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, reflecting lower customer rates and accessorial revenue, partially offset by cost reductions and acquisition benefits.

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

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

• $48 million was returned to shareholders year-to-date 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; net income was $29 million, and diluted EPS was $0.47, down from $0.72 in Q2 2023.

• Operating income for Q2 2024 was $40 million (4.0% margin), down from $62 million (6.0%) in Q2 2023.

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

• Cash and cash equivalents at quarter-end were $220 million; total debt was $315 million.

• Six-month 2024 revenue was $2.0 billion, down from $2.19 billion in 2023; net income for six months was $56 million, down from $108 million.

Outlook and guidance

• 2024 revenue guidance is $4.0–$4.3 billion, with diluted EPS expected between $1.75 and $2.05.

• Intermodal volume growth projected at high single digits, with pricing down mid-single digits; Dedicated revenue to grow low single digits.

• Logistics segment expects mid- to high-single digit revenue growth; excluding Brokerage, Logistics revenue to grow low- to mid-double digits.

• 2024 capital expenditures projected at $45–$65 million, focused on fleet, technology, and warehouse equipment.

• Guidance could trend higher if restocking, peak season, or truck-to-intermodal conversions accelerate.