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Jun 30, 2025
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.
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.
Historical Earnings Impact
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