash provided by operating activities			131,536				150,465
Cash flows from investing activities:
	Proceeds from sale of equipment						4,056				5,750
	Purchases of property and equipment						(30,480	)			(31,255	)
	Acquisitions, net of cash acquired						-				3,701
				Net cash used in investing activities			(26,424	)			(21,804	)
Cash flows from financing activities:
	Repayments of long term debt						(51,729	)			(53,233	)
	Purchase of treasury stock						(13,814	)			(32,938	)
	Dividends paid						(15,000	)			(15,230	)
	Stock withheld for payments of withholding taxes						(6,673	)			(8,664	)
	Finance lease payments						(328	)			(1,217	)
	Proceeds from issuance of debt						19,103				15,618
				Net cash used in financing activities			(68,441	)			(95,664	)
	Effect of exchange rate changes on cash and cash equivalents						(18	)			(20	)
Net increase in cash and cash equivalents							36,653				32,977
Cash and cash equivalents beginning of period							126,948				187,270
Cash and cash equivalents end of period						$	163,601			$	220,247

HUB GROUP, INC.
FINANCIAL INFORMATION BY SEGMENT (NON-GAAP)
(in thousands)
(unaudited)
	Three Months Ended June 30,
						NON-GAAP
				NON-GAAP		Adjusted
Operating Revenue		2025		Adjustments (1)			2025				2024
Intermodal and Transportation Services	$	528,184		$	-	$	528,184			$	561,033
Logistics		404,310			-		404,310				459,088
Inter-segment eliminations		(26,846	)		-		(26,846	)			(33,626	)
Total operating revenue	$	905,648		$	-	$	905,648			$	986,495
	Three Months Ended June 30,
						NON-GAAP
				NON-GAAP		Adjusted
Operating Income		2025		Adjustments (1)			2025				2024
Intermodal and Transportation Services	$	14,407				$	14,407			$	13,639
Logistics		19,941			2,575		22,516				25,889
Total operating income	$	34,348		$	2,575	$	36,923			$	39,528
	Three Months Ended June 30,
						NON-GAAP
				NON-GAAP		Adjusted
Depreciation and Amortization		2025		Adjustments (1)			2025				2024
Intermodal and Transportation Services	$	22,043		$	-	$	22,043			$	27,270
Logistics		10,344			-		10,344				10,502
Total depreciation and amortization	$	32,387		$	-	$	32,387			$	37,772
(1) See Reconciliation of GAAP to Non-GAAP Financial Measures for further discussion.

HUB GROUP, INC.
FINANCIAL INFORMATION BY SEGMENT (NON-GAAP)
(in thousands)
(unaudited)
	Six Months Ended June 30,
Operating Revenue		2025		Non-GAAP Adjustments (1)		Non-GAAP Adjusted 2025					2024
Intermodal and Transportation Services	$	1,058,206			-		1,058,206			$	1,113,066
Logistics		815,311			-		815,311				939,312
Inter-segment eliminations		(52,653	)		-		(52,653	)			(66,390	)
Total operating revenue	$	1,820,864			-		1,820,864			$	1,985,988
	Six Months Ended June 30,
						Non-GAAP
				Non-GAAP		Adjusted
Operating Income		2025		Adjustments (1)			2025				2024
Intermodal and Transportation Services	$	28,457				$	28,457			$	26,670
Logistics		43,230			2,575		45,805				49,997
Total operating income	$	71,687		$	2,575	$	74,262			$	76,667
	Six Months Ended June 30,
Depreciation and Amortization		2025		Non-GAAP Adjustments (1)		Non-GAAP Adjusted 2025					2024
Intermodal and Transportation Services	$	44,068			-		44,068			$	54,319
Logistics		20,898			-		20,898				21,784
Total depreciation and amortization	$	64,966			-		64,966			$	76,103
(1) See Reconciliation of GAAP to Non-GAAP Financial Measures for further discussion.

