Universal Logistics (ULH) Q2 2025 earnings summary

Executive summary

• Q2 2025 operating revenues were $393.8 million, down 14.8% year-over-year, with net income of $8.3 million ($0.32 per diluted share), reflecting lower transactional transportation services and the completion of a specialty development project in 2024.

• EBITDA was $56.2 million (14.3% margin), down from $84.8 million (18.4%) in Q2 2024.

• Operating income was $19.9 million, a decrease of $27.2 million compared to the same quarter last year.

• The Parsec acquisition contributed $55 million to Q2 2025 revenues, partially offsetting declines from completed projects and closed operations.

• Cost management, efficiency initiatives, and strategic sales investments are ongoing to position for long-term growth.

Financial highlights

• Q2 2025 operating margin was 5.1%, down from 10.2% in Q2 2024.

• EPS for Q2 2025 was $0.32, down from $1.17 in Q2 2024.

• Cash and cash equivalents at quarter-end were $24.3 million, with $9.9 million in marketable securities.

• Outstanding debt stood at $798.6 million, with capital expenditures totaling $84.3 million for the quarter.

• Purchased transportation and equipment rent costs dropped 40.6% in Q2 2025, while direct personnel costs rose 24.0% due to Parsec acquisition.

Outlook and guidance

• Q3 2025 revenue expected between $390–$410 million, operating margin 5–7%, EBITDA margin 14–16%.

• Full-year 2025 revenue guidance is $1.6–$1.7 billion, with margins similar to Q3 guidance.

• Capital expenditures for 2025 expected at $100–$125 million for equipment and $50–$65 million for real estate.

• Interest expense forecasted at $48–$51 million for the year.

• Management expects to fund near-term working capital and capital expenditures with existing cash, operations, and credit facilities, but notes that prolonged inflation or further declines in cash flow may require additional financing.