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Hub Group (HUBG) investor relations material

Hub Group Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary30 Oct, 2025

Executive summary

  • Third quarter 2025 revenue was $934 million, down 5% year-over-year, with net income rising 23% to $28.9 million, driven by cost controls and improved intermodal margins despite softer demand in freight markets.

  • Adjusted diluted EPS was $0.49, with adjusted operating income of $41 million (4.4% margin), and adjusted EBITDA of $88 million.

  • Acquisitions of Marten Transport Intermodal, SITH LLC, and EASO expanded scale in higher-margin, temperature-controlled, and cross-border segments, supporting growth and diversification.

  • Cost reduction initiatives, automation, and technology investments drove productivity gains and margin resilience across business lines.

  • Ended the quarter with $147 million in cash and net debt/EBITDA of 0.4x, well below the leverage target.

Financial highlights

  • Q3 2025 revenue was $934 million, down 5% year-over-year; adjusted EPS was $0.49, and net income attributable to shareholders was $28.6 million.

  • Adjusted operating income was $41 million (4.4% margin), up from 4.2% in Q3 2024; adjusted EBITDA was $88 million.

  • Cash flow from operations for the first nine months was $160 million; capital expenditures for Q3 were $9 million, focused on technology and warehouse equipment.

  • Returned $36 million to shareholders year-to-date via $23 million in dividends and $14 million in share repurchases.

  • Net debt was $136 million, or 0.4x adjusted EBITDA, with $147 million in cash and restricted cash at quarter end.

Outlook and guidance

  • Full-year 2025 EPS expected at $1.80–$1.90 and revenue at $3.6–$3.7 billion; Q4 guidance tempered due to muted demand and low visibility.

  • Capital expenditures for the year expected to be under $50 million; effective tax rate projected at 24.5%.

  • Sequentially lower adjusted EPS anticipated in Q4; achieving upper guidance range depends on a strong peak season finish.

  • Management expects sufficient liquidity for growth, with $120 million in cash and $449 million in available credit.

  • Risks include inflation, consumer spending shifts, competitive pricing, and macroeconomic uncertainty.

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Frequently asked questions

Hub Group Inc provides transportation management, logistics, and supply chain solutions across North America. Its services include intermodal, truck brokerage, dedicated trucking, and warehousing. The company serves retail, consumer goods, and industrial clients through an integrated platform supported by technology and owned assets. The company is headquartered in Oak Brook, Illinois, and its shares are listed on the NASDAQ.

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