Hub Group (HUBG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $986 million, down 5.2% year-over-year, with net income of $29 million and diluted EPS of $0.47, compared to $47 million and $0.72 in Q2 2023.

• Intermodal volume grew 8% year-over-year, with Local East up 26% and Mexico up 60%; Final Mile and LTL contributed to Logistics growth, offsetting Brokerage softness.

• Operating income was $40 million (4.0% margin), down from $62 million (6.0%) in Q2 2023.

• $48 million returned to shareholders in the first half via $15 million in dividends and $33 million in stock repurchases.

• Strong balance sheet with $220 million in cash and net debt/EBITDA of 0.3x as of June 30, 2024.

Financial highlights

• Q2 2024 revenue was $986 million, down 5.2% year-over-year; operating income was $40 million (4.0% margin); diluted EPS was $0.47.

• ITS revenue was $561 million, down 9% year-over-year; Logistics revenue grew 1% to $459 million, driven by Final Mile.

• Q2 2024 EBITDA (non-GAAP) was $89 million; net income margin was 2.9%.

• Cash and cash equivalents stood at $220 million; total debt was $315 million.

• Q2 capital expenditures were $14 million; year-to-date CapEx was $31 million.

Outlook and guidance

• 2024 revenue guidance is $4.0–$4.3 billion; full-year diluted EPS expected between $1.75 and $2.05.

• Intermodal volume growth projected in high single digits, but pricing expected to be down mid-single digits.

• Logistics revenue to grow mid to high single digits, with brokerage volume up low single digits but pricing challenged.

• 2024 capital expenditures forecasted at $45–$65 million.

• Guidance assumes continued competitive pricing and market headwinds, with upside if restocking or peak season outperforms.