Hub Group (HUBG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $915 million, down 8% year-over-year, with operating margin improving by 40 basis points to 4.1% due to cost controls and operational efficiencies.

• Intermodal volumes grew 8% year-over-year, with strong growth in Mexico and the East, offset by lower revenue per load.

• Net income was $26.8 million and diluted EPS was $0.44, both flat compared to Q1 2024.

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

• EASO joint venture/acquisition expanded cross-border capabilities and contributed to margin and volume growth, especially in Mexico.

Financial highlights

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

• EBITDA: $85 million; adjusted EPS: $0.44; cash EPS: $0.55.

• ITS segment revenue: $530 million (down 4% YoY); Logistics revenue: $411 million (down 14% YoY).

• Net debt: $140 million, 0.4x EBITDA; cash at quarter end: $141 million.

• Capital expenditures totaled $19 million in Q1 2025.

Outlook and guidance

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

• CapEx expected 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 competitive pricing.

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