Hub Group (HUBG) investor relations material

Executive summary

• Preliminary 2025 results delayed due to a $77 million understatement in purchased transportation costs and accounts payable, requiring restatements for earlier 2025 quarters; no expected impact on cash, cash equivalents, or operating cash flow.

• Full year 2025 revenue expected at $3.7 billion, down from $3.9 billion in 2024, aligning with prior guidance.

• 2025 marked by challenging market conditions, stable demand, and oversupply of capacity; focus remained on cost control, service, and strategic investments.

• Intermodal volume up 1% in Q4 year-over-year, with strong operating cash flow and disciplined capital allocation.

Financial highlights

• Preliminary 2025 consolidated operating revenue expected at $3.7 billion, a 7% decrease year-over-year.

• ITS segment operating revenue expected at $2.2 billion for 2025, with Q4 intermodal volume up 1% YoY and revenue per load flat.

• Logistics segment operating revenue expected at $1.6 billion, with a high single-digit YoY decrease in Q4.

• Preliminary operating cash flow for 2025 was approximately $194 million; CapEx at $45 million.

• Net debt at year-end 2025 was $116 million, down $50 million from prior year; $44 million returned to shareholders via dividends and repurchases.

Outlook and guidance

• 2026 revenue projected between $3.65 billion and $3.95 billion; CapEx expected between $35 million and $45 million.

• ITS segment revenue expected to be driven by intermodal volume growth; dedicated performance to be slightly lower due to lost sites.

• Logistics revenue (excluding brokerage) expected to recover through new business wins; brokerage to face continued volume pressure.

• No container purchases planned for 2026.