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Jun 30
Hub Group Q2 2025 Earnings Report
Hub Group's Second Quarter 2025 earnings were impacted by lower revenue per unit in intermodal and brokerage, decreased fuel revenue, and sub-seasonal demand across segments, leading to a decrease in consolidated revenue compared to the prior year.
Key Takeaways
Hub Group reported a consolidated revenue of $905.6 million for the second quarter of 2025, an 8% decrease from the prior year. GAAP diluted EPS was $0.42, with adjusted EPS (non-GAAP) at $0.45. Operating income stood at $34 million, or 3.8% of revenue, while adjusted operating income (non-GAAP) was $36.9 million, or 4.1% of revenue. The company maintained a strong balance sheet with a net debt/EBITDA LTM of 0.3x.
Consolidated revenue for Q2 2025 was $905.6 million, an 8% decrease from $986.5 million in Q2 2024.
GAAP diluted EPS for the second quarter was $0.42, with non-GAAP adjusted EPS at $0.45.
Operating income was $34 million (3.8% of revenue), and adjusted operating income (non-GAAP) was $36.9 million (4.1% of revenue).
Net debt/EBITDA LTM (non-GAAP) was 0.3x as of June 30, 2025, which is below the target leverage range.
Hub Group
Hub Group
Hub Group Revenue by Segment
Revenue by Segment
Intermodal & Transportation Solutions Revenue
CapyFin.comLogistics Revenue
CapyFin.com Forward Guidance
Hub Group expects 2025 diluted earnings per share to range from $1.80 to $2.05 and full-year revenue to be approximately $3.6 billion to $3.8 billion. Capital expenditures are projected to be between $40 million and $50 million for the full year, with an effective tax rate of approximately 24.5%.
Positive Outlook
- Expected diluted EPS range of $1.80 to $2.05 for 2025.
- Anticipated full-year revenue of $3.6 billion to $3.8 billion.
- Supportive of the proposed Union Pacific and Norfolk Southern combination, which is seen as a catalyst for long-term growth.
- Transcontinental network removes friction in gateways, reduces transit times, and provides access to new markets.
- Increased competition with truck volume through new single-line service.
Challenges Ahead
- Market conditions remain challenging.
- No specific negative forward guidance points were explicitly stated beyond general market challenges.
- No specific negative forward guidance points were explicitly stated beyond general market challenges.
- No specific negative forward guidance points were explicitly stated beyond general market challenges.
- No specific negative forward guidance points were explicitly stated beyond general market challenges.