Hub Group (HUBG) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $1 billion, with full-year revenue at $4 billion, reflecting a 6% year-over-year decline.

• Adjusted EPS was $0.48 for Q4 and $1.91 for the full year; GAAP EPS was $0.40 for Q4 and $1.70 for the year.

• Nearly $100 million was returned to shareholders in 2024 via share repurchases and dividends.

• Completed joint venture with EASO/ASO, expanding intermodal presence in North America and Mexico.

• 2025 outlook projects revenue of $4.0–$4.3 billion and EPS of $1.90–$2.40.

Financial highlights

• Q4 adjusted operating margin was 3.9%; full-year margin was 4.0%.

• Adjusted EBITDA for 2024 was $349 million; EBITDA less CapEx was $298 million.

• Ended the year with $127 million in cash and net debt/adjusted EBITDA of 0.5x, below target range.

• Capital expenditures for 2024 totaled $51 million.

• Q4 GAAP operating income was $32 million (3.2% margin); adjusted operating income was $38 million (3.9% margin), up 9% year-over-year.

Outlook and guidance

• 2025 guidance: revenue of $4.0–$4.3 billion, EPS of $1.90–$2.40, and capex of $50–$70 million.

• Intermodal volume expected to grow high single digits; price up low single digits.

• Logistics revenue (excluding Brokerage) to grow low-to-mid single digits; Brokerage volume up mid-single digits.

• Full-year tax rate projected at 25%.

• Earnings expected to dip from Q4 to Q1, then rise through Q3 before a slight Q4 decline.