Hub Group Reports Third Quarter 2025 Results

Highlights:

OAK BROOK, Ill., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced third quarter 2025 net income of $29 million and diluted earnings per share of $0.47. Adjusting for certain expenses of $1.2 million (pre-tax), third quarter 2025 adjusted net income (non-GAAP) of $30 million decreased 6% from the prior year adjusted net income of $32 million. Adjusted EPS (non-GAAP) of $0.49 per diluted share decreased $0.03 from $0.52 of adjusted EPS reported in the third quarter of 2024.

“During the third quarter, Hub Group continued to navigate softer demand across freight markets. Intermodal profitability and revenue per load increased sequentially and from prior year. The Logistics operating margin also improved, and Hub Group started onboarding recent Final Mile awards. Our continuous improvement approach to expense management helped offset the impact of lower revenue. The recent addition of Marten Intermodal accelerates the momentum of our refrigerated intermodal business, and our strong balance sheet and free cash flow generation provide significant capital flexibility. We remain focused on serving customers and realizing the intermodal growth potential for Hub Group in collaboration with our rail partners Union Pacific and Norfolk Southern. Hub Group is well positioned to deliver accelerating growth and further improvement in margin performance,” said Phil Yeager, Hub Group’s President, Chief Executive Officer and Vice Chairman.

Third Quarter 2025 Results

Consolidated revenue for the third quarter of 2025 was $934 million, a 5% decrease from $987 million reported in the third quarter of 2024. Stable intermodal volume and higher intermodal revenue per unit were partially offset by lower Dedicated and Logistics revenue reflecting sub-seasonal demand and lower fuel revenue.

Purchased transportation and warehousing costs of $684 million were 8% lower than prior year. Salaries and benefits of $143 million were stable compared to prior year as lower headcount offset the impact from the EASO transaction. Depreciation and amortization of $31 million decreased 3% from prior year. Insurance and claims of $10 million increased just 1% from prior year due to safety performance and lower claims costs in the quarter. General and administrative expenses decreased 9% from prior year due to benefits from cost saving initiatives.

GAAP operating income for the third quarter was $39 million or 4.2% of revenue and adjusted operating income (non-GAAP) was $41 million or 4.4% of revenue. Prior year adjusted operating income was $42 million or 4.3% of revenue. Adjusted EBITDA (non-GAAP) for the third quarter was $88 million. Net debt/EBITDA LTM (non-GAAP) was 0.4x for the third quarter, below the leverage target range of 0.75x to 1.25x.

Intermodal and Transportation Solutions (“ITS”) Segment revenue was $561 million in the third quarter compared to $560 million in the prior year as growth in intermodal revenue was largely offset by lower dedicated revenue. GAAP ITS operating income was $16 million, or 2.8% of revenue. Adjusted ITS operating income (non-GAAP) was $16 million, or 2.9% of revenue, up from $15 million in the prior year.

Third quarter Logistics Segment revenue was $402 million, down from $461 million in the prior year due to lower volume and revenue per load in our brokerage business, a decrease in customer activity for consolidation and fulfillment, and soft demand in managed transportation and final mile businesses. GAAP Logistics operating income was $24 million, or 5.9% of revenue. Adjusted Logistics operating income (non-GAAP) was $25 million, or 6.1% of revenue, down from $28 million in the prior year, due to lower brokerage and consolidation and fulfillment results.

Capital expenditures for the third quarter of 2025 totaled $9 million and decreased sequentially due to lower tractor fleet spending. As of September 30, 2025, Hub Group had cash and restricted cash of $147 million. Year-to-date the company returned $36 million to shareholders through dividend payments of $23 million and stock repurchases of $14 million.

2025 Outlook

We expect 2025 diluted earnings per share will range from $1.80 to $1.90. We estimate revenue of approximately $3.6 billion to $3.7 billion for the full year. We project an effective tax rate of approximately 24.5% and capital expenditures of less than $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 October 30, 2025, to discuss our Third 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 at https://register-conf.media-server.com/register/BIe1c47b2f07e74a5c92ae89b678187755 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