Hub Group (HUBG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $915 million, down 8% year-over-year, with diluted EPS flat at $0.44 and net income around $27 million; operating margin improved to 4.1%, up 40 basis points year-over-year, driven by cost controls and operational efficiencies.

• Returned $21 million to shareholders via share repurchases and dividends; quarter-end cash was $141 million.

• Net debt/EBITDA at 0.4x, well below the leverage target.

• Leading North American supply chain provider with diversified customer base and focus on margin enhancement and network optimization.

• Two reportable segments: Intermodal and Transportation Solutions (ITS) and Logistics.

Financial highlights

• Q1 2025 revenue was $915 million, down 8% year-over-year; operating income margin improved to 4.1% from 3.7%.

• EBITDA for Q1 2025 was $85 million; EBITDA less CapEx was $65 million.

• Cash flow from operations was $70 million; ended the quarter with $141 million in cash.

• Capital expenditures totaled $19 million in Q1 2025.

• Purchased transportation and warehousing costs fell by $82 million year-over-year, improving cost ratios.

Outlook and guidance

• Full-year 2025 EPS expected between $1.75–$2.25; revenue guidance of $3.6–$4.0 billion.

• CapEx for 2025 guided at $40–$50 million, focused on tractor replacements and technology; no container purchases planned.

• Effective tax rate estimated at 24%.

• Guidance scenarios depend on China import trends, consumer spending, and potential surcharges.

• Management expects cash on hand and operating cash flows to fund growth and capital needs for the next twelve months and beyond.