Hub Group (HUBG) investor relations material

Executive summary

• Q2 2025 revenue was $906 million, down 8% year-over-year, with adjusted EPS of $0.45 and net income of $25 million; margin improvement driven by cost controls and insurance savings.

• Strategic actions included the acquisition of Marten Intermodal assets and a controlling interest in EASO, expanding cross-border and temperature-controlled capabilities.

• Cost reduction initiatives raised the target to $50 million, with over half realized by Q2.

• Robust cash flow and a strong balance sheet supported $29 million returned to shareholders via dividends and buybacks in the first half.

• Ongoing investments in technology, fleet, and warehouse equipment position the company for long-term growth.

Financial highlights

• Q2 2025 revenue was $906 million, down 8% year-over-year; adjusted operating income was $37 million (4.1% margin), and adjusted EBITDA was $85 million.

• Adjusted EPS was $0.45, down from $0.47–$0.52 in Q2 2024; net income was $25 million.

• Cash flow from operations was $132 million in H1 2025; capital expenditures totaled $30 million in H1 and $11 million in Q2.

• Ended Q2 with $164 million in cash and net debt/adjusted EBITDA at 0.3x, well below the target range.

• Purchased transportation and warehousing costs fell 10% year-over-year, improving as a percentage of revenue.

Outlook and guidance

• Full-year 2025 EPS expected between $1.80 and $2.05; revenue guidance set at $3.6–$3.8 billion.

• Capital expenditures projected at $40–$50 million, focused on technology and tractor replacements.

• Effective tax rate projected at 24.5%.

• Guidance midpoint lowered due to muted brokerage recovery and conservative surcharge assumptions; upside possible if new business ramps as planned.

• Risks to outlook include inflation, consumer spending, transportation supply, and competitive pricing.