HUB GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(unaudited)
The following is a reconciliation of GAAP earnings to Non-GAAP Adjusted Earnings, excluding certain items, for income before provision for income taxes (Pre-Tax), net income (After-Tax) and diluted earnings per share (Per Share):
		Three Months Ended												Six Months Ended
		June 30, 2025												June 30, 2025
		Pre-Tax				After-Tax				Per Share				Pre-Tax				After-Tax				Per Share
GAAP Earnings		$	32.9			$	25.0			$	0.42			$	68.6			$	52.2			$	0.86
Vendor settlements (i)			2.6				2.0			$	0.03				2.6				2.0			$	0.03
Non-GAAP Adjusted Earnings		$	35.5			$	27.0			$	0.45			$	71.2			$	54.2			$	0.89
By providing this measure of Non-GAAP Adjusted Earnings, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability.
(i) Vendor settlements includes vendor disputes related to our network alignment consolidation activities.

HUB GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(unaudited)
The following is a reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income, excluding certain items.
		Three Months Ended												Six Months Ended
		June 30, 2025												June 30, 2025
		ITS				Logistics				Consolidated				ITS				Logistics				Consolidated
GAAP Operating Income		$	14.4			$	19.9			$	34.3			$	28.5			$	43.2			$	71.7
Vendor settlements (i)		$	-			$	2.6			$	2.6			$	-			$	2.6			$	2.6
Non-GAAP Adjusted Operating Income		$	14.4			$	22.5			$	36.9			$	28.5			$	45.8			$	74.3
By providing this measure of Non-GAAP Adjusted Operating Income, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability.
(i) Vendor settlements includes vendor disputes related to our network alignment consolidation activities.

RECONCILIATION OF NET INCOME TO EBITDA (1) AND NET DEBT / EBITDA LEVERAGE
(in thousands)
(unaudited)
		2024				2024				2025				2025
	Q3				Q4				Q1				Q2				LTM (3)
Net Income	$	23,603			$	24,372			$	27,194			$	25,031			$	100,200
Interest Expense, net		1,333				1,858				1,992				2,129				7,312
Depreciation and Amortization (2)		46,374				47,088				47,046				47,402				187,910
Provision for Income Taxes		7,140				5,387				8,447				7,916				28,890
EBITDA	$	78,450			$	78,705			$	84,679			$	82,478			$	324,312
Network Alignment (i)	$	8,381			$	4,814			$	-			$	-			$	13,195
Transaction Related (ii)		947				1,194				-				-				2,141
Other (iii)		1,061				67				-				-				1,128
Vendor Settlements (iv)		-				-				-				2,575				2,575
Adjusted EBITDA	$	88,839			$	84,780			$	84,679			$	85,053			$	343,351
EBITDA LTM (3)	$	331,535			$	332,686			$	330,791			$	324,312
Net Debt (4)	$	102,105			$	167,106			$	140,223			$	95,537
Net Debt / EBITDA LTM		0.3				0.5				0.4				0.3
Adjusted EBITDA LTM (3)	$	347,016			$	349,150			$	347,255			$	343,351
Net Debt / Adjusted EBITDA LTM		0.3				0.5				0.4				0.3
(1)   By providing this Non-GAAP measure of EBITDA and Net Debt / EBITDA Leverage, management intends to provide investors with a meaningful, consistent comparison of the Company's profitability and leverage for the periods presented.
(2)   Includes depreciation of property and equipment, amortization of intangible assets and amortization of right-of-use assets.
(3)   Last twelve months
(4)   Total debt (including finance leases) less cash and cash equivalents
(i) Network Alignment expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business.
(ii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the forming of a joint venture with EASO in 2024 and the acquisition of Forward Air Final Mile in 2023.
(iii) Other includes non-ordinary expenses related to employee matters.
(iv) Vendor settlements includes vendor disputes related to our network alignment consolidation activities.

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